Chapter 43
Chapter 43
Translation: Godtl
[LK Group Faces Largest-Ever Raid. Former Chairman Oh Dong-young to Be Indicted.]
The moment Kangsung Group stepped in, the long-rumored investigation into LK Group finally gained momentum. Whether it was mere coincidence or Kangsung Group truly pushed the prosecution's back, the government had drawn its sword.
As a result, LK Group—which had been holding out stubbornly—finally raised the white flag.
They reached a final agreement to hand over LK Tower to Gwangun.
"I wondered how long they'd keep resisting. So it's come to this after all."
"LK Group held out for quite a while. They must be scrambling right now, injecting the 2 trillion won they got from us here and there to keep the blood flowing."
The might of Kangsung Group was truly formidable.
To think they toppled LK Group in one fell swoop—a company that had built fortress walls and entrenched itself in ironclad defense.
"When attacks suddenly pour in from all sides—media, political circles—it's terrifying even when you're not the one being targeted. I almost feel sorry for them. I guess this is what Kangsung Group's power looks like."
"Exactly. There's a reason people call it the Kangsung Republic."
Had Kangsung not intervened, how would this battle have ended?
Most likely, it would have dragged on endlessly, with only Gwangun Securities taking the full brunt of the damage.
"But doesn't it scare you? The fact that our department head orchestrated everything from start to finish to turn out this way."
From predicting LK Group's management dispute and buying up shares, to flipping them for triple the value and seizing LK Tower as collateral, and even extorting the funds needed for LK Tower's acquisition from none other than Baekje Hotel.
"At first, I thought maybe it was just luck... But I heard it was our department head who made Baekje Hotel cough up 2 trillion won this time?"
"Yep. Whether it was Kangsung or LK, they were all dancing on the department head's palm. Heh."
"That's seriously chilling. What kind of mind does it take to pull off swallowing LK Tower? And with a securities firm, no less?"
"Tsk. Don't even try to understand. He's operating on a level far beyond what we can comprehend."
Back when he first joined the Prime Department,
Section Chief Seo had said something.
That working under Department Head Jeong Jin-ho would make every day spectacular.
And it was true.
"Good morning, everyone."
"Welcome, Department Head!"
What would he use to excite us today?
That was always the question—and the anticipation.
"Before the meeting starts, could someone bring me materials on Kangsung Electronics?"
"...Huh? K-Kangsung Electronics?"
"Yes. How much their stock would drop, what kind of incident would trigger it—details like that. As thorough as possible."
"Y-yes. Understood."
"Let me know once it's ready."
The entire department froze.
"D-did he just ask for Kangsung Electronics materials?"
"H-he can't possibly be targeting Kangsung Electronics this time... right?"
Kangsung Group is the one currently dismantling LK Group the moment they got a case.
And now he's asking for materials on their core electronics division?
This doesn't bode well.
"Just as Section Chief said—every day really is spectacular."
"Now with an added thrill..."
After witnessing so many things while working under Department Head Jeong Jin-ho, they thought nothing could surprise them anymore.
They were wrong.
Section Chief Seo gulped dryly, his heart pounding like a drum.
＊＊＊
"The backlash in Europe over Brexit is intense. Every day, they're issuing aggressive statements."
"Britain's already started identifying and deporting all immigrants. They're saying they'll fill jobs only with British citizens."
"The problem is, companies are actually cutting jobs because of rising labor costs. This trend is spreading faster than expected—even the UK government seems flustered."
Brexit was never a good choice.
This is something everyone will say—now and in the future.
In other words, Brexit was a flawed decision born from the tangled frenzy and emotions of the masses.
"That's democracy for you. Even if it's the wrong decision, if the majority wants it, you have to follow through."
Though they hadn't officially left the EU yet,
The side effects were already erupting here and there, leaving even the British government seemingly flustered.
They were scrambling to plug the holes somehow, but Brexit was already a publicly declared decision—
There was no turning back.
Britain would likely regret Brexit for years to come.
"What about the materials I requested?"
"Ah, yes. Here they are."
Today, the employees seemed unusually tense.
I took the documents and skimmed through them.
"So, the K7 model is doing well, I see?"
"Yes. The reviews are excellent. Pre-orders have been pouring in at an astonishing rate. It launched yesterday, and everyone says it's a truly well-made phone."
The documents were filled with nothing but good news for Kangsung Electronics.
Not only had domestic pre-orders been a massive success, but overseas sales were also skyrocketing.
If this trend continued, it looked like Kangsung Electronics would hit its highest sales record yet.
But why did it happen back then?
A few days ago, my younger sibling had brought over a K7 phone.
At the time, an excessive spark had startled me, making me drop it—killing the phone on the spot.
Maybe that was why I hadn't felt anything unusual when touching the shattered device afterward.
Was it just that particular phone that was defective?
Had I known this would happen, I should've bought one myself.
Right now, stock was so limited that unless you pre-ordered, getting one was nearly impossible.
"Ah! Department Head. I actually switched to the K7 recently. Would you like to take a look?"
Just then, Hye-rin waved her newly replaced phone at me.
She had already decorated it with character accessories and stickers, making it look cute.
"Mind if I take a quick look?"
"Of course~!"
I reached for the phone but hesitated for a moment.
If another intense spark shot out like before, this phone might meet the same fate.
Prepare yourself.
Carefully, I took the phone from her.
"...Hmm?"
Had I been unnecessarily nervous?
When I actually held it, I didn't feel anything unusual.
Maybe that other device had been the only one with issues.
"Eh? You switched to that phone too, Assistant Manager? I have the same one."
Just then, Section Chief Seo pulled out his phone from beside me.
Wait a second. Could it be...?
"Section Chief."
"Ah, yes. Department Head."
"Mind if I take a quick look at yours too?"
"Yep. Here you go."
Zap—!
The moment my finger touched the phone Section Chief handed me, a powerful spark jolted through my entire body.
The phone inevitably clattered onto the table.
"Oof. My apologies, Department Head. Must've been my slippery hands."
"No, I'm the one who should apologize. Is the phone okay?"
"Ah, yes. It's got a case and tempered glass, so it's perfectly fine."
While I felt nothing from that phone, this one sent a violent spark through me.
Could this be a defect in the device?
But this spark was far stronger than anything during Dieselgate.
Before the sensation faded, I reached out and placed my hand over Kangsung Electronics' stock listing.
"...!"
The fading numbness surged back to life.
That was when I became certain.
There's something wrong with this model!
I wasn't sure exactly what the issue was,
But the phone Section Chief was holding definitely had a problem.
"..."
I checked the positions we had invested in.
We'd been holding onto them for a while now.
Had the time finally come to cash out?
A signal I hadn't felt in a long time pulsed at my temples.
The seeds I'd sown were ready to be harvested.
"Let's withdraw all the funds we've spread across Europe. How much can we expect?"
"Even after deducting fees and taxes... roughly 50%."
"Wow—"
"Five hundred billion...?"
Around 500 billion.
An astronomical sum.
Without these rare big events, achieving such returns would've been nearly impossible.
"Section Chief Seo. By any chance, is the reason you're suddenly recalling funds... to invest in Kangsung Electronics?"
"Yes. You know me well."
"Hoh, could it be a long position?"
"No."
"...!"
Section Chief Seo clenched his eyes shut upon hearing my words.
I thought he might oppose the idea, but that wasn't the case.
"Short selling with 1.5 trillion won would be difficult. But through securities lending, I'll investigate how much we can realistically position."
"Yes, please do that."
Just then, as Section Chief Seo was about to move to carry out the instructions, I stopped him.
"Wait a moment, Section Chief."
"Yes?"
"Earlier, because of me, you dropped your phone, didn't you?"
"Ah, yes. But that's alright."
"No, it's not alright for me. Would it be alright if I bought you a new phone?"
"Eh? I-It's really fine..."
"I've been meaning to give you a small gift anyway, considering how much I owe you."
The Section Chief looked at me with startled eyes.
"A-A gift? From you to me?"
"I heard Kangsung Electronics is selling a special edition gold-plated phone. Though it's not the latest model but the previous one... Would that be acceptable?"
It was the previous model, after all.
I worried he might dislike it.
But the Section Chief was grinning from ear to ear.
"If it's a gift from you, Chief, it would be my family's honor. I'll preserve it as a family heirloom."
"Goodness. There's no need to go that far."
"Haha. But... am I the only one receiving this?"
"Of course. It's my special gift just for you, Section Chief, so please use it properly?"
"Thank you, Chief! I'll use it until the day I die!"
The Section Chief returned to his seat, beaming with joy.
I hadn't expected him to be this pleased.
I should get it replaced for him as soon as possible.
That phone... it's just too unsettling.
Though it might be nothing.
＊＊＊
Kangsung Electronics' new smartphone model, the K7, had received excellent reviews both domestically and internationally during pre-release testing.
Now officially launched, it was selling like hotcakes worldwide.
"We're already sold out. Pre-orders have filled up completely, and we're rapidly increasing production."
"At this rate, it might surpass all previous sales records?"
"Yes. If this momentum continues, it'll likely set the company's highest sales record since its founding."
"Positive market sentiment has already boosted our stock price by over 10%. Some are predicting it might truly hit 200,000 won per share."
Kangsung Electronics' stock price, which had reached 1.7 million won, now had 2 million won in its sights.
If this positive trend continued, that figure wasn't impossible.
"Keep monitoring the market situation. And don't hold back on marketing expenses. Particularly highlight both the sales figures and performance specs to stimulate purchase desire."
"Yes, Chairman."
Chairman Kangsung-ho let out a sigh of relief.
There had already been so much talk about illegal succession and whatnot.
Doubts about Chairman Kangsung's leadership had been rampant.
One saving grace was that LK Group's noisy infighting had overshadowed Kangsung Group's succession issues.
Moreover, Gwangun Securities' involvement had further muddied the waters, diverting much of the criticism away from Kangsung Group.
In fact, they'd deliberately let the situation escalate.
The more criticism was directed at LK Group, the less attention people would pay to Kangsung Group's succession problems.
'While 2 trillion won was somewhat regrettable to lose, we gained the top position in the hotel sector, crushed LK Group, and most importantly, people stopped paying attention to our issues. It worked out well in the end.'
Though he wasn't entirely pleased that Gwangun Securities had sat back and filled their coffers, this outcome was mutually beneficial.
He hadn't expected his first major test as chairman—the K7—to sell this well either.
If the stock price hits 2 million won and the next model succeeds too, no one will dare question Kangsung's leadership anymore.
"Chairman, there's one matter I need to report."
The president of Kangsung Securities, who had attended the executive-level meeting, remained seated alone after everyone else had left.
"What is it?"
"Well... There's currently a rumor circulating in financial circles that I thought you should be aware of."
"A rumor?"
"Yes. Word is that someone has placed a massive short position against Kangsung Electronics."
Chairman Kang Sung-ho narrowed his brow.
A short position meant there were forces questioning Kangsung's leadership.
But this decision didn't quite make sense to him.
Betting on a short position now? When Kangsung Electronics was performing this well?
"The K7's reception has been outstanding. Are you saying they shorted us despite knowing that?"
"Yes. We can't pinpoint exactly when the short position was opened, but it's definitely been placed recently. The Korea Exchange tracks daily short sales, and the volume has spiked over the past few days."
"And it's specifically targeting Kangsung Electronics?"
"Yes. Comparing it to our own sell-off volume confirms it."
Short selling is an anonymous trade.
Moreover, with a company like Kangsung Electronics—where foreign and institutional investors hold significant stakes—it's impossible to tell at first glance whether a sell-off is simply profit-taking or an actual short position.
To determine that, one must cross-check with the short-selling data disclosed by the Korea Exchange.
"Can we find out who's behind it?"
"That's difficult to ascertain immediately. Short sales are conducted anonymously, and they're likely using securities lending through multiple institutions and brokerages. Tracking them down will take some time."
"I heard there were regulatory changes coming for short selling. Has that not taken effect yet?"
"There's a new mandate requiring disclosure if short positions exceed 0.5%, but it won't come into force until mid-year or next year. Even if it were in place, hiding identities through securities lending would still be easy."
Chairman Kang exhaled sharply and stroked his chin.
Someone was making a sacrificial offering—and it was irritating, but honestly, it didn't seem worth his attention.
"Why not just leave them be? If the stock price rises, they're the only ones who'll lose. We're riding nothing but positive momentum right now."
Kang Sung-ho had a decent grasp of finance himself.
If a short position backfires and the stock surges, the other party risks a margin call—or worse, forced liquidation.
"That's true, but... I brought this up because I thought we might use them to pump the stock price even higher."
"Pump the stock further?"
Now that was intriguing.
"Yes. Borrowing shares to short sell en masse is a tactic to conceal both identity and position. If their position is exposed, they'd be vulnerable to attacks from all sides."
Securities lending—where brokers facilitate short selling by loaning out shares—makes it easy to hide positions and identities.
More importantly, shorting in large volumes is difficult with just the shares circulating in the market, so they rely on securities lending to secure the necessary volume.
But why would institutions agree to lend shares?
Because they stand to lose nothing—they just collect fees.
"However, we can quietly spread the word. Let it be known that a major player has taken a massive short position against Kangsung Electronics."
"And that would work?"
"Kangsung Electronics is riding consecutive positive developments, driving the stock price up, isn't it? If someone shorts us now, they'll inevitably face a margin call once the price hits a certain level."
And if they can't meet the margin call pressure, they'll be forced to liquidate—meaning they'll have to buy back shares at the current price.
After all, they'll need to return what they borrowed.
"That's why short squeezes exist. Pump the price high enough to force liquidation and profit from their losses."
A smirk tugged at Kang's lips.
To think someone would be reckless enough to make such a gamble against Kangsung Electronics.
"This could be fun."
"Shall we proceed?"
"Yes. I don't know who these players are, but let's make sure they regret it—spectacularly."
"Understood, Chairman."
After the securities president left, Chairman Kang leaned back in his chair.
Should he find out who it was?
No. There was no need.
Once the world's hunters converged to tear that fool apart, the news would surface on its own.
Forced Liquidation: [REDACTED] Goes Bankrupt!
Something like that.