Chapter 50
Chapter 50
Translation: Godtl
What exactly is short selling?
It's borrowing stocks.
So does that mean you have to pay money to do it?
Not exactly.
You only need to put up margin to borrow the stocks.
You borrow the stocks at a high price, sell them on the market, hold onto the cash you secure from that sale, and then—when the stock price drops—buy them back at the lower price to return them.
If it was certain that a particular stock would hit rock bottom, there was no easier way to make money than this.
All you had to do was put up the margin and pay the fees to execute the trade.
But what if the stock you expected to fall suddenly started rising?
Then a margin call would be triggered, forcing you to deposit even more margin.
And what if, beyond that, the price skyrocketed to the point of absurdity?
That would be the day you faced forced liquidation.
"Chief, here's the data you requested on Neriot Fund."
"Ah, yes. Thank you."
The Neriot Fund currently operating in Korea originated from Neriot Asset Management.
The scale of assets they were maneuvering amounted to 30 trillion won.
Neriot was an infamous activist fund, notorious for exploiting corporate weaknesses and loopholes to generate profits.
They were the type to pounce without hesitation on any company—whether it was Kangsung Group or any other—that showed vulnerability, regardless of whether it was a corporation or even a nation.
"They have hundreds of lawsuits pending against them. If something doesn't suit them, they just slam a lawsuit right away."
"Because winning is great, but even if they lose, they can still hassle the other side?"
"Exactly. They're basically a company of troublemakers. On top of that, they're skilled at media warfare. They claim everything they do is for shareholder value, but when you dig deeper, they're the ones stabbing people in the back."
It was impossible to know exactly how much Neriot had invested in Korea.
Since they operated globally, their 30 trillion won was likely scattered all over the place.
The best guess was that only a few hundred billion had been invested domestically.
"And all that money is concentrated in Hanjong Shipping?"
"It's unclear whether they've fully established their position or are still in the process. But one thing's certain—they're gradually building their stake."
Hanjong Shipping's market capitalization had once reached a staggering 5 trillion won.
But now, it had plummeted to 3 trillion.
"From Hanjong Group, which controls Hanjong Shipping, to institutional investors—everyone's dumping their shares, and that's why this mess happened. 3 trillion is just the beginning. It'll drop to 2 trillion in no time, and after that, it's practically a delisting. Hanjong Group seems to want that too."
If you were a manager with controlling rights—if you were the owner of this company—you should bear the responsibility that comes with it.
At the very least, for the sake of the investors who trusted you and put their money in.
But Hanjong Group had no intention of protecting Hanjong Shipping.
They just wanted to offload their shares as quickly as possible, let the company collapse, push it into receivership, and drive it into bankruptcy—all to protect their own financial interests.
"I don't know if Neriot is really colluding with Hanjong Group in some high-stakes scheme, but it's not just Neriot—Hanjong Group is just as bad. The captain abandoned ship faster than anyone else."
This was a common phenomenon in subsidiaries abandoned by their parent companies.
The group, which had an obligation to protect the company for the sake of shareholders and creditors, secretly sold off all its controlling shares, then clammed up and pretended to know nothing.
And to the government, they'd whine that they didn't have the strength to manage the company anymore, so whether it lived or died, they'd leave it to fate.
Then the government would pour taxpayer money into reviving the company—a heartbreaking reality in our country.
"But judging by how they're still secretly disposing of their controlling shares, it seems they've already settled things with the government. If the government were to step in with life support, they'd be stuck dealing with the debt tied to it. So they'd rather push it into bankruptcy to minimize the damage."
"Then it's only the creditors and shareholders who'll suffer."
"Yes. It seems only Neriot and Hanjong Group are getting all the good deals."
Of course, Hanjong Group would claim they had no connection with Neriot, but judging by circumstantial evidence, the two were practically in cahoots.
'This is strange.'
Looking through the reports the employees brought in regarding Hanjong Shipping, everything seemed to be glowing blue like this.
But the moment I tried to press the buy button, I felt nothing.
'Does this mean it's not the right timing to buy yet?'
As I was lost in thought—
Buzz—
"They sent another one..."
I slightly furrowed my brows at the name flashing on my phone notification.
"Must be another promotional message, I suppose."
"Ah, no. It's not that. Lately, someone's been sending me messages nonstop. It's a bit overwhelming."
"Who dares to bother the department head like this?"
"Chairman Kang of Kangsung Group."
"...Excuse me?"
Section Chief Seo blinked rapidly, as if his brain had momentarily short-circuited.
Ever since returning from Japan to Korea, Chairman Kang had been texting me almost daily.
Truthfully, the messages weren't substantial—ranging from asking if I'd reconsidered what we discussed earlier to updates on how he was handling Jintetsu Group.
My first impression of him was that he'd be stern and reserved, but I hadn't expected him to be this affectionate.
I wondered what he'd sent this time.
Just as I was about to check—
"...?"
A sharp intuition I hadn't felt in a while surged from my phone, shooting straight up to the crown of my head. Wait. Is this phone about to explode— No, that couldn't be.
It probably wasn't the phone itself but rather Chairman Kang, who had just messaged me.
'If that's the case...'
I snapped Section Chief Seo out of his daze.
"Chief. Chief?"
"Huh? Ah, y-yes. D-did you call for me?"
"If it's Chairman Kang Sung-ho, he must really hate Neriot, right?"
"More than hate—he probably grinds his teeth at the mention of them."
I figured as much.
After all, it was Neriot that had shaken Kangsung Group.
'I didn't want to call him because it'd be awkward...'
But my instincts were ringing alarm bells in my head, urging me to make the call immediately.
With no other choice, I pressed the call button.
＊＊＊
"Hm?"
Had he misread something?
There weren't many people who could call Chairman Kang Sung-ho directly.
Even executives didn't have his personal number—they had to go through his secretary.
Yet, Chairman Kang's phone was ringing.
And on the screen was a name he was glad to see.
He answered immediately, as if afraid the call might drop.
"To what do I owe this? You calling me first?"
[Yes. You've been reaching out to me often, so I thought it'd only be right for me to return the courtesy.]
"So can I get my hopes up? Did you change your mind?"
[No. That's probably never going to change.]
Well, he hadn't expected that anyway.
In fact, if I had changed my mind, Chairman Kang would've been disappointed.
"Then what about what I asked last time? I asked if you were seeing anyone, and you said no. I even offered to introduce you to someone, but you flat-out refused?"
[...I'll have to decline that as well.]
"Tch. You're like a fortress. So why'd you call?"
[Just wanted to vent a little.]
Vent?
Of all people, calling the chairman of Kangsung Group—during what should be his busiest hours—just to vent? There was no one else like this guy.
[You know Hanjong Shipping's in turmoil right now, right?]
"Of course. From what I've seen, the angles are lining up. I heard Hanjong Group's already selling off their shares to sink Hanjong Shipping and wipe the slate clean. But why bring that up?"
[I'm thinking of jumping in there this time.]
"What? You're going to dive into a sinking ship?"
It made no sense.
Hanjong Shipping was steadily heading toward bankruptcy, just as Hanjong Group had planned.
Why on earth would you stick your foot in a place like that?
Kangsung Chairman nearly asked if Jin-ho had so much money he didn't know what to do with it that he'd throw it away there, but he held back.
This was Jeong Jin-ho he was dealing with.
Not the type to do something foolish without reason.
[Have you heard about the forces that placed massive short positions on Hanjong Shipping?]
Only then did the Chairman grasp Jin-ho's true intentions.
He was aiming to devour those who'd shorted the stock by triggering a short squeeze.
Just like the hunters who'd once swarmed Kangsung Electronics.
"Not particularly interested. And it won't be easy, will it? The group's already abandoned that subsidiary. Once they've decided to push it into bankruptcy, there's no stopping that acceleration. You might end up getting burned instead."
[Chairman, would you like to know who's holding those short positions right now?]
"I already told you I'm not curious. Feels like you're trying to drag me into this mess, and frankly, I don't have the bandwidth to—"
[Neriot.]
"...What?"
[The ones shorting Hanjong Shipping right now are Neriot, Chairman.]
"!?"
A spasm flickered across his face.
Just hearing that name made his skin crawl.
Remembering the hell they'd put him through made his fists clench involuntarily.
And wasn't that pack of jackals infamous for ravaging not just Kangsung but every major corporation in the country?
"So those sons of bitches are still running wild in our backyard, huh."
[Yes. If anything, they're worse now than before.]
The mere mention of their name made his heart pound and his pulse throb—proof the old fury still burned hot.
Of course it did.
He'd only ever taken hits from them. Never returned the favor.
"Director Jeong. You called me about this on purpose, didn't you?"
[Honestly, I could handle this alone. But I figured—given how much you've got piled up against Neriot—you might want in.]
"So you called out of consideration for me?"
[Exactly.]
"Even though I know damn well that's lip service, strangely enough, it feels good."
Still, had Jin-ho not reached out, he'd never have known Neriot was scheming something sinister right now.
"Alright. Let me look into this first. I'll call you back."
[Understood.]
"Ah, and about that woman I mentioned introducing you to last time—"
[Goodbye!]
Click.
Didn't take the bait, huh.
Fine.
This deal would give them plenty of reasons to talk later.
"Manager Kim."
"Yes, Chairman?"
"Dig deep on Hanjong Shipping immediately. There's talk Neriot Fund's behind this—verify if it's true."
"Ah, yes. I'll get right on it."
Suddenly his fingers itched and his blood boiled.
Neriot, of all names.
Buried under work, he'd almost forgotten about those bastards.
He'd wanted payback but couldn't touch a foreign fund—until Jin-ho kindly handed him their location.
If they were truly lurking behind Hanjong Shipping, he'd carpet-bomb their position until they writhed in agony.
Revenge always tasted sweet.
"Got you now, you fuckers."
Wasn't there a saying about this?
Repay kindness twofold.
But vengeance? A hundredfold!
＊＊＊
After their last call, two days passed without contact.
Just as Jin-ho began wondering if the Chairman had lost interest—
[When are you making your move?]
The call finally came.
"Have you made up your mind, then?"
[If it means tearing those bastards limb from limb, is there anything I wouldn't do? Just give me the entry timing. I'll back you solidly.]
Judging by his tone, the two-day silence was likely spent setting the board.
"One moment."
Jin-ho navigated to the Hanjong Shipping ticker, hovering his cursor over the buy button.
"...!"
A trader's intuition—absent till now—pierced his mind like an arrow.
"Can we enter right this second?"
[Feeling bold. Good. We just need to light the fuse. If you're doing it, do it now.]
"It seems you've prepared quite thoroughly."
[We've only prepared things that'll give those Neriot bastards a real shock. And it's not just our Kangsung Group that holds a grudge against Neriot.]
It seemed Chairman Kang Sung-ho had pulled in other companies with grievances against Neriot to ensure their complete downfall.
[Anyway, if you're going to move, move fast. We'll be triggering our side immediately.]
After hanging up with Chairman Kang, I swiftly exited the department head's office.
"Everyone!"
"...?"
The employees enjoying their tea time startled and turned toward me in unison.
"Buy up all available Hanjong Shipping stocks on the market. Right now."
"...Yes, sir!!"
They abandoned their tea and scrambled back to their stations to begin accumulating shares.
Meanwhile, I kept my eyes glued to the news ticker.
Just what are they planning to unleash?
＊＊＊
People always point fingers at Neriot.
Calling them backstabbers who only know how to plant knives in people's backs.
But that's just ignorance about the true nature of financial markets.
The financial market is a wilderness.
The moment someone shows weakness, even if it's the mightiest beast, it gets torn apart by the hyenas that swarm in.
Neriot simply follows this law of the jungle to the letter.
And this method happens to be the easiest way to make money too.
They might get cursed at, but seeing those daily rising profit margins made all the insults worthwhile.
Money reigns supreme.
"Now we just need to time closing our Hanjong Shipping positions right?"
"Exactly. They're sinking much faster than expected."
"The owner has no intention of saving the company anyway."
This was why Neriot always profited.
For activist funds, Korea was such an easy market.
"This is Korea's problem. The owner risk is too high. They won't spend a single penny of their own assets, just waiting for the government to bail them out?"
"And if that doesn't work, they'll just abandon it completely."
Korean companies have no intention of protecting shareholders.
They're solely obsessed with protecting the owners.
That's what makes them easy targets.
Beep-
Then a short warning tone sounded.
The alert indicating Hanjong Shipping's stock price had risen.
"Huh? Why's the price going up?"
"Probably some clueless idiots buying."
"That must be it."
"Right. Any rise will be temporary."
But the speed of the rise was unusual.
Beep- beep- beep-
"Hey, hey. What's—what's happening?"
"Why's the stock surging like this? Is there some positive news?"
What possible good news could there be for a dying company?
Yet astonishingly, there was.
[Jintetsu Group. Expected to sign major shipping contract with Hanjong Shipping. A lifeline for the struggling company?]
"Wait. What is this? Why would Jintetsu suddenly make a deal with Hanjong? Are we spreading this?"
"No. We scrapped that plan last time."
"Wait. Isn't Jintetsu... the one Kangsung just acquired?"
At the mention of Kangsung, their spines instantly ran cold.
The timing was too perfect.
Why would Kangsung suddenly...
But that was just the beginning.
More positive news kept pouring in.
[Daegwang Heavy Industries to form partnership with Hanjong Shipping. Plans to continue symbiotic relationship.]
"What now? Why is Daegwang involved too?!"
Not just Kangsung, but now Daegwang Heavy Industries had stepped in.
And where did Daegwang stand?
Though currently fragmented, it was backed by Daegwang Group—Korea's second-largest conglomerate.
And Neriot had also made enemies with Daegwang Group, just like with Kangsung.
Because they'd once aggressively targeted Daegwang's automotive industry.
Truth be told, it was harder to find a major Korean conglomerate that Neriot hadn't crossed swords with.
"First Kangsung, now Daegwang—this doesn't feel right?"
Such concentrated positive news all at once was impossible.
And there's no way this was genuine good news either.
Who would pour money into a collapsing company like Hanjong?
Beepbeepbeep-!
"No, no! Stop rising!"
"This is all fake news!!"
But the crowd doesn't know that.
All they see are those thick, solid red candlesticks breaking through the charts.