Chapter 61
Chapter 61
Translation: Godtl
"Wow. I've seen my fair share of chairman and CEO offices here and there, but this is the first time I've seen one as magnificent as this."
My few friends, family members, and others probably wouldn't believe it.
Just because I moved to a new office, Chairman Kang Sung-ho actually came to congratulate me—even bringing a gift.
"No, I really didn't expect you to come."
"Of course I had to. Our CEO Jeong has finally moved out of that cramped space into this spacious CEO office."
What was once LK Tower had now been renamed Gwangun Tower—the tallest building in South Korea.
As originally planned, my brother had set up my exclusive office here.
Not just a CEO office, but a full-fledged control tower where I could direct multiple employees and oversee investments.
The tallest building in Korea.
The view of Seoul from the window looked so small it might as well have been from a game.
"Nice. When LK first announced they were building Asia's tallest tower, I thought it was nonsense. But seeing it now, it's incredible."
As he spoke, Chairman Kang Sung-ho examined the large TV mounted on the wall.
"Is this one of ours? Don't tell me it's SG's?"
"Of course it's Kangsung Electronics."
The news on TV was all abuzz about Deutsche Bank.
[Today, the U.S. has imposed a $16 billion fine on Deutsche Bank for selling faulty products during the 2008 Subprime Mortgage Crisis, along with its involvement in the 1MDB scandal. This amounts to approximately 20 trillion won, and Deutsche Bank has stated it will struggle to accept this penalty...]
$16 billion.
$14 billion for fueling the 2008 Subprime Mortgage Crisis.
The remaining $2 billion was for money laundering through 1MDB.
This was sending shockwaves through global markets right now.
"Tsk tsk. Those bastards. They should've known when to stop."
Chairman Kang Sung-ho shook his head disapprovingly as he took a seat.
"Originally, they were negotiating for a $7 billion fine. Deutsche Bank was in close discussions with the authorities."
"And then 1MDB blew up?"
"Exactly. That's when the U.S. government decided to throw the book at them."
Had things gone smoothly, Deutsche Bank could have minimized the fine.
But when the 1MDB scandal broke and their involvement in money laundering was exposed, the U.S. government slapped them with this astronomical $16 billion penalty.
"But Deutsche Bank won't take this lying down. Honestly, how can anyone handle a $16 billion fine all at once? No matter how big they are, even Kangsung would struggle to cough up $16 billion in one go."
It's a staggering 20 trillion won.
No matter how massive a corporation is, being forced to pay that much at once would shake them to their core.
"They'll try to negotiate it down to half. Because the German government can't help them right now—thanks to someone."
I had a feeling that "someone" Chairman Kang was referring to was me.
"CEO Jeong, you really set the stage perfectly. Ever since Dieselgate, the German government has been continuously providing bailouts, so they don't have the capacity to help Deutsche Bank now."
Set the stage.
I never set any stage.
Just as before, now, and in the future, I simply make investment decisions based on my intuition.
"Truly remarkable. How long have you been planning this? It's almost terrifying. Is this what Zhuge Liang from Romance of the Three Kingdoms felt like?"
But Chairman Kang Sung-ho seemed utterly convinced that I had been setting the stage for this moment for a long time.
"It was just luck. Do you really think I planned all that?"
"Oh? How fascinating. Strangely enough, everything Chairman Jeong does just happens to work out through sheer luck. At this rate, winning the lottery jackpot multiple times in a row would be easier. Don't you think?"
His expression made it clear he didn't believe a word I said.
"Whatever the case may be. Thanks to Chairman Jeong, our European expansion might actually become feasible. But do you know why I'm so obsessed with Europe?"
I knew that Kangsung Electronics had been trying to establish a new semiconductor plant in Germany, but Deutsche Bank had consistently blocked their efforts.
Deutsche Bank was protecting the companies they'd invested in, while Kangsung had been trying to find loopholes to circumvent their obstruction.
"Our DRAM business operates on what's called a super cycle. There are periods of boom and bust. Times when semiconductor demand skyrockets, and times when we're treated like worthless scrap."
The super cycle concept is well-known in the semiconductor sector.
The DRAM market particularly suffers from severe super cycle effects—during booms, factories can't keep up with demand, while during busts, they're drowning in excess inventory.
"Right now we're leading the DRAM market, but that alone isn't enough."
"You're talking about foundries, aren't you?"
"Exactly. You understand well."
Kangsung currently dominates the DRAM market.
But as mentioned, DRAM profits fluctuate wildly due to the super cycle.
Foundries are different.
"Foundries manufacture semiconductors based on client designs, right? They're not affected by super cycles, and they're the most profitable cash cows in this business. The problem is Kangsung has no real foothold in the foundry market."
That was because of TSNC.
The Taiwanese company TSNC specializes exclusively in foundry work—they only produce chips based on client designs and never develop their own products.
"In a way, it's only natural. All our competitors—Ample, Kilcom—they all use TSNC exclusively. Even though Kangsung's technology is superior."
From their perspective, they didn't want to enrich their competitor Kangsung. Moreover, since we're competitors, they couldn't trust us not to tamper with their production lines if they outsourced to us.
That's why TSNC's business philosophy is:
<We don't compete with our clients.>
Unless Kangsung can match this principle, our competitors will keep choosing TSNC no matter how good our technology is.
"So what I want to create is a foundry company completely separate from Kangsung. We'll merge with European semiconductor firms to establish an independent entity. That way we can significantly boost our technological capabilities and, most importantly, take market share from TSNC's dominant position."
"By adopting the 'we don't compete with clients' business philosophy?"
"Exactly. At first, companies currently using TSNC might hesitate. But if we surpass TSNC in technology, production capacity, and especially in flawless logistics, they'll have to reconsider, won't they?"
"When you mention logistics, you're referring to our Gwangun Shipping, correct?"
"Right. It'll be good for Gwangun too. They'll have Kangsung as their anchor client."
Having a solid customer base would benefit us as well.
"But right now, this is all just fantasy. The key is Deutsche Bank must fall."
Deutsche Bank—one of the Too Big To Fail institutions.
Only when it collapses can Kangsung implement the plans we've been discussing.
"And doesn't Deutsche Bank need to go bankrupt for Gwangun to profit from all those CDS contracts they've been accumulating?"
"So you knew about us sweeping up those positions."
"How could I not? I figured it out immediately. From the beginning, it was obvious Chairman Jeong had planned this whole thing long in advance."
The total amount of CDS we currently hold is a staggering 3 trillion won.
Not only had we swept up all the existing CDS floating in the market, but we'd also signed contracts with other companies to issue new CDS, combining to reach that astronomical figure.
To put it simply, it's not that we actually invested 3 trillion won upfront—rather, we've secured enough positions to receive 3 trillion won if Deutsche Bank goes bankrupt.
But what if Deutsche Bank doesn't collapse?
Then we'd have to throw away 90 billion won every year like worthless scraps.
No. We might even end up paying more than that.
"Thanks to Chairman Jeong drastically widening the CDS spreads, Deutsche Bank has been pushed even deeper into crisis. The spreads are so wide now that we're seeing early signs of a bank run."
For us to make money from these CDS, Deutsche Bank needs to go bankrupt.
But if Deutsche Bank actually collapses, the securities firms and banks that sold us these CDS would be in complete chaos, so they'll do everything to prevent an actual bankruptcy.
"On top of that, the German government can't just stand by and watch. Deutsche Bank is too big to fail. If it collapses, the shockwaves would ripple through not just Europe's entire financial system but across the global economy. But if Deutsche Bank survives, our Kangsung will slowly wither away. In ten years, we'll be completely pushed out by other semiconductor companies. This is truly a matter of life and death for Kangsung right now."
Chairman Kangsung's expression was grave.
It seemed he'd concluded that if this European expansion failed, Kangsung wouldn't be able to survive on semiconductors alone in ten years.
"I genuinely hope Kangsung succeeds."
"Oh?"
"As I mentioned before, I'd rather see our own country's companies do well than foreign corporations."
That was sincere.
Setting aside other reasons, for us to profit from our CDS investments, things must go according to Kangsung's plans.
"Right. Chairman Jeong has set the stage, so now it's my role to perform the sword dance upon it. One saving grace is that Deutsche Bank has made too many enemies over the years. They've been too aggressive, hiding behind the German government's backing."
Chairman Kangsung downed the remaining coffee in one gulp and stood up.
"This time, I'll become Chairman Jeong's blade. When someone's tied up the prey and laid it before me, how could I fail to cut off its head? I've already made contacts with several financial groups. Even if Deutsche Bank collapses, these partners will absorb the shock to prevent it from spreading too widely."
Many are saying that if Deutsche Bank collapses now, it would create Lehman Brothers-level shockwaves.
Chairman Kang knows this, and so do the financial groups cooperating with him.
That's why they're apparently discussing ways to minimize the impact.
"Oh, and I bought you an orchid. This is an expensive one. A bit tricky to grow, but it's good for calming your mind when you need to collect your thoughts. Now that you're a chairman, you should have one of these in your office too."
It looked like a particularly refined orchid.
In dramas, people are always carefully tending to these things.
"I've never grown one before, but I'll do my best."
"Good. And... thank you. Thanks to Chairman Jeong, I finally see a breakthrough. To be honest, I've been feeling completely lost until now."
As Chairman Kangsung left the office, he shook my hand.
Really, I should have been the one thanking him.
After all, he's the one who'll be wielding the sword on our behalf through collaborations with European companies.
＊＊＊
"What? Oppa, seriously? You were just going to breeze right past your sister's office without even stopping by?"
Chairman Kangsung, about to get into his car, let out a short sigh as he saw his younger sister storming out with several employees in tow.
"When did you get here?"
"When I heard Oppa suddenly came to this building, of course I thought you were coming to see me. But you didn't even glance at your little sister and went straight to Chairman Jeong Jin-ho instead?"
"I heard you moved your office there today. I came by to give you a housewarming gift."
"Wow. Then what about me? The person who didn't even show their face when I became the hotel's CEO!"
Had that been the case?
Still, I think I did send some sort of gift...
"These things happen between family."
"So Jeong Jin-ho comes before your only younger sister? No—just what kind of relationship do you even have with that man? If we're being technical, isn't he our enemy?"
"...What?"
"It's true, isn't it? First, changing this tower's name to Gwangun Tower. Then taking all our money while only leaving us the hotel business rights. Shouldn't our Kangsung Group eventually take this tower back too?"
At that, Chairman Kangsung's face instantly hardened.
"Watch your mouth."
"Uh...?"
Seeing her older brother's fierce expression for the first time in ages, Kang Mi-ra involuntarily took a step back.
"In this world, you can make enemies of anyone—but there are some people you should absolutely never consider enemies."
"And that's Jeong Jin-ho? Why? Does he have some dirt on you or something?"
"It's not like that... I'll explain the details later. Just know this—never perceive Jeong Jin-ho as an enemy. And make sure no one around you ever speaks ill of him either."
Looking at Kangsung like this, Mi-ra could sense it.
That the mighty chairman of Kangsung Group was currently afraid of some securities firm president.
"I've never once considered Jeong Jin-ho an enemy. If anything, I want to maintain friendly relations with him going forward. No—I'd even go so far as to say I want to legally make him family."
"T-to that extent?"
"Yes. That's how I feel, so you should change your perception of Jeong Jin-ho too. That friend must never be our enemy—he absolutely has to be our ally."
As he said this, Chairman Kangsung glanced meaningfully at the employees surrounding his sister.
"And keep your employees' mouths shut too."
"Ah, yes. Don't worry about that. The people here know how to keep secrets."
"Then I'll be going. I'll visit again when I get the chance."
"While you're on your way to see Jeong Jin-ho, you mean."
"Can't deny that."
"Tch. Just get going already."
After seeing Chairman Kangsung off, Kang Mi-ra fell deep into thought.
For her eldest brother of all people to say something like that...
She'd always thought of Gwangun and Jeong Jin-ho as villains who'd swindled their Kangsung money, but it seemed she'd need to change that narrative.
"Ah. Let's all pretend we didn't hear today's conversation."
"Yes, CEO. Don't worry. Our strategy team carries secrets to the grave."
"Good. Ugh. We were in the middle of an important meeting when that brother of mine made me rush out. Anyway, we'll reconvene in 30 minutes—get everything ready."
"Yes."
After CEO Kang Mi-ra went inside, the strategy team leader looked around at the accompanying employees.
"Everyone understands, right? Keep your mouths shut. As the core department supporting our CEO, if we can't maintain confidentiality, we'll be the first to lose our heads."
"Yes, sir!"
"Good. Then let's prepare for the meeting."
As they moved, the team leader noticed one employee who'd been looking pale and gave her a concerned look.
"Yun-ah. Are you feeling unwell? You've gone completely white."
"Huh? Ah, no. I'm fine."
"That's good then. Let's hurry. We're short on time."
"Yes!"
Jeong Yun-ah quickly followed her teammates, but her mind was already elsewhere.
'W-what in the world is going on?'
Chairman Kangsung had definitely said Jeong Jin-ho.
He'd even repeated her brother's name multiple times, emphasizing how important he was.
She knew her brother had been doing well financially lately, but for the Kangsung Group chairman to be that obsessed with him...
It felt like some hidden camera prank.
And that part about wanting to make him family beyond just friendly relations—
'Then could it be... our brother—'
Is going to marry someone from Kangsung Group!?