Chapter 62
Chapter 62
Translation: Godtl
Gwangun Securities currently operates under a somewhat unique management structure.
Although Jeong Jin-ho was unanimously promoted to CEO, Vice President Kang Ji-hwan handles all miscellaneous tasks to ensure nothing interferes with Jin-ho's investments.
The decision to elevate Jin-ho wasn't just because he was the primary architect behind Gwangun's remarkable growth. As the company expanded, it became untenable for someone of his caliber to remain merely a department head.
So Kang Ji-hwan voluntarily proposed the arrangement—Jin-ho would ascend to the top position while he retained his vice presidency to oversee Gwangun Securities' overall operations.
The reasoning was simple: no matter how diligently Kang managed operations and generated profits here, it wouldn't amount to even 10% of what Jin-ho brought in. Thus, the current structure emerged—maximum support for Jin-ho's investment focus, with Vice President Kang handling all the headaches.
"Vice President, we've received another offer for bulk purchase of our CDS holdings."
"From whom?"
"Gold Reagan. They originally sold us 1 trillion won worth of CDS contracts. If Deutsche Bank collapses, they'd have to pay us that full amount, so they're likely trying to manage their risk preemptively."
The atmosphere was growing peculiar.
The credit default swaps Gwangun Securities acquired under CEO Jeong Jin-ho's direction carried a mere 3% premium.
Yet now the spreads had skyrocketed to 15%.
Under these circumstances, no one was issuing new CDS contracts tied to Deutsche Bank.
"Does Gold Reagan genuinely believe Deutsche Bank might collapse?"
"Given their 'Too Big To Fail' status, that seems unlikely. Nobody in finance seriously thinks Deutsche Bank will go under. This is probably just precautionary."
No one believed one of Europe's top three financial institutions—a true "too big to fail" corporation—could actually collapse.
Except one person.
CEO Jeong Jin-ho.
"But the CEO refused to sell, correct?"
"Yes. Gold Reagan, JP Mason, and every other firm with CDS exposure through us attempted to buy back their contracts. He rejected them all."
CEO Jeong seemed determined to see this through to the end.
With this stance, financial institutions tied to Gwangun through CDS contracts wouldn't remain passive.
"Rumors suggest multiple financial firms are pooling resources for lobbying efforts. They're pressuring the German government and EU to bail out Deutsche Bank by any means necessary."
In a way, this was inevitable.
Gwangun Securities currently held 3 trillion won in CDS contracts.
CEO Jeong's big gamble—paying a mere 9 billion won in premiums for a potential 3 trillion won payout.
"Word seems to be leaking to the media too. Reports of someone holding 3 trillion won in CDS positions, with securities firms uniting to block it."
A high-stakes game—risking 9 billion to win 3 trillion.
Though CDS trades occur over-the-counter as private contracts, secrecy becomes nearly impossible at this scale.
"Any chance Gwangun Securities gets named?"
"Likely soon. The stakes are too high to conceal, and Gwangun has grown too prominent."
As an unlisted company, Gwangun Securities' market capitalization remains obscure.
Yet its current proprietary trading capital alone surpasses competitors.
If CEO Jeong wins this insane zero-sum game—
Gwangun could emerge as South Korea's top securities firm by capital strength alone.
"But... realistically, Deutsche Bank collapsing seems impossible, doesn't it?"
"Who knows? How many truly believed Lehman Brothers would fail during that crisis?"
"The circumstances differ now though. Perhaps you could advise the CEO to offload all CDS positions at current premium prices while—"
Kang Ji-hwan pondered deeply.
What would I do if I were CEO?
Lacking the "beast's heart" that drove his superior, he'd likely sell the entire position at these inflated premiums.
Frankly, even Kang struggled to imagine Deutsche Bank's collapse. Part of him wanted to sprint to Gwangun Tower and beg the CEO to sell now.
The CDS contracts reportedly spanned five years. If Deutsche Bank survived unscathed, Gwangun would lose 45 billion won annually—450 billion total over the term.
"...No."
But he soon dismissed the thought.
"Even when the Chairman was at Gwangun Securities, he never interfered with what the current President is doing now."
As far as he knew, despite being incredibly close brothers, the Chairman hadn't even made a single call out of concern.
That was how much unconditional trust he placed in President Jeong Jin-ho, no matter what he did.
And that was precisely Kang Ji-hwan's role as well.
To assist the current President so he wouldn't be distracted by trivial matters, while simply observing how he managed to pull off miraculous returns.
"Besides, I keep having this thought..."
Why does it feel like President Jeong will win this time too?
＊＊＊
There is something called the "Skyscraper Curse."
What is a skyscraper?
It is a towering building that seems to scrape the heavens.
In the past, humanity angered the gods by building the Tower of Babel to reach the sky.
Perhaps this ancient tradition has carried down through the ages.
The Empire State Building, the World Trade Center, the Petronas Twin Towers, the Burj Khalifa—every time historically significant skyscrapers were erected, an economic crisis inevitably followed.
Moreover, companies involved in constructing these supertall buildings all faced the brink of bankruptcy.
In other words, the Skyscraper Curse is an economic jinx.
Our country's 63 Building and LK Tower are no exceptions.
And this time, Germany was no different.
Deutsche Bank had invested a considerable sum into a beautifully designed supertall skyscraper project, and it seemed as though the Skyscraper Curse was tormenting them once again.
"..."
I gazed at the breathtaking nightscape of Seoul from the towering heights.
My palms had been slick with cold sweat for a while now.
It was inevitable.
This was a zero-sum game with a staggering 3 trillion won at stake.
If we lost, we'd have to pay 90 billion won every year for the next five years.
And we couldn't even sell it to someone else.
If Deutsche Bank recovered, who would want to buy their CDS?
[Deutsche Bank CDS: A Staggering 3 Trillion Won. This Year's Ultimate Zero-Sum Game.]
[A Korean Securities Firm Holds 3 Trillion Won in CDS?]
[Deutsche Bank Will Never Collapse. All Experts Agree.]
The media was already buzzing about a certain entity buying up massive amounts of CDS.
But they all mocked it as a foolish move, writing derisive articles.
"..."
Everyone was saying it.
That Deutsche Bank wouldn't collapse.
But my instincts alone screamed the opposite.
That was why I had rejected every offer to sell the CDS.
"Still, this time, I'm feeling the pressure."
Not just because of the 90 billion won we'd have to pay annually, but more so because the sheer scale of the 3 trillion won wager loomed large in my mind.
If we won this, the dopamine rush might be so overwhelming I'd pass out.
Then, a sudden thought struck me.
Why was this ability activating in me?
What exactly was my intuition seeing?
And was there ever a time my instincts were wrong?
No matter how much I pondered, I wouldn't find an answer.
But sometimes, I entertained the idea that if I made even more money later, I might invest in scientific research to study my intuition.
"It's about time for the call."
Chairman Kang Sung-ho had already flown to Europe and was meeting with the heads of major financial groups there.
True to his word, he was playing the role of the executioner.
And he had promised to contact me first as soon as there was a definitive outcome.
But there was still no call.
Did that mean...?
"Ah."
As if he had eavesdropped on my thoughts, the awaited call finally came.
"Yes, Chairman."
[...]
Chairman Kang Sung-ho remained silent.
A sense of foreboding crept in.
"Chairman?"
Finally, he spoke in a heavy voice.
[I'm sorry...]
＊＊＊
All the employees of Gwangun Securities had gathered in front of the TV.
They should have been preparing for trading, but every employee in Yeouido was likely doing the same.
All eyes were fixed on the same screen, watching the same news.
"Ah. So it's come to this..."
The morning's headline news was none other than Deutsche Bank.
The long-rumored Deutsche Bank crisis had finally reached its conclusion.
"Deutsche Bank is really declaring bankruptcy?"
"That's impossible."
An official statement from the German government had been released.
Just as the U.S. government had once declared it wouldn't bail out Lehman Brothers, the German government had now officially announced it would not rescue Deutsche Bank.
Naturally, everyone's prediction that the German government would undoubtedly save Deutsche Bank had missed the mark.
"The German government has already spent too much money on bailouts until now. And above all, it seems moral issues held them back."
"On top of that, rival companies who'd been eyeing Deutsche with disdain apparently banded together for real. Looks like they're planning to completely dismantle Deutsche and have various entities acquire its pieces."
People had trusted the German government because if Deutsche collapsed, the entire global financial system would be shaken. That's why everyone assumed the government would bail them out first and ask questions later.
But it seemed the German government had concluded that if they shouldered this burden too, there would be no way forward—so they abandoned the bailout and instead reached out to European financial groups. They intended for these groups to absorb Deutsche Bank and prevent a Lehman Brothers-level financial crisis.
"Ah, stock prices are going to plummet today."
"Who would've thought Germany would abandon Deutsche?"
"Wait a minute. If this happens, that faction that supposedly bet 3 trillion won on CDS is about to make an insane profit, huh?"
"Damn. Whoever they are, they're absolute madmen. How could anyone bet money on Deutsche's downfall?"
"By the way, there's a rumor going around that it's our Gwangun Securities."
At one employee's words, everyone tilted their heads in confusion.
"What kind of nonsense is that?"
"Come on. No matter how well we've been doing lately, that's ridiculous."
"Exactly. Stop spouting nonsense and start thinking about selling all the stocks we're holding today."
The Yeouido stockbrokers quickly began moving to prepare for the financial tsunami about to hit the markets.
＊＊＊
With the CEO's office and the Prime Department relocating to Gwangun Town, key employees followed to assist. A new research team—larger than the current one at Gwangun Securities and staffed with more veterans—had also set up shop here.
"Wow..."
"The CEO won again in the end..."
They, too, were witnessing this historic moment.
"W-wait a second. So we really just made 3 trillion won? With just 90 billion won invested? What kind of return rate is that—3,000%?!"
Truthfully, even the Prime Department employees had been unbearably anxious ever since the CEO suddenly announced he was buying CDS. Even as the news openly mocked certain factions for foolishly purchasing CDS in bulk, how could their mental state not waver?
"I swear, every time I see the CEO, I'm in awe. Domestic and international media alike flooded the news with mocking headlines, and he didn't even flinch."
"Well, he's already far beyond human mental limits, isn't he?"
Anyone else would've cracked under the pressure, but he showed no sign of it. No matter how many times they saw it, his steel-strong mentality was nothing short of astonishing.
"Gwangun's name is starting to pop up in the media now."
"Even so, it's all speculation. Unless we officially confirm it."
"But... isn't our CEO basically a shadowy mastermind at this point?"
"Huh? A sh-shadowy mastermind?"
"History proves it, doesn't it? Ever since Dieselgate, he's been steadily shaking the German market, and now he's finally toppled the colossal financial giant that was Deutsche."
Most people in the world would never believe all of this was the work of a single individual. If anyone claimed as much, even conspiracy theorists would dismiss them.
"Good morning, everyone."
"Gah!"
Everyone flinched as Jeong Jin-ho entered the office. The mastermind shaking the global financial markets had arrived once again, smiling brightly.
＊＊＊
When Chairman Kang Sung-ho first called me to apologize, my heart had nearly dropped to the floor. For a moment, I thought my instincts had finally failed me.
But in reality, it was the opposite.
Chairman Kang had deliberately said those words to mess with me.
True to his word, he swung his blade mercilessly, collaborating with European financial groups to finalize negotiations with the German government. So, days before the official announcement, Deutsche Bank's bankruptcy had already been decided. Thanks to that, I could rest easy for those few days.
Several financial firms approached me with offers to buy the CDS at even higher prices, but I refused them all.
Some even went so far as to threaten me, saying I'd lose everything if I kept this up.
But their words meant nothing to me.
I already knew how this would end.
"Even if major financial groups like HBC and ANP step in to absorb Deutsche Bank and try to mitigate the fallout from the bankruptcy, let's be honest—they'll only soften the blow. They won't be able to stop the shockwaves entirely."
This was the collapse of one of Europe's top three financial institutions.
Sure, the German government had collaborated with several financial firms to prepare in advance, but when an earthquake hits, a tsunami is inevitable.
The only difference is in the scale of destruction.
"That's why not just Korea, but the entire global market has frozen investments. Even those who've already deployed funds are recalling them to liquidate their positions."
"What about our CDS contracts?"
"Fortunately, all the companies we have CDS agreements with are major corporations, so there shouldn't be any issues with payouts. Gold Reagan already confirmed the funds will arrive within two days."
With Deutsche Bank's bankruptcy confirmed, the winners of this zero-sum game were decided.
And Gwangun was one of them.
"As I mentioned earlier, Deutsche's collapse has triggered a chain reaction of investment withdrawals and cancellations across all regions. We've compiled a full list of affected parties."
We invested 90 billion and made a staggering 3 trillion in return.
Under normal circumstances, we'd drop everything and throw a performance bonus party, but the people here know me too well.
They know I can't stand seeing money pile up in accounts without being put to use.
So before I could even say a word, they'd already prepared the documents.
"..."
I scanned the list thoroughly.
There were far more than just one or two companies suddenly facing massive investment withdrawals.
In fact, a significant number were offloading large stakes in desperation to secure any funding they could.
There's more blue than I expected.
The intuition flowing through my fingertips was painting the listed companies in shades of blue.
With every securities firm and bank halting investments to liquidate, it was essentially a bargain sale for us.
Anywhere we put our money now would turn a profit.
But this wasn't what I was looking for.
If I dig deeper, I might find it...
I kept flipping through the list.
The number of companies waiting for investment was endless—page after page, with no end in sight.
And then—
"...?"
My hand stopped at one particular entry.
Amidst the sea of blue, a single company stood out, radiating a golden glow.
"Enflix?"
The employees, who had been waiting for me to speak, quickly pulled up Enflix's records.
"Originally a DVD rental business, they pivoted to OTT services starting in 2007."
"OTT?"
"OTT might still be an unfamiliar term—think of it like NewTube, a streaming platform."
Enflix, which had only dealt in DVD rentals before adapting to the changing times by launching a streaming service, recently announced ambitions to expand globally, targeting not just the U.S. but 150 countries.
Naturally, both investors and industry experts were skeptical.
"People either go to theaters, buy DVDs, or—let's be honest—just pirate movies online, right?"
The prevailing opinion was negative: Would people really subscribe monthly just to stream content on Enflix?
To make matters worse, even before the Deutsche Bank crisis, many investors had sensed trouble and started pulling out. As a result, Enflix's planned global expansion was completely halted, despite securing major funding.
"Would you actually sign up for something like this?"
"I don't know. I'd probably just buy the DVD."
"Or download it from a torrent site."
Back in the day, Korea's internet speed was leagues ahead of other countries, but that's ancient history now.
We've entered an era where everyone downloads movies in seconds.
And yet—streaming movies and dramas?
Paying a monthly subscription for that?
"Enflix seems aware of the issue. They're planning to produce original dramas—content so compelling that people have to subscribe to watch."
Original dramas?
The Enflix documents included a list of their completed and in-production original series.
"...!"
And among them, one title shone brighter than the rest.
A drama that had already finished subtitling and poster production for the Korean market.
Mysterious Story?