Chapter 90
Chapter 90
Translation: Godtl
The corporate world was in a state of emergency due to the diplomatic war between Korea and Japan.
Initially, discussions had revolved around how Korean companies should overcome the nation's precarious situation of being unilaterally pummeled by Japan. But now, the tables had completely turned.
"They clearly threw a punch at us, so why are they the ones knocked out?"
Japan had come out swinging with strong criticisms against Korea, wielding trade restrictions on key semiconductor components as their weapon. And just as they'd hoped, the impact was substantial.
The Korean government hastily filed an international lawsuit, claiming it violated global trade laws, but in reality, it was a completely futile measure.
Just when it seemed Korea would have to keep taking hits unilaterally—
It wasn't Korea that had been overturned, but Japan.
"Japan had been making considerable profits from exports to China, and losing that was a major blow. But the decisive factor was the financial players. All those notorious bear funds—the ones known for their aggressive tactics—had turned their spears toward Japan and were just waiting for the right moment."
"Spears?"
"Yes. They were poised to strike mercilessly the moment any triggering event occurred. You know how bear funds operate—there's nothing sane about them. Neither the fund managers running them nor the investors backing them. Once they start, it's a fight to the death—one side has to go down."
High risk, high return.
There are plenty of funds that chase high-risk, high-reward strategies.
But bear funds took it a step further—they were hyper-aggressive and deeply speculative.
"But even if those guys gathered, how many of them would it take for the Japanese government to abandon YCC?"
Japan had maintained zero interest rates for a long time.
YCC (Yield Curve Control) was part of that policy.
But when the Japanese government failed to defend falling bond prices, they ultimately raised the white flag.
On top of that, the Bank of Japan governor made an emergency announcement: YCC would be withdrawn, and interest rates would rise.
"Sure, tens of trillions of yen had pooled, but the real issue was the domino effect. Mass short-selling drove prices down, which terrified investors, plunging them into panic. That triggered a sell-off frenzy, leading to this situation."
With the governor announcing rate hikes of 3-5%, the Japanese stock market descended into utter chaos over the past two days.
One might wonder—why such a fuss over a mere 3-5% rate hike?
"Japan has maintained zero interest rates for so long that it's particularly riddled with zombie companies."
Zombie companies.
With interest rates practically nonexistent, these are businesses that barely survive by borrowing money without needing to pay much interest.
But if rates suddenly jump by 5%, they'll have to cough up all that borrowed money in interest payments.
And that's not all.
Companies that took out loans to buy property or invest overseas would also suffer massive losses.
A gradual rate hike could have softened the blow.
But abandoning YCC and implementing a sudden, aggressive rate hike was guaranteed to trigger economic collapse.
"And yet, the Bank of Japan made this decision because if they didn't hit the brakes now, Japan's economy wouldn't just wobble—it could collapse entirely."
"Was the hit really that devastating?"
"Yes. The U.S.-China trade war inadvertently struck Japan."
It made sense why Japan had ended up like this.
But Kang Sung-ho still had one lingering question.
"But why did bear funds suddenly attack Japan out of nowhere? Do those guys usually cooperate well with each other?"
"Not at all. They rarely share investment intel and operate strictly on individualism. But this time, it was as if they'd all received the same orders—moving in perfect unison."
In other words, someone behind the scenes had commanded these wild, untamed beasts.
"Individualistic operators—not just one or two, but that many bear funds—all moved under someone's orders?"
That's the nature of bear funds.
The managers operating these funds have such aggressive temperaments that they don't listen to anyone else—they charge forward based solely on their own convictions.
Yet someone had managed to grab the leashes of these madmen.
"I know it sounds hard to believe. But it's already common knowledge on Wall Street—that the bear funds moved according to someone's specific instructions."
"Who was it?"
"We don't know that much yet, but they say Gwangun was the first to take large short positions."
"...Gwangun?"
"Yes. The moment word spread that Gwangun had taken positions, all the waiting bear funds simultaneously placed the exact same bets."
Kangsung Chairman blinked rapidly.
As soon as Gwangun suddenly took massive positions, other bear funds followed suit as if they'd made some prior agreement.
What could this possibly mean?
"W-wait a minute. Are you saying Chairman Jeong Jin-ho was the one who moved all those bear funds?"
"Not all of them. Some probably just joined the bandwagon. But the initial wave of bear funds that shocked the market definitely moved under someone's orders. And since Gwangun moved first... they must have been the vanguard."
Looking at Jeong Jin-ho's investment history so far, it might seem like he sinisterly manipulated everything from behind the scenes, but upon closer inspection, that wasn't the case.
Rather, he was the type to charge straight into enemy territory first and plant his flag—possessing an utterly reckless aggressiveness.
"No wonder the bear funds followed."
The extreme aggression they pursued.
Yet any human would inevitably feel fear.
That's why they hesitate.
But when Jeong Jin-ho charged ahead with absolute conviction and no hesitation, the bear funds found the courage to follow behind.
"So it takes an even bigger madman to control madmen?"
But why would Jeong Jin-ho do such a thing?
His opponent wasn't just some company—it was the Japanese government itself.
"Chairman Jeong Jin-ho was probably furious too. If Japan's semiconductor export restrictions go through, the semiconductor companies he's pushing would falter."
"So he punished those who dared encroach on his territory?"
"With the government unable to act on his behalf, he must have decided to step in himself."
Clearly, Japan was the one getting hit, yet Kangsung Chairman felt a chill run down his spine.
He never would have dreamed someone could launch such a radical attack against the Japanese government.
When this crisis first erupted, Kangsung hadn't even considered the option of fighting against the Japanese government.
Because the very idea of corporations battling a government as powerful as Japan's was absurd from the start.
So he had only agonized over how to gently persuade the Japanese government to change its mind.
But Jeong Jin-ho was different.
Rather than bowing his head in submission, he chose to throw a punch straight into the Japanese government's face.
"Even if it kills me, I won't bow down..."
The words resonated deep in his chest, as if something was boiling up from his dantian.
Was that why?
"Analyze how much damage we'll take if Japan raises interest rates and how the economic situation might change going forward. Bring me every related report you can find."
Kangsung Chairman had grown sick of anxiously watching Japan's every move.
＊＊＊
"Companies that had moved all their capital overseas are now scrambling to bring their money back. Several countries are even seeing massive releases of real estate."
Before Japan's bubble burst, an enormous amount of money flooded overseas.
That's why if you check the owners of expensive properties abroad, you'll find they're almost all Japanese.
Why did the yen become a major currency?
Ironically, it was thanks to the bubble.
Before the bubble burst, Japan was the second most economically influential nation after the U.S., buying up vast amounts of overseas real estate, stocks, and artworks.
However, after the bubble burst, Japan repeatedly experienced deflation and inflation before ultimately settling at zero interest rates, becoming a safe asset.
That's why countries stockpile dollars and yen.
Even if Japan suffers economic damage, they know they can always recover because their ancestors had long ago sown seeds across many nations—seeds they could harvest whenever needed.
Above all, it's crucial to remember that Japan is the world's largest net creditor nation.
In other words, the money they've lent to others far exceeds what they've borrowed.
"But even for Japan, the collapse of YCC must be shocking. With zero interest rates—maintained for decades—suddenly breaking, companies are collapsing in droves, and the financial system is paralyzed in an instant."
The problem was that this YCC collapse was so severe that even overseas assets couldn't act as a defense.
Moreover, retrieving assets scattered abroad takes time.
Even if they try to sell real estate, they can't if there are no buyers, and bonds have maturity periods.
What made the blow especially devastating was that neither the Japanese government nor corporations had ever imagined zero interest rates would shatter so abruptly, leaving them utterly defenseless.
"Japan is in chaos right now. Government bond prices have plummeted, causing banks, insurance companies, and other financial institutions to either deteriorate in a chain reaction or face bankruptcy."
Banks, in particular, were the issue.
When deposits come in, banks typically invest in the safest assets to keep the money circulating—and that safest asset had always been government bonds.
They invest only in so-called "safe" government bonds, believing their prices could never plummet to the abyss.
They slowly grow their customers' money through the interest generated from those bonds.
But if the Japanese government bonds they've bought crash en masse, the customers who entrusted their money there will tremble in fear—and eventually rush to withdraw.
If this escalates, a bank run erupts.
That's exactly what's happening in Japan now.
Many banks have already refused withdrawals, and some have even filed for bankruptcy outright.
When Japan imposed strong trade sanctions, our citizens didn't feel the damage firsthand.
But now, the entire Japanese population is experiencing the terror of YCC's collapse in the most brutal way.
"Have all our positions been cleared?"
"Yes. Though it took some time due to the sheer volume, Gold Reagan also expedited the process, so everything's been settled."
With our positions fully cleared, the amount that landed in our hands was exactly 10 trillion won.
We had made a staggering 4 trillion won in a short period and escaped before the complete collapse.
"Wow... 10 trillion won."
"So now we can maneuver 10 trillion won? Just with securities firm investment funds?"
This was the moment we finally reached our first target amount—10 trillion won.
"But, Chairman. When exactly did you contact the bear funds?"
"Huh?"
"From what I understand, the bear funds moved almost simultaneously with us. Those people are known for not listening to others—so did they act on your instructions?"
At that, all the employees' gazes locked onto me.
"..."
Bear funds.
I didn't know a single person connected to them.
Not a manager, not even an affiliated employee.
Yet, for some reason, the moment Gwangun took a position, they mirrored us as if we had a prior agreement.
In fact, the decisive factor in YCC's collapse was precisely that.
Unintentionally, I'd become Korea's version of George Soros.
The only differences were that we made far more profit than Soros with far less capital, and I hadn't deliberately orchestrated a scheme with multiple funds like he had.
"..."
What should I even say to this?
The employees' expectant eyes bore into me, tightening like a vise.
"I have absolutely no connection to them."
I thought their expressions would twist in disappointment, but the opposite happened.
"Ah. My apologies."
Manager Seo suddenly bowed his head so low that his forehead nearly touched the table.
"I asked something I shouldn't have. I momentarily forgot that there are things we shouldn't know—things we should pretend not to know even if we do."
"...?"
"I won't ask such questions again. Please forgive me."
"Ah. It's fine."
"Yep. Then, Chairman Jeong, about the next investment..."
Holding onto 10 trillion won—an astronomical sum—and leaving it idle instead of putting it to work would be nothing short of a grave sin.
I took another look at the research report on Japan that had been riddled with noise last time.
Back then, it had been filled with grotesque distortions, as if someone had maliciously scribbled all over it.
"...!"
Now, one by one, the pages were beginning to shine brilliantly.
＊＊＊
"I was surprised too. They say Chairman Jeong was already preparing before the Japanese government even made an official announcement, huh? Getting ready to land a solid punch right in Japan's face."
"...Me?"
"Don't play dumb. I heard you deliberately manipulated schedules through Gwangun Shipping to cause a logistics crisis in Japan. Haha. So meticulous. What kind of mind comes up with plans like that?"
Chairman Kang Sung-ho seemed to be in an exceptionally good mood today, downing glass after glass of alcohol.
"Thanks to Chairman Jeong, even our government officials are walking around with their chests puffed up. Anyone would think they were the ones who pulled it off. Those who used to just take hits quietly."
"Well, as long as everyone's happy."
"Sigh. Sometimes I can't tell if our Chairman Jeong is just a good person or if he's deliberately hiding his true self."
"I'm exactly as I appear."
"And yet you reduced Japan to this state? Completely wrecked them—what the—. Japan's collapse is so severe it's unclear when they'll ever recover."
In desperation, the Japanese government finally lifted the trade restrictions they had imposed on our country.
They knew that clinging to their pride would only worsen the situation.
That's why Chairman Kang was happily drinking today.
"It was already tough getting parts from overseas. This is a relief, really. But this time, I realized something crucial. Relying solely on imports means we could get hit back someday."
"Are you planning to properly establish factories domestically?"
"Yeah. We can figure out the technology somehow. More importantly, with Japan's financial crisis in full swing, company shares are dirt cheap right now. I'm considering acquisitions while the opportunity lasts."
In the report I reviewed yesterday, a few companies had shone brightly.
But I didn't make any purchases.
Because no immediate intuition told me to buy now.
"I learned a lot watching Chairman Jeong's moves this time. Isn't it funny? Someone decades younger than me teaching me so much."
"You must be drunk again."
"Nah. I'm still sharp. Didn't our Chairman Jeong show us this time? That it's better to bite back than cower and retreat. Though, of course, what you did was practically dropping a tactical nuke. Kuk."
This was Chairman Kang's trademark.
Once alcohol got to him, he became incredibly talkative.
"Looking at it this way, I feel lucky. If I'd made the wrong choice back then and made an enemy of Chairman Jeong... Ugh. I don't even want to imagine."
"Why do you keep painting me as a villain?"
"A villain? Our Chairman Jeong is a patriot, a patriot! He's given 50 million of our citizens a breath of fresh air!"
Thinking it was about time to send him home, I stopped pouring him drinks.
"Chairman Jeong."
Chairman Kang's previously unfocused eyes sharpened again.
"After seeing you move the shipping industry too, I finally figured out what you're planning."
"...And what am I planning?"
As if he knew pretending ignorance was pointless, Chairman Kang smirked at me.
"You're paralyzing both logistics and finance to turn Japan into an international outcast right now. To devour everything inside. Am I wrong?"
"...?"
"So, can I get in on that too?"