Chapter 24
Chapter 24
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Translator: MadScientist
Chapter: 24
Chapter Title: Daeha Securities (1)
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Politics was in the midst of upheaval due to the June Uprising, but I merely observed the historical whirlwind from afar.
I couldn't get involved, nor should I.
'Just wait another ten years...'
Whew, this world was still too early to accept me.
At the very least, I could exchange a few words with Kim Hae-ik, the Senior Presidential Secretary for Economic Affairs, who had some connection to me, but even that had its limits.
'There's nothing special for me to say anyway.'
Since it wasn't an economic issue but a political one, I had no grounds to chime in. If he ended up working in the next administration, it might give me a channel to get information... but that seemed unlikely.
It would be tough for him.
He was someone who had worked under the Chun Doo-hwan regime hoping for democratization. Sure, he was the economic secretary now, but once direct presidential elections were enacted through constitutional reform, he'd back the two Kims.
No matter how sharp his political instincts, he couldn't have foreseen the two Kims' unification talks failing and the military regime's number two becoming president.
No, even if he suspected it, he'd probably still bet on the two Kims. Beliefs are like that.
'Tricky. For now, let's focus on what I'm good at.'
Amid the chaos of the June Uprising in full swing, I headed to Daeha Securities.
In any case... the place I'd poured the most effort into was none other than Daeha Securities.
The others could be checked by Yoo Jin-seok or Yoo Jin-ha, but not this one.
Daeha Securities was the one place where I could fully showcase my talents and future knowledge without reservation. Directly managing my personal assets or intervening in company affairs was still difficult... but that was due to legal restrictions, not family interference.
Daeha Securities was the company directly given to me by Yoo Seong-pil, the group's chairman. It hadn't been officially acknowledged in a family meeting yet, but barring any major issues, it was set to be gifted to me in the future.
My own company... Those words carried tremendous weight for me.
'Working under someone just doesn't suit me.'
That was why the people of Daeha didn't heavily obstruct what I did in the group.
Or more precisely, they couldn't. Yoo Seong-pil was still a vigorous man in his early sixties, save for his declining stamina.
By the 21st century, early sixties wouldn't even be considered old. People worried about Chairman Yoo Seong-pil's health, but having lived in a 100-year lifespan era and knowing the year he would die, I wasn't concerned at all.
That man lived until 80.
I organized my thoughts as I entered Daeha Securities.
-Screech.
My secretary, Lee Si-hyeon, opened the door for me, and the employees' eyes widened upon seeing my face.
"Miss, you've arrived."
"Ah! Miss Ha-yeon, it's been a while."
Lee Si-hyeon stood by my side like a bodyguard, performing her long-overdue security duties, while the Daeha Securities employees who recognized me parted like the tide and bowed their heads.
A somewhat familiar older employee guided me to the president's office.
Someone very familiar was waiting for me there.
"Hahaha. Miss Ha-yeon, you've come. I'm Ha Joo-seong, president of Daeha Securities."
The plump-faced middle-aged man bowed exaggeratedly to me. He couldn't hide the joy on his face.
He was Ha Joo-seong, who had recently been promoted to president.
The Plaza Accord had plummeted the dollar's value. Even after I earned 10 billion won, I accurately predicted the dollar's future value, and Ha Joo-seong, to show his loyalty, aggressively leveraged foreign exchange trades.
Naturally, it was a huge success, and for that achievement, Ha Joo-seong was promoted from executive director to president.
It was a rather unconventional promotion, but no one complained about it.
After all, he was the only board member I communicated with regularly. Anyone with eyes and ears would know.
That Ha Joo-seong had become my hands and feet.
"Uncle must be thrilled too, right? Haha, the other directors' noses must be flat now."
"Haha, it's all thanks to you, Miss."
He nodded with a smile.
He was the first to align himself with the future owner of Daeha Securities, even when no one believed in my abilities...
This was an undeniable political achievement. That's why companies favor founding meritocrats close to the chairman—they offer absolute loyalty, and their value lies in that unwavering devotion, which they can't abandon.
Ha Joo-seong was a highly capable talent, unlike the incompetent majority of such figures... but the surrounding views would still be the same.
He knew that full well, so he unconditionally believed my words—or at least pretended to.
"Oh, as I said before, I don't blindly follow just because it's you, Miss. I follow because I believe you're the brilliant future leader who will guide Daeha Securities."
"Well... me becoming Daeha Securities' president is a done deal anyway."
It was already known throughout the company that I would become the owner of Daeha Securities. And since I'd proven my abilities before even turning ten, they couldn't call me a parachute appointment.
Thanks to that, no one could say a word even if I openly backed Ha Joo-seong. Pressuring me or him through internal politics now would be sheer madness.
The current president of Daeha Securities was merely a nominal representative fulfilling legal duties, loyal only to Chairman Yoo Seong-pil, not the other family members.
To become president of Daeha Securities, I didn't need to clash with the current one at all. A single word from Chairman Yoo Seong-pil—"Return to group headquarters"—and it would all be over.
Since Chairman Yoo Seong-pil had personally designated me, even as a minor, I wielded near-absolute power at least within Daeha Securities.
Even more than the current president.
I lightly laughed it off, brushing aside the flattery. It felt good, but getting too hooked on it could be dangerous.
"I'm here for business today, Uncle."
At those words, Ha Joo-seong—no, President Ha Joo-seong's eyes changed.
"Business... you say?"
When I said things like this... it usually meant something big. Knowing that well, he stroked his chin and stared at me.
I'd grown quite tall now, so his seated height was about level with mine standing, and I met his gaze with a sly smile.
"Daeha Securities... honestly, doesn't it feel too small?"
He seemed to catch on to something but furrowed his brow and asked back.
"You mean...?"
"Time to prepare for expansion."
Daeha Securities currently handled very few tasks. Complex regulations prevented many operations, and they couldn't directly invest their assets.
That's why there was only one president, and its importance within the group was low.
Which was why it had been given to a child like me. It wasn't a prime subsidiary yet.
That was about to change.
◇◇◇◆◇◇◇ Daeha Securities was a unique company.
The chairman had his eye on it, but its scale wasn't large.
There wasn't any special reason.
It was simply that... Korea at the time was a country where the financial industry hadn't developed yet.
That was all.
"Daeha Securities' current operations boil down to three main things, right?"
Ha Joo-seong nodded and opened his mouth.
"Brokerage, corporate IPOs—Initial Public Offerings—and... a bit of proprietary trading. The stock market's growing now, so securities firms are expanding too."
Brokerage was retail finance, intermediating customer trades in stocks or bonds. They did derivatives too... but derivatives were hard to trade at this point anyway.
Corporate IPOs involved raising funds from investors during a company's public listing, but regulations made it tough for securities firms to lead them, so they just assisted from the sidelines.
Finally, proprietary trading was the company investing its own money. Even that was barely possible under strict government regulations.
Does it sound like they didn't do much?
That's exactly right.
At this time—or rather, until the 1997 foreign exchange crisis—the financial industry's center was banks. People borrowed from banks, and instead of trading stocks or bonds, they took bank loans to buy real estate or start businesses.
It had to be that way. Finance is about moving money around and allocating it where needed; business creates value itself.
Financial industries only develop after a nation's wealth has built up to a certain level.
"Plus, when we did that speculative proprietary trade last time, the government got so heated... If Chairman hadn't protected us, it would've been a disaster."
"True. Even if I didn't know, what you did was illegal, Uncle."
The Foreign Exchange Management Act of 1962 strictly regulated securities firms' overseas investments. Before the crisis, they could basically only do domestic stocks and bonds.
It required prior government approval, with stringent conditions—speculative purposes were absolutely out.
What Ha Joo-seong did with Daeha Securities' money was... strictly speaking, illegal.
But he ignored it and used his connections to invest anyway.
Simple reason.
Forgiveness is easier than permission.
They made money on a short-term bet during the Plaza Accord, but took political heat. That's why we hadn't done options trades since.
"...But you agreed to it too, Miss. Well, it all worked out in the end."
"It was fine back then because I wasn't the one taking the loss."
Now that Daeha Securities was essentially my company, I'd bear that political fallout.
And... I had another aim.
"Besides... thanks to that, we could buy Daeha Electronics stock, right? So it's fine."
After the illegal forex trades, Daeha Securities was under heavy government scrutiny—things they'd have overlooked before were no longer tolerated.
So they had to redirect idle capital domestically...
And naturally bought Daeha Electronics stock, which benefited hugely from the Three Lows Boom. As affiliates, it was a form of circular investment.
Ha Joo-seong raised an eyebrow at that.
"No way... Miss, you planned this too?"
Actually, yes.
I needed a natural way to acquire Daeha Electronics stock without raising alarms. Once I fully controlled Daeha Securities, its holdings in Daeha Electronics would be mine too.
It would play a big role in taking over the Daeha Group later.
But I just smiled innocently.
"Just a thought; I didn't specifically aim for it."
"Hoo, alright then. So... what field are you planning to expand into?"
To maximize the foreign exchange crisis and boost my influence in financial markets, what was the best way...?
I'd thought about it a lot, but there was only one answer.
"Investment banking (IB)."
In the end, I had to do what I was best at.