Chapter 74
Chapter 74
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Translator: MadScientist
Chapter: 74
Chapter Title: The One Who Subdued the Bank of England (1)
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As everyone knows, central banks are very different from regular banks.
The most famous analogy is the "bank of banks." Central banks lend money to other banks.
Isn't that obvious?
Money doesn't just pop out of thin air. Someone has to print it, then lend it out at a certain interest rate for it to enter the market.
The central bank lends money to other banks in the market at a fixed rate—that's the benchmark interest rate. And, of course, to make a profit, those banks lend it out at higher rates.
That's why even a slight hike in the benchmark rate can dramatically shift the economy.
This is all basic economic common sense.
One key feature of central banks is their independence from the executive branch, pursuing sustainable economic growth.
If the government could print money and set monetary policy at will, a democratic government with term limits might just flood the economy with cash without thinking about the consequences. That's why central banks usually hold the right to issue currency.
But this raises a question.
-Didn't Kim Hae-ik, who's making a rare appearance after ages, used to bypass the Bank of Korea and run the entire Korean economy single-handedly back in the day? Is it okay for a vice-ministerial government official to do that?
Hmm.
...Actually, it's not okay.
That's why these days, Uncle Kim Hae-ik is just teaching at a university without much complaint. To him, the fact that no single individual can toy with the economy anymore is a sign that Korea's economy has normalized.
At least, that's how it seemed when I saw him last year.
Principles often get ignored, but that doesn't make it right.
Well... it's not just Korea. The Bank of England, the UK's central bank, is essentially a government agency. It only gained a degree of independence after at least five years.
That's why the Bank of England is acting so irrationally in defending against the pound short-selling.
[Britain Abandons Barings Bank! Decides to Redirect $200 Million Rescue Funds to Pound Defense, Major UK Banks Rebel in Unison...]
[UK Prime Minister Strongly Affirms Commitment to Defend ERM. "Due Punishment for the Invaders..."]
[Barings Bank, 230 Years of History, Vanishes into the Dustbin of History.]
[What is Berliner Bank, the Acquirer of Barings? Germany's Yellow Press Claims 'Witch's Scheme' and Shows Strong Distrust...]
Suits me just fine.
I can take both.
◇◇◇◆◇◇◇ Unfortunately, I didn't get to witness Barings Bank's historic acquisition in person.
Instead, I had Seon-jun oppa snap a photo for me.
I laughed as I pasted the picture from the City of London into my photo album.
"Wow, oppa, you must be thrilled. Getting to be part of something this huge. Uncle must be pleased too."
"...Our dad? Well..., yeah, he was happy enough."
Yoo Seon-jun trailed off. He'd kept most of it hidden from the start, but it seemed Yoo Jin-seok wasn't all that interested anyway. It wasn't great seeing him mope over family matters.
I hung off his back, patting his shoulder to cheer him up.
"Come on, perk up. You've got a cute little sister here to help you unwind from all that fatigue. Plenty more work ahead."
He'd flown back from Korea on a plane and worked his butt off, so Yoo Seon-jun was completely wiped out.
This guy turns out to be surprisingly competent at work... which means I have no choice but to pile on more tasks.
"Hey, a girl shouldn't talk like that. And if you're clinging to my back, I can't even see you."
"Oh? That's your taste? Back hugs not enough for you? Tch, some ingrate."
I giggled playfully, spun around, and hugged my cousin oppa face-to-face, staring right at him.
-Squeeze.
"How's this?"
"Get lost."
He shoved my shoulders away, grimacing.
"Hahaha, getting shy? Haven't hugged many girls? Or were you a total goody-two-shoes in school?"
Teasing people is the most fun. I chuckled, grabbed my uniform skirt, and twirled around. As expected from a top school, even the uniform was cute.
Yoo Seon-jun chomped on some snacks like he was craving a smoke.
"Sigh... You're worse for my health than cigarettes."
"No way. They say looking at a pretty girl extends your lifespan."
"...From my experience so far, whenever you spout nonsense like that, you're up to something. So, what's the scheme this time?"
"Hmm... Secret?"
Shh.
I pressed my index finger to my lips and winked.
Yoo Seon-jun brutally ignored his pretty, cute cousin sister and continued thinking.
"Alright. Barings Bank..., Berliner Bank..., pound short-selling... Hmm, what next from here?"
"Hey! Don't pry into a girl's secrets! Hmph!"
I pouted like a cartoon character, striking a pose, and he waved me off.
"What a pain, you'd convince anyone you're a witch in human skin. Don't smile like that—it's creepy."
"Wha...?"
Why say it like that?
-Clink!
Then, a coin spun. Yoo Seon-jun had given the Bank of Korea mascot coin a no-safety-net gyrodrop.
Heads.
"What're you doing?"
I tilted my head. He answered calmly.
"Thinking. If I were gambling, where would I bet...?"
"I don't gamble, you know?"
"Yeah, that's the point... What looks like high-stakes gambling to me is just a normal investment to you."
With those meaningful words, Yoo Seon-jun fell silent for a moment before turning to me.
"If I had to make one final bet right before dying... I'd do it in our country."
I lifted just the corner of my mouth, expressionless.
"Why?"
"Because my most important audience—the ones watching me—is here in the biggest numbers. Unless you have some deep, special love for Korea... the center of that gamble would be Korea."
"Hmm, interesting idea. Not hatred, but love?"
"Obviously? One proper round, and everything shatters."
-Swipe.
Yoo Seon-jun picked up the coin, fiddling with its serrated edge. The rough teeth were half-worn from constant flipping.
"But it's weird. From what I know of you... you love the attention, right? Acquiring Barings, you'd have scoped out the elites and indulged that nasty hobby of judging them."
"That's just because I'm still a minor and can't travel abroad easily. The pound short hasn't even wrapped up yet."
"True. But why not do it in Korea?"
"What do you mean?"
I stepped forward, asking suspiciously.
"You... didn't you say you wanted to become the chairman of Daeha Group? Then focus on Korea, not overseas. You know foreign companies can't invest properly here, no matter how big."
Hmm, fair point. Why did Yoo Seon-jun decide to back me before? To avoid the family feud, he wanted to empower me, right?
"And?"
Yoo Seon-jun continued.
"You're not the type to break a promise with family or look away from a juicy prize like Daeha Group's chairmanship. If we had to pick just one, you'd choose Daeha over some bank in America or the UK—same as me."
"Haha, you can judge people that easily? What if I'm not like that?"
"If a gambler misreads the hand, they die. That's how it goes."
"..."
"Anyway, at first, the sheer scale of money clouded my judgment... but now I see this is just a side gig."
So I thought about it. Why isn't she working Korea and just growing money overseas...? She's no fool about money or power. But digging deeper, I figured it out.
I smiled faintly.
"I'm curious. What did you come up with, oppa?"
Yoo Seon-jun eyed me sharply.
"You're not planning to just eat Daeha Group and call it quits, right?"
Ah, this guy.
I really like him. No idea how he got played so badly in my past life.
"Your scheme to devour Daeha Group... it won't be some ordinary acquisition or succession. Maybe using circular ownership... but in the process, you'll uproot Korea's economic foundation."
Simple.
Even if I'm this eager and loaded, I can't take Daeha Group. Like how even the US President can't meddle in Korea's election, same with Daeha.
Daeha isn't the world's biggest, but it's no small-town SME. It's a massive conglomerate—no outsider can acquire it normally, dead or alive.
But if I can't take it the normal way, make Korea abnormal.
If I can't attack Korea from abroad, change the rules so I can.
That explains building overseas influence. Lucky for him, only half right.
"Like what you're doing now?"
"...Yeah. Declaring war openly on the UK government means you can do the same in Korea. I can't guess the method, though."
Yoo Seon-jun said.
If he had to bet his life on one final gamble... it'd be me triggering a financial crisis in Korea.
No method, no odds. That's why it's a gamble.
But... as he said, not for me. For me, it's inevitable.
...Hmm.
I get the gist, but one thing bugs me. Why bring this up now?
I don't see how my UK antics connect to waiting for the IMF in Korea.
"But what does that have to do with Barings or the pound short?"
"No clue. I said I don't know the method, but I bet you'll pull it off. In poker, you don't read their cards—you read their face."
...Is my poker face that weak? This family's got mind-reading vibes.
I shook my head. Might need a real mask later.
"I told you mine, now spill yours. What're you planning with that bank?"
"Hmm... First, lend tons of dollars to Korean companies?"
"...?"
"You know? Asia market's hot these days."
Just that.