Chapter 133: Chicken Game
Chapter 133: Chicken Game
The people from JP Morgan reacted immediately.
At the mention of put options, Chairman Jamie, the general managers, and even Ellie's eyes all gleamed sharply.
“You mean you're planning to purchase put options on the companies you mentioned.”
“That's right.”
Computer and semiconductor-related stocks had massive market caps, and their price swings were equally huge.
It was commonplace for them to rise or fall by 5% in a single day depending on semiconductor prices, so the risks and rewards of put options were inevitably enormous.
Chairman Jamie asked cautiously.
“How much investment capital are you considering?”
They knew my net worth exceeded 120 billion dollars.
Unlike my originally timid personality, I'd built a massive fortune in the crypto space, earning a reputation as ruthlessly aggressive investor in the eyes of the world.
Of course, I had no intention of betraying those expectations.
“I plan to bet 30 billion dollars across the board.”
“30 billion dollars.”
Chairman Jamie fell silent for a moment.
The people who'd come with him froze, and I could see Ellie's pupils trembling.
Even for Wall Street pros who handled big money, they didn't deal with investments of this magnitude every day.
30 billion dollars could turn into 100 billion—or shrink to 100 million.
It was a bold wager in the vast financial markets.
Chairman Jamie smiled.
“This is going to be one hell of a game.”
* * *
They took the private elevator down from the penthouse at the Four Seasons Hotel New York.
Chairman Jamie, the managers, and Ellie wore calm expressions.
The elevator passed the fortieth, thirty-ninth, and thirty-eighth floors.
As the elevator descended, their minds were a whirlwind of thoughts.
'Put options on semiconductor companies.'
'Do they have some source predicting a stock drop? We'll need to recheck our reports on those firms.'
'Running a business in Silicon Valley means they know that sector better than we do. But there haven't been any major rumors in the industry.'
'He mentioned it's closely tied to Korea's Isung Electronics. Is Isung Electronics starting early mass production on 3nm foundry? Even TSMC can't pull that off yet.'
If they knew why Kim Shin was boldly betting on put options, it could be a massive profit opportunity for them.
A chance to make a fortune and retire.
Of course, Wall Street financiers weren't ordinary folk—they wouldn't retire on their earnings; they'd chase even bigger bets.
As the elevator passed the 20th floor, Senior Managing Director Choi Jae-bok spoke up.
“Chairman, this bet could pose significant risk to our firm.”
“I know.”
Chairman Jamie nodded.
Put options worth around 1 billion dollars could be handled internally—a solid deal for the company.
Even if they paid out 2 or 3 times that, it would only dent quarterly profits, something JP Morgan could absorb.
But put options on individual stocks totaling 30 billion dollars? That could exceed a full year's profits if things went south.
“You're saying it could shake the venerable House of Morgan.”
“That's not what I meant, Chairman.”
“I know. It's a brutally risky investment. That's why I told CEO Kim Shin this would be a game, not just a deal.”
“Then...”
“We'll only act as agents for the option purchases. We won't issue the options ourselves.”
Chairman Jamie decided to take the fees and sit on the sidelines.
* * *
Deciding to invest 30 billion dollars wasn't easy.
My first foray into put and call options had been 500 million dollars.
Last year, with the stock market rising steadily, call options had grown my assets through repeated reinvestments.
'Don't think of it as a quarter of my cash assets. See it as a prime opportunity for profit.'
The stock market was fickle as hell.
Trivial events could spark storms that rocked global markets.
In finance, you could make or lose hundreds of billions.
Charlie Chaplin once said killing one person makes you a murderer, but killing a million makes you a hero.
If you're speculating to make money, this scale was about right.
―Kim Shin: Vice Chairman, I have something to discuss.
I messaged Isung Group's Vice Chairman for the first time in ages.
With 30 billion dollars on the line in speculation, I'd leverage every connection I had.
Isung Group and I were tangled in multiple business ties.
―Vice Chairman Seon Jae-yong: Long time no talk. Happy New Year—hope you've been well?
Why was a chaebol heir and corporate titan more sociable than me?
―Kim Shin: Yes. Happy New Year to you too, Vice Chairman.
―Vice Chairman Seon Jae-yong: Haha, thrilled to hear from you after so long. Is this about the vaccine?
―Kim Shin: Actually, I'm making a semiconductor-related investment this time.
―Vice Chairman Seon Jae-yong: Semiconductors? Haha, you're not investing in TSMC, are you?
Isung Electronics, a memory chip powerhouse, was aggressively pushing into the foundry market.
With an 18% share in foundry, they had global competitiveness—but their rival, Taiwan's TSMC, dominated with 56%.
TSMC was a difficult competitor for Isung Electronics to catch.
―Kim Shin: No, quite the opposite. I'm aggressively betting on a semiconductor stock decline.
I had a decent relationship with Isung Group, so I decided to share my investment thinking.
Korean stock markets didn't allow put options on individual stocks anyway.
―Vice Chairman Seon Jae-yong: Betting on a semiconductor downturn. Yeah, those stocks have climbed dangerously high lately. Sounds like you have solid grounds for a drop.
―Kim Shin: The grounds are a secret.
―Vice Chairman Seon Jae-yong: I love secrets. No need to tell me, but if you do, it stays between us.
I thought it over briefly.
Various scenarios if I told Vice Chairman Seon Jae-yong.
In semiconductors, Isung Electronics' moves could sway the entire industry.
―Kim Shin: Earth Resource is launching a new service.
―Kim Shin: And I expect that service to significantly tank semiconductor companies' stock prices worldwide.
―Vice Chairman Seon Jae-yong: A new service?
―Kim Shin: We've named it the Pangea System.
* * *
Vice Chairman Seon Jae-yong was visiting Isung Electronics’ Pyeongtaek campus.
The massive factory site, spanning 400 soccer fields, was dubbed a "campus" to evoke a free-spirited culture.
“Yields at P2 factory, which produces memory and foundry products, are nearly locked in.”
It was the core plant producing high-capacity, high-performance DRAM, cutting-edge NAND flash, and five-nanometer foundry products.
On this New Year's inspection tour of the factory where Isung Electronics had invested a whopping 30 trillion won, a message arrived from Kim Shin.
“Everyone, hold on a moment.”
Vice Chairman Seon Jae-yong exchanged texts with Kim Shin.
The executives had to stand and wait, but this was crucial intel he couldn't ignore.
The key client who'd tripled Isung Biologics, pegged as the group's next core business.
The exec whose monthly data center orders in the trillions fed the entire group.
And someone tough to reach on the regular.
'The guy who generated nearly half of Isung Electronics' annual wealth in a single year.'
He spent over 20 minutes texting Kim Shin, who was expanding brilliantly in the US.
The executives waited endlessly, but Vice Chairman Seon Jae-yong's face grew gravely serious.
Even after the chat ended, he stayed silent for quite a while.
'The Pangea System is poison for Isung Electronics—and other computer firms too.'
With markets this volatile, dodging a stock drop would be tough.
In that brief moment, he pondered pitching deals to Kim Shin.
Delay the Pangea launch in exchange for lower vaccine production costs at Isung Biologics.
Or cut data center construction fees.
'Wrong approach.'
There was no telling if Kim Shin would bite.
He lacked for nothing—no room to negotiate with money or favors. And companies had to adapt to change.
“President Lee Gyu-han.”
“Yes.”
“I just got some critical intel. Let's aggressively offload memory semiconductor inventory and readjust investment and production plans.”
He decided to dump inventory, even at the cost of falling DRAM and NAND prices.
And viewing crisis as opportunity, Isung Electronics would do what it did best.
“Strategic Business Division, prepare for the chicken game.”
The term came from American auto racing.
Two cars charge at each other; the first to swerve is the coward, the chicken.
In corporate battles, it meant crushing the opponent.
If Isung Electronics bled, they'd make other memory semiconductor firms teeter on the brink of death.
* * *
An Myeong-guk hated sending his wife and kids to Hawaii.
Being a goose dad was lonely and bleak, and everyone around him tried to dissuade him.
“No way.”
“You're not suggesting this just because you want to—think about the kids' futures.”
“Can't we educate them here in Korea? Everyone goes to Korean schools, and we've done fine so far.”
“We need to think bigger. Cram them through Korean schools, and the best they get is a big corp. Biolife or Earth Resource? No chance of landing jobs there.”
“Those places...”
He stopped short of saying even topping the class in a Hawaii school wouldn't get them in easily.
He could not bring himself to confront his children with such harsh facts.
“Send us to the US. I'll raise them right. It's what a dad does for his children.”
He argued daily with his wife over study abroad.
In the standoff, their only daughter spoke up.
“Dad, I want to go to America.”
“Dahyeon-ah.”
“Can you let me go to school in the US?”
It was her plea, a middle schooler.
Lots of her friends were already scouting overseas options.
“I bragged to my friends that my dad's a Senior Managing Director at Biolife. They were all jealous.”
“You did?”
“Yeah. If we go to Hawaii, I'll really study hard.”
“......”
As if Hawaii would magically make her study when she didn't in Korea.
His only daughter was the light of his marriage.
He'd changed her diapers since she couldn't even roll over as a newborn.
After work, he'd feed her formula, then evening strolls around the neighborhood.
He remembered carrying her, giving her piggyback rides, and holding her hand in parks and playgrounds.
Seeing his suddenly grown daughter stirred many thoughts.
'She can study hard later if needed. Even if not, broader horizons would be good.'
An Myeong-guk told his daughter.
“You know Dad wants to give you anything you want, right?”
“Yeah.”
“I'll send you to the US.”
“Really?”
“Yeah. I'll talk to Mom too.”
He got his wife to agree to study abroad with a few conditions.
“You have to check in every day. Send photos and videos of the kids.”
“Of course.”
“Watch them closely so they don't go astray. If anything happens, call me first.”
“Yeah, naturally.”
He'd heard wives following kids abroad often cheated.
She'd been 50 kilos during dating and early marriage.
After two kids, she started gaining, and with midnight snacks, she'd crossed 70 kilos.
“But you won't cheat just because you're abroad, right?”
“What are you talking about? You're the only man for me.”