Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 57

57. 18th. You Reap What You Sow (3)

The first to speak was Sun Hae-cheol.

“Are you saying… a financial crisis is about to hit?”

“It’s highly likely. The Democratic Party isn’t just pushing IT and media. If we were to name it, it would resemble the Asian financial crisis.”

The Clinton administration and the Democratic Party have Silicon Valley, Hollywood, and Wall Street as their backers. Among them, Wall Street, which supports even Silicon Valley and Hollywood, is more like a master than a mere backer.

While Sun Hae-cheol nodded and pondered, Park Tae-jin followed up.

“Young Master, South Korea is about to join the OECD [Organisation for Economic Co-operation and Development]. Our per capita income is also approaching $10,000…”

He seemed to think my prediction was excessive, but I cut him off.

“That $10,000 was achieved by depleting our foreign exchange reserves. Even if the domestic market is okay, the trade balance must be a mess, right? And what about the reverse Plaza Accord [an agreement to depreciate the US dollar] announced a few days ago?”

Even though construction-related accidents have drastically decreased thanks to Lee Myung-jin, South Korea is still called the ‘Republic of Accidents’ due to the endless stream of incidents.

Naturally, the government and the ruling party have no choice but to cling to economic achievements to divert the public’s attention from such flaws. To achieve the paramount task of ‘per capita income of $10,000,’ the Ministry of Finance and Economy and the Bank of Korea will be meticulously manipulating the won-dollar exchange rate today as well, while wasting foreign currency.

On top of that, Korean companies have overlapping export items with Japanese companies, yet they are inferior in terms of quality, brand value, and everything else.

To make matters worse, if the yen’s value falls due to the ‘reverse Plaza Accord’ concluded a few days ago, even price competitiveness will decline, making the trade deficit obvious. The future I experienced will not change.

Although a rather serious story compared to the original plan came out, Henry put the cognac glass he had swirled a few times to his nose and savored the aroma.

“Are there any other problems?”

“Yes, there are. Merchant banks.”

“Merchant banks? What kind of company is that?”

There was no way Henry, being American, would know about merchant banks. As I was thinking about how to explain it, my head ached at the thought of the trouble they would cause, so I emptied the cognac in one gulp. Taking the glass away from my mouth, I sighed and said.

“They are financial companies established to attract foreign investment. They handle all financial operations except for securities brokerage and insurance, and their main source of income is loan interest.”

“Similar to universal banking in Europe. You would need a lot of capital and know-how to do that…”

“That’s the problem, Henry. Like banks, they take deposits and make loans, but most of their business funds are short-term, low-interest funds brought in from developed countries.”

Deep furrows appeared on Henry’s brow.

“I can picture it just from listening. Playing with money by borrowing other people’s money… If even one cog is misaligned, whether it’s the extension of loans borrowed from developed countries or the recovery of loans made to Korea or developing countries, it will break down in an instant.”

Henry’s eyes, visible beyond the monocle, were filled with contempt. Perhaps because he was someone who pursued investments that were so sound they were conservative, except for yen speculation, he realized how dangerous a tightrope walk merchant banks were doing.

“Still, the initial six companies are relatively meticulous in setting up recovery measures and making loans, but the problem is the nine companies that were created last year and the 15 that will be created next year.”

“How serious is it that you say that? If they operate like those six companies, as you said, it doesn’t seem particularly dangerous.”

Henry’s eyebrows rippled. He seemed to think it didn’t make sense because I had said merchant banks were dangerous, but now I was saying they operate like regular commercial banks, but the key was from now on.

“Those guys are loan sharks who have entered the system. All nine companies added last year are dabbling in junk bonds from Southeast Asia and Russia. The 15 companies that will be added next year will be the same. Because they are all the same loan sharks.”

The foreign exchange crisis has practically started now. It’s crazy to borrow other people’s money and invest in non-performing loans, aiming for high interest rates, when we’re already being pushed back in export competition with Japan, but with the Hango Steel problem that Go Seung-ju mentioned, it’s 100% certain.

Only then did Henry sigh and nod.

“I understand. The situation hasn’t been triggered yet, but you want to avoid it because you see danger signs.”

“That’s right. In a situation where the Korean won might become worthless, the only things to trust are the US dollar, the British pound, the French franc, and the German mark, right?”

Since the collapse of the Soviet Union, the most reliable currencies are only those of developed countries, including the US dollar. There will never be a time when the dollar is as cheap against the won as it is now, so it was a perfect opportunity for me.

I moistened my throat with the water glass in front of me and then brought up the main point.

“Ideally, it would be good to sell to shareholder families who are hostile to you. Since they probably haven’t noticed yet.”

Henry raised the corners of his mouth upon hearing my suggestion.

“Johnny, you’re quite the villain. Selling a bomb for money.”

“Treat friends well and screw over enemies, isn’t that natural? Haha.”

Even if Henry hadn’t taken my hand, Henry and I were comrades and friends in the same boat. If it’s a bomb that has to be passed on anyway, wouldn’t it be better to pass it on to my friend’s enemy? At a very high price.

Henry smiled faintly, but he still had one question that hadn’t gone away, so he asked me.

“I heard from Sun that your family also owns that merchant bank… Is your family okay?”

Even if he was putting it nicely, he was asking if my family wasn’t in the same boat, but I didn’t lose my smile and answered.

“Hae Dong Merchant Bank is the most solid and sound among the initial six companies. Unlike those guys who sit in their offices and only make loans, we go to traditional markets to exchange small change and take deposits, haha.”

Merchant banks, which are difficult to open branches, usually operate on a one company, one branch system. They inevitably lag behind general banks in terms of accessibility to customers.

Therefore, my grandfather and Jo Young-chan put hundreds of sales department employees in Hae Dong Merchant Bank, regardless of whether competitors criticized them, and made rounds throughout Seoul to collect and deposit money. After coming back from the river of death, I realized that the two of them seemed to be trying to grow Hae Dong Merchant Bank like a commercial bank.

Henry laughed heartily at my words, but his eyes were still shining sharply.

“Why are you trying to sell South Korean government bonds overseas when you have such a great private treasury? It seems like you could just hold onto them.”

I looked at Henry, smiled without seeming arrogant, and took a sip of cognac.

“There will be the first local elections on June 27th. If the ruling party, which is pushing merchant banks, earns money by selling the government bonds that our family’s merchant bank will acquire overseas, wouldn’t that create good publicity?”

If we trade with the regime on that matter and expand Hae Dong Merchant Bank’s sales network nationwide, we’ll more than make up for it. I couldn’t tell him the details, but Henry readily nodded.

“Now I know why Sun cherishes you. Some of the profit from the sale will be paid as taxes, which will help the national interest, and you’ll also get some appropriate benefits, right?”

I flinched at Henry’s question. As expected of someone who moves a giant investment company, he had hit the nail on the head.

“I can’t fool you, haha.”

“Johnny, you’re not easy either. To think about legal lobbying at that age.”

Henry, who had been laughing heartily, took a sip of cognac with pleasure and let out a light sigh.

“I’ll find the guys to take the bomb, but there are conditions.”

Two conditions for one deal was a bit unfair, but I was the weaker party, so I had no choice but to accept.

“Tell me.”

“One is about business. I’ve been changing my mind and studying while watching Standard make profits from IT investments, but learning is slow because of my age. I want to get your opinion.”

His desire to admit what he didn’t know and learn endlessly was just like my grandfather. It wasn’t a difficult task, so I took a breath and said.

“I think it will be okay. After the re-election is over and the exploitation of developing countries is finished, money will flow into the United States. That money will go into the IT industry. Still, Cisco, Oracle, and Microsoft are worth considering in the long term.”

I couldn’t show all my cards, but we had to have things we were both lacking to keep seeing each other. Henry stroked the edge of his monocle with his fingertips and made a humming sound, but soon nodded.

“I understand. The other thing is about my daughter…”

Henry emptied his cognac glass. His face, which had taken the glass away from his mouth, was already flushed. His face was also quite serious, which made me nervous for no reason.

“Tell me, Henry.”

“Um… Please say something nice about our daughter to your grandfather.”

It was an unexpected request. Why was he asking me to package Claire well to my grandfather? Not only me, but also Sun Hae-cheol, Park Tae-jin, and Claire were all taken aback, and Henry cleared his throat.

“I know that Sun follows your grandfather like a father. Since Sun’s biological parents passed away a long time ago, your grandfather needs to look after our daughter well so that the two of them can do well, right? I’m asking you, Johnny.”

“…Hiccup!”

Unlike Henry, who spoke with a determined expression, I tried to suppress the laughter that was about to burst out, but I ended up hiccuping.

***

After leaving Henry’s house, we returned to my accommodation in New York. Claire said she would sleep at her own house because she was embarrassed by what had happened at Henry’s mansion.

“That guy, really… He’s already doing well on his own, but why did he have to say such unnecessary things…”

I laughed as I watched Sun Hae-cheol grumble while scratching the back of his head.

“The good is good, hehe. The atmosphere between the two of them was strange even on the morning of Mexico’s floating exchange rate declaration. Isn’t that right, Hyung [older brother/male friend]?”

“Come to think of it, Miss Lawrence’s tone of voice was quite high when she was teasing Hyung, haha.”

Sun Hae-cheol glared at Park Tae-jin, who was sitting next to me and chiming in.

“Oh, really? You haven’t been able to make a single girlfriend with that good-looking face of yours?”

Park Tae-jin’s expression immediately hardened.

“Why are you suddenly talking about me, Hyung? It’s not like I can force myself to date someone if there’s no woman who catches my eye, is it?”

“I don’t know? It looks like you can’t make one to me? If you’re not dating, you can do one-night stands, right?”

“Hyung!”

Even though Park Tae-jin shouted with a reddened face, Sun Hae-cheol smiled as if he was having fun.

“If you become a father, I’ll give you the most expensive apartment in Gangnam, no, Seoul, as a gift.”

“Please keep that promise, Hyung. I’ll pick out the most expensive apartment for you.”

“Don’t worry and bring your sister-in-law first, hehe.”

Sun Hae-cheol, who had been chuckling as he watched Park Tae-jin, who was full of anger, slowly erased his smile.

“What you said in front of Henry, is it certain?”

“About what?”

“That Wall Street guys will fleece Asia.”

Sun Hae-cheol’s eyes, looking at me, were coldly calm. I also erased my smile and said.

“Human greed is endless. They’ve already fleeced all the places they could after the Cold War ended. England, Germany, France, Mexico, Japan… They’ve never failed once, so it will be repeated.”

The people of Wall Street are the kind of people who would trade with the devil for money.

Among them, hedge funds such as George Soros will be firmly determined. They only ate scraps in Japan because of us, so they will definitely sweep through Southeast Asia, go through Hong Kong, and end in Korea.

“Beer, do you want some?”

“Yes.”

Sun Hae-cheol sighed and got up from the sofa, took three bottles of Guinness from the refrigerator, handed one each to me and Park Tae-jin, and drank straight from the bottle. He usually filled a glass with plenty of foam, but he seemed quite anxious.

“What about Korea?”

“Hango Steel, merchant banks, exchange rate manipulation. Doesn’t the size come out just by looking at those three? It’s an act of openly showing weaknesses.”

“I see. Those damn bastards, using the dollars they worked so hard to earn in such a place…”

Sun Hae-cheol stopped the harsh swearing he was spewing out and sighed deeply. Looking at Park Tae-jin drinking beer next to me, it seemed like the beer didn’t taste very good.

Sun Hae-cheol blinked while drinking beer and took the bottle away from his mouth. It seemed like he had forgotten something.

“If that happens, Hae Dong Group will also be in danger, will you be okay? Even if Moolsan or the merchant bank is okay, Myungjin’s affiliates will be hit hard.”

“It’ll be okay because Moolsan is holding on. Even if grandfather invests in overseas raw materials, if he borrows money from overseas banks using that as collateral, the problems of uncle’s affiliates will be sufficiently covered.”

The reason why Hae Dong Group focused almost all of its capabilities on overseas resource development was to prepare for the upcoming foreign exchange crisis. The Gangnam Terminal construction and the collapse of the Seongsu Bridge were all projects to open the way for resource development investment, and the side income was also good, so it wasn’t a pity.

Sun Hae-cheol nodded and continued the question.

“What are you going to do with Henry? Henry is also one of the people who leads Wall Street.”

“I’ll have to persuade him when the time comes. The environmental conditions haven’t been created yet now.”

I replied indifferently and drank beer.

Whether Henry will accept my words is something I’ll have to see when the time comes. For now, I’m just satisfied with leaving the memory of the Asian financial crisis a few years ahead.

But.

When that memory becomes a reality, Henry will never be able to ignore my words. Even if the Yahoo investment is written off as luck and the two currency speculations are written off as the result of moving a little faster, wouldn’t the Asian financial crisis be something I foresaw for about two years?

Sun Hae-cheol nodded silently and drank beer.

“I understand. But don’t tell Chairman yet. You know Chairman’s personality, right?”

“Of course.”

If I tell my grandfather about the possibility of a foreign exchange crisis, he will immediately lock up the vault. Even if we lock it up, we have to sow the seeds so that Hae Dong Moolsan’s future 20 or 30 years will be stably built.

“Hyung, but our country collapsing is…”

Park Tae-jin, who had been quietly drinking beer and listening to our conversation, tried to refute, but Sun Hae-cheol raised his hand and blocked his mouth.

“We’ll have to watch, but it’s not impossible. Merchant banks and chaebols [large family-owned conglomerates] are all building up their size with debt. Does drawing lines on a pumpkin make it a watermelon?”

It’s obvious that the watermelon Sun Hae-cheol is talking about is Hae Dong Group, our family, and grandfather. Park Tae-jin also nodded silently.

“I understand, Hyung. As you said, I don’t think it’s a good idea to tell Chairman yet, Young Master.”

“Yes, Hyung.”

With that answer, we emptied our beer without saying a word. It was Guinness that I usually enjoyed drinking, but today’s meeting and the seeds of destruction I mentioned were weighing heavily on my tongue.