The Conglomerate Family Became A Villain [EN]: Chapter 196

196. The Swelling World (5)

December 25th.

Christmas Day.

A VIP room in a Tokyo hotel.

Executives from Japan’s leading construction companies, such as Sumitomo, Kajima, Shimizu, Sekisui, and Taisei, sat around a table.

“A meeting on Christmas Day? This must be something important.”

The first to speak was an executive from Kajima.

“I heard a VIP is coming from the United States?”

“A VIP from the United States?”

“I heard he’s a billionaire.”

“Why would we gather like this just because someone is from America?”

The lukewarm response wasn’t limited to the Kajima executive. The Sekisui executive also looked like he was only there reluctantly.

“Let’s just take a picture and leave.”

Japanese construction companies were breaking their own performance records every year. Perhaps that was why.

Their noses were in the air.

“Come on. We should at least meet him, shouldn’t we?”

Yoshida from Shimizu, the oldest of them, said, trying to soothe the younger executives.

“Yoshida, it seems you’re still living in the 1970s.”

“What do you mean by that?”

“I believe Japan has already surpassed the United States.”

Yoshida clicked his tongue at the words of Kato, the executive director from Kajima.

“Tsk, tsk, just because the economy has been good for the past few years, you’ve become too arrogant. Japan is still under America’s shadow.”

“Japan won’t be under America’s shadow forever.”

Creak.

A middle-aged man with thick eyebrows entered the room.

“Thank you all for waiting.”

Kato, the executive director from Kajima, raised his voice towards the middle-aged man.

“Tanaka, you’re finally here?”

The middle-aged man with thick eyebrows was Yu Tanaka, who used to work at JP Morgan’s Japan branch.

“Yes, they said they just arrived at the hotel.”

The Japanese construction company executives cleared their throats and straightened their postures.

“Ahem. Ahem.”

“Let’s not make any mistakes and finish this in one go.”

“Of course.”

Two minutes later.

The main character appeared, guided by Yu Tanaka.

“Please welcome him with applause!”

The Japanese construction company executives paused when they saw the young man with black hair.

“I’ve heard the rumors, but…”

“He’s really Asian.”

“Looks like he achieved the American Dream?”

An executive sitting at the end of the table shook his head and replied.

“Isn’t the woman behind him the main attraction today?”

His gaze was directed towards the blonde beauty.

“Ono, it seems you haven’t heard the story. The billionaire attending today is Charlie Jung.”

The word was that the main attraction was a man, not a woman.

“Charlie Jung? Then that guy is?”

Someone familiar with the situation in the United States added an explanation to Executive Director Ono.

“I heard he’s an Asian genius programmer who succeeded in the United States.”

Jung Hyun-woo and Sarah entered, guided by Yu Tanaka.

The two sat down to the applause of the Japanese construction company executives.

“Thank you for the welcome.”

Jung Hyun-woo scanned the middle-aged executives and sighed inwardly.

‘John’s skills are quite impressive.’

He had arrived at the hotel VIP room without meeting John Peer.

Thirty minutes ago.

In downtown Tokyo.

Kato Hitori switched a call from his car phone to Jung Hyun-woo.

“It’s Mr. Peer.”

Jung Hyun-woo reached out and took the phone.

“This is Charlie Jung.”

“Charlie, it’s John.”

“John, you seem busy.”

John Peer’s voice was bright, as if things were going well.

“This meeting on my end was delayed, so Mrs. Hitori went to the airport instead.”

“I know that.”

Was it because of the long flight?

Jung Hyun-woo’s voice was subdued.

“I’m calling to explain the first item on the agenda.”

Jung Hyun-woo tilted his head at John Peer’s words.

“Is there something scheduled for today?”

He had assumed that he would be resting at the hotel today since he had arrived after dark.

“Executives from Japanese construction companies are gathered in one place.”

“Construction company executives?”

“They are the companies we will be investing in.”

Jung Hyun-woo clicked his tongue inwardly.

‘Tsk, it’s good that he’s showing his abilities, but the schedule is too tight.’

He had been planning to experience Tokyo’s Christmas night with Sarah.

But John Peer’s words shattered his romantic plans.

“So, we’re not the ones making money, but the ones giving it away.”

“I’m meeting with the investors.”

The idea was that he was handling the sales, so he wanted Jung Hyun-woo to play the role of spending money generously.

“I understand. Then I’ll meet with the construction company people.”

John Peer said.

“Mr. Hitori should have taken care of the business agreements and practical matters, so Charlie, you just need to sign.”

Mr. Hitori.

Jung Hyun-woo realized that he was Kato Hitori, whom John Peer had mentioned earlier.

‘Did he already recruit him?’

When he first mentioned Kato Hitori, he was just one of the recruitment candidates.

“Are you sure I just need to sign?”

“If anything else happens, ask Mr. Hitori.”

John Peer wanted to pass the details on to Kato Hitori.

“What’s the schedule after the meeting?”

When Jung Hyun-woo asked, John Peer replied.

“I’ll finish my schedule here and go to the hotel, so please wait for me.”

Jung Hyun-woo said he understood and hung up the phone.

Click.

“Was that Mr. Peer?”

Jung Hyun-woo nodded and said to Sarah.

“He sounds very energetic.”

“Looks like things are going well.”

“I hope John doesn’t get too ahead of himself.”

Sarah tilted her head and asked.

“Mr. Peer is getting too ahead of himself?”

“It would be a problem if we get caught up in Japan’s bubble [referring to the Japanese asset price bubble of the late 1980s and early 1990s].”

Jung Hyun-woo was planning to ride the bubble for a while, not sink with it.

‘That’s right, is this an investment rather than sales?’

He thought John Peer was being considerate of him, but he couldn’t help but feel a little deflated.

“By the way, Tokyo’s night is dazzling.”

“There are so many neon signs.”

The closer they got to the center of Tokyo, the more dazzling it became.

‘Is this Tokyo from 10 years before the lost decade [a period of economic stagnation in Japan following the collapse of the asset price bubble]?’

Jung Hyun-woo stared out the window.

‘Just looking at the streets makes me feel like I can hear city pop music [a genre of Japanese pop music that emerged in the 1970s and 1980s].’

There was a significant difference between Korea and Japan in the 1980s.

“Charlie.”

Jung Hyun-woo turned his gaze to Sarah.

“Sarah?”

“Have you thought about what to say to the Japanese construction company people?”

“No.”

“This isn’t like you, Charlie?”

Jung Hyun-woo raised his eyebrows and asked.

“Not like me?”

“It’s like you to have everything planned out in advance.”

Jung Hyun-woo was a CEO who handled things systematically rather than improvising.

“It’s because this schedule was completely unexpected.”

Sarah said in a soft voice.

“Really? Then I should think about it now.”

He should think about it now.

She was right.

But he couldn’t think of anything related to work.

‘Am I unknowingly intoxicated by the night view of Tokyo?’

Jung Hyun-woo reached out and cupped his cheeks.

‘Let’s get a grip.’

He hadn’t flown 18 hours to enjoy the Tokyo night view.

* * *

3 billion dollars.

In the 1980s, this was an astronomical investment amount in any country.

No businessman would dislike such an astronomical investment.

However, the executives of the Japanese construction companies felt they couldn’t accept all the conditions Jung Hyun-woo presented.

“If you only invest in the center of Tokyo, you won’t be able to absorb all that money,” said Noda, a managing director at Sekisui Construction. Jung Hyun-woo shrugged.

“So, you’re suggesting I also invest in the outskirts of Tokyo?”

Managing Director Noda replied.

“You should invest in other major cities besides Tokyo.”

He argued that they should actively invest not only in the Tokyo area but also in Osaka, Kobe, or Nagoya.

“Osaka, Kobe, and Nagoya, huh? If I invest there, how much time can I save?”

After a brief calculation, Managing Director Noda replied.

“If you only invest in Tokyo, it will take more than a year, but if you divide the investment among several cities, half a year will be enough.”

Jung Hyun-woo stroked his chin.

‘Hmm, a year versus half a year?’

Considering only the rate of return, investing in multiple cities as Managing Director Noda suggested was the logical thing to do.

However, the problem was when to withdraw the money.

‘If I don’t accurately time the bubble bursting, the money tied up in provincial cities could vanish completely.’

He turned his head to Sarah.

“What do you think, Sarah?”

Since the meeting with the Japanese construction company executives was conducted in English, Sarah also understood the discussion.

“If you value time, you can follow their advice. If not, you can stick to Charlie’s ideas, right?”

From the beginning, the Japanese investment was Jung Hyun-woo’s responsibility, so she only wanted to play a supporting role.

“Hmm.”

When Jung Hyun-woo groaned softly, Sarah said,

“Why don’t you ask Mr. Hitori for his opinion?”

Yu Hitori was the most reliable Japanese person present.

Jung Hyun-woo nodded and addressed everyone.

“Everyone, how about we take a 5-minute break and then resume our discussion?”

The Japanese construction company executives nodded at his suggestion.

“Let’s do that.”

“I agree.”

“See you in 5 minutes.”

It was a meeting involving an investment of 3 billion dollars. Their expressions were markedly different from when they first arrived.

As Jung Hyun-woo left the table, the Japanese construction company executives began to confer with each other.

“I heard you were just taking pictures and leaving, but you’re still here.”

“Haha, we can’t just let go of a 3 billion dollar project.”

“Wasn’t there a Christmas party?”

“No one would burn hundreds of millions of dollars at a Christmas party.”

There were five construction companies gathered.

Jung Hyun-woo had never said he would invest equally in these five companies.

Some would inevitably receive more money, and some would receive less.

“It’s a shame. If Tanaka had informed us properly, we would have come more prepared.”

“That’s right. The only condition we requested before today’s meeting was an executive who could speak English.”

The five executives gathered in the VIP room were all capable of conducting meetings in English.

“By the way, is Victoria Fund a legitimate company?”

Noda, the managing director of Sekisui Construction, who was familiar with the United States, asked Yoshida, the executive director of Shimizu Construction.

“Are you saying, Executive Director Yoshida, that you attended today’s meeting without even knowing what kind of company Victoria Fund is?”

“Well, we received a recommendation from Tanaka.”

He knew JP Morgan, even if he didn’t know Victoria Fund.

Soon, Managing Director Noda provided an explanation.

“Victoria Fund is an affiliate of Victoria Corporation, and Victoria Corporation is a large company with a market capitalization of over 20 billion dollars.”

After his explanation, Executive Director Yoshida let out a long sigh.

“I almost missed out on a big fish.”

At the same time,

Jung Hyun-woo was talking with Yu Tanaka in the second room attached to the VIP room.

“Which do you think has a higher rate of return, investing in one location in Tokyo or dividing the investment among several cities?”

Yu Tanaka put his hands together and answered the question.

“The rate of return will probably be similar. However, there will be a significant difference in investment speed.”

“Investment speed… Are you referring to what Managing Director Noda said?”

Managing Director Noda, who was familiar with the United States, had told Jung Hyun-woo that there could be a difference of about 6 months.

Yu Tanaka thought for a moment and then answered his question.

“This is just my opinion, but if you invest mainly in Tokyo, it may take longer than Managing Director Noda said.”

Jung Hyun-woo narrowed his brows and raised his voice.

“Are you saying that if I only stick to Tokyo, it could take more than a year?”

“I think it could take not just one year, but two or three years.”

Jung Hyun-woo narrowed his brows and asked.

“What’s the reason?”

Yu Tanaka was an investor who had been working in Japan for a long time. From an investment perspective, he was at least one step above the construction company executives.

“Victoria Fund’s investment amount is 3 billion dollars. But in Japan, no one buys real estate without a loan.”

Real estate loan.

It was a slightly unfamiliar term to Jung Hyun-woo. But it was a very familiar concept in his previous life.

“If you include a loan with 3 billion dollars, how much are you thinking of?”

Yu Tanaka spread his fingers and answered.

“It should be at least 20 billion dollars.”

The principal was 3 billion dollars, so he was suggesting taking out a loan of 17 billion dollars.

‘He’s suggesting he’ll take out a loan more than 5 times the principal.’

Jung Hyun-woo felt that things were escalating rapidly.

“Isn’t that too risky?”

Yu Tanaka shook his head.

“Japanese real estate is steadily rising. I think this level of loan is manageable in Japan.”

Even if it was the early stages, the bubble was still a bubble.

‘Tsk. Not 2 times, not 3 times, but more than 5 times…’ At the peak of the bubble, loans close to 100% even appeared.

This meant that even if you didn’t have money, you could buy a house with just a loan.

“What about the interest on the loan?”

“The interest can be covered by rental income.”

Yu Tanaka, as a Japanese investment expert, answered the questions without hesitation.

‘There’s no Jeonse [Korean-style deposit lease, where tenants provide a large lump-sum deposit instead of monthly rent] in Japan, so rental income will be generated as soon as a building is purchased.’

In theory, Yu Tanaka’s argument was flawless.

“Mr. Tanaka, if you had 3 billion dollars, how would you invest it?”

This time, Yu Tanaka couldn’t answer immediately either.

‘If I had 3 billion dollars?’

He thought for a moment and then answered.

“I think I would build a new city.”

As soon as Jung Hyun-woo heard his answer, he raised his voice.

“Around Tokyo?”

“That’s where the rate of return is highest.”

The best investment in the 1980s was not in the center of Tokyo but in the new cities on the outskirts.

Yu Tanaka said that they could create a large tract of land on the outskirts, build large mansions, and sell them.

“The construction companies gathered here today will also want to carry out this kind of new city project.”

Jung Hyun-woo knew the future of the new cities on the outskirts of Tokyo.

‘The house price crash started there.’

In contrast to the new cities, the central areas of Tokyo, such as Ginza and Shinjuku, were able to maintain high real estate prices even during the lost decade.

He knew that, so he insisted on investing in the center of Tokyo.

“Isn’t the new city project dangerous?”

Yu Tanaka asked back at his question.

“Mr. Jung, if Tokyo real estate is dangerous, what in the world isn’t dangerous?”

Real estate is a safe asset.

This was not just his idea.

Most Japanese people thought the same way.

‘Tokyo real estate prices have been rising continuously since the Tokugawa period [1603-1867].’

The rise in Tokyo real estate prices had been going on for hundreds of years.

“It’s the safest asset in the world. I understand. Mr. Tanaka, I’ve listened to your story well today.”

Jung Hyun-woo got up from his seat and returned to the table for a meeting with the construction company executives.

As he entered, the construction company executives straightened their postures.

“Now, shall we talk again?”

At his question, Managing Director Noda nodded.

“Everyone is looking forward to your story, CEO.”

Jung Hyun-woo smiled brightly and said.

“I’m worried that I won’t meet your expectations. Where were we in our discussion?”

At his question, Managing Director Noda answered.

“We were talking about where to invest.”

Jung Hyun-woo said in a bright voice.

“Where to invest? That’s right. Shall we hear everyone’s proposals in order?”

Instead of revealing his own opinion, he wanted to hear the proposals of each construction company.

Yu Tanaka thought that he would favor the construction company that talked about the Tokyo new city construction project that he had talked about.

‘Mr. Jung will choose the business with the highest rate of return.’

But Jung Hyun-woo had no intention of investing in the new cities around Tokyo.