Black Corporation: Joseon [EN]: Chapter 1176

1176. Aftermath (4)

There was an interesting backstory to the establishment of the ‘Ahyeon Investment Club.’

It was the story of how everything progressed in just two days.

In just two days, it was an incident involving the Emperor Woo and his ministers.

The investment application, written on behalf of Song, quickly made its way to the desk of the investment fund branch manager.

“Hmm….”

As the branch manager was contemplating this unprecedented matter, the assistant branch manager pointed out the issue.

“As you can see, the application is aimed at the ‘Second Suez Canal Investment.’ Considering the deadline for this matter, time is of the essence. If we miss the opportunity….”

“We’ll get caught up in litigation. And if that happens, we’re likely to lose. Hooo~.”

The branch manager, interrupting the assistant branch manager, sighed deeply.

For the people of the Empire, especially those from the mainland, litigation was not unfamiliar.

So much so that the phrase ‘Sue them!’ was commonly used, and there were even litigation agents called ‘Oejibu’ [unofficial legal representatives] – although they were illegal until the establishment of the Empire.

Therefore, it was natural to get caught up in litigation if a decision was not made in time.

In the end, the branch manager chose the most certain method.

“No matter how I think about it, this issue is beyond my ability to resolve. I need a decision from someone very high up. I’ll be back.”

And this issue went through the fund manager, the highest head of the investment fund, and into the hands of the Minister of Finance.

The first thing the Minister of Finance did upon receiving the document was to check the clock on the wall.

“Looks like I won’t be leaving on time again today… Sigh~.”

The Minister of Finance, grumbling, picked up the document and stood up.

“Inform the Emperor that I will be seeing him. And contact the other ministers as well. Tell them to gather at the Geunjeongjeon Hall [main hall of Gyeongbok Palace] immediately.”

“Yes, sir.”

“Ah! Before that, make copies of this document and bring them to me. The Emperor and the other ministers need to see it too.”

“Yes, sir.”

The ministers who heard the news delivered by the Ministry of Finance official all showed the same reaction.

“Hooo~. Why at this hour….”

* * *

“Hmm….”

Woo, looking at the document in question, asked the Minister of Finance.

“What does the Minister of Finance think?”

“I believe it is permissible.”

“Permissible?”

“Yes.”

The Minister of Finance explained the reason.

-Most of the imperial citizens who can open accounts in the warzone are opening accounts and depositing money.

-However, many people complain that the interest rates paid in the warzone are lower than expected.

-We recommend putting money into the investment fund, but it is difficult for those with little wealth to see significant gains.

-Most of the investments that can yield large profits have set minimum investment amounts.

-As a result, some people are turning to private lending in search of higher interest rates.

“…Therefore, if we allow this method of pooling funds for investment, we can prevent money from flowing into private lending as much as possible.”

“Hmm…. I see.”

As Woo nodded, the Chief Auditor raised an objection.

“It should not be permitted!”

“What is the reason?”

“The reason is….”

-Investment, especially going through an agent rather than investing directly, is a way of seeking unearned income.

This will lead to neglecting labor.

-If people despise earning money by the sweat of their brow and value unearned income, the social atmosphere will become tainted.

-It is difficult to distinguish between investment and speculation. If investment turns into speculation, and people lose their entire fortune due to bad speculation, they will blame themselves and then resent the country.

-If there are many such people, the country will have no choice but to step in, and if this happens, other people will resent the country.

-The country stepping in means that it is helping those who have lost money through speculation with the country’s money, which means using their taxes earned by the sweat of their brow.

“…If you allow them to pool funds for investment like that, people blinded by greed will surely overdo it. If those who fail increase, the country will be shaken. You must never allow it!”

The Minister of Finance countered the Chief Auditor’s opposition.

“The Chief Auditor’s words are reasonable, but that is why you should allow it!”

-Again, people are turning to private lending to receive even a little more interest income.

The more money that goes from the light into the shadows, the more chaotic the tax administration becomes, which puts a burden on the good people.

-Looking at the current situation of the investment fund, the proportion of direct investment is considerable, but the proportion of entrusting investment to the fund is also significant.

-However, if you entrust it, the problem is the clause that guarantees the principal in the event of a loss.

Due to this problem, the fund’s investment is inevitably very conservative, and there are many cases where those who are starting a new business or those who urgently need help, such as small businesses or workshops, cannot receive help.

-To solve this problem, there is ‘venture investment,’ but the barriers are getting higher and higher.

-Therefore, if we put a proper rein on it, the investment club will give new vitality to the people.”

“Vitality? What is it?”

“It will give a little more breathing room to those who want to start a business or those who want to grow a little bigger. It will also give strength to those who have to dream of a better tomorrow with their own strength.”

“Hmm….”

At the words of the Minister of Finance, Woo stroked his chin and pondered.

‘Even the country cannot alleviate poverty. It is said that a crow-tit will tear its legs trying to follow a stork. But I can’t stop the desire to live well. It seems better than making them fall into the shadows.’

“I think it is reasonable to act according to the words of the Minister of Finance. Everyone has the same desire for a more prosperous tomorrow. However, it is difficult to overcome greed, so make sure to have a way to prevent it.”

At Woo’s command, the Minister of Finance immediately replied.

“Fortunately, the regulations created by the person who led the club this time are very appropriate. They have prevented club members from investing more than 60% of the money they put into the warzone.”

“That’s good. But don’t neglect your research and review, as there may be unforeseen loopholes.”

“I will obey your command.”

“And approve this club immediately. It is worthy of an award for devising a way to aim for a slightly better future without deviating from morality.”

“I will obey your command!”

This is how it was passed in just two days.

The story of the creation and approval of the ‘Ahyeon Investment Club’ spread throughout the Empire through the gazette [official government publication].

Many people who saw this story soon began to create similar clubs here and there.

In response, the Ministry of Finance hurriedly created a related bill and passed it on to the Board of Audit.

The Board of Audit also quickly reviewed the importance and urgency of the matter, and before long, the related laws and regulations were promulgated with Woo’s approval. And the employees working in the warzone and the fund sighed.

“Why are they creating unnecessary work in Seoul….”

Hyang, who received the report that ‘Investment clubs are exploding,’ sighed.

“Hooo. There’s a saying that ‘money goes around and around.’ It’s better than going around in the wrong direction, but there’s always a problem.”

Hyang took out a blank sheet of paper, held a gold pen in her hand, and muttered.

“I was happy because I was frantically doing my part in the final spurt thanks to the French guys…. ‘Ponzi scheme’…. Hmm… How do I translate ‘Ponzi scheme’?”

After a moment of contemplation, Hyang soon began to fill the paper, muttering.

“‘Round-robin fraud’ would be good….”

* * *

Woo, who read the warning written and sent by Hyang, went straight to Sugang Palace [another palace] without asking any questions.

“Is this fraud possible?”

“Enough.”

“But isn’t the premise of this fraud a problem? Guaranteeing profits unconditionally if you invest? That’s a 100% investment success rate, who would believe that? Unless the club leader is riding a possessed knife [extremely lucky or skilled], no one will believe it.”

“Isn’t it fraud because they make you believe it?”

Hyang explained in more detail how the ‘Ponzi scheme’ proceeds.

“Hmm…. If that happens, there will be more than a few people who will be deceived.”

“If you miss this, the future of the investment clubs that have just begun to sprout will be bleak. You must look into it in advance and take action.”

“I will keep that in mind.”

And, according to Woo’s orders, various measures to prevent ’round-robin fraud’ began to be devised based on Hyang’s warning.

However, it was not an easy task.

Most of the newly started investment clubs aimed for ‘venture investment’ in order to obtain greater profits.

The Minister of Finance reported this issue to Woo.

“…Therefore, in order to distinguish whether this is investment or fraud, we must observe the traces for at least a few months.”

“You mean we could see more damage than expected if we make a mistake.”

“That is correct.”

“It can’t be helped. We can’t make hasty judgments, so let’s accept the damage.”

“I will obey your command.”

Less than half a year after such conversations took place in Gyeongbok Palace, the ’round-robin fraud’ in question occurred.

The damage was enormous, with only 100 victims and damages amounting to 200,000 gold coins in imperial currency.

What was even more problematic was that more than 10 people had lost their fortunes by using loopholes to put in all their assets, even though the imperial government had taken various restrictive measures to prevent excessive investment.

In the end, those who committed this fraud were all executed by beheading.

It was the first execution carried out since the Empire was founded.

And countermeasures against the loopholes used by this fraud group were newly added.

While the Empire was in turmoil due to the first round-robin fraud, English envoys visited Seoul.

Woo, who received the envoys’ visit and purpose of visit, smiled and looked back at the Minister of Foreign Affairs.

“Those who participated in this war have not yet returned home, and we have not been able to reward them for their merits, but the envoys have come first?”

“That is correct. They must have been in a hurry.”

“I see. Then let’s hear their story in more detail directly.”

The English envoys, who safely passed the quarantine period and arrived in Seoul, headed straight to Gyeongbok Palace to have an audience with Woo.

Woo smiled and returned the greeting as he watched the envoys politely pay their respects.

“Welcome to the Empire. I hope to achieve good results between the two countries.”

“Thank you for welcoming us. We will do our best.”

Through the ensuing talks, it was officially conveyed that England wanted cruisers, and pros and cons began to be exchanged over this.

“Although it is not as good as a battleship, a cruiser is also a very powerful warship! It is dangerous to sell this to a foreign country, especially a belligerent European country. This is not acceptable!”

“That’s an excessive worry! Our Imperial Navy doesn’t need to be afraid of that level of power!”

“From an economic point of view, we can see quite a large profit. I think it is right to see it positively.”

“Don’t just think about the economy, think about security too!”

Woo, watching the fierce back-and-forth debate, looked at the Minister of National Defense.

“What does the Imperial Navy say?”

“They say there are pros and cons. First of all, the disadvantage is that if they run rampant because of the characteristics of the cruiser, it can be a headache, and conversely, it is good because if we hand over the cruiser, the pirates running wild in the Atlantic will become docile.”

“The pirates become docile?”

“That is correct. If you look at the pirates running wild in the Atlantic right now, they are largely divided into two, France and England. If we hand over the cruiser to England, England will come forward to deal with the French pirates, which is one benefit. And England and the Empire are the only two countries with cruisers in the Atlantic. They won’t be able to commit piracy with cruisers, so the English pirates will also become much more docile. That’s another benefit.”

At the Minister of National Defense’s answer, Woo gave a meaningful smile.

“One warship