The Conglomerate Family Became A Villain [EN]: Chapter 207

207. Oil Shock (2)

“Anyway, it’s an impressive investment. I can see that Victoria Corporation’s direction has completely changed.”

Jung Hyun-woo tilted his head at Lira Marin’s words.

“Victoria Corporation’s direction has completely changed?”

“Hasn’t it transformed into an investment company?”

Jung Hyun-woo raised his voice as if he were about to jump.

“Absolutely not!”

His voice was so loud that the people around them turned to look.

Lira Marin couldn’t help but pause at his vehement denial.

“Really?”

Jung Hyun-woo nodded in response.

“Definitely not. Victoria Corporation plans to showcase a host of new services at this year’s CES [Consumer Electronics Show].”

The core and foundation of Victoria Corporation was, after all, its IT business.

“Then I must have misunderstood.”

Jung Hyun-woo said, puffing out his chest.

“You can look forward to this year’s CES.”

“Is it that significant?”

“Yes, it is.”

Victoria Corporation was planning to introduce new services, new third parties, and new businesses at this year’s CES.

“That’s amazing. To be running a 15 billion dollar investment business while also developing businesses that rival other IT companies.”

Many large American corporations, like Apple or Microsoft, tended to focus solely on their own fields.

However, corporations in South Korea and Japan were different. They were called chaebols [large, family-owned industrial conglomerates] and had numerous affiliates.

The reason Victoria Corporation had more business areas than other companies might have been because Jung Hyun-woo was influenced by these chaebol companies.

“Well, you can think of it as doing a job and investing at the same time.”

He was saying that the IT business was like a job, and the fund was like investing.

“I hope we win in both areas.”

Jung Hyun-woo put his hands together and said.

“If we win, Bank of America will also win.”

He emphasized that Bank of America owned 10% of Victoria Corporation’s shares.

“Charlie, is there anything we should do to ensure Victoria Corporation’s victory?”

“Just keep supporting us as you are now.”

Bank of America was an ally of Victoria Corporation, but it sometimes shot unexpected arrows, like during the short selling crisis.

‘Bank of America is helpful just by staying still.’

When talking about Victoria Corporation’s value, many still mentioned Bank of America, Citibank, and JP Morgan.

* * *

John Pierre had dinner with Henri Arnault after a long time.

“You went to Japan?”

John Pierre nodded slightly.

“I went to Tokyo.”

“Must have been nice.”

“I was busy.”

“You didn’t get to enjoy the nightlife, then?”

In the 1980s, American men had fantasies about Japanese women.

Henri Arnault was speaking based on that fantasy.

John Pierre moved his knife and replied.

“Not at all.”

“You’re not lying to me, are you?”

“Henri, it was a trip with Charlie.”

John Pierre used formal language, but he didn’t add ‘Mr.’ when calling Henri Arnault, as he had done before.

“Hmm, isn’t Charlie old enough now?”

“No.”

“Hmm?”

“He’s still nineteen.”

Jung Hyun-woo was 21 in Korean age, but still 19 in American age.

“I didn’t realize.”

John Pierre raised his fork about an inch and said.

“Besides, Miss Hilton was with us. How could I have enjoyed the nightlife?”

“You wanted to enjoy it but couldn’t, is that what you’re saying?”

John Pierre shrugged.

“Henri, if you want to go to Japan, just go. You have plenty of vacation time…”

“I’m planning to give up my vacation this year.”

“What does that mean?”

“I have a feeling this year will be busier than ever.”

Henri Arnault had a feeling that this year would be busier than any other year.

“Is it a CEO’s sense of responsibility?”

“You could also call it anxiety. Come to think of it, aren’t you a CEO too?”

“I just handle the operations here.”

The one who decided the direction of Victoria Fund’s operations was Jung Hyun-woo, not John Pierre.

“Hmm, is that so?”

“Charlie is still the same.”

“You’re working hard.”

“It’s hard in some ways, and easy in others. I just have to calculate the details here.”

Henri Arnault skillfully cut his steak and asked.

“So, speaking of which, what do you think of Victoria Fund’s investment in Japan?”

“What do I think?”

“How much profit are you expecting to see?”

It was a question about Victoria Fund’s expected rate of return.

“Are you thinking of investing in Victoria Corporation?”

“Haven’t we already invested a lot of money?”

JP Morgan’s stake in Victoria Fund had already exceeded 10%.

“Charlie is expecting over 100%.”

“100%?”

“He’s expecting profits of over 3 billion dollars.”

“Hmm, is that possible?”

John Pierre chewed and swallowed his meat before answering.

“We’ve already made profits of over 500 million dollars.”

Henri Arnault knew that the 500 million dollars in profit came from currency exchange gains.

“Charlie Jung, he seems to have luck on his side.”

He thought that the yen rose not because Jung Hyun-woo exchanged currency, but because he luckily boarded a bus just as it was about to leave.

“It’s not luck.”

“If it’s not luck, then it’s skill?”

John Pierre nodded.

“Charlie is a genius.”

Henri Arnault and John Pierre had seen many people called geniuses on Wall Street.

But none of them had ever set an investment record that would go down in history.

‘If I had to pick, I’d say John Bogle of Vanguard Fund and Peter Lynch of Magellan Fund. But while they were excellent investors, they weren’t geniuses.’

He sighed briefly.

“You’ve fallen for Charlie Jung.”

John Pierre narrowed his brow slightly.

“It’s not because of infatuation. He really is a genius.”

“Tell me why.”

“When I was at JP Morgan, I couldn’t have deep conversations with Charlie Jung. But after joining Victoria Fund, I’ve been able to have deeper conversations.”

Henri Arnault said coldly.

“A genius isn’t someone who’s good at talking.”

John Pierre put down his knife and responded.

“I’m not impressed by his eloquence. I’ve come to understand why Charlie Jung invested in Japan, why he chose real estate, and how he invests.”

Henri Arnault raised his voice.

“Knowing the reasons makes him seem more impressive?”

“Yes.”

Henri Arnault stopped both hands and asked.

“Didn’t you ever think that all his investments were thanks to information he got from someone?”

John Pierre picked up his knife again and answered.

“It’s not that I didn’t think that. But after hearing the reasons, I also realized that wasn’t the case.”

Henri Arnault asked again.

“Then let me ask you just one thing. What was the basis for executing the 12 billion dollar loan?”

He thought Jung Hyun-woo had taken on too much leverage [using borrowed capital for investment].

“Because he strongly believes in the upward trend of Japan and the yen.”

“Belief? Just that alone made him shoulder a risk of 12 billion dollars?”

“There was a basis before the belief.”

Henri Arnault wanted to hear the basis that John Pierre was talking about.

“Could that basis be the Plaza Accord [a 1985 agreement to depreciate the U.S. dollar]?”

“The Plaza Accord is a big part of it.”

“What else?”

“You must have felt it too, Henri?”

“Me?”

“What happened in Saudi Arabia.”

The oil shock that started in Saudi Arabia shocked the New York Stock Exchange.

“Hmm, no one could have predicted what happened in Saudi Arabia. Are you saying Charlie Jung predicted that?”

“He didn’t predict that. But he did say that the world economy would inflate.”

While persuading John Pierre, Jung Hyun-woo had said that the world economy would inflate due to the Plaza Accord.

“Is that one example the Saudi refusal to cut production?”

“Saudi Arabia must have felt it too. What would happen to the world economy.”

“Hmm…”

John Pierre picked up his knife and said.

“What about JP Morgan’s analysts?”

JP Morgan had several research teams to predict the future.

When Neil Hamilton was there, investments were made based on their analysis.

“Our side predicted that Japan would suffer a shock in the short term.”

“Are you saying Japan’s economy will shrink?”

“That’s right.”

According to JP Morgan’s analysis, investing in Japan was foolish.

Yet Jung Hyun-woo not only invested in Japan but also leveraged it several times over.

“If JP Morgan thinks so negatively, why didn’t you stop him?”

“Let me be clear. We didn’t have time to stop him.”

Jung Hyun-woo’s Tokyo agreement was completely unexpected for JP Morgan.

“So the reason you came to this meeting is to stop Victoria Fund’s investment in Japan?”

Henri Arnault shook his head.

“That’s not it.”

“Then you just came out to build a relationship with me?”

John Pierre didn’t think that was the case at all.

“It’s a bit of both.”

“A bit of both?”

“I wanted to see your face and hear the thoughts of Victoria Fund’s owner.”

“You’re not going to stop this investment, then.”

Henri Arnault wiped his lips with a napkin and said.

“I’m not Edmund.”

He questioned Jung Hyun-woo’s investments and actions, but he didn’t stop him.

“I’ll take that as being on our side.”

Henri Arnault put down his napkin.

“Didn’t I help last time too?”

When Victoria Corporation was involved with Terra, Henri Arnault returned some of the fund’s money to help.

“That’s true.”

“I just want to know a little more about this person, Charlie Jung.”

Henri Arnault didn’t insist on just one option. He liked to have multiple options to choose from.

‘But even John doesn’t know exactly.’

He speculated that Jung Hyun-woo had a hidden background.

‘Well, I’ll find out someday.’

Henri Arnault decided to watch Jung Hyun-woo a little longer.

* * *

The oil shock that started in Saudi Arabia didn’t subside even after a week.

Oil prices continued to fall, and news of hedge funds that had bet on rising oil prices going bankrupt was pouring in.

“Thanks to the oil prices, consumer prices are also falling.”

“At this rate, interest rates will also fall.”

“Hmm, interest rates falling means…”

The one groaning softly was Moses Mount, the chairman of Citibank.

“Shall we meet with the Fed [Federal Reserve]?”

“Hmm, would you do that?”

The one talking to Moses Mount was Kyle Weber, who was called his left-hand man.

“I’ll go to Washington tomorrow.”

“Do that.”

As he was about to get up, Moses Mount asked.

“Has there been any more news about Victoria Fund?”

Kyle Weber lowered his head slightly and replied.

“No.”

“I see.”

Moses Mount was bothered by the fact that Victoria Fund and Jung Hyun-woo had moved one step ahead of them.

‘Is there really a political heavyweight behind them?’

With the successive successes of Victoria Fund and Victoria Corporation, rumors circulated on Wall Street that there was a political heavyweight behind them.

“Mr. Mount.”

“What is it?”

“Do you believe that rumor?”

Moses Mount crossed his legs and replied.

“Rumors may remain rumors, but sometimes they become truths that cannot be ignored.”

“Then I’ll look into that as well.”

“Hmm, is that possible?”

“I have some connections with the CIA [Central Intelligence Agency].”

Moses Mount nodded slowly.

“If you need money, you can spend up to a million dollars.”

He was not Jung Hyun-woo’s enemy but an ally, but he wanted to know his background even if it meant using bribes.

This was the same as Henri Arnault of JP Morgan.

At the same time.

Jung Hyun-woo received a call from John Pierre.

“Is this a good time to talk?”

Jung Hyun-woo nodded and replied.

“The meeting just ended. I should be free for about an hour.”

“That’s fortunate.”

“Is it urgent?”

“It’s urgent if you say it is, and it’s not if you say it isn’t.”

Jung Hyun-woo smiled slightly.

“Then it’s not urgent. What is it?”

“We’ve received a request to buy bonds.”

Jung Hyun-woo narrowed his brow.

“Bonds? From the US government? Or a company?”

“Chevron.”

Chevron was unknown in Korea, but it was a well-known oil company in the United States.

In particular, the name Chevron had long been used as a gas station brand.

“Is Chevron sending us an SOS?”

“It seems their cash has dried up momentarily due to this oil shock.”

Chevron had spent a considerable amount of money acquiring Gulf Oil two years ago.

‘So, the ball that Saudi Arabia kicked crossed the Pacific and hit Chevron.’

Jung Hyun-woo cleared his throat and asked.

“How much do they need?”

“They’re asking us to buy 100 million dollars worth of bonds first.”

100 million dollars in bonds.

“What’s the interest rate?”

“8% per year.”

Not bad.

However, Jung Hyun-woo had a sure card in the form of Japanese real estate.

‘To put 100 million dollars into Chevron at this point?’

It would be worthless if you only considered the profit. But Jung Hyun-woo hesitated to refuse.

‘If I do well, it could be an event that connects me with an energy company.’

He knew that the Gulf War would happen in the early 1990s.

‘Of course, I don’t remember the exact year…’

Was it because his worries deepened?

John Pierre raised his voice.

“Charlie, are you on the phone?”

Jung Hyun-woo answered his question.

“I’m thinking.”

“Shall I call you back in ten minutes?”

“It’s okay. Give me 30 more seconds to think.”

After pondering, Jung Hyun-woo asked John Pierre.

“How much is in the account right now?”

“About 20 million dollars.”

“Not much.”

Jung Hyun-woo’s personal funds were essential to purchase Chevron’s bonds.

“Charlie’s money is needed to buy the bonds.”

Jung Hyun-woo sighed briefly and said.

“I’ll put money into the account.”

He was saying he would buy Chevron’s bonds.

“Okay, then…”

Jung Hyun-woo cut off John Pierre’s words and said.

“But there’s one condition.”

John Pierre paused and asked.

“What condition?”

“I’d like to meet with a high-ranking official from Chevron.”

“Are you saying you want to have a meeting with Chevron’s CEO?”

“It doesn’t have to be the CEO. An executive-level official is enough.”

He wanted to have a conversation with someone who knew Chevron’s situation well.

John Pierre nodded and said.

“Okay. I’ll look into it.”

He didn’t think it would be difficult.

‘The person who requested this is also an executive, after all.’

Jung Hyun-woo asked one more thing before hanging up.

“What’s the exchange rate like?”

“The yen is still strong.”

“What about our profits?”

“It’s about 1% bigger than last week.”

1% of 15 billion dollars was 150 million dollars.

And this amount was larger than Victoria Corporation’s first-year sales when it started JP Services.

‘I earned 150 million dollars without doing anything. Hmm, some might say I’m making money easily.’

Jung Hyun-woo couldn’t help but realize that money makes money.