The Conglomerate Family Became A Villain [EN]: Chapter 229

229. Leap (3)

The rise in Victoria Corporation’s stock price was due to a false report.

“The false report broke near the end of the trading day, I heard,” Sarah said as she walked with him.

“Then the stock price will drop from the start tomorrow, right?”

“Probably.”

The reason for the increase in Victoria Corporation’s stock price was the news that Victoria Fund was acquiring JP Morgan’s fund division and making a full-scale entry into Wall Street.

‘There’s no way that could happen.’

It was common for such false rumors to spread on Wall Street.

Due to someone’s mistake.

Or a distorted story.

Whatever the reason, it was the innocent investors who suffered.

“How much will it drop?”

“Won’t it return to where it was before the rise?”

Jung Hyun-woo predicted the stock price would be around $40 tomorrow morning. But when the market actually opened, the stock price began to plummet more than he had anticipated.

10:20 AM.

A call came from John Peer.

“I’m in the middle of work, but what is it?”

“The stock price has dropped to $38.”

Jung Hyun-woo sighed briefly at his response.

“John, don’t be so quick to celebrate or despair.”

John Peer raised his voice after hearing Jung Hyun-woo’s words.

“Charlie, this is not something to take lightly. A market capitalization of $15 billion has disappeared in a single day. Let me repeat, it’s not $100 million, but $15 billion.”

His voice was so loud that Jung Hyun-woo had no choice but to see the situation differently.

“Hmm, are you saying this isn’t a normal phenomenon?”

“The company needs to respond to this issue.”

“How so?”

“There should be an announcement about this sudden rise and fall, or an interview with someone involved.”

“What if we don’t respond?”

John Peer replied coldly.

“Victoria Corporation will lose the market’s trust.”

Regardless of where or how the rumor started, he was saying they had to take action.

“I understand.”

He hung up with John Peer and called Sarah and Robert to the president’s office.

Fortunately, both of them had no meetings or business trips, so they were able to respond to his call.

“Charlie, what’s going on so early?” Robert asked, scratching his head, agreeing with Sarah’s question.

“That’s what I’m saying.”

The fact that Jung Hyun-woo had called both of them at the same time meant that the matter was serious.

He stood up from his desk and headed to the conference table, raising his voice.

“Did you check our company’s stock price on JP Services today?”

Sarah shrugged at his question.

“No.”

Robert was the same.

“I didn’t have time because I was in a meeting this morning.”

Jung Hyun-woo nodded and said, “I see. As of now, our company’s stock price has fallen to $37.8.”

The $38 line had collapsed while he was on the phone with John Peer.

Robert took a long breath at the news that the stock price, which had been quoted at $45 until yesterday, had collapsed to $38.

“Hoo… Is there any bad news?”

“There’s no bad news, just that a groundless rumor has been revealed as false.”

Robert frowned at his answer.

“It’s bad news for the investors who believed the rumor yesterday.”

“What do you think?”

“I think it’s just a correction.”

Jung Hyun-woo turned his gaze to Sarah.

“What do you think, Sarah?”

Sarah also thought it was a correction. However, she said that they should be able to explain the reason for the sharp decline to some extent.

“Are you saying that the securities company should explain it, not us?”

“They’re the ones who spread the rumor.”

Jung Hyun-woo’s voice hardened.

“We know that we didn’t spread the rumor, but investors won’t think that way.”

Robert asked him.

“Are you saying that one of our company’s executives spread a false rumor in order to sell stocks at a high price?”

“That’s what they might think.”

“Isn’t that a bit of an overthinking?”

Jung Hyun-woo thought so too. But the speed at which the stock price was falling was too fast.

“I think we need to respond actively this time.”

“If we respond actively?”

“It would be good for Sarah to do an interview.”

Sarah frowned slightly.

“I’m in Boston right now.”

She meant that holding a press conference with reporters should be done in New York.

“There are also phone interviews.”

“Over the phone?”

“Or there’s a newspaper like the Boston Globe.”

Robert said to Jung Hyun-woo.

“If it’s an interview with a newspaper, the article will be published in the evening.”

He was saying that it wouldn’t be able to affect the market right now.

Jung Hyun-woo also acknowledged his words.

‘The situation is different from the 21st century, when internet newspapers and news appeared instantly.’

He put his hands together and said, “Then let’s make an official announcement.”

Sarah raised her eyebrows.

“An official announcement?”

“Saying that the rumor related to this sudden rise and fall has nothing to do with our company.”

Sarah stuck out her tongue and considered his words.

“It’s not a difficult task, but wouldn’t that be a little weak?”

“Weak?”

“I think the market is expecting something a little more unconventional.”

Jung Hyun-woo listened to her and pondered for a moment.

‘What the market expects is not just us denying that we did it.’

What John Peer wanted was about what Robert said. But Sarah was saying that it would be good to add something.

“Besides, it’s an official announcement.”

If a company like Victoria Corporation made an official announcement, everyone’s attention would be focused on it.

Jung Hyun-woo asked Sarah.

“But if we announce that it’s not something we did and there’s something else, wouldn’t the announcement itself be too long and convoluted?”

Sarah paused at his words.

“Is that so?”

Jung Hyun-woo organized his thoughts and said, “Instead of denying that it’s a rumor we spread, it would be better to announce new news.”

It was a shift in perspective.

“You’re saying let’s change the subject.”

“That’s right.”

Robert also thought it was a good idea.

“Listening to Charlie, I think it’s not bad to cover up the rumor with another topic instead of denying the rumor.”

Jung Hyun-woo raised his right hand slightly.

“Let’s do it this way.”

Sarah and Robert listened to his story and nodded repeatedly.

1 PM.

Each exchange in New York was rushing towards closing.

A trader at the Nasdaq Exchange raised his voice while looking at the screen.

“An official announcement is up!”

A colleague next to him asked him.

“What kind of announcement?”

“It’s Victoria Corporation.”

The colleague had lost a considerable amount of money since morning, so his eyes widened at his words.

“Victoria Corporation? Did they finally announce it?”

If Victoria Fund’s entry into Wall Street was real, the stock price could recover to $45 in an instant.

“It’s not about Victoria Fund.”

“Then what is it?”

“Victoria Corporation has signed a contract with the New York Stock Exchange.”

Upon hearing his answer, his colleagues began to check Victoria Corporation’s announcement one by one.

“It’s true.”

“There’s really an announcement with that content.”

“If Victoria Corporation has signed a contract with the New York Stock Exchange, are they perhaps entering the securities business?”

“That can’t be.”

Someone raised his voice.

“Everyone, look closely. It’s not that they’ve signed a contract, but that they’re planning to sign a contract.”

“Planning?”

“It could be a bluff.”

“Would they bluff with an official announcement?”

New York Stock Exchange dealers accepted Victoria Corporation’s announcement as truth, not a bluff.

By 2 PM, Victoria Corporation’s stock price had successfully rebounded to $39.

It was the result of securities dealers, investors, and fund managers positively accepting Victoria Corporation’s announcement.

John Peer called Jung Hyun-woo again.

“Charlie, this announcement is a bit…”

Jung Hyun-woo cut him off and asked, “Is it too radical?”

John Peer nodded and replied, “To be honest, it is.”

What he wanted was not a rebound, but to prevent further declines.

‘Victoria Corporation needs a soft landing right now.’

John Peer thought it was right for the stock to stay around $40 and rise on the day Victoria Fund’s performance was announced.

But Victoria Corporation’s stock price was rising again.

“It is true that Victoria Corporation and the New York Stock Exchange are scheduled to sign a contract. That’s why we made the announcement.”

“Charlie, may I ask what kind of contract you have with the New York Stock Exchange?”

John Peer wanted to ask about the content that was not in the announcement.

Jung Hyun-woo answered his question calmly.

“It’s a network system improvement project.”

John Peer paused and raised his voice.

“Charlie, if it’s a system improvement project, the scale wouldn’t be that big, would it?”

“It’s not that small. It’s a project worth more than $10 million.”

John Peer knew the size of $10 million well.

’10 million dollars for a system improvement project? This is no different from reinstalling the system.’

He realized that this project was quite large.

“It’s a bigger project than what’s written in the announcement.”

“But it won’t generate much profit.”

“A project that doesn’t generate profit?”

“It may even incur a loss of millions of dollars.”

Jung Hyun-woo had signed a contract for a project that would lose millions of dollars. Then there must be a reason for it.

John Peer couldn’t guess the reason yet.

“Hmm, you’re saying there was no competitive bidding because it’s a loss-making project.”

“John, if we can get our hands on the New York Stock Exchange’s system, we can take control of Wall Street.”

Jung Hyun-woo said that he was not improving the system, but getting his hands on the system.

John Peer’s eyes widened at the words.

“Charlie, you’re not trying to hack the stock exchange, are you?”

“Hacking, you mean…”

“Something like manipulating the New York Stock Exchange system at will.”

Jung Hyun-woo smiled and said, “That won’t happen. What we’re aiming for is not something out of a movie, but to have all financial companies use the system we created.”

Monopoly of the financial system.

This was the real goal that Jung Hyun-woo was aiming for.

“Charlie, you’re aiming big.”

“We’ve been moving with one goal from the beginning.”

He meant that it was not a sudden change of goal.

Even while the two were on the phone, Victoria Corporation’s stock price continued to rise.

“Wow! It’s over $40 again.”

John Peer raised his voice while looking at the computer screen on his desk.

Unlike him, Jung Hyun-woo was calm.

“I hope the market doesn’t overheat with this news.”

He made the announcement to maintain people’s expectations, not to boost the stock price.

“It’s already reacting enthusiastically.”

Since the announcement, Victoria Corporation’s stock price had risen by more than 5%.

Jung Hyun-woo sighed inwardly.

‘Our company’s stock price is weightless, unlike its size.’

He thought it was similar to Tesla in the 2020s.

“John, how is Japan doing?”

When Jung Hyun-woo changed the subject, John Peer lowered his voice.

“Japan, you mean?”

“Yes. I haven’t received any reports on how the money we handed over is being used.”

John Peer cleared his throat and said, “Currently, Kajima Construction is engaged in all-out lobbying.”

“All-out lobbying, you mean… the media, the government, and the political world?”

“That’s what I understand.”

Jung Hyun-woo put a little strength in his voice.

“John, our fund shouldn’t be targeted as the cause of the Japanese real estate boom.”

John Peer shook his head and reassured him, “Charlie, that won’t happen.”

He thought it was something he didn’t need to worry about.

‘Because there’s no country where bribes work as well as Japan.’

To Western developed countries, including the United States, Japan was still not a transparent country.

Jung Hyun-woo was concerned, but not too worried.

‘Japan’s political and business circles are more closely linked than any other country. There will be no attacks on Japanese companies by the Japanese political world.’

He thought that even if Kajima Group was put on the chopping block, it would likely end with a warning.

‘The problem is our Victoria Fund.’

Victoria Fund was not a Japanese company. Even if it was conducting joint ventures with Japanese companies, the joint venture could be terminated by canceling the contract.

‘Nothing big should happen.’

He lowered his voice and said, “I understand. I’ll trust John on this one.”

John Peer took his words in a bright voice.

“Kajima Group will do well.”

Jung Hyun-woo changed the subject again.

“How is the fund’s return?”

When John Peer asked about the fund’s return, he quickly looked up the data.

“It’s still difficult to check the exact return for this month. However, as Japanese real estate prices continue to rise, we can expect a decent return this month as well.”

A decent return.

In months when John Peer used this expression, he usually made a return of 5% or more.

‘I don’t know if it’s 5% of the total amount of $15 billion, or 5% of the invested $3 billion.’

If it was the latter, Jung Hyun-woo thought it was possible enough. But if it was the former, the situation was slightly different.

‘5% of $15 billion is $750 million.’

$750 million was the amount corresponding to Victoria Corporation’s quarterly sales.

If the company earned this much money every month, it was no different from a god.

“John, please contact me when the exact profit comes out.”

John Peer said in a polite tone, “I’ll contact you right away.”

It was when Jung Hyun-woo was about to hang up.

“Ah! Charlie, come to think of it, there’s one more piece of news.”

Jung Hyun-woo did not hang up and raised his voice.

“There’s one more piece of news?”

“We have successfully signed a contract for a building located in downtown LA this time.”

Jung Hyun-woo thought for a moment after hearing his answer.

‘Hmm, is the last marketing actually leading to results?’

He invested in Japanese real estate and tried to attract Japanese funds to American real estate.

“How much is the amount?”

“It’s a $20 million contract.”

If it was LA, not New York, a $20 million contract was a big deal.

“That’s a considerable scale.”

“That’s because it’s not one, but two.”

He meant that he had signed contracts for two buildings worth $10 million each.

“The commission won’t be that big, will it?”

“The commission is not that big, but isn’t starting half the battle?”

John Peer expected Japanese funds to flood in like a tsunami.

‘The strong yen is bound to stimulate the investment sentiment of the Japanese.’

This LA building contract was also powered by the strength of the yen [Japanese currency].

“John, please continue to do well in the future.”

John Peer put strength in his voice and said, “Charlie, please look forward to it. We won’t miss out on the US real estate side either.”

America and Japan.

If they were successful in both, Victoria Fund could quickly catch up with Magellan Fund or Vanguard Fund [two of the largest investment funds in the world].

‘If that happens, Victoria Corporation’s stock price will break through $50.’

If it exceeded $50, Victoria Corporation could surpass the faltering IBM and stand tall as the number one company in the US market capitalization.

‘The number one company in the US is the number one company in the world.’

CEO of the world’s number one company.

Jung Hyun-woo sighed inwardly.

‘Hoo… things are getting too big.’

What he initially wanted was to create a large software company like Activision.

However, his goals began to change after meeting Peter Lynch [a famous investor and fund manager].

Tak.

Jung Hyun-woo hung up the phone and tapped the desk with his fingernails.

Tuk. Tuk. Tuk.

“If this is a dream, it might be better to wake up now.”

Everything from the moment he opened his eyes at the drug addiction treatment center until now was like a dream.

‘But I’ve never heard of such a long dream.’

Besides, it really hurt sometimes.

In the end, everything was reality, not a dream.