The Conglomerate Family Became A Villain [EN]: Chapter 274

274. Winner and Loser (4)

Between January and April 1988, Japanese real estate and stock prices continued their relentless rise.

In particular, the surge in downtown Tokyo exceeded that of 1987.

People in the financial world gradually began to fear a massive surge.

“Isn’t something going to explode?”

“Doesn’t a 90% loan mean you can buy a building with just the down payment?”

“This seems dangerous.”

As bank lending soared, financial authorities also began to feel the tension.

“Loan management seems necessary.”

Matsushita, the Governor of the Bank of Japan, groaned softly.

“I agree with that opinion. But the cabinet’s intentions are different…….”

“What is the cabinet worried about in this situation?”

“I suspect it’s a recession.”

Upon hearing Governor Matsushita’s words, the executives sighed deeply.

“To worry about a recession when the capital market is overheated and on the verge of explosion!”

“The capital outflow to overseas is also too large.”

“Meet with the Prime Minister and urge a decision!”

Governor Matsushita shook his head.

“I don’t think it’s possible yet.”

He believed that the gap between what the Japanese cabinet wanted and reality was too great.

‘They still trust the words of companies more than our bank.’

As of 1988, Japanese companies were satisfied with soaring stock prices and performance.

March 31, 1988.

Kajima Group headquarters, Chairman’s office.

Chairman Jiro Kajima and Branch Manager Howard Robinson faced each other with smiling faces.

“The return on investment is already 10%.”

The Kajima Group and Morgan Stanley had purchased real estate with a 10% premium, but they were making even more profit than that.

“Isn’t it all thanks to the interest rate cut?”

When interest rates fall, real estate prices rise.

This was like a formula.

“There will be two more interest rate cuts in the future.”

Chairman Jiro Kajima, upon hearing Howard Robinson’s words, raised his tone.

“Are you saying they will cut rates twice in this situation?”

“I understand that the trade balance is deteriorating.”

Chairman Jiro Kajima thought that interest rates should not be lowered any further.

‘The problem isn’t that our profits are growing, but that the Japanese economy could collapse.’

It was when he narrowed his brows.

“The Japanese economy is solid.”

“Mr. Robinson?”

“Japanese cars are still running on American roads, and Sony, Aiwa, and Toshiba electronics fill American stores.”

In the spring of 1988, the Japanese economy was booming.

“Hmm…….”

Howard Robinson raised his voice slightly.

“I heard that Nintendo’s growth is remarkable in the North American game market.”

Nintendo was working with Victoria Corporation to revive the North American game market.

In particular, the response to the games released last year was shockingly good.

This year, new games, including Tetris, were also receiving good responses from users.

“Is the day coming when Japan will surpass the United States?”

Howard Robinson replied.

“I don’t know if it will surpass the United States. But can’t it keep running like this for the next five years?”

Five years from now.

That was how long Howard Robinson saw Japan’s run lasting.

‘Some friends on Wall Street estimate it to be shorter than that, but the Japanese boom I feel here in Tokyo is not a mirage but a reality.’

Every night, he went out to the Japanese entertainment district to observe people’s spending and faces.

‘The time to withdraw from Japan is when shadows fall on people’s faces.’

Chairman Jiro Kajima did not examine the Japanese economy as meticulously as he did.

Instead, he was focusing on the Kajima Group’s performance.

“Overseas performance has been declining recently.”

“It must be because of the strong yen [Japanese currency].”

“It’s also because countries like Korea are catching up.”

Howard Robinson scoffed.

“Do you think a Korean company can build a skyscraper overseas?”

“Are you saying their construction technology is insufficient?”

“It’s not just insufficient. Until recently, they were receiving technical assistance from the Philippines.”

When Howard Robinson was young, South Korea was one of the countries with the lowest national income in the world.

Even if the economic development policy was successful and it rose to become a developing country, it could not have accumulated advanced technology.

“I feel somewhat relieved to hear Mr. Robinson’s words.”

“Mr. Kajima. But don’t look too far ahead.”

Howard Robinson knew that the party would end someday.

“Even so, I think we are the winners in this deal.”

This deal.

Chairman Jiro Kajima thought he had won against Victoria Fund and Jung Hyun-woo.

“It was a fight we couldn’t help but win from the start.”

Howard Robinson had information about the interest rate cut, and Jung Hyun-woo didn’t know about it.

‘But, did he really not know this information?’

Victoria Fund didn’t know that it wasn’t Morgan Stanley.

If it was John Pier, CEO of Victoria Fund, that could be the case. But Jung Hyun-woo was the CEO of the number one company in the United States and had close relationships with the CIA [Central Intelligence Agency], the Federal Reserve Board [central banking system of the United States], and the Republican Party.

‘If he knew and still sold…….’

He felt a slight chill.

‘Does that mean the collapse of the Japanese economy could begin soon?’

Howard Robinson shook his head vigorously.

‘That can’t be.’

The neon signs and music of the entertainment district were still the same.

Five years from now.

His judgment was that the Japanese economy would continue to boom for at least five more years.

* * *

Victoria Corporation Executive Meeting.

This meeting was to summarize the first quarter of 1988.

“The game division has grown by 31% compared to last year. Both sales and net profit are increasing, and with the success of Tetris, we finally have a mega-title.”

John River’s voice was full of energy.

Jung Hyun-woo nodded at his report.

“The game division is doing well.”

After asking a few simple questions, he turned his gaze to John Pier.

“How is Victoria Fund doing?”

John Pier’s face was dark.

This was not because of Victoria Fund’s performance.

He had returned to the United States last night to attend today’s meeting and was still jet-lagged.

“Victoria Fund sold about 20% of its Japanese real estate in the first quarter of this year. The profit from this is about $20 billion.”

Even after selling about 20% of its real estate, Victoria Fund’s total assets remained the same due to the surge in Japanese real estate prices.

John Pier’s report continued.

“We plan to continue selling this summer, fall, and winter.”

Jung Hyun-woo asked him.

“What is the exact scale?”

“We plan to sell 20% each time. By the end of this year, the size of real estate we own in Japan will be 80% less than last year.”

Victoria Corporation executives sighed softly at the story of minus 80% compared to last year.

“Hoo…….”

“It seems like they are completely withdrawing.”

Ann, who was also the CFO [Chief Financial Officer] this year, asked John Pier.

“Isn’t this too rapid of a withdrawal?”

“It’s a withdrawal planned at the end of last year.”

Ann narrowed her brows slightly.

“Wall Street is viewing Victoria Fund’s rapid withdrawal pessimistically.”

The person who responded to her words was not John Pier but Jung Hyun-woo.

“Even if Wall Street views it that way, we cannot stop the withdrawal.”

“Charlie?”

“The U.S. government wants the dollars to return.”

This was the first time that the U.S. government’s position had been officially mentioned at a Victoria Corporation executive meeting.

Therefore, Ann could not help but nod at his words.

“You mean the government wants us to withdraw.”

Robert narrowed his brows slightly at Jung Hyun-woo’s official statement.

“Is the U.S. government allowed to intervene in a company’s investment and management in this way?”

He judged it to be an intervention that went against the free economy.

Jung Hyun-woo answered his question.

“To be precise, it was a recommendation. Of course, the government’s recommendation itself could be a problem. But I decided to follow that recommendation. This is not because I succumbed to pressure from the U.S. government.”

Robert asked again.

“Is it because you have already made enough profit?”

Jung Hyun-woo nodded and replied.

“That’s right.”

He steered the conversation towards having made enough profit rather than the story that the Japanese economy’s bubble would collapse.

“But investors are viewing our withdrawal negatively.”

Those who buy Victoria Corporation stock are not only on Wall Street.

“Does that mean Victoria Fund’s guidance is getting lower?”

Robert answered Jung Hyun-woo’s question.

“That’s right. Despite good performance every quarter, Victoria Corporation’s stock price has been stagnant for the past six months.”

As he said, Victoria Corporation was posting good results every quarter.

But the market’s response was lukewarm.

Even economic reporters, not to mention Wall Street, wrote articles saying that Victoria Corporation was achieving the expected level of performance and that there was nothing special about it.

Jung Hyun-woo put his hands together and said.

“Personally, I think it’s amazing just to maintain a market capitalization of $120 billion.”

Victoria Corporation was running first in the U.S. market capitalization while maintaining a market capitalization of over $100 billion.

But the number one company in the U.S. market capitalization was not the number one company in the world market capitalization.

Japan’s NTT [Nippon Telegraph and Telephone Corporation] had already surpassed $250 billion.

The market capitalization of $250 billion was more than double that of Victoria Corporation.

“Can I understand that to mean that there will be no events to boost the stock price?”

“That’s right.”

Robert sighed deeply at Jung Hyun-woo’s short answer.

“Hoo……. Charlie. Investors always want stimulation.”

Jung Hyun-woo also knew what he wanted to say.

‘He probably wants us to show events like the module system or the establishment of Victoria Fund.’

However, he had no intention of holding such events for the time being.

“Victoria Corporation is not a company that will end in 10 years. I think we should focus on internal stability from now on.”

Rather than showing excessive visions, he would make the visions he had shown so far a reality.

That’s what he was saying.

After the meeting.

As always, Robert and Sarah remained.

When Jung Hyun-woo sent a look, Sarah said briefly.

“It’s a quarterly meeting.”

Jung Hyun-woo shrugged and took the words.

“Okay, you two. Ask me anything you’re curious about.”

The first to speak was Robert.

“Charlie, are you really okay?”

Jung Hyun-woo answered his question.

“I’m very okay.”

Sarah knew how Jung Hyun-woo viewed the Japanese market, so she didn’t ask any separate questions on this part. Instead, she wanted to listen to Robert and his conversation.

“Charlie, we opened and announced Victoria Fund at the beginning of the year. At this rate, Victoria Fund will fail.”

Jung Hyun-woo said in a calm tone.

“We opened Victoria Fund to companies because they wanted it, not to raise investment funds.”

The one who insisted on opening Victoria Fund was not him but Sarah.

Of course, Robert also knew that fact.

“Sarah suggested it, but Charlie allowed and executed it.”

Jung Hyun-woo listened to his words and lightly raised and lowered his shoulders.

“It’s all my responsibility.”

Robert looked at him and said.

“That’s what a CEO is.”

Jung Hyun-woo smiled brightly.

“Robert, Victoria Fund will continue to make profits in the future. Of course, investments like Japanese real estate investment will be difficult.”

He knew very well that profits like Japanese bubble investment could not continue.

‘If money continues to grow in that way, humanity will lose its will to work and decline.’

Robert also knew that profits like Japanese real estate investment could not be sustained.

But he also knew that investors’ thoughts could be different.

“Charlie, withdrawing from the Japanese real estate market while it is heating up will be difficult to elicit a good response from investors.”

What Robert wanted was for Victoria Fund to stay in Japan for another year or two.

“Didn’t I say it at the meeting? That the U.S. government wants our withdrawal.”

Robert raised his tone slightly.

“Do they really want it?”

Jung Hyun-woo nodded slowly.

“They really want it, not just want it, but sincerely want it.”

Robert groaned softly at his answer.

“Hmm, if Charlie says that much…….”

Sarah added as if to add.

“Because it’s the number one company in the United States.”

It meant that responsibility was as great as freedom because of the position of number one.

Robert realized that it was difficult to postpone the withdrawal from Japan and moved on to the next topic.

“Where will you invest after withdrawing from Japan?”

He thought that the success or failure of Victoria Fund could depend on the second investment.

‘If possible, we should invest in a place with high returns.’

Buying bonds or depositing money in a bank should not happen.

“I’m going to invest in the United States.”

“The United States?”

“Isn’t the IT industry bright?”

Robert sighed briefly.

“Hoo……. Charlie, if Victoria Fund buys our company’s stock, the federal government will come to investigate.”

Sarah said on behalf of Jung Hyun-woo.

“Charlie won’t buy our company’s stock.”

Robert narrowed his brows after hearing her words.

“You’re investing in U.S. IT companies but not investing in our company?”

“Because there are many eyes watching.”

“Then what companies are you going to invest in?”

Jung Hyun-woo replied in a dry voice.

“I’m going to invest in Microsoft, Apple, and Intel.”

He excluded Victoria Corporation and Dell Computer from the investment list.

If the funds that Victoria Fund had went into the two companies, the stock prices of the two companies would skyrocket, and not only the New York Stock Exchange but also the federal government would suspect his intentions.

“You mean you’re investing in the reputations of Bill Gates and Steve Jobs.”

Robert thought that the two people were overvalued compared to their abilities.

‘They are more like businessmen who talk a lot than engineers.’

Jung Hyun-woo knew that he didn’t think well of the two.

“Robert, the two aren’t great engineers. But they have the power to move the IT industry.”

“Those two are moving the IT industry?”

It was a story that was difficult to accept. The biggest reason he could be with Jung Hyun-woo was because Jung Hyun-woo was a great developer before he was a CEO.

Jung Hyun-woo sighed inwardly at his reaction.

‘Hoo……. Robert’s core is still a developer.’

He knew what kind of ideal Robert wanted. But the world didn’t just flow with ideals.

“That’s what will happen.”

“It will be a bad world.”

“Robert, developers think about technology and progress, but businessmen think about products and customers.”

Robert put a little strength in his neck.

“Charlie, I know that simple story too.”

“Bill and Steve are the latter and the former.”

Robert narrowed his brows at Jung Hyun-woo’s words.

“I admit that they are the latter. But that they are the former…….”

“The Macintosh and Windows systems are changing the computer industry.”

The products made by the two companies had a clear impact on the market. This was a fact that Robert could not deny.

“Um…….”

Jung Hyun-woo continued to speak.

“The two companies will create even more products in the future.”

“Not us, but them?”

“We will create them with them.”

All three companies will contribute to the development of IT technology.

At that, Robert sighed again.

“Hoo…….”

Sarah said in a soft voice, as if she felt sorry for his sigh.

“Robert, the world doesn’t mistreat engineers. The reason why attention is focused on Bill and Steve is because they are businessmen.”

Robert bit his lip slightly.

“I just don’t like that Steve is rated higher than Woz [Steve Wozniak, co-founder of Apple].”

Jung Hyun-woo smiled brightly after hearing his words.

“Robert, I’m okay even if the world pays attention to Sarah.”

If Microsoft has Bill Gates and Apple has Steve Jobs, Victoria Corporation has Sarah Hilton.

Sarah was very popular as a blonde beauty executive with the halo of a prestigious family.

Robert couldn’t help but chuckle at his words.

“I see. We had Sarah in our company.”

He looked at Sarah and Jung Hyun-woo once each and thought.

‘Come to think of it, why aren’t those two getting married? Is it because of the Hilton name?’

If Sarah Hilton is seen as a product, it cannot be denied that the Hilton name played a significant role in its success.

If the two were to marry, Sarah’s name would change from Sarah Hilton to Sarah Jung.

‘Could it be…….’

Robert shook his head lightly. Because that couldn’t be.