The Conglomerate Family Became A Villain [EN]: Chapter 281

281. The Big Short (7)

Jung Hyun-woo started 1989 with a hangover.

“Are you awake?”

Despite drinking together, Sarah looked refreshed.

‘Is she just much better at handling alcohol than I am?’

Being strong against alcohol.

This was a strength of Sarah’s that he hadn’t known until now.

“My head hurts.”

“You should have drunk in moderation.”

“I didn’t think I drank that much.”

“Robert’s the problem.”

Jung Hyun-woo looked around and asked.

“Where’s Robert?”

“He went back this morning.”

“This morning? Then what time is it now?”

“3 PM.”

Jung Hyun-woo covered his eyes with his hand.

“I must have been completely knocked out.”

It wasn’t that Sarah was better at handling alcohol than he thought; it was that he was too weak.

“I was worried you wouldn’t wake up.”

Jung Hyun-woo thought.

‘Hoo… With a body like this, doing drugs and drinking, it’s no wonder I caused trouble.’

He recalled Jung Hyun-woo from his past life and sighed deeply inside.

“Are you planning to attend this year’s CES [Consumer Electronics Show]?”

“I have to go. I couldn’t go last year either.”

“I’ll make sure you watch Charlie’s presentation this year.”

Jung Hyun-woo paused and asked.

“Am I presenting?”

“You’re the CEO.”

Jung Hyun-woo drank some cold water and sighed briefly.

“Hoo… Okay.”

Victoria Corporation was scheduled to present its financial modularization system at this year’s CES.

‘It’s time to show the results of the past few years of research.’

While he was focused on investing in Japan, IT technology was advancing rapidly.

In the personal computer sector, the 386 system became popular, and the 286 system, which could be considered its predecessor, was widely distributed to homes.

The improvement in computer performance led to a qualitative improvement in programs, and computers began to be used in various industries.

“Still, you managed to persuade Robert.”

Jung Hyun-woo scratched his head, recalling last night.

“It was more like shouting than persuasion.”

Last night.

Jung Hyun-woo and Robert had a heated debate over the Japanese investment. Robert raised his voice, saying that he could accept withdrawing from Japan, but not short selling [betting on a stock or asset to decline in value].

Jung Hyun-woo presented him with numerous data, arguing that Japanese real estate would collapse like the North American game market.

The two argued for more than two hours, and Robert finally raised both hands as if he couldn’t help it and said.

– If Charlie loses, the company will go bankrupt, so I have no choice but to bet on Charlie.

Jung Hyun-woo turned his gaze out the window.

‘If my judgment is wrong, I’ll end up paying the price.’

If the Japanese bubble burst in ’92 or ’93, he could lose all the money he had made so far.

“Was it a dangerous thing to do?”

Sarah responded to his words without turning her head.

“Why do you think so?”

Jung Hyun-woo answered her question.

“Because I’m already happy enough.”

“Really?”

“I was thinking yesterday. What more could I want when I have Sarah by my side?”

Sarah smiled and turned her gaze.

“That’s not like Charlie to say such nice things.”

“It’s true.”

“I know. But Charlie is a man who enjoys gambling. He couldn’t stand not betting on the bubble.”

Sarah knew very well how Jung Hyun-woo had come to be where he was.

‘He was able to stand here because he didn’t miss the Atari and North American game market bubbles.’

He was an excellent developer and a daring gambler.

* * *

At the 1989 CES, Jung Hyun-woo presented a financial modularization system that could be used by any financial company. He emphasized that the service could be used not only by securities firms but also by banks, and that customers’ accounts would be protected by encrypted protocols.

“In the future, you will be able to do your banking from home without going to the bank.”

People applauded his final cry.

Reporters praised Victoria Corporation for introducing an innovative system after a long time, and as a result, Victoria Corporation’s stock price rose again, surpassing $60 to $62.

However, the main attraction of the 1989 CES was not Jung Hyun-woo and Victoria Corporation.

Jung Hyun-woo clicked his tongue as he looked at the main attraction of the 1989 CES.

“Tsk, amazing.”

Sarah and he were far away from the main booth. The reason was that there were too many people, making it difficult to get close.

“Actually, you want to push through the crowd and take a closer look, don’t you?”

Jung Hyun-woo shook his head.

“Not really.”

“Really?”

“Does it seem like a lie?”

Sarah nodded her head vigorously.

“Charlie is thirsty for technology that leads to the future. Isn’t that wireless phone the door to the future?”

The main attraction of the 1989 CES was the wireless phones announced by various telecommunications equipment companies.

It wasn’t that wireless phones didn’t exist until now, but the wireless phones announced this year were completely different from the previous ones.

“It’s still not enough.”

Sarah raised her eyebrows at his answer.

“You’re saying that phone is not enough?”

The wireless phone exhibited at the CES booth was about the size of a handset used at home.

Considering the existing wireless phones, which were the size of walkie-talkies used by the military, this was nothing short of an innovation.

But Jung Hyun-woo knew the real wireless phone.

‘It’s not this level.’

Mankind would say goodbye to the wired era with Motorola’s new wireless phone.

Of course, it was impossible to know when Motorola’s new model would be released.

‘But it won’t be long.’

Sarah asked as he narrowed his brow slightly.

“Charlie, are you thinking about something bad?”

“No. I was wondering if I should invest in Motorola.”

“Motorola?”

Sarah raised her voice because the booth they were standing in was the Southwestern Freedom Phone booth.

“Freedom Phone isn’t bad either, but Motorola is the leader in wireless phones.”

Sarah nodded her head at his answer.

“Well, Motorola has been the leader in wireless communication devices so far.”

In 1989, Motorola caused a sensation in the wireless communication market by releasing a model called MicroTAC 9800x.

However, Jung Hyun-woo did not know exactly when Motorola’s new weapon would be released.

“Charlie!”

The owner of the bright voice was Michael Dell of Dell Computer.

“Michael, how have you been?”

Michael Dell seemed taller.

“Sarah came with you this year too.”

Sarah raised her hand slightly and greeted him.

“It’s not that I came with him, it’s that I brought Charlie.”

Michael Dell looked back and forth between the two and said.

“By the way, I heard you two are getting married this year.”

The two were lovers, but they had not officially announced their marriage.

Because of that, Michael Dell’s words could be said to have crossed the line.

‘He must have seen an article in a tabloid magazine.’

Since the two became an official couple, various magazines had been pouring out articles about their love affair.

In particular, gossip magazines had published articles saying that they were already married and that celebrities in the IT industry and the Hilton chairman had attended the wedding.

“Michael…”

It was the moment when Sarah slightly trailed off.

Jung Hyun-woo wrapped his left arm around her waist and said in a bright voice.

“Michael, I’m planning to send out invitations when the date is set.”

Michael Dell nodded his head greatly.

“Ah! I knew it.”

Sarah blushed slightly and said.

“Charlie’s joking.”

Michael Dell tilted his head and asked.

“Joking?”

Jung Hyun-woo shrugged his shoulders and replied.

“Because the date hasn’t been set yet.”

Michael Dell smiled brightly again.

“Ah, I see. Please, please send me an invitation when the date is set.”

Jung Hyun-woo held Sarah’s hand tightly as he talked to Michael Dell.

Then Sarah raised her eyebrows slightly.

“Charlie?”

“I’ll never let Sarah go.”

Sarah blushed at his answer.

“You’re being silly. People are watching.”

“Aren’t we an official couple anyway?”

The moment Sarah was about to answer his question, the camera shutter started moving.

Click. Click.

The reporters who had been scattered around flocked to the two’s display of affection.

Michael Dell saw the scene and quickly left the spot.

“This, this… Photos are always a burden. I’ll be on my way.”

Jung Hyun-woo nodded his head and hugged Sarah tightly.

“Okay, let’s show it to everyone.”

Sarah gave an awkward smile and responded to his words.

“If they see this, all the other women will run away, you know?”

“I only need Sarah.”

Even while the two were talking about love, Japanese real estate and stock prices continued to rise.

1989.

Victoria Corporation eventually lost its position as the world’s second-largest company to the Industrial Bank of Japan.

The Industrial Bank of Japan was a bank that handled long-term loans for Japanese companies, similar to a combination of the Industrial Bank and the Small and Medium Business Bank in Korea.

“The Japanese stock market is taking off.”

Robert uttered a soulless word. He had decided to follow Jung Hyun-woo’s decision, but he did not fully support his decision.

“It’s not a bubble if it goes out already.”

On the other hand, Jung Hyun-woo seemed calm.

“Okay, let’s have a meeting.”

At Sarah’s words, Victoria Corporation executives nodded their heads and said.

“Understood.”

“Let’s start the meeting.”

Following the announcement of the financial modularization system at the beginning of the year, Victoria Corporation formalized its cooperation with Walmart in March. And it confirmed the construction of a network system connecting large branches by 1993.

“This quarter’s game division performance has improved significantly. It is up 23% compared to last year, and there has been a performance increase of more than 7% compared to last quarter.”

Victoria Corporation’s game division emerged as a strong player in the game industry as Tetris hit the jackpot. Of course, the place that still dominated the world game market was Nintendo of Japan.

“How is G-Shop doing?”

“G-Shop’s performance is also great. Sales of games made by Nintendo and NES [Nintendo Entertainment System] have increased, and sales have also increased.”

Nintendo was continuing its good reviews even at the beginning of the year, not just at the end of the year.

“Nintendo will be releasing a new console game soon.”

John River raised his eyebrows at Jung Hyun-woo’s words.

“If it’s a new console game, does that mean a next-generation game console is coming out?”

“It’s been quite a while since the NES was released.”

Nintendo’s next-generation game console.

There were still two years left until the release of the SNES [Super Nintendo Entertainment System]. But Jung Hyun-woo thought he should prepare in advance.

“Should we contact Nintendo to get information?”

Jung Hyun-woo shook his head and replied.

“We don’t need to reach out to them first. But we should be securing new development personnel.”

“New development personnel…?”

“The capabilities of the next-generation game console will far exceed the NES.”

If a game developer does not develop when a game console develops, that developer will inevitably be left behind.

“You’re saying we should secure personnel who can develop games for the next-generation console game.”

Jung Hyun-woo nodded his head slightly.

“That’s right.”

Sarah thought she could feel the maturity of an adult from him.

‘Is it because he’s older? It seems like there’s more power in his words than before.’

After the story of the game division ended, Robert’s development division report followed.

The atmosphere of Victoria Corporation was generally good.

But the problem was not Victoria Corporation.

After the meeting.

Jung Hyun-woo received a call from John Peer, CEO of Victoria Fund.

“Charlie, I don’t have a good feeling about this.”

John Peer was leading the withdrawal operation in Tokyo.

“What do you mean you don’t have a good feeling about this?”

“Shouldn’t we give up on short selling?”

John Peer also thought that withdrawing from Japanese real estate and the stock market was something that could be done. But he argued that short selling Japanese construction companies and banks was not a good thing.

“The stock price of the Industrial Bank of Japan has surpassed Victoria Corporation.”

“I know.”

“Do you know how much money we shorted the Industrial Bank of Japan for?”

Jung Hyun-woo replied.

“Isn’t it 2 billion dollars?”

John Peer replied in a dry voice.

“It’s 3 billion dollars. And since we shorted it at a 2x multiple, the worst-case scenario is that the loss could exceed 60 billion dollars.”

Jung Hyun-woo calmly accepted his words.

“I wouldn’t have started short selling if I was afraid of losing money.”

“Charlie, we can pull out now.”

According to John Peer’s calculations, if they bought back the shorted stocks now, they could prevent losses of about 10 billion dollars.

But Jung Hyun-woo had no intention of doing so.

“Are you worried about 10 billion dollars when you’ve made 100 billion dollars?”

“Charlie, the loss is 10 billion dollars now, but it could be 50 billion dollars in six months.”

“It could also turn into a profit instead of a loss.”

The Japanese stock market was surpassing 30,000 points and heading towards 40,000 points.

Considering that the stock price was below 20,000 points two years ago, this was a surge.

“Isn’t that too optimistic?”

Jung Hyun-woo answered his question.

“John, the debt generated from Japanese real estate is approaching 100% of GDP [Gross Domestic Product]. Do you think we can just let this pass?”

John Peer also knew that various indicators were strange.

“If the Japanese economy grows more, the debt ratio may decrease.”

If GDP rises and debt remains the same, the debt ratio alone could decrease.

But that was just an ideal theory. Japanese real estate was a runaway train with broken brakes.

“John, the real estate bubble will eventually burst.”

“……”

“You don’t believe me.”

John Peer opened his mouth with difficulty.

“Even if the Japanese real estate bubble bursts, I don’t think it will mean anything if we can’t hold out until then.”

Jung Hyun-woo asked him.

“How long do you think John can hold out?”

John Peer had already finished calculating.

“We can hold out until July 1991. But after that, additional funds will have to be invested.”

July 1991.

Jung Hyun-woo took a light breath.

“If it’s not resolved by then, I’ll invest additional private funds.”

John Peer sighed deeply when he revealed that he would invest private funds.

“Hoo… I understand Charlie’s intentions. Then I’ll try to hold out for now.”

Click.

As Jung Hyun-woo put down the receiver, the intercom rang this time.

Beep.

He narrowed his brow and reached out his hand.

“What’s going on?”

Soon, his secretary Luna’s voice was heard.

“It’s Mr. Arnault from JP Morgan.”

Henri Arnault, head of JP Morgan Investment Bank.

He was the first person to oppose short selling in Japan.

“Put him through.”

“Understood.”

Beep. Beep.

After the bell rang, Henri Arnault’s voice was heard.

“Charlie, are you listening?”

“This is Charlie. Speak.”

“A problem has occurred.”

Jung Hyun-woo tilted his head to the side and asked.

“What do you mean a problem has occurred?”

Henri Arnault replied, hardening his voice.

“Mr. Morgan has passed away.”

Mr. Morgan.

It was the story that Arthur Morgan, the former CEO and owner of JP Morgan, had passed away.

‘Does that mean a giant has fallen?’

Arthur Morgan’s stake and control will be passed on to those who received his blood.

‘If they deny Victoria Corporation… things will get difficult.’

He asked in a dry voice.

“What is the atmosphere of the bereaved family like?”

“I haven’t been able to confirm that yet.”

“I see.”

“Charlie, I think you should be prepared.”

Jung Hyun-woo nodded his head at his words.

“Understood.”

It was the story that the funds from JP Morgan that went into Victoria Fund could be withdrawn.

‘Private investment may be faster.’

Maybe he wouldn’t be able to hold out until July 1991.