The Conglomerate Family Became A Villain [EN]: Chapter 50

50. Becoming a Villain in a Chaebol Family – Another Bubble 01

– Another Bubble –

I had visited Magellan Fund’s New York office before.

However, this was the first time for both of us in the VIP room.

“It doesn’t feel like Magellan Fund at all.”

The antique decorations and mahogany furniture resembled a European castle or mansion.

“This reflects the tastes of our clients.”

He meant that while the office strongly reflected Peter Lynch’s taste, the VIP room did not.

“You said you’re investing in Japan, right?”

Jung Hyun-woo nodded in response.

“Yes.”

“We have three Japanese funds.”

Peter Lynch explained Magellan Fund’s Japanese investment products.

The first was a fund investing in Japanese automobile companies, the second in Japanese electronics companies, and the last in Japanese financial companies.

“Toyota, Sony, and Nomura Securities?”

Peter Lynch nodded.

“Those are the representative companies for each fund.”

Jung Hyun-woo momentarily shrugged.

“I think you need to create one more.”

“One more?”

“You don’t have a real estate fund.”

Peter Lynch frowned.

“A Japanese real estate fund?”

“Japanese real estate has considerable returns.”

In the early 1980s, Japanese real estate was already showing signs of a bubble.

Peter Lynch was well aware of this trend.

“Isn’t it a bit risky?”

He wasn’t just a hunter looking for profit.

‘Managing client risk is fundamental to a fund.’

A client’s loss was also the fund’s loss.

“Peter, you know about Japanese real estate.”

Peter Lynch nodded.

“Japanese real estate has increased more than 20 times in 15 years.”

20 times in 15 years.

The returns on Japanese real estate surpassed even the legendary investor Peter Lynch’s returns.

“But it’s still rising.”

“An inflated bubble will eventually burst.”

The Atari shock [the video game industry crash of 1983] was a good example of that.

“I don’t think it will happen right now.”

The Japanese economy was booming. Japanese products were selling like crazy in the United States, and American companies and buildings were increasingly being acquired by Japanese companies and conglomerates.

“I think it will burst in less than 10 years at the latest.”

“Ten years is enough time for a boy to become a young man.”

“You’ll pull out before then?”

“I’ll only invest for three years.”

Three years from 1983 would be 1986.

“Just three years?”

“It won’t burst within that time.”

Jung Hyun-woo was 100% certain.

‘The bubble won’t collapse in the 1980s.’

It was common knowledge that the Japanese bubble burst in the 1990s.

Of course, not many people, except for the Japanese, knew exactly when the bubble burst began.

The same was true for Jung Hyun-woo. He didn’t know if it was 1990, 1991, or 1992.

‘But I do know it’s in the early 1990s.’

Peter Lynch sighed briefly after hearing his words.

“Hoo… I hadn’t even thought about Japanese real estate.”

“It would be good to create a fund that combines construction companies and real estate companies.”

Peter Lynch adjusted his glasses, becoming specific at Jung Hyun-woo’s suggestion.

“You’re suggesting we group construction companies and real estate companies into one category?”

“It’s meaningless to separate the two.”

Japanese real estate companies were not just simple real estate agents. They were comprehensive real estate companies that built, sold, and managed mansions (Japanese-style apartments).

“Hmm, a real estate fund.”

“I’ll invest $10 million in this.”

Peter Lynch asked.

“What about the remaining $10 million?”

“I’ll distribute it among the three funds you mentioned earlier.”

“So, 3.3 : 3.3 : 3.3?”

Sera interjected from the side.

“Let’s go with 3 : 3 : 4 for easier calculation.”

Jung Hyun-woo grasped the big picture of the investment, but she managed the details.

“Then which one gets the 4?”

“Let’s go with Toyota.”

The momentum of Toyota Motor Corporation could be felt even on the streets of New York.

“Okay. Then we’ll do that. And we’ll open the real estate fund as soon as the manager is decided.”

Peter Lynch handed the contract to the two and asked.

“Sera, didn’t you say you were going to invest directly instead of through our Magellan Fund?”

The two had asked Peter Lynch to name their investment company.

Sera answered his question.

“I’m investing directly in the US. But I don’t think I can cover Japan as well.”

She had more than one or two responsibilities at Victoria Corporation.

Overseas investment was too much for her right now.

“I guess it’s not easy to expand the investment scope to Japan.”

In an era when the internet and even online connections were not properly established.

Overseas investment often required flying there in person.

‘Besides, the Cold War is ongoing.’

The conflict between the Soviet Union and the United States worsened in early 1983. As a result, the 1984 Summer Olympics held in Los Angeles, USA, became a half-finished event.

“I’ll deposit the money into the account.”

“You two have taken a load off my mind.”

Peter Lynch wiped the sweat from his forehead.

“Oh, and keep it a secret from my father.”

“I will.”

Peter Lynch thought the relationship between the two daughters was not very good.

‘But this level of conflict is common.’

He had experienced many worse cases.

***

On the way back to the hotel.

The two walked the streets of New York instead of taking a taxi.

“We just spent $20 million on a whim?”

“It’s money I was going to invest someday anyway.”

Jung Hyun-woo had mentioned to Sera several times that he would invest in Japan.

“There’s still quite a bit of money left.”

Victoria Corporation’s account still had $15 million left, excluding the $20 million.

“I don’t know how much money will be needed to build the system with JP Morgan.”

“Isn’t $10 million enough?”

The total amount of the business negotiated with JP Morgan was $10 million. She didn’t think this amount would be exceeded, no matter how large the scale of the business became.

However, Jung Hyun-woo’s thoughts were a little different.

‘Even if you only install $10 modems in 1 million households, that’s $10 million.’

If the number of customers using their service were to increase to millions…

$10 million in capital would not be enough. Of course, most companies used loans, not their own money, when business expenses were exceeded.

“It might not be enough.”

“Charlie is incredibly bold when he’s being bold, but as cautious as a cat when he’s being cautious.”

“Like a cat?”

“Don’t you know cats?”

“I know. But were cats cautious?”

Most of the cats in Jung Hyun-woo’s head were cute internet memes.

‘Hmm, were those cats cautious?’

It was hard to say.

“The last public sale is left.”

“$1 million, right?”

“This one has a slightly higher return, so it might be worth $10 million after selling it.”

“Then what’s the total profit?”

Sera answered immediately, as if she had calculated it in advance.

“About $38 million?”

“That’s $3 million more than when we first calculated it?”

“Because the stock price has fallen further.”

The stock prices of companies related to the game industry were still falling.

“If we had redeemed it a little later, we could have filled $40 million.”

“Sera, it’s best to have a little less.”

“Old man.”

Jung Hyun-woo chuckled as Sera pouted.

“What’s our total capital?”

“After paying taxes and excluding the interest, about $40 million?”

“We’re still far from $100 million.”

$100 million.

At this point, it was a large sum of money that even Wall Street would be interested in.

“Who said it’s best to have a little less?”

Jung Hyun-woo gave a bitter smile.

“I guess so.”

Sera was a formidable woman.

He thought as he walked with her.

‘$40 million. Since the number one company in South Korea has a market cap of just over $1 billion right now, maybe I have more money than my grandfather.’

Daewoon Group consistently maintained its position in the top 10 of South Korea’s market capitalization.

And in 1983, Daewoon Group’s market capitalization fluctuated around $300 million.

If Chairman Jung Woo-sun’s stake in the group was 20%, his assets could be said to be around $60 million.

Of course, 30% of Victoria Corporation’s $40 million belonged to Sera, and Chairman Jung Woo-sun also had other assets such as real estate, cash, and bonds, so it could not yet be said that the two had the same wealth.

***

Jung Hyun-woo sighed deeply after receiving his midterm exam results.

“Hoo…”

Lee approached and tapped him on the shoulder.

“Are you okay?”

“I’m okay.”

The grade Jung Hyun-woo received was 2.3.

It was a score that barely avoided academic probation.

‘Even though I got the 족보 [jokbo – exam cheat sheet] through John, I only got 2.3 points?’

He would have received academic probation if Professor Thomas Norn hadn’t given him 3.8 points.

“How about you, Lee?”

“I’m not so good.”

“What’s your score?”

“3.1?”

An average of 3.1 points.

It was a considerable gap from Jung Hyun-woo’s score.

‘As expected, geniuses are different.’

MIT was MIT, I thought. Most of the students I met here had a sparkle in their eyes.

‘At this rate, the final exam will be dangerous.’

It was when he narrowed his brows.

Yuka waved her hand and approached the two.

“Anyone here who can get a scholarship?”

Scholarship.

That’s right.

At MIT, students with excellent grades could receive scholarships.

“Not me at all.”

Jung Hyun-woo spoke first, followed by Lee.

“Not me either.”

Yuka shrugged her shoulders.

“Both of you have been so busy doing other things, your grades seem to be not so good.”

“How about you, Yuka?”

“I think I’ll get it.”

She seemed to have a high score of over 3.5.

In the case of MIT, there were many external scholarships in addition to school scholarships, so the scholarship cut-off line was often lower than at general universities.

“As expected, honor students are different.”

All students who entered MIT were honor students in high school. But the exam was the exam. Someone had no choice but to fall to the bottom.

“What are you two going to do today?”

Lee replied in a nonchalant voice.

“I have to go to the lab.”

“Lab?”

This time, Jung Hyun-woo answered Yuka’s question as if adding to it.

“We skipped it last week. We should go this week and help out with something.”

Jung Hyun-woo and Lee visited Professor Norn’s lab once a week to help with work.

Thanks to that, the two were able to get high scores from Professor Norn.

“Shall I go with you?”

Lee nodded greatly at Yuka’s words.

“The professor will be very happy if Yuka comes.”

Recently, Professor Thomas Norn completed the schedule program and was receiving checks from the company that requested it.

‘Come to think of it, I don’t know which company asked Professor Norn to develop the program.’

If I knew which company it was, I could make them a customer of Victoria Corporation.

‘Hmm, is that too greedy?’

It was the moment when Jung Hyun-woo stroked his chin.

“Charlie?”

It was Lee who asked him the question.

“Huh? Why?”

“Zero Space 3, when is it released?”

Lee had been in charge of testing and reviewing Zero Space 3 at his request.

“May 2nd.”

“May 2nd?”

“That’s right.”

“Hey, can’t I get a cartridge?”

Jung Hyun-woo tilted his head.

“Don’t you already have the program?”

“I want to keep the cartridge as a souvenir.”

Zero Space 3 could be said to be his first job for Lee.

‘Hmm, come to think of it, his name was also included in the ending credits.’

Jung Hyun-woo included the full name Lee Nuuz Korhonen, not the shortened Lee.

“How many do you need?”

“The more the better.”

“Okay.”

The recession in the game industry was deepening. Jung Hyun-woo predicted that it would not be very difficult to secure dozens of cartridges.

‘It would be best if this sold out so quickly that I couldn’t get the cartridge, but at this point, it would be greedy to want that.’

If necessary, I could consider purchasing about 100 copies.

‘If it’s $5 each, it’s only $500.’

The cartridge price, which used to be $30, had recently fallen below $10.

It was when he was sighing inwardly at the falling cartridge price.

“Charlie!”

Sera, wearing a blue dress, waved her hand and approached him.

Yuka looked back and forth between the blonde beauty and Jung Hyun-woo and asked.

“Is that Charlie’s girlfriend?”

Lee answered Jung Hyun-woo instead.

“No, she’s a business partner.”

Business partner.

It was a completely unexpected answer.

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