Chapter 10

 

Episode 10: Stellar Investment (Part 1)

If the foreign exchange crisis had been prevented, would Taewoo Group have survived? My answer is 'no.' While the foreign exchange crisis played a role as a trigger, Taewoo Group's mismanagement and excessive borrowing were like a ticking time bomb waiting to explode.

Even if there had been no foreign exchange crisis, Taewoo Group would have faced its downfall. That's why I could approach the meeting with Stellar Investment with a somewhat relaxed mind.

"Hello. I'm Daniel, Director at Stellar Investment. It's an honor to have a meeting with SAVE, which is currently making waves on Wall Street."

"The honor is mine. Thank you for the excellent proposal from Stellar Investment. I'm Kim Minjae, overseeing investments at SAVE. Please feel free to call me Kim."

Daniel, the director from Stellar Investment, was well-connected in Wall Street and played a significant role at Stellar Investment. It was an opportunity to gauge how genuine Stellar Investment was in this meeting.

But I was somewhat disappointed. I had hoped to meet George or Jim, the core of Stellar Investment.

"Shall we start discussing business right away? Time is money for traders on Wall Street, isn't it?"

"Do you think so? I heard about Stellar Investment shorting the British pound a while ago. When I heard that an individual was fighting against a nation, I found myself inadvertently cheering."

"Be an ally fighting alongside, not just a cheerleader from the sidelines. This is an investment with no room for failure."

"When I reviewed the scenario, it does seem like a fight that the UK is destined to lose. But the key is how quickly you can raise the white flag. Considering the substantial amount of funds that need to be tied up, the opportunity cost doesn't disappear, does it?"

I engaged in a little tug-of-war. It was to show that we also knew enough and wanted to demonstrate that we were knowledgeable.

"The UK has already raised interest rates six times. At the latest, they'll be raising the white flag and leaving ERM within a year."

"By ERM, you mean the European Exchange Rate Mechanism, right? It's indeed a flawed system. Excessive government intervention has created those flaws."

"You're absolutely right. With that level of information, I guess there's no need to say that the success rate for shorting the British pound is 100%, is there?"

That's as far as the pretending goes.

We made it clear that we open our wallets based on the value of the investment, not just the name of Stellar Investment.

"So, shall we change the topic to how much we'll invest? Let's start with a modest 1 billion dollars."

"A billion dollars is hardly modest. It's quite a significant amount. But, I must say, I'm slightly disappointed. I heard about the profits of more than 10 billion dollars during the Gulf War."

10 billion dollars amounts to over 7.1 trillion won at today's exchange rate. While it's not a small sum by any means, from the perspective of hedge funds handling tens of trillions of dollars on Wall Street, it may not seem significant.

"Think of it as an earnest deposit. I'm thinking of investing up to 5 billion dollars."

"So, you mean there's a condition for the remaining 4 billion dollars."

"It's not a substantial condition. Just a 10-minute meeting with George. That's the entire condition."

"In that case, it's not a problem. Actually, George has been expecting it. If today's negotiations go well, Kim had a plan to secretly appear. I guess you beat him to the proposal."

I couldn't quite grasp how things were working, but suddenly, at the meeting venue, George, the head of Stellar Investment, appeared. He smiled warmly and extended his hand for a handshake.

"I'm George, operating Stellar Investment. Thank you for joining as an ally in the fight against the UK."

"I'm Kim from SAVE Investment. It's a war with a 100% chance of victory and generous spoils to claim. So, of course, we should join."

"There are still idiots who don't know this obvious fact, and they continue to fill Wall Street."

George, often referred to as the devil or a sinister puppeteer, didn't live up to his nicknames and came across as a friendly neighbor.

"I'm glad I'm not one of those idiots."

"But you wanted to see me first. May I know why?"

"I'd like to request not only to be an ally in this upcoming war but also the authority to form alliances in any future war. If it can be done, I promise to pour over 5 billion dollars into shorting the British pound."

In Wall Street, it's clear that survival isn't possible alone. You need to build alliances with various hedge funds, investment firms, and other allies to prevent attacks from the US government or other hedge funds.

"5 billion dollars is a very tempting offer. But when you say 'any future war,' where do you think the next one might be?"

"I expect that if the British pound plummets, there might be concerns about Italy's lira as well."

George's question prompted me to respond immediately.

Having researched his actions for nearly 20 years, my response was possible, and George was naturally very satisfied with my answer.

"It seems we share the same thoughts."

"Pound, lira, and not just them, but all of the currency markets in the UK are full of vulnerabilities."

"That's the same thought I have. Excellent. I promise to stand with SAVE Investment Company in all future wars."

Promises made in words alone hold no value. However, since such promises could not be documented, for now, forming an alliance with a verbal agreement was all there was.

Of course, there was a way to make it a true alliance, but it was a method that couldn't be used at the moment.

"Then if you send us the investment proposal, SAVE Investment Company will invest $5 billion accordingly."

"Unlike the old wolves of Wall Street who are cautious of getting hurt, you're quite fiery. They should step aside now."

George was not young, but he still had sharp teeth, and I would use those teeth.

"In that case, we'll send the proposal tomorrow. We'll also send some of our staff to assist."

"Prepare a fork and knife. I'll prepare a delicious dish called 'The UK' for you. You just need to devour it."

"Oh, and one more thing, can I make a personal request?"

"Whatever it is, just tell me. I'll do anything for an ally."

"Could you provide me with a letter of recommendation? It's a very personal request."

"Do you need it for a university by any chance?"

"Yes, I'll be applying for university this time."

"Well, in that case, I have to do it. I will write a recommendation letter both in my name and Jim's name. Jim used to be a university professor, so he should have quite a bit of influence."

"Thank you. Oh, and as for the investment amount, let's raise it from $5 billion to $6 billion."

"1 billion dollars for a few recommendation letters. Quite expensive recommendation letters, hahaha."

* * *

After the meeting, I headed to SAVE Investment Company. Jeffrey, the Vice President, and four securities experts were already waiting for me. Before I could even take a seat, Team Leader Hwang began discussing the main points.

"Have you decided to accept Stellar Investments' proposal?"

"I've decided to invest $6 billion in the pound short-selling."

"I understand there are flaws in the ERM system and short-selling the pound, but $6 billion seems excessive. It's an investment that will only yield profits if we fight against the UK and win, not to mention it's not a developing country."

Team Leader Hwang expressed his concerns, but he didn't strongly oppose. It was more like a word of caution out of concern for the company. He had great trust in me, given my previous successful investments.

"It will be settled by next year at the latest, even if it takes a long time. I've made this judgment with the remaining $4 billion. Jeffrey, the Vice President, what do you think?"

"$4 billion is still a bit excessive. We're currently focusing on IT company acquisitions and investments, and the planned capital injection until the second half of next year is less than $3 billion."

"Furthermore, this investment doesn't require much manpower. Stellar Investments has already prepared all the plans, so we just need to use their proposals as drafts and proceed with the investment."

As we continued the serious conversation, a staff member entered with documents.

"Here are the materials sent by Stellar Investments."

"They've already arrived? I thought it would take until tomorrow."

I handed the documents to Team Leader Hwang, who, along with Jeffrey, began going through the materials.

About 30 minutes later, Team Leader Hwang's lips began to curl upward.

"It seems there isn't much time left until the UK surrenders. Stellar Investments and Wall Street hedge funds have already pushed the British pound to the brink."

"We just need to make the final move in the last round. Now, do you understand why I invested $6 billion?"

"Is it really the final move? It's true that the pound is risky, but will the UK surrender? Even if they do, won't it take quite some time?"

Jeffrey voiced his concerns, but Team Leader Hwang had a confident expression. Team Leader Hwang possessed an S-tier analytical ability, and while Jeffrey had three types of S-tier job skills, in terms of analytical ability, Team Leader Hwang was a step ahead of him.

"The funds mobilized by Stellar Investments and hedge funds amount to over $110 billion. Adding our capital of $6 billion and using leverage, the UK will have no choice but to surrender. If they surrender late, it's certain that all British citizens will rise up."

"It's only natural that the British citizens will rise up if the pound is under attack, as they are the ones who will suffer the most."

I agreed with Team Leader Hwang and proceeded. Team Leader Hwang continued to explain point by point, highlighting sections in the documents with a fluorescent pen.

"They've been continuously raising interest rates. There might be several more rate hikes until early next year. However, such tactics are no different from peeing in one's pants. Ultimately, they will have to leave the ERM, and the pound will collapse."

"I'll follow the opinions of the Chairman and Team Leader Hwang for this investment. I will focus on other investments."

Jeffrey took a step back. He was more confident in the IT sector than in the troublesome pound.

"Then, Team Leader Hwang, organize a task force to carry out the pound short-selling. Establish a channel for communication with Stellar Investments."

"I'll work on establishing a dialogue channel with Stellar Investments as soon as possible and proceed with the plan."

By next year, I will be starting college. To graduate early, I needed to focus on my studies, and SAVE Investment Company had to operate efficiently with only Jeffrey as Vice President and Team Leader Hwang, who could take care of things on their own. Of course, significant investments and talent acquisition would require my involvement.