Chapter 4

 Episode 4: The Bubble (Part 2)

March 27, 1990.

Japan implemented a total loan limit system to curb rising property prices. It was a well-intentioned move but ended up being the signal of the burst of the economic bubble.

The bomb they had feared had finally detonated, and my dedicated team couldn't believe their eyes.

"Team Leader, the Nikkei index has dropped by about 10% in a single day. And the property prices don't look promising either."

"Japanese bond prices are falling too!"

Team Leader Han Junghoon analyzed the overwhelming flow of information. With his outstanding analytical skills, it didn't take long for him to reach a conclusion.

"As Minjae-nim suspected, it seems like a real bomb went off in Japan."

"Then, is it possible that the Nikkei index will really drop by half as Minjae-nim predicted?"

"It's likely to happen."

"So, is it really possible to achieve returns of over 10 times?"

"Not just 10 times, theoretically, it can go up to 20 times."

Team Leader Han Junghoon quietly tapped on his calculator. We had invested 22 billion won, so if it went up 20 times, that's 440 billion won!

He swallowed involuntarily, unaware that he had salivated. He slumped into his chair.

"Is this the bloodline of a chaebol? 440 billion won."

"How many years of salary would it take to earn that kind of money?"

"Our salary is 20 million won. Even if we work until we die and are reborn, we won't be able to earn that."

In this era, working in a securities company was the dream job. They earned higher salaries than at large corporations, but it was still just 20 million won. Of course, they received bonuses based on performance, but it didn't amount to billions.

"But how did Minjae-nim find out about this information? Even securities companies didn't know about it."

"Maybe he got the information from Taewoo Economic Research Institute? Otherwise, it doesn't make sense."

"If he obtained such information from the research institute, why didn't our securities company respond?"

"Because it's high-risk. For Minjae-nim, this investment is like an allowance, so he didn't need to manage the risk." 

Team Leader Han Junghoon said it himself, but he felt that his argument lacked persuasiveness.

However, without taking this path, they couldn't accept profits exceeding 440 billion won.

Team Leader Han Junghoon, who had been sitting in his chair for a while, suddenly stood up and gathered his team.

"What do you all want to do? Are you going back to the securities company?"

"...Honestly, I want to stay here. It's the first time I've done meaningful work."

Lee Donghoon, a first-year employee, said hesitantly. Most of his work had been sharpening pencils and delivering coffee. He had learned his senior's work discreetly, but this was the first time he had done a real job, so he felt a greater sense of accomplishment.

"I want to stay here too. If you work at a securities company and want to achieve returns 20 times your investment, you have no choice but to resort to illegal operations, right? Here, I can legally play in the big league without any reason to leave."

"I'll stay for now too. There's no need to run around separately to get approvals, and it even feels like working on Wall Street."

"Then let's all stay."

Team Leader Han Junghoon and the four members of Minjae-nim's dedicated team. It was the starting point of the decision that would change their destinies.

* * *

At the end of April, I confidently entered Grandfather's study.

"Our little Minjae is here? I've been so busy with business trips, I haven't had time to play with our little Minjae."

"Grandfather, you're a busy man, and everyone knows it."

"Haha, I apologize."

Grandfather had indeed been incredibly busy, advocating for Taewoo Group's globalization, traveling from Europe to the United States and visiting countries left and right.

As someone who knew well how globalization could end, I desperately wanted to dissuade him.

"Grandfather, please accept this gift."

"Did our little Minjae write a letter for his old man?"

I handed him the envelope, and Grandfather took a look at the contents and burst into a hearty laugh.

"A high school equivalency certificate!"

"Please check the grades too. I got a perfect score."

"Haha, very impressive."

Our family has lacked acting talent for generations. Grandfather probably found out about my passing the exam a few days ago. Checking whether I passed a high school equivalency test or not was an easy task for the third-ranked chairman of a major conglomerate.

He probably waited for me to speak first. So today, as usual, he didn't go to the office but waited for me in his study.

"Grandfather, I want to start preparing for U.S. college admissions tomorrow."

"Already? Why not take a break this year and start next year?"

"I don't have much time. Even if I want to enter college next year, I don't have enough time to prepare."

"Haha, what's the rush? Is someone chasing you from behind?"

Someone might be chasing me, and the chaser is the group's bankruptcy.

My heart felt tight when I saw Grandfather so relaxed.

Time was running out.

"I want to graduate from college quickly and work with you, Grandfather."

"Our little Minjae is very ambitious. Where would you like to go for a gift for passing the high school equivalency test? Just give you some spending money?"

Grandfather's allowance was meaningless from now on. We needed it when we had a shortage of initial capital, thanks to the Japanese bubble, the issue of initial capital was resolved. It's time to focus on something other than money.

"I'd like to travel as a gift."

"Travel? Where do you wish to go?"

"I heard you're going to Saudi Arabia this time. Can I accompany you? I really want to visit the Middle East."

"Haha, our little Minjae wants to go, so how can I refuse you? But you're busy with your studies, do you have time to travel?"

"Don't worry. I've already planned to study on the plane."

"Then let's do that. I'll tell Manager Choi everything, so let's go to Saudi Arabia together on this trip."

In reality, I was short on study time as well. However, the reason I wanted to go to Saudi Arabia was for connections. I had learned from an early age that building connections diligently would come in handy when needed.

* * *

A little while after Grandfather went to work, I called in the four securities experts known as Minjae's dedicated team to our home. This was to review the profits generated from the Japanese bubble crisis.

"Please have a seat. You all look quite worn out."

"We've been working tirelessly to realize the profits."

Realizing those profits was no easy task. They had to work overnight to collect money from foreign insurance companies, securities firms, and banks. There were even insurance policies issued in the United States. I heard that Team Leader Han Junghoon personally traveled to the United States for this.

"Now, shall we review the final settlement? Team Leader, please begin the briefing."

"Ahem, I will start the settlement process. First, the expected profit is 478 billion won. We anticipate that all profits will be realized by the second quarter of next year, and the current amount realized is a total of 121 billion won."

They were undoubtedly outstanding individuals. I provided them with information, but it was their expertise that allowed them to maximize the profits.

"That's excellent. As per the contract, I will give each team member a 1% bonus of the realized profit."

"Really? 1% amounts to more than 12 billion won."

"If divided among the four of you, it will be roughly 3 billion won each. However, I can't send it to Korean accounts, so please open foreign accounts. I assume you all know how to do that?"

"Creating accounts isn't difficult, but are you really giving us 3 billion won as a bonus?"

They were understandably skeptical. After all, weren't assistant-level salaries in the securities industry around 20 million won these days? Earning an amount that would be difficult to accumulate in a lifetime within a few months would naturally elicit such reactions.

"Let's conclude the settlement here. Please provide the data in report format. Now, shall we begin the next investment?"

"Are you serious about this again?"

"Why, don't you want to? Oh, I see, you want to return to the securities firm."

"No, that's not it! I want to work with you, young master."

Indeed, the power of money.

With a 3 billion won bonus on the line, the loyalty of the dedicated team soared. You could feel their eagerness to start the next investment just by looking into their sparkling eyes.

"The next investment will be in the Middle East."

"When you say the Middle East, is it related to Chairman's upcoming visit to Saudi Arabia?"

"It's not directly related. You're all aware of the tense atmosphere in the Middle East these days, aren't you?"

"Are you referring to the Iran-Iraq war by any chance?"

It was a long-standing war that had been going on since 1980 and lasted until 1988. Both countries had poured all their resources into the war, gaining nothing but massive debts. Iraq's situation was particularly dire, and I asked Team Leader Han Junghoon about that specific aspect.

"Iraq has accumulated over 500 billion dollars in debt due to the war. Should we just sit still?"

"A ceasefire agreement has been reached through the UN's mediation. Surely they won't start another war?"

"500 billion dollars is equivalent to over 500 trillion won. It wouldn't be surprising if there were a coup within Iraq."

The team members nodded in agreement. Whether it was due to their investments in the Japanese bubble or their recognition of my insight, they were listening attentively to what I had to say.

"Then, do you anticipate that Iraq will start another war?"

"Who do you think Iraq would resent the most right now?"

"Iran, perhaps? Given the eight-year-long war, the animosity must run deep."

"No, not really. It's often the case that you resent a colleague who betrays you more than an original enemy."

"When you say a colleague who betrayed, are you referring to Kuwait?"

During the previous war, Kuwait had been Iraq's biggest supporter. However, when the war dragged on without a clear victory, Kuwait cut off financial support.

"Iraq might think that if Kuwait had continued to support them, they could have won the war. So, they might harbor more resentment towards Kuwait than Iran."

"Are you comparing it to the feeling that it's more annoying when your sister-in-law talks back than when your mother-in-law scolds you? Does that mean they would go to war?"

"Right now, Iraq is unstable. Historically, creating an external enemy is a way to unite a shaken internal situation."

In reality, no one could predict what was happening in the Middle East at the moment. But because I knew the future, I could strongly advocate for war, and my loyal team members didn't strongly oppose the idea.

"Shall we proceed with investment based on the anticipation of a war between Iraq and Kuwait?"

"That's right. Iraq and Kuwait both border the Persian Gulf, so we can call it the Gulf War."

War can be profitable. And if it's the famous Gulf War, there's no need for further explanation. If you can predict when the war will start, who will win, and when it will end, anyone can make a fortune, and I was the only one with that information.

"Let's prepare an investment portfolio."

"When the war breaks out, everyone knows that oil prices will skyrocket, right?"

"Are you considering futures trading? Futures trading is the riskiest investment."

Team Leader Han Junghoon voiced his concerns.

He had a cautious approach, prioritizing safety over risk, especially since he had experienced the volatility of the securities market.

Indeed, futures trading could be risky. It could turn 10 billion into zero in a single day, or in the worst case, bury you under astronomical debt. But on the flip side, the futures market was a miraculous place where 100 million won could turn into 10 billion won.

"I anticipate that the war will begin in early August. At that time, we'll maximize leverage and bet on the rise in oil prices. Until then, try to recover as much of the money invested in the Japanese bubble as possible."

"Oil prices have stabilized for now. Saudi Arabia is even planning to increase production."

"That's why now is the perfect time. Once the war starts, oil prices will skyrocket beyond belief. It's an opportunity to make at least two to three times the profit. If we invest with maximum leverage, how much more can we potentially make?"

"...In theory, up to six times more."

"Then we can potentially make twelve times the profit."