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Chapter 96




< Kim Hak-Gwon Government's Choice >
#96
Kim Hak-Gwon Government's Choice
Even before the foreign exchange crisis hit, I began gradually withdrawing funds from the Myeongdong loan shark market, which had been operating haphazardly, and started to improve the system.
I handed over all the bad debts and other uncollectible debts to the seasoned loan shark, No Ik-Sun, and had Kim Ho-Shik collect all the recoverable funds.
At the same time, I established Myeongdong Capital as a holding company and created three subsidiaries under it.
With the absence of a usury law, there was no need to lend money at low interest rates. Instead, I focused on lending to those with collateral at high interest rates, gradually establishing a foothold.
“Hyun-Sung, how’s the work going?”
“Since Mr. Kim is handling most of it, there shouldn’t be any major issues.”
Feeling my gaze, Kim Ho-Shik slowly spoke.
“I’ve assigned one business each to the loan sharks under me who I trust. I’ve educated them that the era of operating like gangsters is over, so there won’t be any incidents like before.”
“Making money isn’t the most important thing. People with cash will gather in Myeongdong, just like in the Warring States period. Not only in Myeongdong, but also in Seoul and throughout the country, lending companies will start to open branches.”
Hyun-Sung and Kim Ho-Shik nodded.
“Securing a foothold is the priority. Compete with lower interest rates than any other company. We won’t be outmatched in terms of capital.”
Kim Ho-Shik, who had a foothold in the Myeongdong loan shark market, had stepped down from everything and was now the executive vice president of Myeongdong Capital, with Hyun-Sung handling the practical work.
“Report everything to Hyun-Sung. You don’t have to report to me, but there shouldn’t be anything Hyun-Sung doesn’t know.”
“Yes, sir.”
“How does it feel to come out into the light?”
Kim Ho-Shik smiled slightly.
“I can now be a father I won’t be ashamed of in front of my daughter. Thank you, sir.”
“After this war, there won’t be any more dangerous tasks. Don’t go out alone; move with the Dongsu faction.”
“Yes, sir.”
Kim Ho-Shik’s face had become much softer. The venom he had accumulated to survive in the Myeongdong loan shark market seemed to have diminished.
“You look much better. I hope you can live as Kim Ho-Shik, the executive vice president of Myeongdong Capital, and not return to the shadows.”
I sent Kim Ho-Shik out, who nodded his head.
Sitting in the office of Myeongdong Capital, Hyun-Sung looked quite fitting.
“Once this is settled, find something you really want to do.”
“I’m already satisfied.”
“Are you okay physically?”
“Yeah.”
Seeing my worried gaze, Hyun-Sung smiled and said calmly.
“Don’t worry about me. While learning this job, I understood why you were so ruthless.”
“Really?”
“I didn’t know before, but money is really scary. Listening to the stories from the executive vice president...”
Hyun-Sung shook his head, as if he didn’t want to think about it.
“It won’t be resolved in a short time, so contact me if any problems arise. Don’t try to solve everything on your own.”
“Understood.”
“Let’s go out for a meal. It’s been a while since we ate together.”
That day, I also visited No Ik-Sun’s office nearby.
One of No Ik-Sun’s subordinates, who was guarding the front of the office, greeted me.
No Ik-Sun came down in a slightly hurried manner, having received the call.
“Sir, you should have given me a heads-up. I would have been here if I knew you were coming.”
“It’s fine. Mr. No, it’s been a while.”
“Let’s go inside first.”
Entering the office, various documents were scattered around.
No Ik-Sun, looking embarrassed, said,
“I didn’t know you were coming, so I didn’t tidy up. I’ll clean it up now.”
“No need. We won’t be staying long, so just sit down.”
Sitting in the main seat on the sofa in the center of the office, No Ik-Sun followed suit.
After the removal of Jeon Su-Man, he was clearly being more cautious in front of me.
“Tough times, huh?”
“Huh? No, it’s not that bad.”
“Since all the bad debts have been transferred to you, you must be busy, but once you’ve cleared everything, move your office to Gangnam.”
No Ik-Sun’s eyes widened.
“Gangnam?”
“Yes. Now, most of the ordinary people’s loans in Myeongdong and other areas will be dominated by lending companies.”
I added, seeing No Ik-Sun’s puzzled expression.
“Target the people starting venture businesses around Gangnam and the wealthy in Gangnam who need quick cash. Even with compound interest, upfront interest, and high interest rates, there will be many people willing to borrow.”
The venture boom that started in the U.S. had also begun in Korea.
But with no proper venture investors yet, they would have to borrow from loan sharks for urgent funds.
In a few years, individual loan sharks, pushed out by lending companies, would flock to Gangnam.
It was still a time when loan sharks hadn’t fully established themselves in Gangnam. We needed to plant our flag first in this unclaimed territory.
“It doesn’t matter if a usury law is enacted or interest rate limits are reintroduced. It’s not a regulated market. Many people will need quick, short-term loans.”
Real estate tycoons looking to pay taxes and venture companies needing to pay their employees’ salaries would have no choice but to seek out loan sharks.
“I understand.”
No Ik-Sun nodded readily.
Without prolonging the conversation, I stood up and asked,
“How’s the debt collection going?”
“The recovery rate isn’t as good as expected. Given the economic situation, many people are saying they can’t pay.”
“Can’t be helped. Don’t push too hard.”
Bad debts are inherently difficult to recover, often with recovery rates below 10%.
When loan sharks feel a debt is uncollectible, they often sell the bad debt at a low price to collection specialists.
This is No Ik-Sun’s specialty, so I had no choice but to trust him.
“I trust you, Mr. No.”
“Don’t worry, sir.”
* * *
“A message from Kobe.”
“Yes.”
Lee Yong-Hyun, who was always arrogant in front of others, was bowing to a Japanese man.
“You are to ensure that we can take over the Korean lending market without any failure this time. The abolition of the interest rate cap has made it difficult for us and the day-traders to get involved.”
The Japanese man looked much younger than Lee Yong-Hyun, but his gaze showed no respect for him.
“Yes, what should I do?”
“We will also exert our own efforts, but try to establish a usury law as soon as possible, like in Japan. It’s better to have an interest rate cap, but maintain a high interest rate of around 48%. Once the competitors are eliminated, you can repeal the law later.”
Lee Yong-Hyun nodded respectfully.
“I received the message from Kobe, but I didn’t expect you to come in person.”
“I hope you understand how serious we are about this. The government is also pressuring us. It’s difficult to expand our business on the mainland...”
“Yes, I understand, Mr. Watanabe.”
Watanabe Satoru, the son of the leader of the Yamaguchi-gumi, was the name of the man in front of Lee Yong-Hyun.
“This is an opportunity to receive help from the Empire of Japan again. We must mobilize all our resources. Do you understand?”
“Yes, I understand.”
Watanabe Satoru’s eyes gleamed.
“You still haven’t dealt with the old man who has been obstructing our work... Have we placed too much hope in you, Lee Yong-Hyun?”
Though his tone was even, Lee Yong-Hyun felt a sharp edge in Watanabe’s voice, causing cold sweat to run down his back.
“I apologize. It’s been a long time preparing, but there are many difficulties...”
“You’ve also failed in your preparations.”
“...I have no excuse.”
Seeing Watanabe’s displeasure, Lee Yong-Hyun bowed deeply.
“Do you have any other preparations?”
“It’s difficult to move immediately.”
“Then leave it to us. Focus on making sure we can establish ourselves in Korea without any inconvenience, starting with legislation. That’s all you need to do.”
“Understood.”
With that, Watanabe stood up, and Lee Yong-Hyun followed, bowing deeply.
“Remember, if you repeat the same mistake, the long-standing relationship could be severed. Do you understand, Lee Yong-Hyun?”
“Yes.”
With that, Watanabe left Lee Yong-Hyun’s house.
After seeing him off, Lee Yong-Hyun entered his room, caressing a cherished porcelain piece, lost in thought.
‘I missed the presidential election, and I couldn’t properly handle the Myeongdong situation. There’s nothing I can say.’
Lee Yong-Hyun’s mind was not on the future of the Republic of Korea. He only thought of gaining the power offered by Japan and wielding it.
* * *
The new government had taken office, but the Chungwoo Group’s accounting fraud scandal had drawn all the attention.
Starting with Eva’s Future Investment, major U.S