The Genius Grandson of the Loan King - Chapter 34 (34/840)
< Meeting with Chairman Song Young-ju >
#34
Meeting with Chairman Song Young-ju
I visited the home of Song Young-ju, the honorary chairman of Daehyun, as promised. Guided by a secretary, I entered his study. Chairman Song had a completely different aura compared to when I visited with my grandfather, so I bowed my head.
"Hello, Chairman."
"Yes. Sit down in front of me."
"Yes."
As I took my seat, Chairman Song also moved from his desk to sit on the sofa.
Chairman Song stared at me for a while, then spoke.
"I'm not sure what I can teach you. But since Chairman Cheon asked, I'll meet with you a few times."
"Yes."
"Do you know anything about the relationship between me and Chairman Cheon?"
"No, I don't."
Chairman Song nodded and began to tell the story of him and my grandfather.
"One of the two people I recognize in South Korea is your grandfather. The chairman of Ilseong? The presidents? I don't think they are better than me."
He really exudes confidence.
"But I recognize your grandfather. No, I respect him. The first time I met him was in Busan during the height of the Korean War..."
I had to listen to the story of my grandfather and Chairman Song's first meeting and everything that followed for quite some time.
"There was a time when Chuntaesan, which was thriving, stumbled. It was around 1972, I think. The government implemented a freeze on private loans at that time."
August 3, 1972.
Due to the freeze on private loans initiated by the presidential emergency order, most people in the underground economy, including loan sharks, suffered significant losses.
It was a ridiculous policy where the lender had to disclose the source of the funds to get the money back.
This was only possible under a military regime.
"Thanks to that, the current chaebols were born. They didn't repay the loan sharks at that time. But... do you know how your grandfather overcame it?"
"No, I don't."
"Hehehe. Isn't it funny? He used it to his advantage and increased his wealth even more. He took revenge on companies that didn't repay him using every method possible. Setting fire to factories, attacking family members passing by... In the end, he either got his money back or inflicted equivalent damage."
"He must have been a scary person... "
"Yeah, he was a scary person."
Chairman Song laughed hollowly in response to my comment.
After laughing for a while, he continued.
"There was no businessman who didn't fear Chairman Cheon back then. Now, anyone can call themselves a chaebol and live lavishly, but back then, it was nothing. They borrowed money to start businesses and used those businesses as collateral to borrow more money. The government was the one who broke that cycle... 'Big horse never dies!'"
Big horse never dies (大馬不死).
It's a term from Go, but it's often used in economic contexts.
Many companies survived because of this logic, thanks to the taxpayers' money.
Although many large companies went bankrupt during the IMF crisis, which made this term seem irrelevant, it remains the most trusted phrase among chaebols to this day.
"Forbes? That magazine or tabloid from the Yankees says I'm the richest person in South Korea. Nonsense. Your grandfather is the richest person in South Korea, in terms of cash, not stocks."
Finally, Chairman Song's hour-long speech came to an end.
Although I have knowledge from the future, the vivid firsthand accounts of Chairman Song, who has walked this path since his youth, were very helpful.
"Thank you. I enjoyed listening to your wise words."
"I talked too much... So, do you have any questions or anything you're curious about?"
Chairman Song looked at me with a slightly curious expression.
"Perhaps, what are your thoughts on the real-name financial system?"
"The real-name financial system...?"
"Yes."
"Hehehe. It should be implemented. It should be. But not now. Our country still needs to develop. I think there will be significant chaos if it's implemented. The president is probably considering this, and even the military regimes couldn't do it easily."
Chairman Song's voice was full of confidence.
"Still, looking at the actions of the current president, wouldn't it be strange if it wasn't implemented soon? He's taken unexpected actions like cracking down on the Hanahoe and disclosing the assets of high-ranking officials..."
"Hehehe. I don't like that guy, but he does a good job. Still, not now."
I nodded slowly as I looked at Chairman Song.
"I thought it would be announced this summer. Since your thoughts align with my grandfather's, I won't say anything more."
"Hehehe, you still have a lot to learn."
I had thrown out a hint, and now it was time to receive proper advice.
"Can I ask another question?"
"Sure, go ahead."
"What if, hypothetically, South Korea goes bankrupt? If the country falls into chaos, would it be right to make money from it?"
Chairman Song's eyes widened, then he laughed hollowly.
"South Korea going bankrupt?"
"I said hypothetically."
"Even hypothetically, that won't happen. South Korea going bankrupt... Do you mean default?"
I nodded, and Chairman Song's expression turned amused.
"Okay, if that happens. And if there's an opportunity to make money from it. It would be painful for others, but it could be an opportunity for you. Is that what you're saying?"
"Yes."
Chairman Song nodded nonchalantly.
"Then, of course, you should seize the opportunity. If you don't, someone else will make money from it. That's how the economy works. When someone loses, someone else gains. It's impossible for everyone to make money."
Although I had already made up my mind, the unease in my heart was somewhat alleviated by Chairman Song's words.
"But, default... I've never even thought about it. That's quite innovative."
"Even if it's not South Korea, other countries often experience such situations. So, I thought about what would happen if it happened here."
Chairman Song looked impressed.
"Hehehe. Yes, you should always think ahead. That's how you make money. You're just like your grandfather."
"Thank you."
"You seem smart, so you know that the economy is like a living organism. Don't be too greedy. It might eat you alive."
"Yes, I'll keep that in mind."
With that, the two-hour meeting with Chairman Song came to an end.
We made plans to meet again the following week, and I left his mansion.
I drove straight to Yeouido after leaving Chairman Song's house.
Yeouido, this small island, was the financial hub of South Korea. It would remain so even 10 or 20 years later.
It was the time when the market closed and people were leaving the securities firms.
A man quickly approached my car when he spotted it. It was Han Kyung-eop.
He opened the passenger door and got in with a smile.
"Muhyuk, it's been a while."
"Yeah, we talk on the phone every day, but it's been a while since we've seen each other. You look much better, bro?"
"Hahaha, I'm just feeling good lately."
The stock market was doing well, but his instincts were definitely exceptional.
I thought it would be fine even if he lost the 100 million won I gave him, but he had already achieved a 50% return.
"Let's go get some food. Where's good? You said you know this place well? How about I treat you to something nice?"
"Hehehe, don't worry. Let's go. I'll tell you where to go."
A short while later, we arrived at a Korean beef restaurant in Yeouido. The parking lot was already full of people who had finished the market and were heading for dinner.
We managed to find an empty spot and parked, then entered the restaurant.
"Phew! It's crowded."
We were fortunate to be led to a private room without waiting, thanks to the staff's guidance.
After placing our order and sitting down, we caught up on recent events.
"How's it going? Is it manageable?"
"Can't you tell from my face? I'm doing great. Yesterday, I noticed something strange about a stock, so I followed it. It kept falling, but when I started buying, it stopped. And today, as soon as the market opened, it soared."
He was excitedly using technical terms, but I couldn't understand them.
"I gave you the money to gain experience, expecting you to lose it all. Maybe I underestimated you."
As I laughed, Han Kyung-eop, with his shoulders back, spoke confidently.
"You discovering my hidden talent is more impressive. Thanks to you, I've gained confidence. Well, I jumped into the market from 1990 to 1992, which was a bear market, so I lost everything... The amount was small, too..."
From the early 1990s to the early 1992, there was a prolonged bear market.
In other words, Han Kyung-eop entered the market at the wrong time. He eventually had to hide from loan sharks, so there was no point in talking about it.
Eventually, the government couldn't hold out and opened the door to foreign direct investment.
It was limited to 10%, but it continued to increase and was lifted during the IMF crisis.
The meat was starting to cook. We chatted while eating.
When the server left after serving the meat, I got to the main topic.
"Do you have stocks now?"
"Yeah, I've invested about 100 million won, and I have about 50 million won in my account. Why?"
He put down his chopsticks and asked.
"Starting next Monday, liquidate everything. No later than the market close on the 12th."
Han Kyung-eop also put down his chopsticks and looked puzzled.
"What? The market is doing well. It's not the time to sell. It's a bull market. You should keep holding."
The market was being driven by a few strong stocks like Ilseong Fire. It was understandable that he couldn't accept my sudden advice to sell everything.
"Bro, remember when we first agreed to work together? I said that even if you act on your own, you'll buy when I tell you to buy and sell when I tell you to sell. That's the top priority. You haven't forgotten, right?"
Feeling the firmness in my voice, Han Kyung-eop started to read the room.
"I haven't forgotten. But I'm just disappointed. Can't I give some advice?"
I nodded.
"Sure, you can give advice. But I have to decide whether to follow it. Right?"
"Uh, yeah, right."
He answered, but his expression showed he wasn't convinced.
I smiled calmly.
"Alright. Since you have your own thoughts, you'll oppose me. Let's make a bet."
"A bet?"
"Yeah. If the stocks plummet after August 12th, I win. If they rise or stay the same, you win. How about it?"
"..."
There was no reason for me to make such a bet. But I needed him to trust me.
That way, he would follow my instructions without questioning them whenever I told him to do something.
I smiled and provoked him.
"Why? Scared? If you're scared, you're dead!"
"Who? Me? Scared? Who's scared! Fine, let's bet. But what are we betting on?"
"If you win, I'll give you all the money in that account."
Han Kyung-eop's eyes widened in surprise.
"All of it?"
"Yeah. But if I win, you have to follow my instructions without question, no matter what. How about it?"
"Didn't we agree to that already?"
"You're not convinced now, are you? Instead, if I win this time, you'll have to follow my instructions without question, right?"
"Deal! I have nothing to lose."
His face showed confidence. I smiled back at him.
"Well, we'll see if you have nothing to lose. But, bro, do you have a U.S. citizenship?"