The Genius Grandson of the Loan King - Chapter 62 (62/840)
< The Result of the Bet. >
#62
The Result of the Bet.
In Mexico, large-scale capital flight by foreign funds began.
This was due to the crisis affecting the Mexican peso.
On that day alone, $6 billion flowed out of the Mexican central bank.
However, that was just the beginning.
On the 22nd, Mexico expanded the fluctuation range of the dollar exchange rate against the U.S. and implemented another devaluation measure.
At the beginning of 1994, the exchange rate was 3.1 pesos to the dollar.
When Han Kyung-kyung signed the contract with Goldman Sachs, it had already fallen to 3.5 pesos.
No one on Wall Street expected the new government, which won the August general election, to devalue the peso.
By early next year, if my memory serves me right, it will reach 7 pesos to the dollar before the maturity date.
With one bet, he made a profit of over 50 times.
— You were right, Muhyeok.
Han Kyung-kyung's voice was trembling.
“Ha...”
I couldn't help but sigh.
Even knowing the future, I couldn't help but feel tense.
The tension suddenly eased.
— When will you liquidate?
“Let's wait until January.”
— Phew... I'll do whatever you say. Just tell me when to liquidate.
“Okay. I'll call you later. Keep an eye on it.”
— Yeah, got it. Stay on high alert until we liquidate. Don't worry about that.
The call with Han Kyung-kyung ended.
Feeling the tension ease, sleepiness overcame me.
'If it goes as history suggests, the profit will be between $1.5 billion and $2 billion.'
Thinking about the profit, I fell asleep without realizing it.
* * *
Goldman Sachs Headquarters.
“What the hell is going on!”
Tommy, the CFO, burst into Peter's office.
Peter, who had been dazed, jumped up from his seat.
“What's happening with the peso!”
“The Mexican government has devalued the peso.”
Tommy's face turned as white as a sheet, and he pressed his hand to his forehead.
“What's the current rate?”
“It's still 4 pesos before the market reacts, but we don't know how much it will fall by tomorrow.”
“Wasn't the rate 5 pesos when we signed the contract?”
Peter asked, his voice trembling.
“Did they really expect this to happen?”
“That's ridiculous. How could a new hedge fund know something we didn't! How much did we take in?”
“Half was sold to clients, and half was ours...”
“Ha...”
Tommy sighed deeply.
“Have you heard from them?”
“No, not yet.”
“How much do you think it will fall?”
Peter, who had been silently calculating, cautiously spoke up.
“At least 5 pesos, and at most 7 pesos.”
“Let's wait and see. If it falls below 5 pesos, contact them and liquidate. It's your contract, after all.”
Tommy subtly passed the responsibility to Peter.
“But the contract was signed by you...”
“What are you talking about? It was signed in your name.”
However, the next day, another devaluation of the peso was announced. They couldn't even pass the blame to each other anymore.
With a large amount of dollars already flowing out of Mexico, another devaluation was impossible to stop. The peso's decline was unstoppable.
In the end, Tommy instructed Peter to contact Han Kyung-kyung.
— Hello.
Before James' voice even finished, Peter eagerly spoke.
“Hey, James! It's Peter.”
— Oh, Peter! It's been a while. What's up?
“Um... about that contract.”
— Huh? What contract?
James, pretending not to know, was annoying, but Peter couldn't show it.
All the executives were looking at him.
“It's about the peso. When are you going to liquidate? We should liquidate now since we've made a profit.”
— Oh! I remember that. But it's not due yet, right?
“There's about a month left. But who knows what will happen. Liquidate now. As a senior who's been on Wall Street for a long time, I'm giving you advice.”
Peter heard a laugh from the other end of the phone.
— Hey, Peter. I haven't forgotten the look in your eyes when you mocked me. Senior, my ass. See you in January.
With that, the call ended.
“James! James!”
Peter desperately called out, but the other party, who had hung up, didn't respond.
Half-crazed, he came to his senses at the executive's call.
“What did he say?”
“Huh?”
“Did he say he would liquidate?”
“Um...”
“Come on, speak up.”
“He said he'll see us in January and hung up.”
The executives' sighs filled the office.
“What are we going to do now?”
Tommy asked, almost scolding, and Peter looked up and glared at him.
“Why are you asking me?”
“Who else should I ask? It's your contract, isn't it?”
“Ask the crazy Mexican government. What were they thinking? And you signed the contract, Tommy. Don't try to pass the blame to me.”
“What?!”
The chairman, who had been listening, clicked his tongue.
Tommy, who was about to say something, closed his mouth.
“What matters is not who signed the contract. Can we fix this?”
Neither Tommy nor Peter could answer. How could they fix this?
“Peter, you're fired. And Tommy, you're fired too. You need to take responsibility for this.”
With the chairman's stern words, Peter accepted his fate.
He just nodded and left the office, returning to his team.
He couldn't say anything to the team members' resentful gazes.
“I'm sorry.”
* * *
The new year of 1995 arrived.
The decline of the peso continued into the new year.
— Brother, let's liquidate now. Dump everything.
“Okay! I'll wait.”
Han Kyung-kyung was excited by Kim Muhyeok's instructions.
A day after starting the liquidation:
“Muhyeok, liquidation complete!”
— What's the profit?
“It was originally $2.6 billion, but it dropped to about $1 billion by the end. So, $2.5 billion.”
— Good job. Take a break for a while, brother. I've assigned stock investments to the employees.
“Yeah, I don't have the energy to handle that.”
— That's right. Stocks are ultimately for show. You did well. Focus on futures and options. We'll start again soon. Get plenty of rest and take care of your health.
“Can I go to Korea to rest?”
— No. You absolutely cannot come to Korea for now.
With Kim Muhyeok's firm words, Han Kyung-kyung sighed and ended the call.
“Hahaha.”
Sitting in his chair, Han Kyung-kyung couldn't stop laughing.
He couldn't forget the changed expressions of those who had mocked him last summer.
'Did you know? Did you really predict this would happen more than six months ago?'
It was the question from the executive who replaced Tommy and Peter.
'I'm not a god. How could I have known? Everyone knew the peso was overvalued. I just bet on it and won.'
That's how Han Kyung-kyung answered.
He could leave Goldman Sachs headquarters, laughing at them after completing the liquidation.
“Damn, what is Muhyeok's true identity?”
Han Kyung-kyung muttered to himself, chuckling.
* * *
Sitting on the bed, I stared blankly at the ceiling.
Even knowing the future, the accuracy of the prediction filled me with exhilaration.
Yes, this is it. $2.5 billion.
At the current exchange rate, that's 20 trillion won.
If calculated at the 2000 won exchange rate during the IMF crisis, it would be 50 trillion won.
'Is Grandfather's wealth greater than mine?'
I couldn't help but chuckle.
This was just the beginning.
I had only passed one of the many opportunities to come.
In the battle between me, who knows the future, and the financial firms that merely predict it, I could never lose.
How could I lose in a gamble where I know the opponent's hand before the game even starts?
“Manager.”
Manager Ma, who had been waiting outside the door, entered.
“I'll be meeting the Myeongdong loan sharks one by one, so set up the appointments. How's Chunsuwan doing?”
“There's no movement.”
That man couldn't stay still forever.
Was sending him abroad a mistake?
“I can't scare him from Australia, can I? The pain Chunsuhan feels.”
Chunsuhan was almost mentally broken.
Unable to bear the fear, he attempted suicide but failed due to the people in the same room.
“Killing him is possible, but the same method is difficult.”
“Hmm... How about pushing him with a car?”
“He hardly leaves his house. Even if he does, it won't be easy. The chairman's eyes are on him.”
I quietly clicked my tongue.
Grandfather was the problem.
Grandfather knew Chunsuhan's condition but never mentioned it to me.
But killing him was a different matter.
At least while Grandfather was alive, I didn't want to cause more pain.
I knew the pain of losing family.
“Let's watch for now. He won't give up easily.”
“Understood.”
Just because he couldn't return to Korea didn't mean I would forgive him.
A few days later.
I visited the office of Noh Ik-seon, the loan shark.
His arrogance from our first meeting was gone.
“Now that Mr. Chunsu is gone, it feels more real, doesn't it?”
He didn't react to my condescension.
“Say something. Do you understand the reality now?”
“I apologize if I was rude.”
“If Mr. Noh wasn't needed in my plan, I would have crushed you like a hammer. There won't be another chance, so make the right decision.”
“Understood.”
I had to end the punishment and offer a carrot.
“You said you didn't want to go legitimate?”
“That's right.”
“Good. Start recovering the loans and don't issue new ones for now. Collect all the outstanding loans by next year.”
“Huh?”
Mr. Noh was surprised by the sudden order to stop loan sharking.
“The government's policy will change. You need to separate your funds before then. Since you don't want to go legitimate, you'll have to go deeper underground.”
“Understood. I'll follow your orders.”
“It might be hard to understand now, but you'll see the wisdom in my words over time. I'll leave the underground to you, Mr. Noh.”
“Thank you.”
Relief showed on Mr. Noh's face.
I tested him with a question.
“Has Mr. Chunsu contacted you?”
He answered immediately.
“He contacted me before leaving the country. He told me not to contact him and hung up.”
“This is the last time. If you try to do anything behind my back, you won't even be able to retire gracefully. Remember that.”
With that, I stood up.
“Are you close with the loan sharks in Myeongdong?”
“Huh? Yes, I'm close with most of the loan sharks in Myeongdong.”
“Keep those connections strong.”
“Understood.”
Leaving Mr. Noh's office and getting into the car, Manager Ma, who usually doesn't ask questions, finally turned around and asked.
“Is there a reason to keep someone you can't trust?”
I smiled slightly and looked at Manager Ma.
“The Myeongdong loan sharks have been in this business for decades. The connections and people they've built up are significant. It would take a long time to build someone like that from scratch. If they're willing to go underground, it's a good thing.”
“I see. Understood, boss.”
Manager Ma didn't say anything more. The car started moving slowly.
I leaned back in the seat and organized my thoughts.
The Loan Business Act will be enacted in 2002, but by then, Japanese funds will be ready and waiting. It will be the moment when loan sharking becomes subordinate to Japan.
But this time, I plan to lobby and bring that moment forward, taking the lead.
Even if loan sharking becomes more regulated, it won't disappear completely.
Since Mr. Noh said he would stay underground, I'll leave that to him and assign the other two loan sharks to run legal loan companies.
“We've arrived, boss.”
Manager Ma's words brought my thoughts to an end.
As I got out of the car, Shin Sung-il greeted me.
“Young master, you've arrived.”
Behind Shin Sung-il, his subordinates stood in a line, bowing.
For a moment, I had to bite my tongue to keep from reacting.
A man standing slightly bowed behind Shin Sung-il.