Episode 92
“Lend… lend us the money?”
“Of course, it’s not completely free. But I’m not seeking any personal gain.”
I declared with a solemn expression,
“There are many people suffering all over Korea. I want to use this money to give them the same opportunity you’re getting.”
I continued, seeing their eyes light up with hope,
“I’ll cover the acquisition cost. All you have to do is repay the value of your allocated shares gradually. Aren’t you tired of being told to work with a sense of ownership, to think like an owner, when you’re not the owner?”
I raised my voice, seeing their excitement grow,
“You can’t have a sense of ownership if you’re not the owner! So become the owners! True labor-management harmony! If labor and management become one, there will be no conflict! I, Park Sol, will help you!”
I waved at the cheering employees. Maru, who was watching from backstage, clicked his tongue.
“He’s ruthless. He’s completely devouring a perfectly healthy company.”
Park Jong-bum also shook his head.
“I agree. He’ll bankrupt the company, undervalue its assets, claim compensation from the government for the losses, and then use the employees to create a positive image, making it difficult for the government to find another buyer. He’s leaving nothing behind.”
I approached them and said,
“What are you talking about?”
Maru chuckled dryly.
“You’re ruthless, hyung.”
I shrugged.
“It’s nothing.”
“Are you really going to give the employees shares?”
“Of course. I’m the kind-hearted Park Sol. About 70%? I’ll take the remaining 30% as my commission.”
I smirked.
“It’s a win-win situation. It was a healthy company, so it’s just a matter of time before it recovers. And I’ll be making a profit from the price difference.”
Maru clicked his tongue.
“You’re amazing.”
I looked at the employees, discussing excitedly, their faces filled with hope.
“I started this for the money, but don’t I seem like a righteous thief?”
“A righteous thief?”
“I’m robbing the government, the banks, and the company executives and giving it to the employees. And taking a small, tiny cut for myself.”
“A small cut? You’ll be collecting interest on the loan and making a fortune from other things.”
I wagged my finger.
“Don’t confuse me with Baek In-hwi. He’s the one exploiting the company with the bank. I’m just cleaning up the mess. It’s different. We know the truth, but others don’t. And we have to be careful to maintain the separation between Baek In-hwi and me. If the lines blur, all our efforts will be wasted.”
I massaged my sore throat from all the shouting.
“Anyway, be careful. What’s our next target?”
Park Jong-bum checked the documents.
“A wire molding factory in Hwaseong, Gyeonggi Province.”
“What’s the scale?”
“About 10 billion won in annual sales. It’s not a large company, but it’s a small but strong business that exports to Japan.”
I smiled.
“Let’s devour it as soon as it goes bankrupt. We’ll have the existing employees manage it, just like before. Let’s go on a rampage.”
As the unprecedentedly ruthless investor rampaged through the Korean financial market, the banks, already struggling with the economic crisis, were furious.
The banks that had been forced to prepay Hanho Savings Bank’s bills at the Minister’s request were desperate to control the situation but couldn’t find a way.
They couldn’t reach the mastermind behind the Chinese capital, and the new bank president was unreasonable.
As time went on, Hanho Savings Bank’s loan and bill collection rate surpassed all other banks.
“We’ve recovered nearly 2 trillion won so far. And recovering 300 billion won in high-risk debt wouldn’t have been possible without CEO Baek’s judgment. You’re truly amazing.”
Baek In-hwi chuckled at President Kim Min-soo’s praise.
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It’s all thanks to your hard work, Mr. President.
“I’m just following your orders. But there’s a problem…”
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What is it?
Kim Min-soo hesitated and then said,
“Our recovery rate is at an all-time high, but new loans have decreased significantly. To be precise, healthy companies won’t even look at us, and we’re only getting loan applications from low-quality, failing companies. Our surplus funds are piling up.”
Although depositors were important, generating profit through loans was even more crucial for a bank.
Banks operated by lending money to companies and collecting interest.
A decrease in new loans could lead to a decline in the bank’s overall profitability in the long run.
The 2 trillion won they had recovered belonged to the depositors.
Surplus funds that weren’t reinvested were like unsold inventory.
Of course, they could make risky investments, relying on the government’s loss compensation, but the financial state of companies desperate enough to borrow from Hanho Savings Bank, despite its reputation, was obvious.
Baek In-hwi chuckled.
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It’s to be expected. There’s always a backlash after such ruthless actions.
A bank that strictly enforced deadlines versus a bank that was flexible and considered the borrower’s circumstances.
With similar interest rates, companies would naturally choose the latter.
“Thanks to that, we’ve increased our liquidity and reduced uncertainty, but if this situation continues, it could severely disrupt the bank’s operations.”
Although he had been sidelined for almost six months, Kim Min-soo, a veteran banker with over 20 years of experience, understood the situation perfectly.
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Do you have any suggestions?
“If we continue operating like this, no company, unless it’s truly desperate, will borrow from us. The fact that we’ve recovered over 2 trillion won means we’ve lost the interest we could have earned with that money. Maybe it’s time to loosen the reins and start lending again…”
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…
Kim Min-soo, seeing Baek In-hwi’s silence, said nervously,
“Of course, you must have already considered this. It was just a suggestion. Haha.”
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Well, it’s an option.
Kim Min-soo, encouraged by his response, continued,
“We’ve already established our image as a ruthless enforcer, so we can negotiate with other banks and…”
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It’s not my preferred method.
Kim Min-soo froze, and Baek In-hwi’s low voice came from the phone.
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Mr. President.
“Y-yes, sir?”
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A mad dog is feared because it’s unpredictable. People are afraid because they don’t know when or where it will attack. It’s not the dog itself that’s scary, it’s the unpredictability. If we compromise and become like other banks, we’ll just be another failing secondary financial institution.
Baek In-hwi continued, as Kim Min-soo gulped nervously,
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We have to maintain our image as a mad dog. We have to be unpredictable, even if it means refusing seemingly safe bets. That’s our survival strategy. Do you understand?
“O-of course! Absolutely.”
Baek In-hwi laughed heartily.
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I’m glad you understand. I was starting to think you had lost your edge after becoming president. I apologize for doubting you.
“Of course not! I’m the man who spent six months meditating in the office. I was just offering a suggestion as a financial expert, nothing more.”
Kim Min-soo grinned.
“My teeth are still sharp. Just give me the order, and I’ll bite.”
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Good. That’s reassuring.
Kim Min-soo sighed in relief. The atmosphere seemed to have improved.
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Anyway, the problem is the decrease in new loans, right?
“That’s right.”
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I don’t know anything about finance. Deposits, loans, funds… I’m not interested in any of that. But I’m confident in my ability to understand the flow of money.
“Ah, yes.”
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Surplus funds. It’s the depositors’ money, so there’s no benefit for the bank if it just sits there. We have to circulate it and generate profit through interest. That’s the basic principle of banking, right? So other banks must be managing their funds very tightly.
“That’s right.”
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Then are there any other institutions with trillions of won in surplus funds like us?
Kim Min-soo thought for a moment.
“Not in this economic climate.”
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Then it’s decided. We have a large sum of money, and there aren’t many others who do. The rarer something is, the more valuable it becomes.
Kim Min-soo, pondering his words, muttered,
“That’s right. In Korea right now, only the government and we have trillions of won in surplus funds. And between a bank that just needs to be paid interest on time and a government agency that will interfere in exchange for funding, it’s obvious which one is more attractive…”
His eyes gleamed.
“We’re in a unique position.”
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Continue.
“Then we should target large corporations that need large sums of money. But that brings us back to square one. They won’t be happy about strict deadlines either. No, wait.”
He snapped his fingers.
“Short-term loans! We can satisfy both sides by acting as a short-term lender, a financial firefighter. Who would refuse a high-interest, short-term emergency loan? And the interest rates will be high since it’s short-term.”
Baek In-hwi said with a satisfied tone,
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I like that idea. And we don’t have to limit ourselves to healthy corporations. We have the perfect client, don’t we?
Kim Min-soo smiled, understanding his meaning.
“That’s right. The gift that keeps on giving.”
They had already received over 100 billion won in loss compensation from the government.
Technically, they had only been reimbursed for their losses, but in these times, even recovering the principal was a blessing.
Who else would be so generous?
“I’ll distribute all our surplus funds as short-term loans, at least hundreds of billions of won each. That way, we’ll be completely different from other banks. We’ll be the emergency fund provider, while they’ll be the long-term operating fund provider.”
Kim Min-soo said, slightly surprised,
“That’s no different from being a loan shark. It’s the same role played by the Myeongdong private loan market: high-interest, short-term emergency loans.”
Baek In-hwi chuckled.
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It’s called ‘investment’ when a bank does it, and ‘loan sharking’ when a private lender does it. But we’re better, aren’t we? We’re a legitimate bank, and our interest rates are lower than those in Myeongdong.