Episode 171
Chunha Group had withdrawn all its investments from the IT sector, and now it was Joongang Investment Corporation’s solo performance.
Kim Min-sik, appearing at Daehoo Securities, urged the traders, “Buy! Buy all the IT stocks you can!”
He was the de facto chairman of Joongang Financial Group, the newly formed financial conglomerate, acting on behalf of the elusive Baek In-hwi. The traders, tense, asked,
“How much should we buy?” There were many ways to acquire stocks, especially for a company with vast resources like Joongang Financial Group. They usually bought gradually, trying to minimize the market impact and acquire shares at the lowest possible price.
But Kim Min-sik was different.
“Just buy everything.”
“Sir?”
He looked at the bewildered traders. “Buy like crazy, like we’re all-in on IT. Until we run out of money. Understand?”
“Yes, sir.”
The traders, seasoned professionals, understood his intention immediately.
‘He’s pumping the market.’
Joongang Investment Corporation, which had already poured trillions of won into the IT sector, would benefit the most from rising stock prices.
Their eyes gleamed, and they started fiddling with their phones.
With Joongang Investment Corporation, the largest investor and a major shareholder in many IT companies, actively pumping the market, the stock prices were bound to soar.
They had to ride the wave.
“Get to work. If you need more funds, just use the depositors’ money from Hanho Savings Bank. Buy! Buy! Buy!”
No one batted an eye at his reckless words, words that no bank president should utter.
Because it was Kim Min-sik.
“Yes, sir!”
The traders scattered, placing buy orders and making phone calls.
“Hey, it’s me. Buy IT stocks now. What do you mean, the market is sideways? When have I ever given you bad information? Trust me, this is a sure thing. Hurry!”
“Mom, it’s me. Mortgage the house if you have to, just get me some money! I need to buy IT stocks now! It’s a guaranteed jackpot!”
The reignited IT boom swept through Korea.
Investors, who had been shaken by the previous decline, were once again buying IT stocks frantically.
“This is the bottom! The bottom!”
“We have to get in now! Even if it falls, it’ll eventually go higher than before!”
People were excited about the opportunity to climb the social ladder.
And the IT stocks, like a wild horse with no reins, soared.
A man at a typical Korean drinking gathering, one of countless such gatherings across the country, said with a triumphant laugh,
“See? I told you to invest.”
His friends frowned. “Are you talking about stocks again?”
“I’m trying to help you! Why are you still working at a dead-end job? I started with 10 million won, and now I have over 100 million won.”
He had invested in IT early on and had made a tenfold profit.
“It’s not too late. Look at me, I’m making millions every day without even working.”
One of his friends said with a dubious expression, “The stock market is a zero-sum game. How long do you think this will last?”
The man thumped his chest in exasperation. “You don’t understand. This shows how bright the future of the internet is. The internet will connect the entire world, like blood vessels in our bodies. Can you imagine how big these companies will become? Saseong? MG? They’ll be nothing. I guarantee you, this market will be ten times bigger than it is now.”
As he continued his passionate speech about the internet, one of his friends, who had gone to the restroom, muttered to himself, “Should I invest too…?” He had argued against his friend’s investment not out of conviction, but out of envy.
He was working hard for a measly 1 million won a month, while his friend was making that much in a day after quitting his job. It was natural for him to feel envious.
“I have some savings…”
His other friend shook his head. “It’s too risky. Are those IT companies’ valuations even real?”
“We said the same thing a month ago. And look at them now.” Even after the correction, the IT stocks were much higher than they had been a month ago. “We called them crazy a month ago, and now they’ve multiplied several times over. We would have made a fortune if we had invested back then. Imagine the regret if we don’t invest now and then have the same conversation a month from now. The growth rate is insane.”
“Ugh, I don’t know. Do what you want. I’m not investing. I’ll just pretend I don’t have the money.”
Their friend returned from the restroom. “What are you talking about?”
The friend who was considering investing asked, “Do you really think it’ll keep going up?”
“Of course, I’m an IT expert, I’ve made a tenfold profit. And you’re still doubting me? Just trust me and follow my lead. You should be saving for your wedding.”
“C-can you recommend a few stocks?”
He smiled. “Sure. You’ll be thanking me later. The nine leaders are already too big, the profit margin isn’t as high. Focus on the newly listed companies. Here are a few…”
And so, Korea descended into madness.
A month later, the IT stocks, after losing half their value, had rebounded and reached new heights.
“Kikikiki, the prices have gone up.” Kim Min-sik chuckled. “It’s four times higher than during the dip.”
Joongang Investment’s initial 1 trillion won had been spent long ago, but the influx of individual investors kept pushing the price up.
Their 4 trillion won investment was now worth 15 trillion won.
There were several examples of the IT boom’s power. Saebom Tech, one of the nine leaders, had increased 130-fold in just six months, setting a new record. Another leader had surpassed the market capitalization of Hyundai Motor Company.
A small company with annual sales of a few hundred billion won had surpassed a giant with trillions of won in sales. And the boom showed no signs of slowing down.
The IT sector, which had been worth a few trillion won, had grown to over 100 trillion won in just a few months, after I joined the fray.
Kim Min-sik’s phone rang as he was smiling at the stock charts.
“Hello?”
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Hello, Chairman Kim. How are you? The caller was the CEO of one of the nine leaders.
“I’m not the chairman.”
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Oh, my apologies.
“What can I do for you?”
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Just calling to check in with our major shareholder. Haha.
Joongang Investment Corporation, having focused on IT from the beginning, was a major shareholder in most of the leading IT companies.
They were just passive investors, not seeking management control, but the CEOs still called him frequently, pretending to be concerned. He sighed, used to such calls. “I’m doing well.”
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Our stock price is soaring, all thanks to your support.
“It’s nothing, I just made a good investment. So, what do you really want?”
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Just wanted to let you know that your investment is doing well. And by the way… he said in a cautious tone, – You’re not planning to sell your shares anytime soon, are you? The price is going to go up even further.
They were all worried about him dumping his shares, remembering how he had crashed Daehoo Group’s stock price. It was a frequent question.
He sighed. “Can you stop asking that? If you keep bothering me, I’ll sell everything.”
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Oh, I apologize, sir! I didn’t mean to offend you! I’m so sorry!
Everyone in the industry knew that Kim Min-sik meant what he said, even if it sounded like an empty threat.
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I’d like to invite you to dinner sometime.
“I’m busy.”
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Of course, you are, Chairman… I mean, CEO Kim. Hahaha.
“I’m not selling, so stop calling. Understood?”
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Yes, sir. Thank you.
He hung up the phone and shook his head. “Why are they so annoying? It’s our decision whether we sell or not.”
His phone rang again. Annoyed, he answered roughly,
“Who is it?! Hello?!”
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It’s Baek… Did you just yell at me?
Kim Min-sik’s face turned pale, and he jumped up from his chair. He had thought it was another IT CEO.
“C-CEO Baek! I-I’m so sorry! I thought you were someone else! I apologize!” He bowed repeatedly, even though Baek In-hwi wasn’t there in person.
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Hmm, is that so?
“Yes, sir! The IT CEOs have been calling non-stop…”
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I see. Anyway, how’s the IT market doing?
Relieved that he seemed to have let it slide, he said, “It’s still rising, sir! And we expect further growth!”
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Really?
“Yes, sir! We’re closely monitoring the market, and I guarantee there won’t be another crash like last time!”
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Hehehe, a guarantee? Anyway, it’s still going strong, right?
“Yes, sir!”
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Then it’s perfect. He chuckled darkly. – Let’s begin.
“Sir?”
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We have to strike when everything seems to be going well. Let’s begin the operation.
Kim Min-sik’s eyes gleamed. “According to the plan?”
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Yes, sell half, create a sideways trend, and then another crash.
The IT market wasn’t strong enough to withstand a massive sell-off by a major shareholder like Joongang Investment.
Even a stable and mature market would crash if 15% of the shares were suddenly dumped.
Baek In-hwi was ordering him to pull the trigger.
“The repercussions will be massive when this bubble bursts,” he warned.
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What do I care? Did I force them to invest?
“Sir, I’m talking about the government, not the investors. What do we care about the investors? The government will investigate us.”
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Ah, I see. You’re right, you wouldn’t be worried about the investors. The government’s power is limited. Don’t worry and proceed.
“Hehehe, yes, sir! I’ll begin immediately.”
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Keep me updated.
Kim Min-sik smiled after hanging up. “That’s my boss.”
A cold-blooded, ruthless man who only cared about his own people.
He felt a renewed sense of respect for Baek In-hwi, who was willing to inflict such pain and suffering without hesitation.
“That’s the kind of scale we need.”
And he, Kim Min-sik, was also a ruthless man, capable of executing such a plan without any qualms.
He was a man whose emotions had been blunted by the cruelty of the world, a man driven solely by his loyalty to Baek In-hwi and his love for his family.
He didn’t care about anyone else, not even his own employees.
He was, in some ways, even more ruthless than Baek In-hwi, who was motivated by profit, while Kim Min-sik seemed to revel in other people’s suffering.
And he hated Korea and its people, so the thought of his actions causing widespread pain and suffering only made him happier.
“This is exhilarating.”
As he was leaving the room to give instructions to his traders, he suddenly slapped his forehead. “Oh, right. I told that IT CEO I wasn’t selling…” He rolled his eyes and smiled. “Well, I also told him I would sell if he kept bothering me. So we’re even. Lululu, you’re all going down.”