Chapter 34: Private Meeting with Chairman Song Young-ju

As promised, I visited the home of Daehyeon’s Honorary Chairman Song Young-ju.

Guided by a secretary, I entered his study. I bowed my head, noticing Chairman Song’s demeanor was entirely different from when I came with my grandfather.

“Hello, Chairman.”

“Ah, sit down.”

“Yes.”

As I took a seat, Chairman Song also moved from his desk to sit at the head of the sofa.

Chairman Song stared at me searchingly for a while before speaking.

“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 my relationship with Chairman Cheon?”

“I’m not sure.”

Chairman Song nodded and began to tell the story of himself and my grandfather.

“Your grandfather is one of only two people I truly respect in Korea. Chairman Il-sung? Presidents? I don”t think such people are better than me.”

This man’s confidence is truly something else.

“But I respect your grandfather. No, I admire him. I first met him during the Korean War in Busan…”

For quite a long time after that, I had to listen to the story of my grandfather and Chairman Song’s first meeting up until now.

“There was a time when Cheon Tae-san, which had been on rise, faltered. Was it 1972? I believe that’s when the government imposed the private loan freeze.”

August 3, 1972.

Due to the private loan freeze crisis triggered by the President’s emergency decree, most people in the underground economy, including loan sharks, took a big hit.

An absurd policy where those who lent money could only get it back if they revealed the source of the funds.

It was only possible because it was a military regime.

“That’s how today’s conglomerates were born. They didn’t repay the money to loan sharks back then. But… do you know how your grandfather overcame that?”

“I don’t know.”

“Hahaha, isn’t it funny? He used it in reverse to increase his wealth even more. He used every method to get revenge on companies that didn’t repay him. Setting fire to factories, attacking family members on the street… In the end, he either got the money back or inflicted equivalent damage.”

“He must have been a fearsome person…”

“Oh yes, a fearsome man indeed.”

Chairman Song laughed heartily at my words.

After laughing for a while, he continued.

“At that time, there wasn’t a single businessman who wasn’t afraid of Chairman Cheon. Now, anyone can strut around calling themselves a chaebol, but back then it was nothing special. They ran businesses on debt, then used that as collateral to borrow more for business. The government cut that cycle… Too big to fail!”

Too big to fail.

It’s a term from Go, but often used in economics.

Many companies survived because of this logic. Using taxpayers’ money, that is.

Although during the IMF crisis, this term became meaningless as large companies went bankrupt for the first time, it’s still the most trusted phrase among chaebols.

“Forbes? That Yankee magazine or tabloid or whatever says I’m the richest man in Korea. Nonsense. Your grandfather is the richest man in Korea. Not in stocks and such, but in cash.”

Finally, Chairman Song’s monologue, which had lasted about an hour, came to an end.

Although I possessed knowledge of the future, Chairman Song’s vivid account of his experiences since childhood was very helpful.

“Thank you. I’ve learned a lot from your words.”

“I think I’ve talked too much… Well, do you have any questions or things you’re curious about?”

Chairman Song looked at me with a slightly curious expression.

“I was wondering what you think about the real-name financial system?”

“The real-name financial system…”

“Yes.”

“Hahaha, it should be done, it must be done, but not now. Our country still needs to develop. The moment it’s implemented, I think there will be great chaos. The President is probably worried about that too. Even those military regimes couldn’t easily do it.”

Chairman Song’s voice showed confidence.

“But looking at the current President’s actions, wouldn’t it be unsurprising if he did it at any time? Eradicating Hanahoe, disclosing high-ranking officials’ assets… He’s done things no one expected.”

“Hahaha, I don’t like that man, but he does work well when you look at such things. Still, not now.”

I nodded slowly as I looked at Chairman Song.

“I thought it would be announced this summer. Since your and my grandfather’s thoughts align, I won’t say more.”

“Hahaha, you still have more to learn.”

I had dropped the bait, and now it was time to receive proper advice.

“May I ask another question?”

“Go ahead.”

“What if, hypothetically speaking, Korea were to default? If national chaos were to ensue, would it be right to use that to make money?”

Chairman Song’s eyes widened, then he chuckled.

“Korea going bankrupt?”

“I said hypothetically.”

“Even hypothetically, that won’t happen. Korea going bankrupt… Are you talking about default?”

When I nodded, Chairman Song’s expression became amused as he spoke.

“Alright, let’s say such a thing happens. And there’s an opportunity to make money from it. It would be painful for others, but it could be an opportunity for oneself. Is that what you mean?”

“That’s right.”

Chairman Song nodded casually.

“Then of course you should seize the opportunity. If you don’t take it, someone else will make money from that opportunity. That’s economics. When someone loses, someone else makes money. It’s impossible for everyone to make money together.”

Although I had already made up my mind, the nagging feeling in the corner of my heart was somewhat eased by Chairman Song’s words.

“But default… I’ve never thought about that before. It’s quite novel.”

“Even if it’s not Korea, other countries often face such situations, right? So I was wondering what would happen if it occurred in our country.”

Chairman Song then gave me an appreciative look.

“Hahaha, that’s right. You should always think ahead like that. That’s how you make money. You really do take after your grandfather.”

“Thank you.”

“You seem smart, so you probably know this, but the economy is like a living organism. Don’t be too greedy. That monster might eat you up.”

“Yes, I’ll keep that in mind.”

With those words, my two-hour private meeting with Chairman Song came to an end.

After making an appointment to meet again next week, I left Chairman Song’s mansion.

As soon as I left Chairman Song’s house, I drove straight to Yeouido.

This small island of Yeouido was the Mecca of Korean finance. That wouldn’t change in 10 years, or even 20 years.

It was time for people to pour out of the securities firms as the market closed.

Among them, a man spotted my car and quickly approached. It was Han Gyeong-yeong.

He opened the passenger door, got in the car, and smiled.

“Mu-hyeok, it’s been a while.”

“Yeah, we’ve only been talking on the phone. It’s been a while since we met in person. You’re looking good, bro.”

“Hahaha, I’m just excited these days.”

Not only was the stock market booming, but this person’s intuition was truly exceptional.

I had given him 100 million won, thinking it wouldn’t matter if he lost it all, but he had already achieved a return of over 50%.

“Let’s go eat first. Where’s good? You’ve got this place locked down, right? Let’s see what your noble palate recommends.”

“Hehehe, don’t worry. Let’s go. I’ll give you directions from here.”

Soon after, we arrived at a Korean beef restaurant in Yeouido. The parking lot was already full of people who had come to eat after the market closed.

We managed to find an empty spot, parked, and entered the restaurant.

“Whew! It’s crowded.”

Fortunately, we were guided to a room without having to wait, thanks to the staff.

After ordering, we sat down and I asked about his recent situation.

“How is it? Manageable?”

“Can’t you see my face? I’m loving it. Yesterday, I noticed something odd about a stock. I followed it in, and it kept falling, but when I started buying, it stopped dropping. Then today, as soon as the market opened! Man, it skyrocketed!”

He was excitedly using some difficult terms, but I couldn’t understand.

“I gave you that money thinking you might lose it all just to gain some experience, but maybe I underestimated you.”

As I laughed while speaking, Han Gyeong-yeong, with his shoulders puffed up, spoke confidently.

“I didn’t know I had this ability either. You’re more amazing for spotting my potential. Thanks to you, I’ve gained confidence. Well, I jumped into a bear market from 1990 to 1992, so I failed… The amount was small too…”

There was quite a repetitive bear market from the early 1990s to early 1992.

In other words, Han Gyeong-yeong had bad timing when he first entered the stock market. In the end, he had to hide from loan sharks, so what more needs to be said?

Eventually, even the government couldn’t hold out and opened the way for foreign direct investment.

It was exactly 10%, but it kept increasing and all restrictions were lifted when the IMF crisis hit.

The meat started to cook properly. We chatted as we ate.

When the staff member who was grilling the meat left, I got to the main point.

“You know the stocks you’re holding now?”

“Yeah, I’ve got about 100 million invested, and about 50 million in the account. Why?”

He put down his chopsticks as he spoke.

“Starting next Monday, clear them all out. Make sure it’s done by the 12th at the latest, when the market closes.”

At my words, Han Gyeong-yeong also put down his chopsticks and gave me a puzzled look.

“What? The mood is good right now. It’s not time to pull out. It’s still a bull market. We should keep holding now.”

The current mood was that a few stocks like Il-sung Fire Insurance weree leading the market upward with strong performances.

It wasn’t unreasonable that he couldn’t understand my sudden order to sell everything in this atmosphere.

“Bro, remember what I said when we first agreed to work together? Even if you go wild on your own, when I say sell, you sell, and when I say buy, you buy. That’s the top priority. You haven’t forgotten, right?”

Feeling my voice become stern, Han Gyeong-yeong started to look nervous.

“I haven’t forgotten. It’s just a shame, that’s why I’m saying this. I can give advice to this extent, right?”

I nodded.

“That’s right, you can give advice. And I’m the one who should accept it, right?”

“Huh? Uh, that’s right.”

He answered, but his expression was far from agreeing.

I smiled leisurely.

“Alright, you have your thoughts too, so you’re opposing. Let’s make a bet.”

“A bet?”

“Yeah. If the stock market crashes after August 12th, I win. If stocks rise or stay the same, you win. How about it?”

“…”

I had no reason to make such a bet. But I needed to make him trust me.

That way, he would execute my words immediately without questioning anything I say.

Smiling, I provoked him.

“What? Scared? If you’re scared, just die!”

“Who? Me? Scared? Who’s scared! Fine, let’s bet. But what are we betting?”

“If you win, I’ll give you all the money in that account.”

Han Gyeong-yeong’s eyes widened in surprise.

“All of that?”

“Yeah. But if I win, from now on, you follow my words without question, even if you have doubts. How about it?”

“Wasn’t that the original agreement?”

“You’re not convinced right now, are you? If I win this time, you’ll unconditionally agree with what I say from now on, okay?”

“Call! I have nothing to lose anyway.”

His face showed confidence. I smiled back at him.

“Well, we’ll see if you have nothing to lose later. By the way, bro, you have U.S. citizenship, right?”

“Huh? Yeah, how did you know that?”

The second reason I chose this person: because he was a U.S. citizen.

That’s exactly why I selected him.