Chapter 434: Tell Him I Want to Meet

A new year dawned.

The presidential transition committee launched while prosecutors began investigating Vice Chairman Seo Jae-hoon.

The Federation of Korean Industries and other business groups issued successive statements.

All supported the government’s investigation into the Ilseong Group.

Major media outlets followed suit flooding the news with negative articles about Ilseong Group—or more precisely about Seo Yong-geon and Seo Jae-hoon’s management capabilities.

Only the Joongseong Daily which had marriage ties to Ilseong Group published favorable articles but it was like throwing eggs at a rock.

The Ilseong Electronics shareholders meeting loomed just a week away.

I met with Han Gyeong-yeong in Pyeongchang-dong.

“The hedge funds finally threw in the towel.”

Their attacks had been fiercer than expected. Adding to that Japan had fallen into chaos due to conflicts between criminal organizations and an attempted coup.

But they had underestimated the Japanese people.

The coup was suppressed and Japanese citizens filled the void left by fleeing foreign capital.

They rushed to buy dollars with their yen savings from banks.

The people helped their government defend against the hedge funds’ attacks.

Of course the hedge funds didn’t give up easily. They poured in trillions of dollars to keep buying yen.

Most used leverage to buy more yen than their actual capital allowed.

At this point retreating meant bankruptcy so they fought desperately.

The Bank of Japan which had to stop the yen’s appreciation against foreign capital three times countered by buying dollars.

Additionally the Iraq and Afghanistan wars stabilized faster than expected.

While the yen stayed around its previous value the dollar kept rising day by day.

The hedge funds had no choice but to retreat completely defeated.

“Soon the Japanese government will flood the market with yen to buy U.S. treasury bonds. Start buying yen quietly from now.”

The Bank of Japan used the yen they’d been printing annually to buy U.S. treasury bonds.

Japan’s deflation was severe and injecting massive amounts of yen into the market would inevitably cause inflation.

This policy was only possible because deflation was so severe and the yen was treated as a quasi-reserve currency.

Even so once the central bank’s intervention ended the yen’s value gradually rose eventually reaching 102 yen per dollar.

Ultimately it was a failure.

This policy would later create Japan’s lost twenty then thirty years—a failed war.

Though it looked like victory now the consequences remained to be seen.

Still the hedge funds’ defeat was clear. This incident bankrupted at least thousands of hedge funds worldwide.

“You mean to accumulate yen?”

I nodded at Han Gyeong-yeong’s question.

“The yen will appear weak temporarily due to the money supply but it’ll eventually strengthen again. I’m expecting it to reach 100 yen.”

“It’s around 130 yen now so it’ll go higher than when hedge funds were attacking at 105?”

“High probability. The U.S. doesn’t like maintaining a weak yen. You’re preparing as we discussed before right?”

“But… they defended the exchange rate against trillion-dollar attacks. Will it really rise so suddenly?”

This was an inevitable trend. When governments intervene in any market then withdraw bubbles always burst.

“Brother the exchange rate was defended through abnormal methods. Once the Bank of Japan steps back it falls to market judgment. Though the dollar’s strong again with Iraq stabilizing investment in yen will increase short-term. Hedge funds collapsed because they sensed unnatural movement and the central bank stepped in. The Japanese government can’t easily intervene in natural yen appreciation.”

“Alright I understand. I’ll watch the Bank of Japan’s movements finish buying dollars and start buying yen when they move to purchase bonds.”

With Japan settled I asked about the most important matter.

“So that’s handled. Is Wall Street still rejecting our proposal?”

“Yeah these bastards don’t even want to negotiate. Seems like revenge. We just watched during this Japan situation.”

Ilseong Electronics had quite high foreign ownership.

Most of those shares were held on Wall Street.

“Hmm. This could get tricky.”

We’d secured 48% in friendly shares. Ilseong Life and Fire Insurance’s voting rights were restricted and small shareholders generally favored us.

Still for a secure victory we needed two-thirds approval from attending shareholders.

Getting Wall Street’s investment banks and securities firms’ shares would make it straightforward.

Han Gyeong-yeong had tried making contact for months but negotiations were rejected outright.

“Someone behind the scenes must be pulling strings.”

Wall Street’s beasts don’t pass up money-making opportunities over mere emotions.

But their masters might think differently.

“This complicates things. We can take control but doing as we please will be difficult. They’ll nitpick everything.”

“Probably so.”

It was our own strategy. Though Seo Jae-hoon held management rights we’d hindered their plans as major shareholders.

I didn’t want the same treatment. After brief consideration I spoke.

“Let’s change tactics focus on securing management rights only. Keep trying to make contact. If they won’t sell tell them to at least delegate their votes to us.”

He nodded but worry lined his face. Seems he’d faced considerable cold shoulders from Wall Street.

Then Han Gyeong-yeong remembered something.

“Ah right that person’s coming to Korea today. Goldman Sachs Vice President Patrick is visiting personally.”

“Vice President Patrick himself?”

Patrick held quite an important position at Goldman Sachs.

His rapid rise to vice president at a young age showed his exceptional abilities.

Such an important executive entering Korea? And timing it with Ilseong Electronics’ shareholders meeting?

This could only mean one thing.

“He’ll contact Seo Jae-hoon.”

“That’s my guess too. I’ll try reaching out but not sure if he’ll meet.”

“I’ll meet him myself. Tell him I want to meet. He won’t reject me too.”

Han Gyeong-yeong asked curiously at my offer.

“You’ll meet him personally?”

“Need to know what he’s plotting. Even if he sides with Seo Jae-hoon they can’t protect management rights. What do they gain by causing us trouble?”

“Got it. He can’t refuse if you ask. That would mean declaring war on us.”

“First I need to know everything about him.”

I pressed the bell beside me calling Manager Ma. He soon entered and I gave instructions.

“Manager please collect information on Goldman Sachs’ Vice President Patrick. Contact U.S. Black Bear and get it by tomorrow morning latest.”

“Understood. I’ll relay that.”

Black Bear headquarters’ intelligence team should need just a day. After Manager Ma left Han Gyeong-yeong spoke worriedly.

“But will it be okay? Even I’ve never met Vice President Patrick.”

“No? We can meet him now then. Let’s go for drinks. Call Eva too.”

I spoke lightly trying to ease his concern.

Han Gyeong-yeong’s tense face relaxed as he jumped up.

“Drinks sound great! Our boss Kim Mu-hyeok is the best!”

Such a flatterer. I shook my head at his exaggerated reaction.

But a smile had already crept onto my face.

The next morning.

I woke later than usual after last night’s drinking.

I went straight to the shower finished with cold water and headed downstairs.

“Ma’am please get me a cold iced coffee.”

“Yes sir.”

I took the coffee she made into my study.

Walking to the window I drew back the curtains gazing down at the sunlit garden.

Watching the well-maintained garden for a while cleared my head.

After collecting my thoughts I sat at my desk.

A folder lay on the desk. I checked it while turning on my computer.

Inside were photos and a thick stack of papers.

I skimmed the photos then picked up the papers.

Everything about Goldman Sachs’ Patrick was recorded there.

Reading through I found something interesting.

Patrick born to poor immigrants had a sponsor.

Though unknown this person had supported him since childhood.

After graduating Harvard Patrick joined Goldman Sachs immediately rising through ranks at unprecedented speed.

He reached vice president at a young age.

“Someone’s behind him. This promotion and performance isn’t normal. Even I’d say it’s excessive unless he’s living a second life like me.”

I took a sip of coffee then continued reading.

I reached the section detailing his work at Goldman Sachs.

I stopped at his most recent activities.

“Look at this? He led operations destabilizing Argentina and Brazil.”

Argentina declared moratorium after foreign capital fled due to frequent protests.

The peso devalued and the nation faced bankruptcy.

The U.S. government neither prevented nor helped Argentina’s bankruptcy having opposed their policies.

Then suddenly their neighbor Brazil grew turbulent.

A socialist government seemed likely to take power.

Patrick representing Wall Street began attacking Brazil.

Though George Soros appeared to lead Patrick had united Wall Street’s forces behind the scenes.

“For Brazil’s economy Jose Serra must win. If Lula wins Brazil will go bankrupt.”

Soros publicly supported a specific candidate.

Shortly after the real plummeted and bond yields skyrocketed.

As foreign capital fled Brazil also faced bankruptcy.

The U.S. government seized this chance promising IMF bailout.

But only if the president-elect accepted IMF conditions.

This felt familiar. Just like Korea’s financial crisis.

“This is interesting.”

Eventually President Lula visited the U.S. while Korea focused on its presidential election.

Though a former worker Lula promised President Bush to protect free trade and market economy.

The Bush administration was satisfied implementing Brazil’s IMF bailout.

Brazil surrendered while Wall Street’s banks and hedge funds profited.

“Always such dirty bastards.”

Helping Brazil but not Argentina sent a message.

Don’t oppose America. If you do we’ll abandon you.

Wall Street earned from this dirty scheme while the U.S. government secured Brazil’s surrender.

I set down the folder lost in thought.

“Patrick siding with Seo Jae-hoon won’t change this management fight. Is it just to harass me? Or does he have other motives?”

I’d have to meet him to know.

Organizing my thoughts I started searching news.

Political news focused on the presidential transition; economic news mainly covered Ilseong Group.

I read articles one by one. Soon someone knocked.

“Come in.”

Han Gyeong-yeong and Manager Ma entered.

“Sobered up?”

Han Gyeong-yeong looked haggard from last night’s drinking.

“Ugh… I’m dying. Hey does Eva have alcohol instead of blood? How does she drink so well? You drank too but look fine?”

“I’m fine really. But age catches up with everyone brother.”

I teased sitting on the sofa.

Han Gyeong-yeong weakly collapsed onto the sofa threatening with his fist.

Manager Ma set honey water before him then spoke.

“Patrick has entered Ilseong Group headquarters.”

I shrugged having expected this.

“As predicted.”

We knew they’d meet. The important part was what deal Patrick would make with Seo Jae-hoon.

“Find out if it’s private or if others are present.”

“Yes boss.”

After Manager Ma left I told Han Gyeong-yeong.

“Contact him directly when he leaves headquarters. Set up a meeting even for tonight.”

I need to meet this Patrick.