Chapter 309: The Stock Market Crash Gambit

For days, I ran myself ragged gathering information and piecing together rumors from Hong Kong and London, finally calling a meeting to discuss it all.

“Deutsche Bank holds a total of 2.3 trillion won in stocks and other securities,” I reported.

Given the current bull market, it wasn’t an unusually large amount. Several other institutions held similar, or even slightly larger, portfolios.

“The Hong Kong branch suspects Deutsche Bank is up to something,” another reported. “They’re definitely planning something, but we don’t have any details.”

So far, so normal.

A major investment bank holding 2.3 trillion won in Korean stocks. On its own, it was impossible to determine what kind of gamble they were planning.

“Alright, let’s put on our thinking caps. If we were Deutsche Bank, how could we make a killing with what we have?”

Silence filled the room as everyone exchanged cautious glances. I couldn’t exactly blame them. If you’ve bought a ton of stocks, the easiest way to make money is for the price to go up. If not, there weren’t many obvious options.

“Don’t be afraid to throw out wild ideas. Considering the aggressive investment style of Western firms, it could be something completely unexpected. These are the guys who turn weather forecasts into betting slips, aren’t they?”

I tried to encourage free thinking, but these were Soonyang men. They were experts at maximizing profits with minimal risk, the polar opposite of high-risk, high-reward plays.

High-risk, high-reward was for the owners, not the employees.

“If they were going for high returns with risk, futures trading or derivatives would be ideal, wouldn’t they? But the current situation doesn’t suggest that either,”

Stocks were speculation dressed up as investment. They had a strong gambling element, but they couldn’t generate the tens or hundreds of times returns that derivatives or futures could.

Suddenly, I wondered if we were focusing on the wrong cards entirely.

Deutsche Bank was definitely planning to make a killing in the Korean stock market. We needed to focus on that, but were we getting bogged down in analyzing the stocks they held?

“That’s right.”

“Huh?”

The executive who’d spoken looked confused, unsure what I meant.

“To make a big score all at once, it would be futures or derivatives. The stock market isn’t just about stocks, after all.”

A few people gasped softly, understanding dawning in their eyes.

“But Chief, our market doesn’t have products that would allow for such a big play. Deutsche Bank would be aiming for profits of at least hundreds of billions of won… The market only really shakes like that during events like the IMF crisis, 9/11, or the US financial collapse.”

That same executive tilted his head, his point accurate.

“They’d make big money on a crash, not a surge, right?”

“Yes?”

“In most gambles, the real winners bet on the downside. So, is there a possibility of our stock market crashing?”

Greece was teetering, but Korea’s exposure was minimal. A European crisis was looming, but it wasn’t shaping up to be a major typhoon.

On the contrary, the Korean stock market was steadily climbing. People were even hoping the KOSPI would break 2000 again next year.

“That’s it!”

Without thinking, I slammed my hand on the desk, making everyone jump.

I didn’t even care that all eyes were on me.

“This is urgent. I don’t care if it’s Deutsche Bank or anyone else. Futures, derivatives, whatever they’re betting on. Find out which institutions have bet on a stock market crash. Prioritize those with ridiculously high stakes. Now!”

A hazy picture of their plan was forming in my mind. The crucial part was *when* they would place their bets. Knowing the plan was useless without knowing the exact timing.

Betting happens in the blink of an eye.

* * *

November 11th.

What exactly was going to happen on that day? What event would make Deutsche Bank so confident in a stock market crash that they’d invest in futures?

I stared at the incoming reports, lost in thought.

November 2010… I didn’t recall anything significant. Ah, the major news right now was the upcoming G20 summit, scheduled for the 11th.

And then there was Pepero Day. That was about it.

The government was heavily promoting the rosy prospects of the G20.

They were claiming an impact 4.3 times greater than the 2002 World Cup, even going as far as to predict hundreds of trillions of won in ripple effects – absurd!

Even if it wasn’t hundreds of trillions, it was still good news. Leaders from major countries would be gathering to discuss various issues; surely they’d resolve at least one pressing matter. At the very least, stock prices shouldn’t fall. Unless there was a bomb threat at the summit or something…

I’d definitely remember a bomb threat.

I tapped my fingers on the desk, analyzing all the data again and again.

Then, in a flash, the picture Deutsche Bank was painting became clear.

“Those bastards… This is a scam!”

If Deutsche Bank dumped their 2 trillion won worth of stock right before the market closed during the simultaneous quotation period (single-price trading time), other brokerage firms’ programs would automatically trigger sell-offs, and the KOSPI would plummet. It would happen within minutes, leaving no time for anyone to react.

It was a classic institutional investor market manipulation scheme, and the stock Deutsche Bank held was just a tool for the scam.

Now that I knew when and how they planned to cheat, it was easy enough to avoid. Or, I could even stick my foot in the door and pocket hundreds of billions of won myself.

Or, I could stop their little game altogether.

I had three options, but I didn’t need long to decide.

Standing idly by while a major financial incident unfolded was no different than a fool missing an opportunity.

Making money by riding their scam wasn’t a bad option, but the profits from the KOSPI’s crash would be peanuts.

Naturally, my mind leaned towards the third option.

Stopping a historic financial fraud shouldn’t be motivated by a sense of justice. There needed to be a more compelling reward.

A chuckle escaped my lips.

The reward I wanted felt a little embarrassing.

* * *

The people gathered back in the conference room were speechless.

It was probably hard to believe that a foreign investment bank would attempt such a brazen act of fraud, and equally unbelievable.

“I never imagined a major investment bank like Deutsche Bank would resort to such a classic tactic,”

The executives’ bewildered expressions spoke volumes.

“Perhaps it just proves that the oldest and most obvious scams are the most effective,”

“What are your intentions?”

“Shall we try to stop their little game? We can prevent losses for Korean individuals and institutions, and watch Deutsche Bank squirm in frustration. Heh.”

The president of Soonyang Securities was the one who paled the most at my laughter.

Soonyang Securities would naturally have to be the one to thwart the fraud, and it had to be done in a split second.

Just minutes before the market closed, maybe even a minute or two. If they missed the timing by even a hair, they’d be pouring in a fortune just to watch Deutsche Bank laugh all the way to the bank.

I looked at his worried face and said,

“I’ll take the lead on this. To stop the crash, we’ll need to inject at least 2 trillion won. President, please check our available funds. I’ll get the rest from Miracle if needed.”

The president of Soonyang Securities’ face brightened at my promise. A few other executives’ eyes widened as they caught the implication of a single word.

Get.

Not ‘borrow,’ but ‘get’.

It was as good as confirming the rumors they’d heard, hence their changed expressions.

Their surprise soon turned to joy. The lifeline they were holding onto belonged to an unimaginably wealthy man. He would step in as their savior whenever the company faced a crisis – a huge weight off their shoulders.

How much money would you have to have to step in and save the Korean stock market from collapsing, even though it wasn’t really your problem?

“Alright, let’s wrap up this meeting. Keep a close eye on the movements of Deutsche Bank and Deutsche Securities in the coming days.”

Normally, there would be tension after a meeting like this, but the executives seemed almost excited. They had the air of spectators anticipating a wealthy man’s amusing game.

When I returned to my office after the meeting, a few people were waiting for me: the PI specialists and the public relations team.

Their eyes shone with anticipation. They had been constantly asking if I would reveal a little of my married life, but I’d refused, saying it was too cheesy.

They were probably checking to see if I’d changed my mind, but I couldn’t grant their wish.

“You all know what day the 11th is, given all the media coverage?”

“Yes, isn’t it the G20 summit?”

“Correct. So, the 12th will be filled with major media coverage of the G20, right?”

“Of course. Do you have something to do with it, Chief?”

“I have nothing to do with the G20, but I do have something to do with November 11th.”

I briefly explained Deutsche Bank’s stock manipulation scheme to them.

Like most people, they just stared back with blank expressions.

“So, Chief… to put it simply, Deutsche Bank, those guys, are going to manipulate the stock price, and you’re going to stop them? Is that right?”

“That’s right.”

They became more serious.

“If you stop the stock manipulation, wouldn’t that mean the manipulation didn’t happen? How can we prove it?”

They already understood what I wanted and were just confirming the necessary details.

“The trading records will be there. Proof won’t be a problem.”

“Excellent. Haha.”

They burst into bright smiles.

“But won’t it be difficult to get my story out there? The government is pushing the G20 so hard; you’ll have to push that aside to get my article published.”

“Chief, advertisers are the top priority for media outlets. You know that, right? No matter how much power the government has, they can’t beat the advertisers.”

Damn, there goes more money. How much advertising will I need to spread around?

“And the story is great. A righteous act of preventing a foreign capital scam, right?”

I should tell them something else to make their eyes sparkle even more.

“Deutsche Bank will be dumping over 2 trillion won, and I’ll be putting in the same amount to stop it. If we fail to stop this, the market cap will evaporate by about 30 trillion won, and tens of thousands of individual investors will be ruined. How about those numbers? Do they sound more concrete?”

I said it to make them brighter, but they just looked surprised. You’d think they’d be used to numbers like this by now.

“I guess numbers in the trillions still don’t feel real. They’re just numbers. You can’t touch them or use them. But they have a big impact on shocking people. Just like you are now.”

“Ah, sorry. As you said, it feels like a mirage. Well… that’s why it’s even more interesting.”

“With numbers like this, the media will swarm, right?”

“Of course. Those are drool-worthy numbers, for sure.”

Confirming their satisfied expressions, I turned to the public relations team.

“Casually mention to the media outlets that we’re doubling the entire advertising budget for Soonyang Financial Group and HW Group. They’ll flock to us like moths to a flame.”

The PR team’s faces lit up. They finally had a reason to throw their weight around with the media.

* * *