Chapter 310: 1997: The G20 Seoul Summit and a Market Defense

The 1997 Asian financial crisis sent tremors through Asia and the world, creating a period of intense instability. This highlighted the need for a global system to manage international crises related to finance and foreign exchange.

In 1999, the G7 finance ministers attending the International Monetary Fund Annual Meetings agreed that addressing global economic stability required cooperation beyond just developed nations.

Consequently, in December of the same year, the first G20 meeting was held in Berlin, Germany, with key emerging economies participating. However, it was primarily a working-level meeting attended by finance ministers and central bank governors, not heads of state.

But crises never truly end.

The 2008 global financial crisis elevated the G20 to a summit of heads of state, marked by the adoption of the term ‘SUMMIT’.

And today, the SEOUL SUMMIT 2010 has engulfed Korea. Every news outlet—from terrestrial broadcasting and radio to the internet and print newspapers—leads with these English words.

Amidst this excited atmosphere, no one would expect a stock market crash. Those German bastards have impeccable timing.

Away from the media frenzy, Soonyang Securities employees were on high alert, reacting to real-time stock fluctuations with unusual sensitivity.

They knew the market manipulation would start just before closing, and trillions of won could vanish in an instant, demanding constant vigilance.

Preparations were complete. Trading programs were enhanced to withstand Deutsche Bank’s anticipated sell-off. All that remained was to watch.

As expected, the market proceeded normally until just before closing. Stock prices fluctuated, creating a typical chart.

Thirty minutes before closing, news broke of programmed selling of spot stocks linked to futures. The graph began a slow descent.

This is just the beginning.

To land a significant blow, they had to simply watch the gradual decline. A premature rally might alert Deutsche Bank, causing them to halt their actions.

A message went out to all employees: stay calm and focus on the final three minutes.

Several sharp-eyed and intuitive employees quickly noticed that a few domestic securities firms had begun program selling.

Anticipating this, they had amassed sufficient capital. At least three trillion won would need to be spent on purchases today.

With three minutes left until closing, the real action began.

Massive put option purchases and call option liquidations by Deutsche Securities triggered a rapid surge in programmed selling.

Their buying program kicked into overdrive.

Now it was a black box. The outcome would be revealed at 2:59:55 PM, when the simultaneous closing auction ended.

Three minutes felt like three hours.

At 2:50 PM, just before the simultaneous closing auction, the KOSPI was down three points. Confidence remained that their investment was enough, but anxiety lingered.

At 3:00 PM, when the closing price appeared, success was evident without even looking at the monitor.

A roar of elation erupted from Soonyang Financial’s headquarters.

The KOSPI, which had been wavering around 1,963 points, closed at 1,965, while the KOSPI 200 index firmly held at 254 points.

In a mere three minutes, Soonyang Securities had prevented the disappearance of approximately 30 trillion won from the domestic stock market capitalization.

Currently, only two entities are aware of this feat.

The jubilant Soonyang Securities and the dumbfounded Deutsche Bank and Deutsche Securities staring at their monitors.

Executives flooded in, their faces beaming with joy.

“Great work, Chief of staff.”

“You all did a great job.”

Praising each other’s efforts wasn’t in his nature. He kept it brief and issued instructions.

“Give the employees bonuses and let them have a company dinner. But make sure today’s events are quickly compiled into a report for the Financial Supervisory Service. Accurately calculate the amount the German guys poured in, and the potential losses if we hadn’t intervened.”

The executives, aware that the work wasn’t over, flushed slightly and retreated.

He hoped for a moment to breathe, but that was a luxury he couldn’t afford.

Another group of people swarmed in.

“Chief of staff, we heard! They say you brilliantly defended the market? Haha.”

PR specialists and the public relations team appeared first, followed by several reporters with cameras, bowing their heads.

Going home on time was out of the question.

＊＊＊

“Oh my! Is our dear husband the savior of Korean finance?”

He opened his eyes to his wife, already dressed for work, playfully nudging his cheek with a newspaper.

“The article is out?”

“It’s everywhere. You’re trending number one in real-time internet searches. The President must be fuming. He put so much effort into boosting his approval rating with the G20, and you’ve snatched all the glory.”

Moreover, the leaders of the world’s top 20 economies had gathered. They would undoubtedly see the articles today, and their interpreters would gladly detail his achievement.

Foreign media was also intensely focused on Seoul. They wouldn’t ignore his story.

His name might be mentioned during the heads of state’s tea time. This was a much greater benefit than doubling the advertising budget.

“Taking the glory is true, but I didn’t get it for free. Yesterday was like a storm. And the article is accurate. I did do a pretty damn good job.”

“Reporters write flattering articles without getting paid? Seriously?”

“I doubled the advertising budget. But it’s true I prevented a stock market crash.”

“I believe the article. It’s so overtly praising that I was wondering how much bribe money they received.”

His wife tossed the newspaper aside and began to remove her suit jacket.

“What’s this? Does the newspaper article make your husband look sexy?”

Seo Min-young scoffed at his greasy remark.

“Sorry, but I don’t have time for that.”

“Then why are you suddenly undressing? It’s intimidating.”

She pointed to the newspaper.

“With all this hype, do you think the reporters will just sit still? They’ll be camped out in front of the courthouse. If I get photographed, it’ll be permanently etched. I might as well look good.”

She was increasingly concerned with her image. Not that he minded.

Rummaging through her closet filled with mostly monochrome clothes—typical for a civil servant—she changed into something she’d recently bought.

“Want to stop by a salon? I can call ahead.”

“Am I a celebrity? I don’t have time. I’m fine.”

He saw her rush out, then spread the newspaper wide.

Every financial newspaper had his story on the front page. The major dailies, likely unable to completely ignore the government, featured the President on the front page but dedicated their business sections to his story.

Being featured as prominently as the G20 justified the advertising spend.

He felt his face flush as he folded the newspaper.

His wife was right.

The praise was almost embarrassing. The accompanying photo looked heavily edited, like something from a magazine.

Today was going to be busy. Calls would be coming in from everywhere, and there would be a flood of requests for follow-up stories and interviews for secondary media.

He, too, became conscious of his appearance and started looking through his closet.

＊＊＊

The first person waiting for him at the office was none other than Jin Kyung-jun.

“Saw the paper? Have a seat. Want some coffee?”

“You’re a sensation. An overnight star, and one the world leaders are watching.”

“It’s nothing much. I prevented a crash with about three trillion won, and all the invested capital is now in stocks, so there’s no actual loss. I’m checking the stocks purchased by the program now. I’ll keep the good ones and gradually release the rest into the market.”

“This level is easy for you?”

“Yeah. Of course, you probably think this is irrelevant to taking over the group. But one thing should be clear: if I wanted to, I could shake Soonyang Group’s stock price to its core.”

Jin Kyung-jun sighed briefly.

“Enough with the threats. I have a different reason for being here.”

Jin Kyung-jun pulled out a business card.

“Starting today, I’m the head of Soonyang Electronics’ strategy team. The official announcement will be out this afternoon.”

“Strategy team leader? What’s that? Sounds like a department head position?”

“No, it’s a director position. It’s a role created for me to be right beside Young-joon Hyung, acting as his brain.”

He understood the reason for the dark expression.

Though called a ‘brain,’ he could easily end up doing all the grunt work.

Whether someone truly acts as a brain or just an aide depends entirely on the will of the person they serve. If they’re tasked with errands and bothersome tasks, they become a mere errand boy. If their opinion is sought on important matters, they become a brain.

Jin Young-jun… well, he leaned towards the former.

Looking back at his past actions, that guy would never elevate a younger brother who might become a threat in the future.

Frankly, whether Jin Kyung-jun gains recognition at Electronics or not is irrelevant. As long as he plays his role as the second son when I need him, I won’t ask for more.

“Hyung-nim, here’s something you might want to keep in mind while you’re working.”

“What is it?”

“Chief of Staff Baek Jun-hyuk.”

“Huh? Why Chief Secretary Baek?”

Jin Kyung-jun’s brow furrowed at the unexpected name.

“Look at Chairman Lee Hak-jae. Whose side do you think he’s on right now?”

“Ah…!”

A low exclamation escaped his lips.

“The person who knows the inner workings of the Electronics and Logistics affiliates best isn’t even our uncle, but Chief Secretary Baek. Knowing a landlord’s land and tenant farmers inside and out isn’t the landlord’s strength, but the farm manager’s.”

Jin Kyung-jun learning from Chief of Staff Baek Jun-hyuk wasn’t his concern either.

When Vice-chairman Jin Young-gi steps down and Jin Young-jun takes the forefront, his personality suggests he’ll definitely get rid of Chief Secretary Baek.

That’s when Jin Kyung-jun needs to be the link between him and Chief Secretary Baek.

“You want to take over Electronics, right? No matter what, Soonyang Electronics is Soonyang Group’s flagship. It’s full of cunning, seasoned executives. You’ll desperately need Chief Secretary Baek’s help to control those guys.”

Jin Kyung-jun started blinking.

“HW Group acquired Soonyang Construction and Heavy Industries without a single hiccup. That was possible because Chairman Lee Hak-jae knew those companies like the back of his hand.”

Seeing his expression, he clapped lightly.

“Alright, that’s my input. Anyway, do your best. Your clear goal isn’t far off.”

Jin Kyung-jun nodded and stood up. He asked him with a slight smile.

“By the way, did you get a definitive answer from our uncle?”

“About what?”

“The inheritance. Aside from the group shares, Hyung-nim should get everything else.”

Jin Kyung-jun’s lips curled up.

“Don’t even think about looking into my pockets. My alliance with you is all there is. I don’t think I ever said I’d show you everything.”

He waved dismissively as his younger brother turned away sharply.

His older brother wouldn’t simply watch his younger brother take all of their father’s wealth… he needed to remember that.

It wouldn’t be bad for him if Jin Young-jun took most of their uncle’s assets and his younger brother was left empty-handed. Once he realizes he has nothing, he’ll rely solely on him.

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