Chapter 107

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Translated by Heavenly Cat

Read it only at Novelbyu.com & Utoon.net

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South Korea’s National Pension is the third largest in the world.

In contrast, Singapore’s pension fund is the eighth largest.

But there’s a difference between Singapore and Korean pension funds.

That’s investment.

The Korean National Pension invests in the safest possible assets to generate returns, but Singapore’s pension fund doesn’t separately manage money.

However, they hand over surplus money from the pension fund to the government in the form of loans, and the government passes that money elsewhere.

Those are GIC and Temasek, the two pillars that play a core role in Singapore’s international financial hub.

“The funds these two manage are bigger than the Korean National Pension, right?”

“Yes. A bit bigger. If you combine the amounts these two handle, it’s $620 billion.”

Singapore government-owned sovereign wealth fund and public investment company.

The financial power these two manage is greater than Korea’s National Pension.

That’s why when Singapore faces a national financial crisis, they’re deployed first.

“The Singapore government has stopped the market as panic selling continues and started sorting out the shares GIC and Temasek hold.”

Raynold, who was receiving the report, nodded.

“They’re sorting out things scattered overseas?”

“Yes. The problem is these two institutions hold a lot of Singapore domestic company shares and real estate. They’ve started mass selling real estate side too, and that’s causing major damage not only to Singapore’s internal stock prices but also the real estate market.”

“Also, as the two institutions hastily threw the shares they were holding into the market, global markets are now shaking.”

Singapore’s sudden financial crisis wasn’t just that country’s problem.

First, there’s the issue of funds that had gone into Singapore.

Singapore is serving as an Asian financial hub shoulder to shoulder with Hong Kong.

In other words, putting money there was relatively safe.

But that trust was shattered.

Secondarily, the sovereign wealth fund and public investment institutions Singapore operates are shocking global markets by throwing out shares to hurriedly secure live ammunition.

The reason they’re throwing shares so hastily is because they need to normalize Singapore’s collapsing stock market as soon as possible.

If they don’t transfuse emergency funds here to stabilize the market, they’ll lose their status as an Asian financial hub.

If that happens, it’s the worst-case scenario for Singapore.

“So they’re desperately trying to put out the fire.”

“At this level, it should stabilize, right?”

“Yes. Since GIC and Temasek are stepping up, the market should stabilize soon.”

There are ways to stabilize the market.

Forcibly raising stock prices by injecting massive funds.

“The problem is Singapore took enormous damage from this incident. If they had to throw shares the two institutions were holding to secure live ammunition, that means it was that big a crisis.”

“Plus, the honor of being an Asian financial hub rivaling Hong Kong has also fallen. Above all, this must have hurt the Singapore government the most.”

The time Singapore gained the most international prestige was 2008.

When the international financial crisis called the subprime mortgage crisis hit, Singapore quickly utilized its institutions to stabilize the market and furthermore created stable market flow.

From then on, it was recognized as Asia’s representative financial hub.

But ironically, the reaction was slow to the financial crisis that burst from inside Singapore.

“They probably couldn’t predict it. Isn’t Singapore an internationally recognized Asian financial hub? They never imagined some crazy bastard would come wrapped in bombs targeting such a stable and large-scale market.”

Until now, numerous forces had come trying to shake the Singapore market.

But everyone returned empty-handed.

But this bomb was real.

“Even after this situation stabilizes, it’s awkward for the Singapore government to take action against Gwangwoon Securities. Because ultimately the EU and Singapore government provided the decisive cause for this financial crisis.”

If someone attacks, retaliating is human nature.

Isn’t there a saying, an eye for an eye, a tooth for a tooth?

But the Singapore government had nothing they could do.

Didn’t the EU and various other countries step up to forcibly dismantle Gwangwoon Shipping?

They paid the price for that.

“Actually, Singapore wasn’t the only one damaged. As the two institutions hastily cleared out holdings, other overseas markets were also hit.”

“So to summarize, Gwangwoon retaliated? Not just to Singapore but to various global markets?”

“Yes. All major markets were hit by this, so Gwangwoon properly vented their anger.”

Listening, it was so absurd that empty laughter came out naturally.

Venting anger because their company was forcibly dismantled by shaking up the entire global financial market.

“You could say it’s very meticulous. There was a reason Gwangwoon didn’t resist and quickly split the company following the EU’s instructions. It was a fight they couldn’t win anyway, so they tried to maximize profits from it.”

“Through and through, very Gwangwoon-like.”

“Yes. Singapore, which was just cheering from the sidelines, got beaten up. Above all, thanks to the Korean government cooperating, a lot of funds flowing from Hong Kong are entering Korea. As a result, Korea also bet on Gwangwoon and profited greatly.”

The Korean government quickly implemented financial easing policies before the Singapore incident and did their best to attract foreign capital.

“But can a government really cooperate that well with a corporation?”

“Isn’t Korea originally famous for very fast administrative work? Above all, the ruling party holds the most seats in history, and knowing that if they can’t control soaring real estate, public sentiment would greatly shake, they seemed to have put in full effort to help just this once.”

So the Korean government also did their best because it would greatly benefit them.

Their gamble seemed to have achieved great results.

“But not all capital flowing out of Hong Kong went to Korea.”

“Still, they probably got more than half, right?”

“Yes. Even that much can be called a great success.”

Using the damage from the forced shipping dismantlement to reverse-utilize it by collapsing the Singapore market and raking in enormous profits.

They also succeeded in simultaneously shaking the markets of countries that helped dismantle their company.

Venting anger and making money too.

No matter how many times you think about it, Gwangwoon was a crazy company.

But strangely, something felt off.

“Would Gwangwoon be satisfied with just half?”

“They must have made enormous profits from this short selling? They’re already clearing positions.”

“Right. But they didn’t completely destroy it. Backing off like this somehow bothers me.”

“Are you saying you think Gwangwoon has another shot prepared?”

But no matter how hard Raynold thought, he couldn’t gauge what additional strike Gwangwoon might be preparing.

“No matter how crazy Gwangwoon is, there shouldn’t be any way to do more from here.”

Right. That must be it.

Still, this strange feeling was hard to shake off.

“Other matters?”

“Due to this US-China trade war, the current BDI index is……”

While receiving matters, one peculiar report came in.

“What? Where?”

“They say patients with pneumonia of unknown cause are increasing around Wuhan, China. It’s been officially reported to the WHO.”

Raynold soon furrowed his brow.

“But why are you reporting that?”

“Because you directed us to report if there are any virus-related matters……”

He had given that order ever since Gwangwoon started buying up pharmaceutical companies in Britain.

“Pneumonia?”

While it’s true that pneumonia can cause inflammation due to viruses, couldn’t there be other causes?

“What I’m talking about isn’t something like pneumonia. I mean really serious viruses. No need to report trivial things like this.”

“Ah, yes. I apologize.”

Plus, Wuhan.

A place he doesn’t even know where it is.

Raynold had already forgotten that region’s name while listening to other reports.

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Living up to its reputation as Asia’s financial leader, Singapore fortunately succeeded in catching the market that had entered a plunge by utilizing the institutions they manage.

“On the surface it seems stabilized, but Singapore took very major damage. Honestly, I was surprised. That there was a way to deal that much damage to Singapore. Haha.”

“Yes. Thanks to that, isn’t the foreign capital coming into our country considerable? When global markets shook due to Singapore’s influence, only our KOSPI rose like crazy.”

Seeing Singapore shake, capital flowing out of Hong Kong flowed into Korea.

It was also significant that our government quickly stepped up to open through easing, and our KOSPI alone greatly benefited as the index rose thanks to that capital.

“Having achieved this much through the first easing, the government plans to proceed with additional deregulation. For example, raising the stock limit that increased to 40% through the first easing to 50%.”

The government showed this opening was sincere by raising the stock price increase limit, which was fixed at 30%, to 40%. And they’re trying to raise it to 50%.

But this was a double-edged sword.

There was a reason we set our domestic market’s limit at 30%.

It was to suppress various scheming forces that flock in.

But if they raise it to 50%, those forces will run even wilder.

Despite this, the reason they’re proceeding with this deregulation is because foreign capital capable of reverse-sightseeing those scheming forces is coming in.

Funds that only hunt such short sellers.

So-called activist funds.

If such capital comes in massively, short-selling forces will naturally decrease, and companies can grow through those funds.

Because ultimately those funds came in planning to grow companies and sell them for profit.

“So within the government, they’re evaluating this achievement very highly. Even in finance, it’s being called a miracle. We never imagined you would pressure Singapore’s market like that using the shipping business dismantlement.”

I only smiled faintly.

Such compliments were burdensome, and sitting in this seat was the same.

“You’re too kind. And I had no intention of deliberately collapsing Singapore’s market.”

“Ah, i-is that so?”

“Yes. More than that… what brings you here today?”

The head who leads the National Pension is the Chairman.

Chairman Choi Hyun-tae and Division Head Jo Sang-sik, who performs his direct role, came to our company.

“Actually, we came because there’s something we need to discuss deeply with the President.”

“If it’s about group-related matters, you should see the Chairman rather than me……”

“At first we also tried to meet with the Chairman, but he said it would be much faster to talk to the President about financial matters. And we also have ears that listen. We know well who the real power in Gwangwoon Group is.”

But even so, I didn’t expect the National Pension side, and at that, the Chairman who heads it, to personally come find me.

“Have you perhaps seen the announcement from our pension side recently?”

“Ah, yes. There’s a lot of talk about that now, isn’t there?”

There were statistics the National Pension side recently disclosed.

Shocking statistics that not much time remained until pension depletion.

“Yes. It must have been quite a shock to citizens. If we don’t reform the National Pension as is, by around 2057, the pension will be completely depleted.”

The National Pension depleting in 2057.

Unfortunately, this is reality.

Actually, the National Pension’s returns are decent.

There’s a reason people say only monsters exist in the National Pension in securities firms.

But despite that, the National Pension is destined to be depleted.

“Moreover, those statistics were made under the assumption of 4.5% annual returns. Meaning if returns drop further from here, pension depletion speeds up.”

It’s a place managing over 700 trillion won.

The third largest scale in the world.

Yet they can’t prevent depletion.

“We see now as the last golden time.”

“You must reform here or else?”

“Yes. But which administration would try to reform? Reform means everyone now has to pay double, and politicians most sensitive to votes would never allow that.”

This was the problem with the National Pension.

Everyone knows reform is needed.

But there’s no government to push it.

Because everyone knows if they do, votes will scatter away.

If you suddenly tell hard-working citizens to pay double National Pension fees starting today, how would they react?

“It’s the irony of democracy. That you can’t push something most needed for the country because of votes.”

It was an extremely heavy topic.

“We’ve prepared several measures. One of them is ISA. Since it’s hard for the state to take responsibility, it’s creating accounts for individuals to prepare for retirement on their own. With tax reductions too.”

ISA.

Officially called Individual Savings Account.

Though the government is denying it, the reason this ISA came out was because National Pension depletion became real, so they made a system for citizens to prepare for retirement on their own.

“But ultimately this is also shirking responsibility. If we can’t solve the fundamental problem, future generations will have to bear an enormous burden, and the resulting social chaos will be indescribable.”

The birth rate played a big part in the National Pension falling like this.

In other words, far fewer future generations than now and aging would lead to catastrophe.

“This is a report we produced. If you look through it roughly, you’ll quickly understand our current situation.”

I opened the report the Division Head handed over.

Then as if on cue, several intense visions flashed before my eyes.

“!?”

Generational conflict.

Political chaos.

Economic system paralysis.

Riots occurring throughout the city.

The once brilliant and beautiful Republic of Korea was burning black.

The scary part was this future wasn’t far off.

“While discussing this problem, a thought suddenly occurred to me. Isn’t Gwangwoon building achievements that will remain in financial history? If we could learn the data and investment techniques handled here at Gwangwoon Securities, couldn’t we solve this fundamental problem?”

“Our target return is 5% annually. But if we can raise this to just 8% with Gwangwoon’s help, we can delay the depletion point as much as possible. Without increasing citizens’ burden.”

5% to 8% annually.

To an investor’s eyes, it’s a very small return rate.

But what you must remember is the amount they’re handling is a whopping 700 trillion won.

In other words, maintaining 5% annually every year is close to a miracle.

The problem was even performing such miracles, the National Pension still depletes.

“What we want to learn is Gwangwoon Securities’ investment system. How you analyze the market, what algorithm extracts data, and how you make investment decisions, etc. We would be very grateful if you could share those techniques.”

But what if they didn’t stop at 5% annually and could raise returns even more?

Not 5%, but up to 10%.

No. What if they could achieve up to 20% annual returns?

“……”

I brought my hand to the report they gave once more.

“…!?”

Then this time, images completely opposite from before flashed past me.

A Republic of Korea shining far more brilliantly than before.

“Even simple advice is fine. We’ve come with desperate hearts, so please don’t look away.”

Unfortunately, there are no techniques I can teach them.

Because our securities firm doesn’t analyze data following complex algorithms like other companies.

Instead, we decide investments in a simpler but very certain way.

That was my intuition.

If I were to tell them something, it could only be advice based on that.

“Um, do you…”

When I finally opened the mouth I’d been keeping closed, the two people leaned forward.

“Do you also do shorts?”

“…Pardon?”

And soon both their faces were dyed with bewilderment.