Chapter 38

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Translated by Heavenly Cat

Read it only at Novelbyu.com & Utoon.net

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“..”

The seat he always dreamed of.

LK Group’s sole chairman’s office.

This brown leather chair.

So this was its soft texture.

He heard that due to Father’s fastidious personality, the chair gets replaced with a new one once a month, and perhaps because of that, a pleasant leather scent touched his nose.

Plus the ceiling was high, and the dragon painting drawn above looked like it was handing a wish-fulfilling jewel to Oh Jae-hyun.

“Chairman.”

A smile settled on the face of Chief Choi, now Chief Secretary instead of director.

Some might say going from director to chief secretary is a demotion, but a chairman’s chief secretary has different weight.

Essentially the chairman’s closest confidant, and all orders go through the chief secretary.

Also the person the chairman trusts most.

In other words, the person with strongest power after the chairman.

“As expected, that seat suits you, Chairman.”

“It was a hard-won seat, so I must guard it diligently.”

“Ah. And this is detailed information about Gwangwoon Securities you mentioned last time.”

Exactly the content he was most curious about.

The place Chairman Oh Jae-hyun is grinding his teeth most at is exactly Gwangwoon Securities.

They say know your enemy and win every battle.

“They made an earnings announcement this time?”

“Yes. Originally securities firms make earnings announcements quarterly.”

Earnings.

There were already rumors in financial circles that only Gwangwoon Securities hit the jackpot from this LK management rights battle.

They were even mocked that LK only did good deeds for others.

“This quarter’s earnings must be quite good. They made 900 billion from 300 billion.”

“Yes. But as you’ll see, that’s not all.”

“Hmm?”

Chairman Oh Jae-hyun soon doubted his own eyes.

“Wait. Capital tripled from base capital? Is this number even possible?”

Compared to last quarter, capital increased nearly 3 times.

They made trillions in a few months.

“An earnings surprise. Even though all financial-related sectors took big hits this quarter, Gwangwoon Securities alone made tons of money.”

Looking again, it seemed like manipulated figures.

Even with financial industry booming, you can’t triple capital in one quarter.

Yet how is such return rate possible in this quarter that was historically bad decline starting with China shock?

“So there’s one rumor circulating now.”

“What rumor?”

“Since China shock, some force of unknown identity kept making money, and during last Stumbagen Dieselgate incident too, that force entered and properly stripped the German market clean.”

Chairman Oh Jae-hyun had vaguely heard that rumor too.

But since even BaFin gave up tracking, it remained just a rumor.

“Fearlessly not just anywhere, but the one who stripped the German market was Gwangwoon?”

“Yes. Looking at current earnings alone, it’s sufficiently possible.”

When first hearing the company called Gwangwoon held 5% stakes, he didn’t guard much.

After all, they’re guys who don’t even make top 3 financial circles.

But the more he knew, the more mysterious.

Skilled at psychological warfare turning 300 billion into 900 billion, and if those rumors are really true, their ability to predict the future is tremendous.

‘But the one actually moving the company wasn’t Hwang Dae-woon.’

He realized after meeting Hwang Dae-woon that day.

That he was receiving instructions from someone.

In other words, someone is behind Gwangwoon Securities.

Someone shaking the board regardless of domestic or overseas!

“Chief Secretary. Our France business.”

“Ah, yes.”

“We need to move up the schedule as much as possible.”

“What? But we still need more improvements.”

“Can’t be helped. We need to quickly open a hotel using France as base point to advance into Europe for funds to come in. That’s how we escape from Gwangwoon Securities’ clutches.”

Gwangwoon Securities.

Being caught by collateral to those bastards is starting to make him anxious.

Since he doesn’t know what else they’ll do, he planned to quickly solve the debt problem and completely sever ties with them.

“Tell the business division. Move up the schedule as much as possible.”

After the quarterly earnings announcement went out.

Those most surprised by this earnings surprise were none other than Gwangwoon Securities employees.

“What? We made this much?”

“Impossible. Our whole department was in the negatives this time?”

“But where did all this money come from?”

An earnings surprise even Gwangwoon Securities employees don’t know about.

“Makes sense. Most profits came from this Prime-grade department.”

“Even before the Prime department was established, the department head made tons from the prop trading team too.”

“Rumors spread through word of mouth, and with this earnings surprise, everyone learned about Prime-grade department’s return rates, so HR is in chaos now. Everyone’s inquiring wanting to enter this department.”

But this isn’t a place just anyone can enter.

Only people selected by my intuition can enter.

“But our capital was 1 trillion won then suddenly dropped back to 700 billion, feels a bit disappointing.”

“What are you saying? 900 billion is currently tied up with LK Group.”

“It’s not like we can suddenly pull that out and use it. Though they pay interest faithfully.”

“Well, 900 billion is big money, but from a large corporation’s perspective, it’s not an enormously burdensome amount. Right now funding weakened due to the management rights battle and LK Tower construction, but starting with this European hotel advance, only favorable conditions are piling up for LK Group.”

Chairman Oh Jae-hyun is working hard making money.

There was indeed reason LK Orient hit the founding chairman’s back of the head and sided with Oh Jae-hyun.

With good business sense and skills, he was quickly normalizing the company.

Especially advancing hotel business into Europe with France opening right ahead.

Rumors say service evaluation is very good.

“That’s our country’s characteristic. Service and quality are a mess domestically, but strangely do well going overseas.”

“Caught fish, that’s it. Haven’t you experienced domestic discrimination once or twice?”

Large corporations always claim there’s no domestic discrimination, but doesn’t everyone already know the truth? Even games developed domestically miraculously have completely different service once going overseas.

“This European business will succeed big, right?”

“Europe’s one thing, but when LK Tower opens next year, it’ll be insane. Value already jumped to 7 trillion won.”

“Too bad. Didn’t know LK Group would normalize this fast. Thought they’d stagger a bit giving us opportunity. I heard the acceleration clause is included too.”

“Even so, it’s unrealistic talk. Would a large corporation just be a large corporation?”

If LK Group staggers, could we swallow LK Tower taken as collateral?

Actually it’s not easy.

Because taking collateral doesn’t mean you can unconditionally take it.

And this depends on contract terms.

Especially when securities firms take collateral and contract, there’s one clause they always include.

Exactly the acceleration clause.

Simply speaking, it’s like a concept of margin.

Not actually putting in margin, but if LK Group exceeds agreed debt ratio with us, or if credit rating falls, we can trigger the acceleration clause.

Then we can slam margin calls receiving additional collateral, or pressure them to repay debt immediately regardless of loan maturity.

Sometimes when companies stagger, massive promissory notes come in, exactly because of this acceleration clause.

This was a clause very favorable to securities firms.

If you don’t like it, just don’t take loans.

But Chairman Oh Jae-hyun signed this contract.

Because he was desperate.

“The urgent part is urgent, but he must’ve calculated he could definitely repay 900 billion. And since I don’t know exact contract conditions, I can’t speak carelessly either.”

Team members don’t know detailed contract conditions.

Of course, I know.

Though the contract is so complicatedly twisted it’s hard to understand, just needed to know only the important parts like a 3-line summary.

“As far as I know, the president put in payment in kind plus call option clauses.”

“Wow. Even call options? That’s too vicious.”

“Chairman Oh Jae-hyun must’ve been quite desperate. To make such a contract with none other than LK Tower.”

There were reasons team members were surprised.

Usually when taking collateral and lending, if the other side can’t repay money, the lending side can’t swallow the collateral.

By law, that collateral must unconditionally enter auction procedures.

But this too can be changed according to contract clauses.

By putting payment in kind and call option clauses, if the other side can’t repay money, according to those clauses, we get the right to buy the collateral first at the price stated in the call option.

“But words say call option, but is that possible? LK will desperately block at least that.”

“True. It’s a very favorable contract for us, but honestly it’s a matter of time before LK clears the debt. That’s why other shareholders also approved making such a contract possible.”

Meaning it can’t actually be eaten, just good-looking rice cake only for viewing.

Hyung-nim probably slammed in every possible clause since can’t eat it anyway.

“We just need to keep doing our work. If they repay quickly, we gain additional 700 billion capital, so good because we can make bigger investments. Even if they can’t repay immediately, we’re collecting quite high interest rates.”

But it was a bit disappointing that capital that was 1 trillion dropped back to 700 billion.

Though receivables from LK Group amount to 900 billion, still disappointing is disappointing.

“Shall we start the meeting?”

“Ah, yes. Small talk went long today. With America finally ending zero interest rates, dollar value is gradually rising. Conversely euro dropped a bit.”

America finally ended zero interest rates they’d stubbornly maintained.

Due to needing to hold up the collapsing economy from the 2008 subprime mortgage crisis, they maintained it until now.

But now with economy showing recovery, they decided to raise rates again.

“..”

I brought my pen to the US dollar and yen in the materials.

As expected, I feel something.

But one thing I learned using this ability is that feelings also have differences in intensity.

Like pain having stages, this was the same.

Of course, gauging that feeling’s intensity was only my sense.

‘I feel something from dollar and yen, but not a very strong feeling.’

But I know buying these will definitely be helpful.

“Ah. And Department Head. Here’s the Europe-related research materials you requested.”

I quickly examined those materials.

Last time when having a casual drink with hyung-nim, unpleasant feeling arose at the single word France.

So I was organizing and checking European issues.

“Right now Europe is a bit noisy because of England. Not yet a big problem, but economic difficulties are gradually increasing.”

England was having noise related to EU.

But what I’m focusing on now wasn’t England.

‘Though controversial due to Syria civil war participation, currently earning the best profits from tourism in Europe, and actively receiving overseas investment for more tourism income.’

Right now France was one of the best-doing countries in Europe.

Especially accepting overseas investment actively to grow tourism business was the success factor.

This was also why LK Group focuses on France.

With French government welcoming with open arms and helping policy-wise, LK side also has no reason not to enter.

“Ugh.”

But why?

Whenever examining France materials, my stomach churns.

The unpleasant feeling was exactly the same as last time.

“Department Head. Are you okay?”

“Ah, yes. Could you give me other materials too? Research covering various sectors.”

Don’t know why I feel this way, but eventually I stopped midway and closed the materials.

Should avoid looking at France for the time being.

“Similar to France, Europe’s pushing tourism as much as possible these days, and East Asian countries are also expanding tourism business, so many prospects say related sector stock prices will rise.”

But the feeling flowing to me is faint.

Should I just set aside everything else and only invest in dollar and yen?

While examining various sectors like that.

“.?”

My gaze fixed on one sector.

None other than defense industry.

“With France participating in Syria civil war and such. And Saudi declaring war on IS. Originally when war breaks out, defense industry stock prices rising is natural. But since the scale is small, doesn’t seem to be rising much. Plus no signs of escalation either.”

Overall the defense industry sector just kept repeating rising a bit or falling back a bit.

But right there, feeling intensity shot up sharply.

“..”

Just in case, I brought my pen to each listed stock one by one.

“!?”

Detailed intensity differed for each, but all maintained high intensity giving me feedback. For some, the pen trembled severely enough to pierce the paper.

‘Why is this so unsettling?’

It’s none other than defense industry.

Defense industry rising means what?

War.

No other reason.

I swallowed dry saliva.

Really isn’t some big war breaking out somewhere?

Prayed it’s not North-South war please.

Friday evening.

The most vibrant time when everyone enjoys eating out or cultural activities ahead of the weekend.

Paris, France was the same.

A romantic city, Europe’s best city visited by countless tourists.

People enjoying that beautiful night view, no one expected.

Kwaang—!

That Friday night that should be happy would become a battlefield stained with bombs and bullets.

“Re-report. Wh-what’s the damage situation?”

Chairman Oh Jae-hyun’s hands were trembling so much he couldn’t even drink one sip of water properly.

“Over 1,000 casualties. France already spread military throughout Paris, declared state of emergency and closed borders. So planes are all returning now.”

“Ah. This crazy.”

In none other than Paris, France, massive terrorism occurred.

IS, denouncing France participating in Syria civil war, turned Paris area into wasteland with suicide bomb terrorism and shooting sprees.

This was a worldwide shocking incident.

If weighing its seriousness, no different from America’s 9/11.

Because a top European advanced country like France suffered large-scale terrorism.

“IS officially stated this terrorism was their doing, so French president declared all-out war and requested troop dispatch to other EU countries. Other countries also declared they’ll actively help France.”

This year was truly terrible.

From early this year, terrorism occurred intermittently, and finally large-scale terrorism occurred even against an advanced country with thorough security.

IS made all of Europe their enemy through this incident.

Europe could no longer just watch idly.

Because the fear that if France suffered, they could suffer anytime was imprinted on them.

The problem is with France closing borders, fire fell on LK Group’s feet.

“Our hotel? Opening is tomorrow!”

“.That probably seems difficult. Since they closed borders, there’s no way to enter now, and no way to exit either.”

Suddenly felt dizzy.

Already LK Group funds dried up, so he somehow forcibly pushed France hotel business to circulate.

Just needed to open and secure liquidity, but incredibly, this happened the day before.

“This. Border closure. Will be resolved soon, right?”

“Seems like they won’t open until catching all terrorists currently in France. Since they need to investigate who assisted this terrorism and who brought weapons. Still they’ll try to open as soon as possible.”

But even opening borders won’t solve things.

In none other than Paris, France was attacked.

The anxiety that nowhere can escape terrorism threat leads to tourism industry collapse.

Already France including all Europe started not accepting any tourists for security reorganization.

Because there might be terrorists among them.

What does that mean?

That LK Group’s long-prepared dream of advancing into European tourism industry collapsed in an instant.

“..”

No one could open their mouths in the conference room.

Because there’s no solution.

How can they retract France closing borders due to terrorism?

“Chairman. The immediate future is the problem. We need to handle expenses going out within the company with funds coming from overseas, but with all Europe blocked, current domestic funds alone have limits.”

There Chairman Oh got irritated.

“Just block that with loans for now.”

“Then debt ratio increases. According to the contract Chairman hastily made with Gwangwoon Securities last time, if debt ratio rises above a certain level, it’s a margin call.”

“.!?”

He forgot.

Because he never dreamed such a situation would occur.

There his mind snapped awake.

“Th-then what happens?”

“Gwangwoon Securities can pressure repayment anytime, and if we can’t repay that amount, due to preemptive acquisition rights and call option clauses.”

The executive reporting soon squeezed his eyes shut.

“LK Tower passes directly to Gwangwoon Securities.”