Chapter 32
Korea’s economy was so messy and complicated by so many factors, but the elementary and middle school textbooks recorded the cause of the IMF crisis solely as the citizens’ excessive expenditure. In fact, the biggest reason was that the domestic companies recklessly borrowed dollars. In detail, it was due to the current account deficit, the influence of the Japanese Yen, and the attack of international investors. However, they would hide those reasons.
I turned off the screen after watching the news about Daehoo President’s first trial.
It was as difficult to reach Jonathan as Jamie. I left an email with my availability to talk on the phone and asked him to call me as soon as possible.
He contacted me the next day, and I asked him to come over to Korea.
***
The God of Investments, Jonathan’s first visit to Korea.
「Jonathan, “Korea still acquires investment values in the long term, and I visited to confirm this.”」
Jonathan finally flew over to Korea yesterday, on the twenty-third. Wall Street called him the “God of Investments,” but it was awkward for us. He had become a world-class investor who quickly reached stardom after revealing his genius in investing in the Asian financial crisis from last year. It didn’t even take half a year for Jonathan to turn a four hundred thousand dollars investment into twenty-two billion.
◇ Jonathan, an investor who looks like a Hollywood actor, will be treated with state-level courtesy.
Those who greeted Jonathan, including the Senior Secretary of Economics Kim Cheol-Min and the Deputy Prime Minister of Economic Affairs Yuk Il, were worried about the weather because it would be impossible for Jonathan’s private plane to land if it snowed.
However, Jonathan exited the plane at the scheduled time and waved his hands in a nice black suit. There were approximately a hundred reporters gathered at Gimpo Airport to see him, and the large banners that announced his first visit to Korea in the middle of the airport made me realize the extent of Jonathan’s fame.
After a brief meeting, he left for the Blue House under the escort of the police.
◇ Jonathan’s Theory of Investment - “Invest in fear.”
During the meeting, a reporter asked, “How should I invest to hit the jackpot like you? Please tell me one tip,” and smiled. Then, Jonathan replied by mentioning his theory of investing in fear.
As the God of Investment who had broken world records and gained astronomical profit rates, his investment theory reassured domestic and overseas investors and Korean citizens, who had remained frozen in the overwhelming dread the IMF crisis had brought. This was because Jonathan clarified his vision of Korea and his purpose of the visit by stating, “Korea has enough potential to overcome the economic crisis and is the best investment an individual or organization could make in the long run.”
***
.
I headed to the pub that I rented for private use. The key was hidden in the flower vase as agreed with the owner. When I entered the pub, the warmth was filling up the space as I requested. There was a ‘closed’ sign at the entrance, but since it was broad daylight, the pub remained quiet for a long time. Then, the silence ended after a careful knock, and I saw a tall shadow wandering over the window.
Of course, Jonathan was alone. He checked to make sure he wasn’t followed before greeting me. He locked the door even though I didn’t ask him to.
“Is there no one here?” Jonathan asked, and I nodded.
“It feels like I’m an industrial spy,” he said while putting down his briefcase beside the table.
I shrugged, “Fame is not necessarily good all the time.”
“I know. I barely got out of it,” he replied.
He had prepared to come to Korea, but the situation in this country was more hectic than he expected. He had never imagined being treated as a state guest on arrival. Even though he was ranked as one of the top twenty richest men in the world by Forbes, in the end, he was just a CEO of a small-sized investment company in New York. In stark contrast, the other entries on the rank belonged to global financial institutions with hundreds of years of history or companies that possessed strategic branches worldwide.
Jonathan was only in his mid-twenties and happy with a small office. However, Korea treated this foreign young man like a world leader. Well, it was because he had astounding piles of cash despite his tiny office.
“Korea is that desperate now,” I said.
He replied, “But there is hope. The IMF decided to provide support funds, and you’re feeding in dollars.”
From a foreigner’s perspective, it was an appropriate assessment. However, Korean financiers would find this evaluation absolutely humiliating. It was comparable to the Japanese colonial period since Korea had to obey the IMF’s commands and stand helplessly as the country’s property was seized overseas.
Oh well, I didn’t call Jonathan to discuss this.
“Korea will overcome the IMF crisis quickly,” I said.
More quickly than Korea did in the past.
“I hope so, since Korea feels like my home, too. By the way, Sun, wasn’t that due to your effort?” He asked.
“Are you talking about Daehoo?” I questioned him back.
“Yes. I couldn’t believe what I heard. Korea decided to abandon Daehoo, right?” He asked again.
Although Jonathan had not lived in Korea for more than a few months, he was a Wall Street financier, and Daehoo was linked to many firms abroad. The connections were appearing as a fluctuation in the stock prices of those companies.
I responded, “No, Daehoo wasn’t in my plan. I also didn’t expect that Korea would abandon Daehoo either.”
“You, too? Then who did this?” He questioned.
I replied, “It was not my plan, but it’s proceeding under our control.”.
“Oh, Jeon-il Investments?” His eyes widened.
“They’ve been dealing with stuff by themselves and doing well. I’m proud,” I said.
Jonathan smiled, but for some reason, he seemed exhausted.
“Do you have enough money to buy them?” He asked.
“There are so many firms in Korea that can be purchased with one dollar,” I answered.
As long as one had the ability to handle debt.
“When that time comes, everyone will come rushing in. Have you talked to your government?” He questioned as he took a set.
I explained, “Negotiations are underway, but it will happen eventually. Only Jeon-il can accommodate their demands since those firms won’t accept a block buyout for the entire Daehoo infrastructure,” I explained.
He asked, “Are you going to take over the whole group?”
“Mmm…Yes, but I’ll restructure and reorganize some affiliates immediately afterwards,” I answered.
“Isn't that supposed to happen before the purchase? I don’t think I’m understanding you,” he said.
“You are on the right track. We won’t split up the group and sell it, and the management won’t change since we will keep those who are close to the current president,” I responded.
“...Why would you go that far?” He hesitated.
“Dollars won’t be the definitive power forever. As soon as Korea graduates from the IMF, the economy will quickly go back to its original state. We should prepare for the next step,” I said.
A light smile bloomed on Jonathan’s face.
“Sun, I think you really love your country. You say no, but patriotism isn’t a shame. I don’t know what you’re seeing in Daehoo, but I’m certain that it’s not money. Using that money elsewhere will bring in more profit, as your country’s economy is falling drastically right now,” he said.
“You’ll find out later about the money,” I responded.
“I think there’s something else besides patriotism. Is it like a riddle that I need to solve? You won’t tell me, right? Don’t…” he continued asking.
“Ten billion dollars,” I said.
“Huh?” He looked at me.
“We will bring in an additional ten billion dollars to the fifteen already planned. So, a total of twenty-five billion dollars comes into Korea when we buy out Daehoo,” I said.
Jonathan’s eyes opened wide, but not because I made such a huge decision without him. From the beginning, he stated that he wasn’t interested in offshore funds.
He started trembling, even though he had remained calm when I told him I would purchase the entire Daehoo. Jonathan grabbed for the ice water in the middle of winter. He emptied the glass in one sip and lowered his volume.
“Think carefully. We can end up being in prison for ten thousand years. You shouldn’t put too much faith in what we’ve done. You know that the tax bureau can do anything even if the procedures are tricky and difficult. It’s just a matter of time. If such a large sum moves…” he mumbled at the end of this sentence.
I smiled, “The Korean government is much more desperate than us.”
“What did you just say?” Jonathan now realized something.
“It’s an opportunity for us to make twenty-five billion dollars into something completely legitimate,” I explained.
“You’re leaving it to the government? How?” He questioned.
I responded, “It’s up to them. We just have to show the number.”
“Sun, how… how can you consider making a country do your money laundering?” He said in an exhausted tone.
***
When the Hong Kong shock struck the world during the second half of last year, we earned money. As a result, we had twenty-two billion dollars in Jonathan Investments and forty-three billion in tax havens worldwide.
It was natural that the whole world was paying attention to Jonathan and Jonathan Investments since we hit the grand jackpot and were considered as the God of Investments. Also, how many firms could actually have twenty-two billion as their reserves? The New York company’s net revenue was that much, and this amount could be only achieved by the world’s top companies in their prime even in the future.
However, Jonathan and unidentified John Doe had made a profit with a mere four hundred thousand dollars. Since the identity of John Doe was kept secret, it was natural for Jonathan to gain all the reputation and attention.
The forty-three billion dollars jumped in and out of tax havens, splitting, merging and splitting again countless times in the process. It was like hackers attempting to twist their IP a number of times to hide their identity. The total amount would have exceeded a trillion dollars that way.
It was reasonable that rumors about us began to spread in the global financial market. The rumor that said it was money from the Soviet Union during the Civil War was nonsense, but the rumor saying that it was the slush funds from the countries that were affected by the Asian financial crisis was more believable. Such rumors would be spreading even now.
Meanwhile, Jonathan didn’t know anything in detail, except for the funds in the New York company. He responded calmly after hearing my explanation like he was satisfied with his current situation.
“Your explanation is too surreal,” he said.
I replied, “If I don’t see the ledgers, I don’t know where the money went.”
“What if you lose them?” He questioned.
“Do you even need explanations? The money will be forever gone with the ledgers,” I answered.
“That’s scary,” Jonathan wrapped his whole body with his arms.
“That’s why we have to clean the money whenever we have a chance,” I said.
“You called me for that? I told you. I’m not interested in the funds other than the ones in the New York firm. I’m already overwhelmed with money. Come to think of that…” he was about to continue with that line of thought.
“I called you to solve your problems. Don’t you have my portfolio in there?” I pointed my chin at the briefcase Jonathan brought.
I said, “Please start the briefing.”
Jonathan had been waiting for me to tell him to start. As soon as I finished speaking, he placed his briefcase on the table.