Chapter 139
Chapter 139
Everyone knows that I have a lot of money and I am friends with Ronald.
For this reason, the investigation was conducted in a comfortable atmosphere. There was no swearing or arrogant attitude like when he was being investigated before.
After five hours of investigation, I checked and stamped the report.
“If further investigation is necessary, we will contact you again.”
“Yes. work hard.”
As I was leaving the examination room, an investigator followed me.
“excuse me! Mr. Jinhoo Kang!”
I stopped walking.
“Are there still things left to be investigated?”
“Well, it’s not… … .”
He hesitated for a moment and then opened his mouth.
“Not long ago, I put all the money I sold my house into in Hoseong Savings Bank.”
But because of me, the business was suspended and I was in a situation where I couldn’t withdraw money?
At first I thought I was talking nonsense and I got angry, but I consistently pointed out the insolvency of Hosung Savings Bank throughout the investigation.
He had a very anxious expression unlike before, probably because he had been listening from the other side.
“How much?”
“It’s 170 million won.”
“… … .”
This is a lot of money for those who have enough. From the point of view of civil servants, it will not matter.
It’s probably the fortune I’ve accumulated throughout my life without eating or wearing anything.
“How much money do you think you can get back if something goes wrong?”
He looked at my expression with trembling eyes. In those eyes, there was a mixture of the desire to tell him it was okay and the desire to know the truth.
How would you like to tell me?
“As you know, even in the worst case scenario, you can get 50 million won back.”
“Well, how about 120 million?”
“You should see half flying.”
His expression turned white at my words.
I don’t know, but he said this in a hopeful way. There was a high probability that not even half, let alone half, could be saved.
“No, that’s absurd. What kind of money is that… … .”
I looked at it and sighed inwardly.
“Pray that I am wrong.”
* * *
[Why do I have to apologize?](Strategy) Kang Jin-hoo, who was summoned as a suspect for obstruction of business by spreading false facts, stared at a reporter from the Cho Joong Ilbo who asked if he had any intention of apologizing to the victims, and asked, “Why do I have to apologize?” and walked into the prosecutor’s office.
In the investigation that lasted for five hours, Kang Jin-hoo vehemently denied the allegations, but did not provide any evidence to prove it.
(syncopation)
According to the interim announcement by the prosecution, Jin-hoo Kang confessed to the continued interrogation that he expected a bank run with his remarks. Judging from this point of view, it is doubtful that her remarks have a different purpose.
Prosecutors said they would summon Jin-hoo Kang again to investigate the Hoseong Savings Bank as soon as the audit was completed.
?Taekyu handed me the newspaper.
“The picture came out well. Scrap this and keep it as a souvenir.”
On the front page of the Chojung Ilbo, there was a picture that looked like I was staring at a reporter. And the headline is ‘Why do I have to apologize?’
I said absurdly.
“These guinea pigs are real.”
“You are patient. How much pain must they have to create?”
“… … .”
Since when did alternative articles become the realm of creativity?
In this way, you will be able to write it in a way that suits your taste.
I was just staring, but what angle did you take the picture from? In addition, the slogan, “I feel sorry for the victims, and the management and supervisory authorities should apologize” was cut off as it is.
The jajangmyeon and sweet and sour pork that Taegyu ordered arrived. I called Sangyeop senior to the CEO’s office, and we all sat around and ate jajangmyeon after a long time.
“Turn on the TV.”
As soon as I pressed the remote control, a picture of me appeared on the screen.
“Are you sorry for the victims? Don’t just go in and say a word of apology!”
“Why do I have to apologize?”
?Taek-gyu admired the jjajangmyeon instead of eating it.
“Hey! No matter how many times you watch it, it’s a famous scene!”
Sangyeop senior nodded her head.
“Anyway, there were memes floating around the internet.”
“It also appeared in real-time search terms.”
“… … .”
I’m going to be very mad
I turned the channel. It was the same with articles about the suspension of Hoseong Savings Bank in other channels.
The president did not mention it after the cabinet meeting, but the political circles increased the intensity of criticism day after day.
The members of the Korean House of Representatives took turns criticizing me as if they were rolling paper.
In particular, Party Representative Choi Myung-hwan turned his face to various news and shouted that Hoseong Savings Bank is safe and that the country should not be shaken by a single word of a scammer.
Taek-gyu asked, pointing to Rep. Choi Myung-hwan, who appeared on the screen and shouted with his face blushing.
“Why is that guy overdoing it like that?”
“Hoseong Savings Bank’s head office is located in the Choi Myeong-ho district.”
“Aha!”
Sangyeop senior added a word.
“I’m also a candidate for the next presidential election. I’m thinking of raising awareness this time around.”
Taek-gyu asked as if he didn’t understand.
“But what are you going to do if you really go bankrupt like this?”
Of course, it’s not because the president and the ruling party are stupid and talk like that.
“You are mistakenly thinking that I made a public announcement of a small insolvency.”
What company is perfectly clean? The same goes for banks. Although there is a difference in degree, everyone is hiding their insolvency little by little.
That alone can be used as an issue, but the subject of the investigation is the government anyway. They are confident that they can cover any insolvency on their own lines.
But what if it’s not some kind of insolvency?
“There is such a thing as common sense, can you imagine that the insolvency of one savings bank will exceed trillions?
If I hadn’t seen the foresight, I wouldn’t have been convinced.
“Then why don’t we just announce that there is no insolvency?”
Sangyeop senior shook his head at Taekkyu’s words.
“But Jinhoo caused a bank run. For the time being, there will be more withdrawals than deposits, and then it will collapse soon after business resumes.”
Articles about Hosung Savings Bank continued to flow in the news. This time, there were scenes of customers rushing in front of the bank that day.
Looking at it, the jjajangmyeon doesn’t go down my throat.
I put down the bowl and said.
“I don’t know if I did well.”
What are these people guilty of? I just trusted the money I earned from my hard work and left it in the bank.
If I hadn’t said anything, I would have been without any worries.
Sangyeop senior said.
“Good job. Whether it’s a bubble or a bankruptcy, if it’s going to burst, I’m the one who bursts quickly That’s the only way to reduce any losses.”
If you have your own money, you can use it as you like, whether the company invests or speculates, whether it has business or not.
However, the money the bank lends is the customer’s money, not the bank’s money. Banks only act as intermediaries between depositors and borrowers.
Naturally, if a loan becomes insolvent, it directly leads to damage to the depositors.
That is why financial capital is subject to various regulations and monitoring.
Bank loans should be made after thoroughly verifying business performance and collateral in accordance with established procedures and regulations.
However, Hoseong Savings Bank ignored all these processes and approved the loan after creating a special purpose corporation, leaving the institutions responsible for managing and supervising it.
Meanwhile, the scale of insolvency has grown like a snowball.
Park Si-hyung was growing cancer cells without his knowledge. And the characteristic of cancer cells is that they kill and annihilate the host.
I said watching the news.
“You should have figured out the size of the insolvency by now.”
* * *
Finance is a system built on trust.
When that trust is broken and the bank cannot be trusted, people all at once try to retrieve the deposited money. That’s a bank run.
Kang Jin-hoo led a bank run with a single word.
The president immediately declared it a rumor, reassured the people, and launched an investigation into the Hoseong Savings Bank.
The investigation period announced by the government was ten days.
In the meantime, the Financial Supervisory Service and the Korea Deposit Insurance Corporation announced that they would resume business after completing detailed audits and on-site due diligence.
Thanks to this, depositors were relieved, and no further chaos occurred. It was a response worthy of praise in that it blocked financial instability early.
The Financial Supervisory Service and the Korea Deposit Insurance Corporation jointly conducted detailed audits and on-site due diligence.
On the surface, Hoseong Savings Bank seemed to have no problems. Deposits and loan interest continued to come in, and cash flow was normal.
Although there were some inadequacies, it was at a normal level.
At first, everyone thought that the investigation would be completed soon and business could resume. But it didn’t take long to realize that the situation was serious.
The ledger numbers were all rigged, and none of them corresponded to reality. While interest on deposits continued to flow out due to high interest rates, loans were not collected on time.
In fact, interest on deposits was paid through new deposits and issuance of subordinated bonds. If the cash didn’t come in, it would be a mess even if there was no bank run.
In order to secure cash flow, the loan must be repaid.
There were no major problems with corporate loans and real estate mortgage loans. Although there were some bad personal credit loans, the amount was not very large, and the ratio was less than 10%.(Read more @ wuxiax.com)
The problem is that there are 150 special purpose corporations.
A total of 5.1 trillion won was borrowed here. If you calculate it, the average loan amount per corporation is about 34 billion won.
Loans were made literally. There was only one document as collateral, and there was no proper business feasibility test.
The loaned money was invested in various overseas projects, but most of them suffered huge losses. In some cases, they invested in derivatives to make up for the losses they had already incurred and then blew it all away.
In the meantime, expenses were endlessly spent. It’s as if there was a competition to see who got the money first.
The president of the special purpose corporation was a family relative of the management, and the family members once again sat down their relatives and acquaintances to their seats and paid them huge salaries.
The role of a bank does not end with lending. It should have been periodically checked and monitored to see if the money was being used for its intended purpose, the collateral value was stable, and there was no insolvency.
However, since they are relatives and get to know each other when they cross the same bridge, they only received reports and extended the expiration date when a request came in.
It was not even possible to estimate the size of the replacement insolvency. There were not even a couple of places that had already closed their corporations or could not even contact them.
The employees who came out of the investigation gave up leaving work and conducted a full investigation of the loan to check the value of collateral and the amount that could be recovered.
The results were astonishing.
* * *
Park Si-hyeong, who received the report from Cha Jong-ho, the head of the Financial Supervisory Service, asked.
“What did you say? How much?”
Cha Jong-ho said again.
“The amount confirmed so far is 3 trillion won.”
At first I thought I heard it wrong.
Are you saying that 300 billion is 3 trillion by misreading one zero? How can one savings bank’s insolvency become 3 trillion won? Is this realistically possible?
“Did I say 3 trillion won now? Not 30 billion or 300 billion, but 3 trillion?”
Even though the room wasn’t particularly hot, sweat dripped down his forehead, but Cha Jong-ho didn’t even think to wipe it off.
Park Si-hyung, who came to his senses, said as if yelling.
“What the hell did the FSS do until the situation got to this point?”
“That, that… … .”
In the meantime, when it comes to audits and due diligence, all I had to do was look through the books and look around a few companies that gave me loans. Rather, they were busy receiving entertainment throughout the audit period.
In fact, it was Park Si-hyung’s fault that the supervisory authority failed to do its job so far.
Although Cha Jong-ho majored in economics, he was an administrative official with little to do with finance. However, Park Si-hyung made a relationship when he was governor of Gyeonggi-do, and after that, he worked in an election camp and received a position as the head of the Financial Supervisory Service.
The same was true of the Chairman of the Board of Audit and Inspection and the head of the Korea Deposit Insurance Corporation, who lacked expertise. The Chairman of the Board of Audit and Inspection came from the same university as the President, and the Korea Deposit Insurance Corporation just attended the same church as the President.
“Well, that’s 3 trillion won at first, but if you include things that can’t even be confirmed at all, it could increase to 3.6 trillion won.”
“… … .”
Now, I was so shocked that I couldn’t even speak properly.
This is the biggest incident following Daehoo Group’s accounting fraud, and the largest ever in the history of financial company accounting fraud.
It was not a general bank or a large securities company, but a savings bank!
