Chapter 490
Chapter 490
After the crisis, starting with the rate hike in the US, everyone’s attention was on China.
The media poured out articles related to the Chinese economy.
[Chinese economy faced with structural problems. Is there a possibility of a global financial crisis from China?][Chinese economy should prepare for future L-shaped recession, Japanese-style long-term recession][Huge debt weighs down on the Chinese economy][China’s debt scale, 270% of GDP!][Severe bank insolvency in China, bank failure is only a matter of time][If China collapses, global companies are concerned about serial bankruptcy][Bank insolvency is also serious… … ]Experts all pointed to the debt problem.
China’s total debt now stands at 180 trillion yuan, nearly double what it was a decade ago. The bigger problem is that shadow finance does not give any sense of how much debt is not covered by statistics.
This astronomical increase in debt is due to the deregulation and continuous supply of liquidity to boost the economic growth rate. Thanks to this, the stock market rose, various unnecessary development projects took place, and real estate soared.
None of the countries in the world where debt rose so quickly that it escaped the financial crisis. China now resembles the United States right before the subprime crisis or Japan just before the collapse of the real estate bubble.
Anomalies were already appearing everywhere.
The yuan continued to be under pressure to depreciate, stock prices and real estate plummeted, and bank insolvency surfaced. “It’s just a matter of time before some banks go down,” said John Lanchester, head of DH Management.
Under such circumstances, exports last month fell by 17 percent compared to the same period last year, a shock to the market.
* * *
Amid growing concerns, an emergency press conference was held in Beijing.
Media from all over the world flocked to the conference room at the hotel. Numerous cameras and microphones were directed at one person.
There stood the most famous investor in the world.
In the meantime, many people have been curious about his thoughts, but he has not said anything. But suddenly, a press conference was held in China.
Jinhoo Kang said in a calm voice.
“Recently, the world is facing huge challenges. However, the current crisis is exaggerated and has an overly terrifying aspect. The shock will continue for the time being, but the global economy will return to stability.”
As soon as the words were finished, the reporters all asked questions at once.
“What is your rationale for thinking that way?”
“Are there any concrete measures?”
“What will OTK Company take measures in the future?”
“What do you think of the Chinese crisis theory?”
Kang Jin-hoo said with a confident expression on his face.
“Governments in China and other countries have sufficient countermeasures. If necessary, OTK Company will also come forward. Speculators trying to make money from crisis and fear will never succeed.”
[Gangjinhu, confidence in the recovery of the global economy][Kang Jin-hoo as a relief pitcher in the financial crisis][Global stock market decline slows down][A small drop in the dollar!][Philippines foreign exchange market, temporary stability][Prime Minister Bo Xiaoyu, strong warning to yuan speculators]Kang Jin-hoo’s remarks were immediately spread around the world.
The market accepted this as a strong positive news, and the stock market, which had been falling, rebounded, and the exchange rate temporarily stabilized.
– Wow! Is it true that stock prices rebound after a strong earthquake?
– That’s great. After Kang Jin-hoo!
– Kang Jin-hoo is doing what the president, prime minister, and central bank president didn’t have to make all sorts of comments.
– Jinhu Kang said, “The world economy will recover.” The world economy was restored.
-Isn’t it just lip service? A little reassurance with this… … .
-If you say a crisis is a crisis, a crisis is really coming~
-Is now the time to buy stocks and real estate?
-Don’t trust the speculators. With that said, you can actually buy a losing put option and short sell it. Then it crashes and you make a ton of money.
* * *
A mansion in Buckinghamshire.
The gaze of the old man in a wheelchair was fixed on the TV hanging on the wall. Next to him stood a young woman who looked like a doll.
In the news, the image of an Asian young man continued to flow from before.
There is no one in the world who does not know his name.
If I had to pick one of the biggest changes in the world economy in the last five years, it was the appearance of Jinhoo Kang.
It would not be an exaggeration to say that the flow of the world was changed because of his existence. He saved the US from the Big One and ended the US-China trade war. He is driving innovation across industries including autonomous driving, batteries, electric vehicles, TWRs, pornography, gaming and more.
His ability is also his ability, but it was possible because the development of finance and changes in the industry were intertwined.
In the past, wealth was created by lords and kings with huge lands, and wealth came from factories and mines, but now wealth is created from the Internet and financial markets.
Now, that flow has accelerated. Within a year of its founding, there were many companies that grew into unicorns, and new wealthy people were born every year.
Financial techniques have developed further and numerous derivative products have been created, and all products in the world can be traded anytime, anywhere as long as there is an internet connection.
If someone can predict what will happen in the future, it is possible to make a hundred times or a thousand times the money you have in a short period of time.
The young man who started investing from zero pennies has now reached the pinnacle of global finance. His fortune has already surpassed that of Rockefeller and Carnegie, Howard Hughes and Bill Gates in their prime.
Considering his age and the rate of growth of his wealth, he could not even imagine how much his fortune would increase in the future.
When the crisis began, everyone turned their eyes and ears to his actions and words. Rothschild also checked where he was going, who he met, and every move he made.
He said, ‘I wish he’d held hands with us.’
Grace smiled bitterly.
“He made a different choice in the end.”
Unfortunately, it wasn’t unexpected.
The booming US economy, Brexit, the increase in refugees, each country’s fiscal deficit and foreign exchange reserves, corporate debt and store debt, etc.
Taking all variables into account, the timing was adjusted. And it happened just in time when everything was perfect. It is difficult to start, but once a crisis occurs, no one can stop it.
What will happen is about to happen. The flow can be delayed for a while, but it cannot be reversed, even after a strong earthquake. No matter how many times I simulated it, the result was the same.
In the news, we still analyzed the background of Kang Jin-hoo’s press conference and whether his remarks were correct or not.
Grace looked at the face after the earthquake on the TV and muttered as if speaking to him.
“What are you going to do?”
* * *
Before I left for Korea, I contacted the Blue House.
Even though it must have been hectic, I was able to make an appointment without any difficulties. As soon as I arrived at the airport, I got in the car and headed to the Blue House.
President Huh Chang-min, who was waiting in the drawing room first, greeted me.
“Welcome, CEO Kang Jin-hoo.”
“Nice to meet you, President.”
There was a hint of exhaustion in his expression and tone of voice.
You may be wondering what I was talking about in China. Under the current circumstances, information from high-ranking officials in China would be nothing short of a rainstorm of drought.
The shock that the global economy is faltering has also reached Korea.
Given that it has sufficient foreign exchange reserves and is still maintaining a current account surplus, it is unlikely that Korea will experience a currency crisis. However, all economic indicators were deteriorating, including the rise in the exchange rate, decline in stock markets and real estate, decline in consumption and exports, and the bankruptcy of SMEs.
Here, unlike other countries, there is also a downside that only Korea has. That’s North Korea.
North Korea resumed missile launches last week. This kind of provocation didn’t happen in a day or two, but now was a very bad time.
The ongoing inter-Korean economic cooperation and North Korea project are expected to come to a halt, and the already weak stock market collapsed again.
“I enjoyed the press conference in China. Thanks to this, the financial market has stabilized a bit.”
If you think about it, it’s strange. The global financial market immediately responds to my words.
“It is a temporary phenomenon. A bigger crisis could happen.”
President Huh Chang-min’s expression darkened.
“How big of a crisis do you think there will be?”
“Do you remember the global financial crisis?”
“of course.”
there will be no way to know At that time, he was a member of the National Assembly, and as a member of the Planning and Finance Committee, he poured out sharp criticisms against the government.
“The situation is worse now than it was then. This is just the beginning. If it leads to a full-fledged crisis, Korea will face the worst situation.”
What would happen to the Korean economy was obvious if China collapsed following the emerging countries.
“Then what would you like to do?”
“To prevent a crisis, we need to take a preemptive response. But there is one thing we need to do.”
At my words, President Huh Changmin opened his eyes and asked everything urgently.
“What is it?”
“This is Chairman Im Jin-yong.”
He had a bewildered look on his face.
“Isn’t Chairman Im Jin-yong in the detention center now?”
“So.”
Who doesn’t know that?
President Huh Chang-min looked at me with a firm expression.(Read more @ wuxiax.com)
“Are you asking to release Chairman Im Jin-yong?”
I nodded.
“I am not asking for a reduced sentence or a pardon. I’m just asking for permission for the bail.”
I thought about getting a pardon after my brother was confirmed, but there is no time for that right now.
President Huh Chang-min said he was displeased.
“It is the power of the judiciary, not the president, to grant bail.”
“I know. What I want is to become bail according to the established legal process.”
“There are many people on trial in captivity. But why is it that only Chairman Im Jin-yong should grant bail? After all, isn’t it because he’s the chairman of a chaebol?”
I didn’t deny that. What I need is not the individual Im Jin-yong, but the chairman of the Seoseong Group.
“In the meantime, the chaebols were released no matter what crime they committed because they were helpful to the national economy. What was the result? Rich people think they can commit crimes if they have money, and the people don’t trust the law. Non-guilty, hereditary innocence, public courtesy, judicial murder, etc. Now, even young children do not believe that everyone is equal before the law. How long do these things have to be repeated in Korea?”
He has been criticizing the privileges of the chaebols since his days as a human rights lawyer and even after becoming a member of the National Assembly.
It’s not just a matter of doing jewelry. Maybe for him, it’s something he’ll have to break his lifelong beliefs.
“I don’t care what crimes Chairman Im Jin-yong committed or how many years in prison he was sentenced to. It is just necessary to prevent the current crisis.”
President Huh Chang-min didn’t say anything.
I got up, he said.
“The choice is yours.”
* * *
The first trial judgment of Chairman Im Jin-yong was held.
Supporters and opponents gathered, and the audience was selected through a lottery.
Seosung Group is already one of the largest companies in the world beyond Korea, and is having a huge impact on the global electronics and automobile industries.
The media around the world paid attention to the outcome of the trial, and in front of the Seoul Central District Court, where the trial was held, a large number of reporters from inside and outside the country gathered.
Bribery, improper solicitation, business breach of trust, embezzlement, tax evasion, accounting fraud, etc. are not the only charges. The general consensus was that even Korea, which is tolerant of the chaebols, would have a hard time avoiding prison sentences.
After the final hearings of the prosecutor and defense were over, the judge made a verdict. He did his best to avoid responsibility, but the evidence for the important charges was so strong that he could not escape guilt.
“The defendant is sentenced to five years in prison.”
A glimmer of hope of probation disappeared, and a prison sentence was sentenced. Small cheers and sighs flowed from the audience.
The lawyers all bowed their heads at once, but Chairman Im Jin-yong had a calm expression as if he had expected it.
However, at the end of the sentence, the judge added a word.
“However, bail is permitted until the final judgment in consideration of the defendant’s right to defense, the fact that there is no fear of destroying evidence or escaping, and the impact on the national economy.”
