I Am the Third-Generation Heir of a Conglomerate - Chapter 482



Only Noblemtl

482. Expert (2)

2017 is almost over.

Although the weather was getting colder day by day, the financial tower was filled with heat.

Everyone was running nonstop, with Japanese automakers and the war against Bitcoin.

At least one vice president seemed to have some leeway.

Although I was sitting in the general position, I was able to have tea time with myself leisurely because I had set up a system that could run smoothly on its own.

“We have yet to break through Toyota’s defensive wall. The stock price has actually risen by nearly 10%, showing how fiercely they are defending themselves.”

“It’s definitely a company with some leeway. It could be a longer-term battle than expected.”

“If a recall leads to a lawsuit, we will eventually have to kneel. So everyone is putting up a defensive wall without any worries.”

The forces playing with stocks were pressed for time.

However, the financial companies in the financial tower had no aversion to a long-term battle.

In particular, financial institutions with conservative tendencies tend to prefer long-term battles.

“The Bitcoin firewall will be breached first.”

“The defense barrier has already been breached. Right now, we are in the stage of putting pressure on the forces to prevent them from liquidating, and we can take away their funds at any time we want.”

“That’s great. But shouldn’t we be preparing for the next project?”

As 2018 approaches, a major event will take place.

A large-scale trade war between the United States and China for hegemony.

Bitcoin was a given, and it was a massive event that was nothing compared to the data manipulation of a Japanese auto company.

“We have been working on this for a year now. The moment the trade dispute starts, the financial tower can make money in various ways.”

“It’s not hard to make a profit. Just buy stocks of companies that benefit, and short sell stocks of companies that suffer losses. And leave the money to Quantum Fund.”

“It’s easier said than done. The process is never easy. If you miss even one detail, the return can vary greatly.”

I wasn’t worried about the details.

Because Vice Chairman Han and the financial tower were experts specializing in this type of work.

“I’m not worried about the profitability aspect. But this trade dispute is something that we shouldn’t just think about in terms of profitability.”

“Do you even care about Korea’s geographical characteristics?”

“Not only Korea, but also Taewoo Group could be pressured by both the US and China. So shouldn’t we have our own weapons?”

I’ve already stocked up on a few weapons.

Powerful financial resources, semiconductors, oil, and underground resources.

But the more weapons the better, and especially weapons that could bring surprises were needed.

“It seems that they already have all the weapons they can possibly possess. They even own some US and Chinese bonds at the financial tower level.”

“Bonds can also be used as a weapon. In particular, China holds a large amount of US bonds, so it will put pressure on the US.”

“That’s why some people are skeptical about the US having a trade war with China. If China were to sell all of its US Treasury holdings, wouldn’t that create chaos?”

$1.2 trillion.

That’s the size of the U.S. Treasury held by China.

It was a whopping 1,500 trillion won, and China was the country that held the largest amount of US bonds in the world.

Of course, considering the total amount, it wasn’t that large.

Because there were over $20 trillion worth of bonds issued, excluding those held by the U.S. government.

“If a US-China trade dispute arises, China will definitely try to use US bonds as a strategic weapon.”

“I think so too. Of course, it’s not easy for China to make such a decision, but it is still a threat.”

“So shouldn’t we also hold bonds as a weapon?”

A vice president was lost in thought for a moment.

It seemed like he was tapping away at a calculator in his head.

“It is true that US bonds are a safe investment, but the interest rate is only 1.8%. Is there any financial company that would hold a large amount of US bonds while giving up profitability?”

“To use it as a strategic weapon, you need to hold at least 200 to 300 trillion won worth of US bonds.”

“It is not a good thing that astronomical amounts of money, as much as 300 trillion won, are tied up in U.S. Treasury bonds. If we were a government agency, we could make such a decision considering diplomatic issues, but the financial tower is not a government, it is a financial institution.”

The moment you give up profitability, the value of a financial tower disappears.

That’s why holding US Treasury bonds worth hundreds of trillions of dollars was such a risky investment.

“So, we are trying to use other types of bonds, not US Treasury bonds, as a strategic weapon.”

“Are you talking about Chinese bonds? I think they are a riskier investment.”

“It is true that these bonds were issued by China. However, the times are different. They were issued by the Qing Dynasty.”

A vice president looked at me like I was a strange person.

Then he continued talking, scratching his head.

“Are you talking about the Qing Dynasty railway bonds?”

“I also know full well that the Qing Railway Bonds are completely unrealistic. So don’t look at me like a conspiracy theorist.”

“The Qing Dynasty bonds are over 100 years old. The demand for debt performance itself is unrealistic, and there is no reason for China to take over the debt.”

China had already refused to assume debts in the 1920s.

In the 1930s, they even declared default on all the bonds they issued.

So, China could be seen as free from debt inheritance.

“Can we demand that China repay its debts just because we have Qing bonds? Of course, that’s nonsense.”

“I think so too.”

“But would the situation be the same if the U.S. government made such a demand? If China holds a huge amount of U.S. bonds, and the U.S. government also holds Qing bonds, wouldn’t things turn out strangely?”

Of course, it was something that had very little realistic potential.

However, it was possible to create very small variables, and even just that amount was enough to have value as a strategic weapon.

“Would the US government do something so crazy?”

“The US government wouldn’t do it, but wouldn’t the Trump administration do it?”

“… … I can’t refute that. It’s impossible from a common sense perspective, but the Trump administration tends to do things that are so out of the ordinary, so it seems possible.”

The Trump administration had already done several extraordinary things.

The most representative example was the construction of a wall across the U.S.-Mexico border.

It was a barrier that was called a modern-day Great Wall of China, with construction costs alone reaching tens of billions of dollars.

The Great Wall of China was also built during the Warring States Period BC.

There was no reason for the Trump administration not to use Qing Dynasty bonds that were only 100 years old.

“I understand that the Qing Dynasty bonds issued 100 years ago had an issue value of 5 to 6 million pounds.”

“I understand that around 6 million pounds were issued at an interest rate of 5%.”

“Try to secure as much as possible.”

“You can buy a 100-pound bond for a few dozen dollars on an Internet auction site.”

6 million pounds was just 10 billion won.

But if you do a crude calculation, including a 5% interest rate and interest costs, it could have been over $1 trillion.

Of course, it was too crude a method and not realistic.

Realism wasn’t important in this operation.

“Go around to internet auction sites and antique dealers to get hold of Qing bonds. And I know there is a foundation in the United States that holds Qing bonds. Meet them and buy the bonds.”

“I understand that there is a foundation in Britain that deals with Qing Dynasty bonds. I will travel around Britain and the United States to secure as many bonds as possible.”

“Do you really need to do something like this?”

A financial tower that possesses the power of a national federation.

And there was a vice president who was in charge of the financial tower.

But how much would your self-esteem be destroyed if you were to undertake a Qing Dynasty bond project that only swindlers would do?

“No. I feel relieved because it is a project that costs less than I thought.”

“What does that mean?”

“I feel more comfortable spending hundreds of billions of won to buy Qing bonds than spending hundreds of trillions of won to buy U.S. bonds.”

There was one thing I was mistaken about.

A vice president forgot that his self-esteem was influenced by the amount of money he had.

“I’m glad that Vice Chairman Han is feeling better. There are still about six months left before the US-China trade war begins in earnest. Please secure the Qing Dynasty bonds before then.”

“I will buy it secretly. And with David’s help, I can also contact the Qing Dynasty Bond Foundation in the US and UK. I will secure at least half of the bonds.”

They started doing something that was just child’s play.

But if a toy knife is in the hands of a child, it is just a joke.

A toy knife in the hands of a giant called America could turn into a weapon.

***

The last day of 2017.

I received a year-end settlement report from the planning director and a vice president.

It was a report received in lieu of the ceremonial executive meeting, and was a method introduced to reduce unnecessary waste of time.

“The deficit of Taewoo Corporation has exceeded 5 trillion won this year, following last year. In particular, the deficit recorded by ‘Rocket’ alone amounts to 2 trillion won.”

“Once the logistics center construction is completed, the deficit will decrease.”

“Next year, the national logistics center will be completed. Although the deficit is still there, sales have exceeded 4 trillion won. If the logistics center costs are reduced, it is expected that we will be able to turn a profit within 2-3 years.”

The day when Taewoo Shangsa takes flight is not far away.

Taewoo Corp., who had been playing the role of the ugly duckling in Taewoo Group, was soon to become a swan and flap his wings magnificently.

“The deficit in the underground resources division has also been reduced significantly.”

“The development of mines in Mongolia, Africa, and South America is coming to an end, and exports are increasing significantly every year. In particular, sales are increasing significantly as the prices of rare earths and lithium increase.”

Taewoo Corporation was also in charge of underground resources.

The moment the US-China trade war began, he was set to become the lifeline of the Taewoo Group.

And there was one more huge burden that Taewoo Shangsa was carrying.

“How about shipping?”

“The deficit is not decreasing at all. And the outlook for next year is not very good. It is expected that the deficit will be at least 2 trillion won.”

“In times of crisis, you need to strengthen your investments to survive. Even if it means taking bigger losses, expand your ships and routes.”

It didn’t matter if we ran a deficit of several trillion won.

If only the Corona era had come, we could have recovered all the deficits we have recorded over the past few years in one fell swoop.

“Among global shipping companies, Taewoo Shipping is the only one that is aggressively expanding its presence.”

“You’re doing well. Are there any other problematic affiliates?”

“In the case of Taewoo Semiconductor, production volume is increasing significantly as semiconductor cities are completed sequentially. In particular, we expect to firmly maintain our position as the world’s number one foundry market share.”

Excluding Taewoo Corporation, there were no other affiliates that had major problems.

Rather, looking at the group as a whole, it has been breaking records for highest sales every year.

If the current trend continues until the US-China trade dispute and the COVID-19 era, it could easily rise to the top group in the world.

And 2018 is the starting point.

Next year was the year that the US-China trade dispute began.

It was time for Taewoo Group to unleash the strength it had been hiding and saving.