Omniscient Investment Point - Chapter 232



Only Noblemtl

232. Buy Japan – 3

(1)

After the meeting, I called Myung Joo-won back in.

Just to see if there’s any more information to add to what was said earlier.

As expected, there were several.

“As you know, the Japanese government has no money. It has the world’s largest fiscal deficit, so public funds that could be used to save companies are a burden. Furthermore, the prime minister’s approval rating is at its lowest during his term. It’s hard to boldly push forward with anything.”

“So, all you did was pressure the creditors to avoid bankruptcy?”

“Yes, that’s right. According to experts, it’s like putting oxygen on a zombie. But the creditors can’t refuse this either. That way, they can sell it at a higher price instead of selling it at a lower price.”

I nodded.

In reality, buying distressed debt is different from negotiating a takeover of a company that is in workout mode, so there have been some successes.

however…,

“Isn’t that a loss in the long run? I heard that the yen is falling because of that.”

“Huh? Yes, yes, the yen plummeted yesterday. That’s natural. If zombie companies keep increasing like this, we won’t be able to raise bond yields.”

A zombie company is a company that has debt and only pays interest.

As such places increase, financial authorities will be unable to raise the base interest rate.

As interest rates rise, the burden on zombies becomes so severe that they can no longer even walk.

“Then, government bonds will also be affected. And people will start throwing away the Japanese government bonds they are holding.”

“That’s exactly what happened yesterday. So the government bond yields are going down, and people who thought they should cut their losses now are throwing them away again. This is the beginning of a vicious cycle. This is why the yen is bound to crash.”

When the yen crashed, our money could buy more companies cheaper.

‘Besides, we still have dollars that haven’t been converted into won.’

2 trillion won in funds recovered through Dr. Carty.

Half of that money must be returned to customers who invested in the blind fund, but the other half is the company’s money.

The term “Enzer” is synonymous with the strong dollar, meaning that you can buy magnetics for relatively little money.

“Oh, you mentioned the restructuring of the magnetic workers earlier. Is that a possibility?”

“The local media has already suggested such a method. Personally, I don’t think it is a story that only a reporter could imagine.”

“Is this a message to be sent to the recipient?”

“Yes, I think so. That means there has already been a lot of discussion between Magnetic and its partners.”

“Still, I would like to know more specific details.”

“Let’s go and find out.”

“Thank you. Lastly… … .”

I looked into Myeongjuwon’s eyes and asked.

“When will you be back?”

“Huh? No, do you mean you want me to come back?”

“Of course. You can’t stay in Japan forever. Since you’ve been successful in pioneering, you should come and rest for a while.”

“Ah, haha… … .”

Myeong Ju-won smiles awkwardly.

Neither positive nor negative.

But, it’s already been two years since he went to Japan.

I asked because I think it’s time to start discussing the timing of your return.

“I won’t set a time. Instead, I will return when the Japanese branch’s net profit exceeds 100 billion yen per year.”

“haha…….”

This time, I gave an awkward laugh.

Ten billion yen per year.

That’s about 1 trillion won in our money.

“To bring that day forward, we must invest boldly.”

“Hey, you don’t have to do that because of me. But Japan feels like it’s back to being a developing country. But it won’t stay that way forever. There will probably come a time when it will rise again, and at that point, the places that invested first will reap the harvest.”

“Yes, I’m looking forward to that day too. Oh, I think I’ll be going to Japan soon, so I’ll see you then.”

“Yes, sir.”

He laughed, and I laughed too.

Perhaps our laughter will grow stronger when he returns to Korea… … .

I thought so.

(2)

On the way back to Japan, Myung Joo-won sat next to Momoko Sakura and discussed future strategies based on what they had discussed in the meeting.

Sakura, who had been working as both a secretary and an interpreter, has recently broadened her perspective on the Japanese economy, so this conversation was also easy to understand.

“I think it would be better to go to Nagoya as soon as we arrive.”

“Yeah, but I think it’ll take a few days.”

“I need to prepare for my business trip right away.”

“Thank you for your cooperation.”

“Hey, that’s a given. The CEO can’t do anything without me.”

“Wow, that’s dismissive of me, but I can’t deny it, so I’m speechless… … .”

“Hohoho.”

In reality, Sakura was the mouth and hands of the Myungjuwon, and these days, it seemed like she could even act as the head.

“But if I were a partner of Magnetic, I would accept that offer unconditionally. It’s much better than the company going under.”

“Then, what about the worker? Let’s talk about it.”

“Oh, the worker left it behind. I don’t know about this one. I think there will be conflict between those who stay and those who have to leave.”

“Right, that’s it?”

“Yes, especially, I don’t think the political circles in that region will let this go. They will inevitably side with the laborers rather than the businesses, right? Even without that, when the prime minister steps down, there are talks of asking for a vote of confidence, and things like that, so there could be an election soon… … .”

“I see… … .”

Magnetic’s proposal is simple.

Reducing the number of employees, which currently exceeds 20,000.

But in Japan, it wasn’t easy to cut it unconditionally.

The law is the law, but the problem was deeply rooted social perceptions.

Once you have a job, it’s yours forever.

So the percentage of people who stayed at their first job until they retired was incredibly high.

Although it has decreased slightly due to the economic downturn, that is the case for small and medium-sized enterprises.

Even in large companies, the turnover rate was still close to zero.

As a result, the company had a hard time laying off workers.

Especially if it is regional, you have to be mindful of the local people.

Magnetic had no choice but to confirm Nagoya’s public sentiment.

“Whether it’s Korea or Japan, politicians are similar in that they exploit people’s desperation.”

“It’s also true that the company that finishes wins. Isn’t it probably similar?”

“Yes. There will be some noise, but in the end, won’t the workers who have to leave be weeded out?”

“Yes, I can’t just sit by and watch the company fail. Oh, right. President Shota Kamiki is from Nagoya. Couldn’t you get some advice from him?”

Kamiki Shota.

He is the president of Umi Industries, which was founded in Japan by Bang Jeong-hyeon.

He has recently become very popular after the company secured the mining rights and repeatedly confirmed the reserves through exploration with Korea.

“Oh, really? Then, of course I should see it.”

A local person who knows the local situation well.

Since there was no reason not to see him, Myeong Ju-won contacted him as soon as she landed in Tokyo.

(3)

Shota Kamiki looked in a good mood today too.

Towards him, Myeong Ju-won was the first to extend her hand.

“Oh, nice to meet you. How are you?”

“I’m doing well. However, the fact that oil and gas development is being delayed for various reasons makes me a little impatient.”

“Hey, don’t worry too much. Something keeps coming out near Block 7. Can the Japanese government hold out any longer?”

This is true.

Oil, gas, and hydrogen from the border, not from inside the 7th mine.

So, development has already begun in Korea.

Given this situation, public opinion began to grow in Japan that the area within Block 7 should be developed more actively.

If you drill a hole in the top of the mine and insert a straw, the resources inside the mine can be swept away! If that happens, Korea will take all the resources! So we should also actively develop the mine while we have the chance!

In summary, this is what it was about, and some conservative media outlets were particularly vocal about it.

“Well, I think so too, but time keeps passing and there are no results, so I’m just getting impatient.”

Umi Industry is a developer that must develop within the 7th mining area.

So, the desire to show something was growing stronger in Kamiki Shota’s heart.

‘then?’

Myung Joo-won wanted to take advantage of this psychology.

“Well then, could you help me?”

“Help? What… …?”

“Actually, the headquarters is considering acquiring Magnetic.”

“Magnetic? Wow, that big place?”

“Yes, yes. Japan has not yet entered the full-fledged electric vehicle era, but the world is taking a step back to advance. It seems that they have decided that if they invest now, when rapid growth begins again, they will make a big profit.”

“Yes, as expected… … .”

Kamiki Shota is not a person who lives with his eyes and ears closed.

No, after confirming that Umi Industries was actually closely related to JTS Partners, I took a closer look at Jang Su-myeong’s activities.

‘He is truly an amazing person.’

When I look at what has been accomplished so far, it is, in a word, amazing.

Should we say that he is similar to Japan’s Sun Zhongyi in that he does not know failure?

‘No. These days, even Son Joong-in’s losses are frequent.’

Son Joong-ui, known as Japan’s greatest investor, made a name for himself by investing in China’s Alibaba.

After that, it went from strength to strength, but these days, everything I touch is a minus.

That’s why there has been talk recently that Japan’s investment scale and success are not as good as Korea’s.

“How can I help you?”

Kamiki, who has great ambitions, decided to properly secure the JTS Partners line this time.

Anyway, Bang Jeong-Hyeon also told me to follow this unconditionally.

“Secretary Sakura and I are planning to leave for Nagoya soon. Please come by sometime soon. I think we need to read the mood there.”

“If that’s the case… is there really a need to postpone it until later? We can do it together today.”

This means that the two of them will depart for Nagoya on the same Shinkansen.

Hearing the answer, Myungjuwon and Sakura smile.

But, a little later, the smiles of both people were erased by what Shota Kamiki said on the Shinkansen.

“Huh? Are you saying that you know the chairman of the Magnetic Union?”

“and…….”

“He’s my friend. He’s my high school classmate. And it’s not just him who knows him. He knows a lot of people in the company. The same goes for the Magnetic partners.”

Was Nagoya such a small place?

That can’t be true.

At first glance, the population was 2.3 million.

So Myeong Ju-won had no choice but to stick out his tongue.

Then, another word from Kamiki Shota reached his ears.

“I actually graduated from a mechanical high school that is famous for its automobiles. Naturally, I would have a lot of friends there.”

“… … !”