The Magician’s Memorial - Chapter 257



Only Noblemtl

257. An eye for an eye (1)

A few days later.

A team leader set foot on Korean soil for the first time in a long time.

Originally, the plan was to bring him in once the subprime mortgage crisis was over, but it was brought forward a little due to the KIKO crisis.

“I’m sorry for calling you to Korea during such a busy time.”

“No. Thanks to Rajan and other experts, there has been a lot less work to do. Thanks to them analyzing data 24 hours a day, I am able to leave work on time these days.”

A team leader I met in Captain Kang’s office.

The face has definitely improved a lot.

When I saw him in America, he looked more like a mummy or a zombie than a human, but now he has regained his color.

“The U.S. real estate bubble won’t burst right now, so you should do something fun in the meantime.”

“I am ready to faithfully do whatever the CEO asks me to do. I will work especially hard if it is done in Korea.”

“I promised you, right? Once the subprime mortgage crisis is over, I will put you in the position of CEO of Taewoo Securities.”

“Of course I remember! Because of that promise, I have been able to endure without dying from overwork until now.”

A team leader’s eyes were burning.

His determination to return to Taewoo Securities, which can be considered his hometown, was great.

“If you want to come back to Taewoo Securities, wouldn’t you still have to make a name for yourself in the Korean financial industry?”

“If you give me the chance, I will definitely make a name for myself.”

“Korean financial institutions are selling KIKO derivatives, especially to small and medium-sized Korean export companies.”

A team leader laughed as if it was absurd.

He was the one who sold KIKO products directly to Japanese companies, and he knew full well what happened to those companies, so he was laughing out loud.

“Huh! You mean the derivatives we sold in Japan? That’s completely gambling. It’s not something a bank that values ​​stability would touch.”

“Wall Street sells subprime derivatives, so is it any different in Korea?”

“That’s true. I forgot for a moment that the banking sector is ultimately a place where money is traded, and as long as it makes money, it doesn’t care whether others are harmed or not.”

He was a team leader who had worked on Wall Street longer than at Taewoo Securities.

I knew very well that the financial world is a place without blood or tears, so I quickly understood the current situation.

“Aren’t we the first to make and sell KIKO products? So we should take care of the cleanup ourselves, right?”

“How can I organize this?”

“I will give you a list of small and medium-sized business owners who have purchased KIKO products. Meet with them and pressure the banking sector to launch KIKO-related insurance products.”

“You are saying that you will also place responsibility on the banking sector.”

KIKO was a kind of exchange rate speculation product.

The structure was such that subscribers either made a profit or suffered a loss depending on the won-dollar exchange rate.

In the process, the banking industry was in the same position as a kind of third party that only received intermediary fees.

But what if KIKO-related insurance products were created?

When the exchange rate rises sharply, the structure changes to one in which banks provide huge amounts of insurance money to subscribers.

To put it simply.

Nowadays, banks are in the position of dealers.

This meant that the moment an insurance product was released, people would step down from being dealers and become gamblers.

It doesn’t matter who the dealer wins at the gambling table, but the moment you become a gambler, you have no choice but to be either a winner or a loser.

“Shouldn’t Korea’s financial sector also get a taste of advanced financial technology?”

“We will give you a taste of the taste we learned on Wall Street. And since we created KIKO, we know very well how to target it.”

“A small business meeting under the Taewoo Group will be held soon. I will invite you as a special lecturer there, so please make a good move.”

“I will post good news soon.”

A confident team leader.

It was never arrogance.

He was the first person to create KIKO derivatives and had already applied it several times, so he was confident.

* * *

The meeting proceeded quickly.

Many small and medium-sized business representatives attended the meeting held at the Taewo Group headquarters.

I was the first person to greet the meeting and made them realize that this meeting was quite important.

Of course, I left after the first greeting and left the rest to a team leader.

About 4 hours had passed.

A team leader contacted me to see if the meeting was over, and we got in our respective cars and met at Captain Kang’s office.

“How did you persuade small business owners?”

“It wasn’t easy. Although the risks of KIKO were explained well, I was nervous about the funds it would cost to sign up for an insurance product.”

“So what did you do?”

“I made a proposal. I agreed to fully bear the cost of signing up for the insurance product and paying the monthly premium. Instead, I agreed that I would take 60% of the premium.”

He was also a team leader.

He found a way on his own without me having to step in or give advice.

His ability was outstanding, and he knew how I wanted things done because he had worked with me for a long time.

“We will hold several more meetings in the future. Convince them all and encourage them to sign up for insurance.”

“It’s not difficult to sign up for insurance since I decided to cover all the costs, but you can only sign up for it when a bank launches an insurance product.”

“Is there any reason for the banking sector to refuse? They say that if we create an insurance product, hundreds of small business owners will sign up for it.”

“Well, I created and sold KIKO derivatives to collect a small commission, but it seems like I would create a new insurance product overnight to receive more lucrative insurance premiums.”

Now it is the banking world’s turn to participate as a gambling player.

The moment a team leader stepped forward, it was no surprise that the banking world went from being a dealer to a gambler.

All that remains is how much to set the stake on the gambling table.

What if the banking sector gets overly greedy?

It would be like the collapse of Wall Street investment banks due to the subprime mortgage crisis.

* * *

Shinhwa Bank main branch VIP reception room.

A team leader was sitting on the sofa in a relaxed manner and having a conversation with Jeong Tae-seop, Vice President of Shinhwa Bank.

“You worked at Taewoo Securities and then at a Wall Street investment company for about 10 years. So why did you come to see me?”

“I came here because I have a business to discuss with Vice President Jeong Tae-seop.”

A star among stars.

It was a term referring to the vice president of a bank.

The vice president held a position of enormous power in the bank.

It was the second-in-command position just below the bank president, and was also in charge of the actual business, from financial product development.

It was not easy to meet such a vice president.

However, Team Leader Han also had considerable experience.

Since I was an executive at a Wall Street investment company, I was able to secure a position with the vice president without difficulty.

“I’m interested because a former Wall Street banker is talking about business.”

“I heard that they are selling KIKO derivatives, but I don’t know why they don’t sell KIKO-related insurance products.”

“Are you saying we want to create derivatives insurance? Hmm, there’s nothing we can’t create, but who would want to sign up for it?”

Vice President Jeong Tae-seop snorted.

A person who said he had learned advanced financial technology on Wall Street came to visit him, so he found time with great difficulty.

But it’s only insurance related to derivatives.

Of course, it would have been nice to be able to make and sell it. Because you can double commission business.

But who would buy such insurance?

Even if you try to sell fire insurance, you have to beg.

“I don’t just talk about it. I have received consent forms from small and medium-sized business owners who purchased KIKO products from Shinhwa Bank. This is an agreement that everyone will subscribe to KIKO insurance products when Shinhwa Bank launches them.”

“···Are you sure?”

A team leader took out a large number of consent forms from his bag and showed them.

The corner of the Vice President’s mouth rose slightly after confirming the consent form.

“Great! We will try to launch the KIKO insurance product within this week.”

“You’re a very well-spoken person. And I wrote a draft to help you launch an insurance product.”

A team leader even presented a draft insurance product.

The contents of the draft were roughly as follows.

1. Sign insurance with a 3-year contract.

2. If the exchange rate rises by more than 60% compared to now, 10 times the amount of KIKO derivatives will be paid as insurance.

3. Instead, the policyholder pays 3% of the KIKO derivatives amount as a monthly premium.

“Hmm, 10 times the insurance premium is a bit burdensome.”

“It’s 3% as insurance premium every month! I know that Shinhwa Bank sold about KRW 500 billion in KIKO derivatives. Then, a profit of KRW 15 billion is generated from insurance premiums every month. To get that level of profit, the insurance amount is about 10 times higher. Shouldn’t it be ?”

Monthly profit of 15 billion won.

The vice president quenched his appetite.

It was definitely a mouth-watering amount.

“Still, it’s a bit burdensome 10 times more.”

“The insurance conditions will only be triggered if the exchange rate rises by 60%. Do you think that will happen?”

“The won-dollar exchange rate has already entered the stable range. If the exchange rate falls, I think it will fall and there is no possibility of it rising. Moreover, an increase of 60%? This is an impossible figure unless the IMF comes again.”

“But what are you worried about? Is there a product that is safer than this and can yield huge profits?”

The vice president felt familiar.

They were taking back what they had said when selling KIKO derivatives to small and medium-sized businesses.

“I will contact you after a meeting with the staff.”

“There is one more thing I would like to tell you. If the insurance product is not released according to these conditions, all of the companies for which I am an agent have said that they will refund or cancel the KIKO derivative products.”

“What, what…?”

500 billion won worth of products are refunded at the same time?

This had a negative impact on the career of Vice President Jeong Tae-seop, who was aiming to become president of the bank.

“Why are you doing this?”

“I don’t ask for much. All you have to do is give me 1% of the insurance premium as a commission. Isn’t that a really good deal?”

“under.”

Vice President Jeong Tae-seop smiled.

Those guys on Wall Street said there were no hyenas.

In the end, that guy was also betraying the CEO of a small business to take care of his own interests.

It was rather fortunate.

I could understand if he was doing this to pretend to be a charlatan rather than some other scheme.

“We will do our best to launch insurance products as drafted as possible.”

“Thank you! And if I plan a new product in the future, I will definitely contact the Vice President first.”

“Hmm, don’t bother coming to me, I will contact the working staff. Communication will be faster that way.”

A team leader held out his hand.

However, Vice President Jeong Tae-seop pretended not to notice and stood up.

This was because I did not want to get into the hands of hyenas who prey on small and medium-sized businesses.

Looking at that, a team leader laughed inwardly.

Who is looking at whom like a bug right now?

Let’s see how long that high nose can be maintained.

A team leader stood up with a smile on his face until the end.

He turned around and looked at the back of Vice President Jeong Tae-seop, who was looking at the window, for a long time before going out the door.

As if he was trying to remember his prey.