An Investor Who Sees The Future

Depositing a large amount of company assets makes it only natural to verify the bank’s soundness beforehand.

I continued speaking to ensure he wouldn’t suspect anything.

“I’m considering an amount up to 500 billion won. If managing it becomes difficult, I won’t request any additional interest.”

At my words, Min Gijin’s eyes widened significantly.

A deposit of just 10 billion won qualifies as VIP status. Yet, I offered an amount 500 times that. Typically, one would demand higher interest for such a massive deposit, but I indicated I wouldn’t.

I leaned forward and said, “I assume you have a rough idea of why I chose Hoseong Savings Bank. I hope this opportunity allows us to establish a mutually beneficial relationship.”

Min Gijin nodded in agreement.

“I see. I understand your point. I’ll organize the necessary documents and send them over right away.”

“Thank you. I’ll reach out after reviewing them.”

I stood up from my seat.

Min Gijin also got up and said, “I will make sure to relay your message to my father-in-law.”

I didn’t quite understand what he meant by that…

Still, I felt like a person who had just heard something pleasant.

“If you could, I would appreciate it. Thank you for your assistance.”

“Ha ha, of course. Now that you’re our savings bank’s top client, it’s my duty to take care of you.”

Min Gijin escorted me to the entrance.

“Is it alright if we promote this in the media?”

I readily nodded in agreement.

“Certainly.”

It may sound boastful, but I have successfully made many investments until now. The mere fact that I’m dealing with Hoseong Savings Bank will serve as significant promotion.

I got into the waiting car.

“Drive safely, CEO.”

The driver, Taek-gyu, started the car.

Once Min Gijin was out of sight, Taek-gyu asked,

“Did it go well?”

“Of course. I dropped a bait of 200 billion won; there’s no way he wouldn’t bite.”

Taek-gyu laughed, finding it amusing.

“Is this the beginning of a counterattack?”

***

After finishing his work, Park Si-hyeong received a call from his son-in-law at the residence. He was taken aback by the unexpected news but calmly responded before hanging up.

Park Si-hyeong sank into the sofa, lost in thought.

All this time, Kang Jin-ho’s presence had been a thorn in his side. The plans had gone awry because of that guy more than once, and he even had to issue a public apology.

Thinking back to that time still ignited his anger.

“So he came to the Hoseong Savings Bank on his own and said he wanted to deposit money?”

He thought Kang would confront him to the end, yet it turned out this way.

In hindsight, this is the norm. When corporations and governments clash, they only bleed each other. Even if one wins, it’s just a return to square one, and losing brings immense damage.

“Has he finally come to his senses?”

It felt almost like a tooth that had been aching finally came out.

By nature, he never forgave traitors. But if the opponent has money, the situation changes. There are always exceptions.

From that perspective, Kang Jin-ho is indeed worthy of forgiveness.

Moreover, he’s entered the automotive industry. Depending on the situation, he could become a valuable partner in the future.

Though it’s not yet time to fully forgive, since he bowed first, there is a need to show a reasonable degree of magnanimity.

“First, I need to halt the Financial Supervisory Service investigation.”

***

Perhaps eager to accept deposits, the requested materials came in less than a day.

Team Leader Seo Sang-won promptly began analyzing the data alongside the disclosed information.

“Can we tell just by looking at the numbers?”

In response to my question, he confidently nodded.

“People can lie, but numbers never lie.”

He really is reliable.

It’s a stroke of luck that such talent has come to me.

It took a whole day to analyze the data. Team Leader Seo Sang-won explained it to us with a weary face.

“As expected, the most problematic area is the special purpose corporation. The total amount loaned here is 5 trillion won. However, among the corporate presidents, there are quite a few with the surname Min.”

What does this mean?

Taek-gyu said, “Does this mean the Min family is pocketing everything?”

“Correct.”

Many of the special purpose corporations have executives who are not professional managers but rather relatives of major shareholders and executives. It’s unlikely that proper loan evaluations were conducted in such places.

“What did they do with the borrowed money?”

“It appears they invested in various development projects overseas. Upon checking, there have been several canceled or failed investments along the way.”

“What about loan recovery?”

If loans aren’t recovered on time, it must be reflected as losses in the accounts.

“They have continuously extended the maturity.”

“Then there will be issues with the BIS ratio.”

“It seems they manipulated the accounts to adjust the figures. It’s likely they have been engaging in accounting fraud for quite a long time.”

It’s not a case of employing sophisticated financial engineering for the accounting fraud. According to Team Leader Seo Sang-won, if they had just looked a bit closer, they would have caught on.

But no one realized it until now?

What’s ridiculous is that last year, the Financial Supervisory Service conducted on-site inspections and detailed audits of banks and savings banks to check financial soundness.

Taek-gyu looked at me and asked, “Aren’t they all civil servants? What were they doing while getting paid?”

“……”

Indeed.

Team Leader Seo Sang-won gave a bitter smile.

“The scale of the bad debt differs a bit from what we had expected.”

I nodded.

“You mentioned it was 2 trillion, right? I thought it seemed too large for the amount of bad debt in a savings bank.”

Team Leader Seo Sang-won shook his head.

“It’s the opposite. There’s a possibility it could exceed 3 trillion.”

We were taken aback by that statement.

“3 trillion?”

Is it even possible for a single savings bank to lose 3 trillion?

“I’m only assessing it based on the data, so I can’t be certain.”

If I hadn’t seen the forecasts, I might have thought there was a possibility it wasn’t true, but…

I nodded again.

“No, this is sufficiently certain.”

***

Although it was still under review, OTK Company’s deposit was practically confirmed. Only the question of whether the amount would be 200 billion or more remained.

Hoseong Savings Bank openly leaked information to the media. Pro-government outlets published promotional articles as if they were just transcribing what they heard.

[OTK Company, Considering 500 Billion Deposit with Hoseong Savings Bank]

[Largest Deposit Amount in Savings Bank History]

[How Did a Regional Savings Bank Outperform Golden Gate?]

[Business Partnership Between OTK Company and Hoseong Savings Bank]

[Is Hoseong Savings Bank Poised to Become the Industry Leader?]

Once the articles were published, internet forums buzzed with activity.

– Doesn’t OTK Company operate on a different level than savings banks?

– What exactly does Hoseong Savings Bank do?

– It’s a bank run by the in-laws of the president. It’s quite famous in our area.

– It’s the second-largest savings bank. They have quite a few branches in Seoul.

– Is this due to the president’s influence?

– What’s with this reconciliation atmosphere?

– I was looking forward to Round 2 of President vs. Otaku, but I’m disappointed.

– Shouldn’t we hear from Kang Jin-ho’s side on this matter?

Media outlets sought confirmation from OTK Company.

However, surprisingly, Kang Jin-ho provided a completely different account.

“After a thorough review of various materials, we suspect accounting fraud and large-scale loan defaults. The exact scale of the bad debt is unclear, but we predict it will be significant. Consequently, OTK Company is indefinitely suspending transactions with Hoseong Savings Bank. Ah! If you have deposited more than 50 million won in Hoseong Savings Bank, we recommend withdrawing any excess amount as soon as possible. According to the Depositor Protection Act, only deposits up to 50 million won per person are protected, nothing beyond that.”

***

The evaluation of Kang Jin-hoo within Korea has been mixed.

Some view him as an exceptional financier or a century’s investor, while others see him as a financial speculator or a swindler.

The important fact is that, regardless of perspective, no one doubts Kang Jin-hoo’s insight into financial investments.

As a result, no one could ignore the rumors of bad debts at Hoseong Savings Bank. Everyone believed there must be a compelling reason behind Kang Jin-hoo’s remarks.

Though the exact reason was unknown, the answer was clear.

Once Kang Jin-hoo’s comments became public, customers began withdrawing their money from Hoseong Savings Bank en masse.

The internet banking system was overwhelmed by requests for deposit cancellations and withdrawals, causing the website to crash. It appeared that access was even blocked, as attempts to connect were futile over time.

Those anxious for their funds gathered at various branches even before dawn.

9 AM.

As soon as the doors opened, people rushed to the counters as if in a race.

“Our savings bank has no issues at all. Please remain calm and take a number to wait. We will assist you in order.”

Employees, along with the branch manager, made efforts to reassure customers, but to no avail.

“I want to close my account!”

“I was here first!”

“Stop shoving!”

“Give me my cash right now!”

“Process my request first!”

With the flood of customers, glass broke, chairs toppled, and chaos erupted.

As requests for account closures and withdrawals surged, money flowed out like the receding tide.

Ultimately, in less than an hour after opening, all branches closed, and Hoseong Savings Bank declared a business suspension.

***

Until yesterday, Hoseong Savings Bank was a solid institution. However, a bank run occurred, and it suddenly entered a state of business suspension.

While the reserve requirement varies by country, it is 7% in South Korea. Even banks with excess reserves rarely exceed 10%.

This means that if a customer deposits 100 million won, the bank may have less than 10 million won in its vault. Therefore, if a bank run happens, no bank can withstand it.

However, a single remark from Kang Jin-ho initiated a bank run at Hoseong Savings Bank!

The suspension of operations for the second-largest savings bank in the industry was a major shock.

Those who came to withdraw money abandoned both work and home, laying mats in front of the head office and branches, waiting aimlessly. They didn’t know when operations would resume but were determined to withdraw their funds as soon as the doors opened.

The issue spilled over into politics.

President Park Si-hyeong immediately convened an emergency cabinet meeting and made strong statements seemingly intended to address the situation.

“Groundless falsehoods have led to the closure of a solid savings bank. This is a grave criminal act that cannot be tolerated, and the consequences will fall squarely on the common people. The government will conduct an audit of the bank in question and will respond firmly using public authority against those spreading rumors that undermine financial stability and disrupt the financial market.”

Though not naming anyone directly, it was clear whom he was targeting.

His expression and voice conveyed anger, and the atmosphere of the meeting became tense.

Economic Deputy Prime Minister Lee Jun-il spoke in a calm tone.

“The government regularly monitors financial institutions and conducts audits. As a result, no issues have been found. Operations will resume as soon as the financial authorities conclude their investigation, so please feel at ease and continue your livelihoods until then.”

After the cabinet meeting concluded,

In tandem with the Blue House, National Assembly member Choi Myung-hwan of the Korean Justice Party criticized Kang Jin-ho in an agitated tone.

“Kang Jin-ho has incited public anxiety without providing any evidence, intentionally instigating a bank run. This is typical behavior of a speculator aiming to disrupt the financial market for personal gain. We must immediately detain Kang Jin-ho and thoroughly investigate what options OTK Company purchased and where they invested, confiscating any illicit profits and imposing penalties.

The opposition party adopted a wait-and-see approach, emphasizing that since most depositors are ordinary citizens, it is essential to quickly assess the situation and resume operations for Hoseong Savings Bank.

Chairman Min Jeong-joo expressed her regret towards customers through the media while pleading her innocence.

“I want to make it absolutely clear that Hoseong Savings Bank has no issues. Our employees are doing their utmost to resume operations, so please bear with us a little longer. I sincerely apologize for any distress we have caused our customers.”

Subsequently, she filed a complaint for obstruction of business due to the spread of false information, and the prosecutor’s office promptly assigned the case, summoning Kang Jin-hoo as a suspect.