At the moment the election results flipped,
Cheers from the Brexit-supporting voters echoed through the streets and squares.
“Wow!”
Boris Kane, seen as the leader of the Leave camp and former Mayor of London, shouted towards his supporters.
“The UK has gained independence from the EU and reclaimed sovereignty. It’s now the era of a united and strong UK!”
“Hurrah for Great Britain!”
“The UK is united!”
The Union Jack fluttered.
The Remain camp voters who were cheering moments ago now hung their heads in disappointment.
Someone muttered weakly,
“What on earth have we done?”
***
Across global financial markets, screams and cries erupted.
Analysts who had just been pouring out reports on EU integration and Andrea Lantry quickly switched gears to write reports on the economic shock and bleak prospects brought about by Brexit.
The moment the election results changed was around 5 a.m. local time, around 2 p.m. Korean time.
As the news spread before closing, the steadily rising Asian markets spiraled downwards.
Everywhere from Korea, Japan, China, Hong Kong, Taiwan, Indonesia, Malaysia, etc., there was a sea of red in the markets.
Financial firms who had placed long positions solely trusting in the UK staying in the EU sounded alarms.
Korean securities firms also moved swiftly, checking market conditions and losses. However, a small investment company in Yeoksam-dong felt differently.
Just a few minutes ago, Jung Gi-hong thought the company was finished. He was thinking about being unemployed from tomorrow and how to tell his parents.
This only happened because of his senior in the club… No, the CEO who had gone mad.
Otherwise, there was no way they would have completely emptied the company funds to buy put options in the global markets.
However, that was a misconception.
Unlike his foolish self, the CEO was actually looking several moves ahead!
“Sir! Did you anticipate this would happen?”
“…”
That was indeed a true misconception.
The CEO had no idea this would happen. He thought it was a disaster just like everyone else did. He had cried his heart out in the bathroom after speaking with the CEO of the parent company and returned with puffy eyes as evidence.
But now, the situation had changed.
Park Sang-yeop jumped up and shouted, “Wow!”
In response, all the employees also stood up and cheered.
“Hahaha!”
“This is incredible!”
The stock market plummeted, but the put options skyrocketed. The same situation would unfold in the upcoming European and American markets.
It was truly a global sweep of money in the stock markets.
Of course, the financial companies in each country that issued the options would incur losses proportional to what they earned. But who cared?
If they didn’t like it, they shouldn’t have issued those options in the first place.
The employees embraced each other and cheered. Park Sang-yeop turned his head and said, “Manager Jung!”
Jung Gi-hong promptly replied, “Yes, sir!”
“Immediately contact the real estate agents and check if there are any buildings for sale on Tehran Street!”
Although similar jokes had been made frequently in the past, this time it wasn’t a joke. He had bet a whopping 1.1 trillion won on the put options.
“How much profit can I make eventually?
Even if I don’t know, it would be enough to buy dozens of buildings in the Tehran area.
Park Sang-yeop looked at the financial company buildings visible through the window and was convinced. With today’s events, his name would be recorded in the history of the Korean financial industry.
“And names like Kang Jin-hoo and Oh Taek-gyu will be recorded in the history of the global financial industry.”
He couldn’t contain the overwhelming joy.
Is this what it feels like to be so happy that you might go crazy?
Park Sang-yeop shouted at the top of his lungs.
“All the financial companies in South Korea, go out! We won! We are the best in Korea!”
***
Golden Gate Asia Office.
Everyone looked in astonishment at one spot with work halted. Live coverage of the BBC’s election results was playing on the TV.
“Could someone turn up the volume a bit?”
Since Hong Kong was once under British rule, there were several British employees at the Asia office. They were speechless watching the election results.
Most British professionals in the finance sector had hoped for the UK to remain in the EU.
However…
“What? What is this?”
“This is unbelievable…”
Amidst the shocked atmosphere, only one woman cheered with open arms.
“Jessica! Did you see? Jin-hoo did it!”
Unlike Ellie, who was jumping with joy, Hyun-joo had no strength left to even move a finger. The effects of the alcohol she had earlier were kicking in, making her face flush, head spinning.
Hyun-joo took off her glasses and leaned back in her chair.
“I can’t live up to my reputation because of these guys.”
Within a day, it felt like ten years had passed, as if I had aged. I had a strong premonition that I wouldn’t live long, regardless of money or anything else.
“What are you doing? Contact Jin-hoo quickly!”
“I don’t even have the energy to dial the number.”
Elli said excitedly, “Then can I do it?”
“Go ahead.”
Hyun-joo closed her eyes, wishing she could fall asleep that way.
***
It was 7 in the morning local time, 4 in the afternoon in Korea. The Chairman of the UK Election Commission declared the Brexit vote passed with a 49.1 to 50.9 majority.
With a mere 1.8% difference, not even reaching one million votes, the fate of the UK and the EU was sealed. The aftermath was tumultuous as no one had anticipated such an outcome.
Asian stock markets that had been rising plummeted, followed by a cascade of crashes in European and American markets. The pound fell by 20%, while safe assets like the yen and gold rose by over 10%.
Surprised Britons tried to exchange their pounds for euros or dollars, but exchange offices in the UK closed down and withdrawals from overseas accounts were halted.
Ironically, the most bewildered by the result were the British themselves. The government that called for the referendum, politicians on both sides, and even both voters and non-voters couldn’t have foreseen such a situation unfolding.
As the day broke, Prime Minister David Holt took responsibility for the outcome and announced his resignation. The power shifted to the pro-Brexit politicians, who suddenly changed their stance.
It turned out that the hefty EU contribution paid by the UK was returning as financial support, unbeknownst to those who supported Brexit. Wales, for example, faced an immediate crisis with the imminent halt of support funds from the EU.
Once you withdraw, it was also a lie to say that you could send immigrants away and create jobs for British people. To engage with the EU single market and trade, one must comply with EU regulations. In other words, the movement of physical and human resources could not have been stopped from the beginning unless economic ties with the EU were severed.
As criticisms mounted, Boris Cain, the former Mayor of London leading the withdrawal camp, quietly announced he would not run in the general election, shifting blame elsewhere. Once again, it was reaffirmed that one should not believe politicians’ words regardless of their promises.
Realizing they had been deceived, citizens took to the streets shouting for the invalidation of the vote and demanding a re-vote, but it was already too late as the voting had concluded. Subsequently, the international situation turned unfavorably for the UK.
In Scotland where the Remain camp was dominant, calls for independence from the UK and rejoining the EU emerged, while London also strongly opposed the decision. Contrary to expectations that Brexit could trigger a split within the EU, member states rallied even stronger after observing the UK’s situation.
Rather than the expected breakup of the European Union due to Brexit, EU member countries closely watched the UK’s predicament and unified further. German and French leaders joined hands, urging a unified Europe and pressuring the UK to trigger Article 50 of the Lisbon Treaty.
Despite the bold declarations of withdrawal previously, the UK discreetly stepped back saying they would wait and see. Major financial institutions based in London hurried to move operations. Companies like JP Morgan, Morgan Stanley, and Cargill Group decided to relocate to Frankfurt, Germany, and Amsterdam in the Netherlands. Even British banks and private equity firms hastened preparations to leave London.
Golden Gate also announced plans to move a thousand of its London-based employees, out of the 5,000 total, handling intermediary duties to its office in Germany.
Financial company buildings in financial hubs like Wall Street lit up late into the night as employees monitored global stock, bond, and foreign exchange markets, busy finding strategies and predicting future trends.
Similarly, the Golden Gate Asia office in Hong Kong remained illuminated throughout the night, with staff engrossed in work unable to contemplate leaving. Chase Southwell stood by the window of his home office, overlooking Victoria Harbour. He had witnessed and experienced much since coming to this place, admiring the beautiful Hong Kong skyline.
Japan’s real estate bubble collapse, China’s growth, Hong Kong’s return to China, the Asian financial crisis, global financial crisis, and so on.
This place was no different than his other hometown.
Chase remembered the young Asian man he had met a few months ago. Until then, he had thought he could grow into a great investor in the future.
“I misjudged the person.”
The young man was already more than what he had imagined.
Breaking everyone’s suspicions and doubts, he moved forward for hope even in the most desperate situations.
Even when everyone said no, the young man remained convinced. And in the final moment, he did not retreat but poured out everything he had.
It is unknown why he made such judgments, where he found such courage.
However, in this world, the process is not important. Only the result matters.
OTK Company emerged victorious. It was truly a legendary victory that would be remembered in the financial industry.
Before long, the young man’s true identity would be known to the world.
“Is a new era opening?”
Today, the realization that he had aged hit him. If only he were 20 years younger, he could have been active in the upcoming era with him.
Chase now made a call to the young man who had become a legendary investor.
“Sincere congratulations, Mr. Kang.”
“[Thank you.]”
“I doubted until the end, but in the end, you were right.”
“[It was just luck.]”
“Everyone has luck. But it’s rare for someone to have the courage to hold onto it. I hope we can meet again soon.”
“[I feel the same.]”
The short call ended.
Next, Chase called his long-time friend and superior, James C. Goldman.
“I must establish a branch in Korea as quickly as possible.”
***
The financial market, which was in turmoil due to the bomb known as Brexit, quickly regained stability. Thanks to the strong determination of the Japanese government, the exchange rate, which had dropped to 99 yen to the dollar, rose to 104 yen, and the pound also temporarily rebounded successfully. In the meantime, we closed our positions and secured profits.
Thanks to global stock markets falling like dominoes, K Company made 48 trillion won in the derivatives market, increasing its assets to 59 trillion won. OTK Company also settled its positions in the foreign exchange market.
[30,170,000,000]
After paying substantial trading fees and interest on FX margins and repaying the principal and interest borrowed from financial institutions, we were left with 30.17 billion dollars, approximately 33 trillion won in Korean won, slightly less than three times the initial investment.
Taek-gyu, trembling, asked after confirming the amount, “Is this for real?”
“…”
I was speechless. FX margin trading is a zero-sum game. One’s gain is another’s loss. It was the result of depleting foreign exchange reserves of the UK and Japan and plundering global financial companies.
Was this too much even for us?
Taek-gyu tapped my shoulder and said, “Congratulations.”
“For what?”
“Now you are the wealthiest person in South Korea.”
The current wealthiest person in South Korea, without a doubt, is Chairman Lim Il-kwon of Seosung Electronics, with an estimated fortune of roughly 20 trillion won (not taking into account any hidden funds). The current assets of OTK Company amount to 45 trillion won. If combined with K Company, it totals 51 trillion won.
My stake accounts for almost 80 percent, which is around 40 trillion won.
“…”
If my mother finds out, she might faint.
Hahhaa