Twenty days had flown by.
And finally, the anticipated results of the Indian general election came in.
"The Indian National Congress has won a major victory in the election and has formed a coalition government, naming Manmohan Singh as Prime Minister!"
"Now it's their turn to keep their promise."
"We've already received confirmation, but the Indian National Congress seems to be waiting for the right timing."
Timing was everything.
Success and failure often hinged on timing — especially for proposals that could stir public
sentiment, timing was absolutely critical.
"Then we'll just have to create the right timing ourselves. Announce that Taewoo Electronics will build a factory and a secondary raw materials processing plant in India. If we say we're investing around 10 trillion won, won't that create the timing we need?"
"You're really planning to invest 10 trillion won?"
"Of course, not all at once. We'll invest about 10 trillion won over ten years. That won't place an unbearable burden on Taewoo Group."
The chief strategy officer looked slightly concerned.
That was understandable. Most of the company's retained earnings had recently been poured into securing raw material mines — he was likely haunted by the specter of another financial crisis.
"We've got more than 3 trillion won in revenue this month alone. Even after taxes and expenses, we'll be able to retain at least 1 trillion won."
"I guess I was worrying for nothing. As I've gotten older, I tend to dwell on past hardships a bit too much."
"Just like before, I'll make sure you never have to worry about money when it comes to running the company."
Taewoo Group possessed more cash cows than it could count.
Its oil refining, credit card, and fund divisions were all profitable, and its many IT services
developed under Taewoo IT were steadily generating income.
As the SNS market grew, so did revenue.
And now that Cocoatalk had entered the internet banking sector, it was practically a bottomless well of cash.
"Any other reports?"
"CEO Park Man-deok of Taewoo Securities is waiting outside. He says he has something urgent to discuss with you."
"Then please step out. And remember — don't try to cut corners with our India plans. We're not just giving money away; we're investing in building factories. We'll get that money back."
"Understood."
The strategy chief stepped out, and Park Man-deok, the president of Taewoo Securities, entered the vice chairman's office.
He was one of the few people in Taewoo Group I truly trusted, and I warmly welcomed him — it had been a while.
"President Park, isn't it about time you visited the vice chairman's office again?"
"I can't just take up the vice chairman's valuable time. I try to refrain from visiting unless it's
something truly necessary."
"Then I assume today's matter is something truly necessary. What's going on?"
"Have you heard anything about BRICS?"
BRICS
A new term formed by the initials of five countries:
Brazil, Russia, India, China, and South Africa.
They were countries with vast territories and high growth potential.
"I'm well aware of BRICS. But why do you bring it up?"
"There's growing pressure at Taewoo Securities to invest in BRICS. I heard about your largescale investment plan in India, so I came to seek your advice."
"What's your take on it, President Park? Do you think it's worth investing in BRICS?"
"I think it's a market with too much risk. High risk can mean high return, but in my opinion, the returns won't be that great either. Yet many employees at Taewoo Securities want to invest in BRICS, so I'm unsure what to do."
President Park Man-deok was as trustworthy as ever.
BRICS has been the hot topic among emerging markets since last year.
Like investing in undervalued stocks, investors naturally want to invest in undervalued emerging markets.
But BRICS wasn't a good place to invest.
These countries had too many unpredictable variables, and if a major economic crisis hit in a few years, the growth of these emerging markets would freeze.
"Do as you see fit, President Park. Ultimately, you're the one who has to bear responsibility."
"I have been pushing forward, but with BRICS-related reports flooding in every day and other securities firms racing to launch BRICS funds, I'm confused. I even feel like Taewoo Securities might be falling behind because of me."
BRICS funds.
A very catchy name to attract investors.
But 80 to 90 percent of BRICS funds had suffered huge losses, and even the successful funds barely made a 2% return.
If other firms want to jump into the fire, no need for us to follow them blindly.
"What's the annual return rate on the funds Taewoo Securities has launched?"
"From about 10% on the low end to close to 20% on the high end."
"Have any of the funds lost money?"
"Since we operate the funds according to your instructions, Vice Chairman, none have lost money so far."
"Taewoo Securities has never lost money on a fund since the foreign exchange crisis. There's no reason to invest in the risky emerging markets of BRICS. Even without investing there, we are already catching both stability and profitability."
Having said this, President Park would block the launch of any BRICS fund.
Still, seeing his uncertain expression, I delivered one decisive line.
"It will fail."
"What do you mean by that?"
"The BRICS funds are doomed to fail. For an emerging market to develop, it needs massive
investment, but few companies or investors are willing to put money into unstable markets."
"But I heard you're making a huge investment in India, Vice Chairman."
"That sounds a bit exaggerated. It's not a huge amount, just enough to show sincerity. Even if we invest about one trillion won a year, it won't make any real impact on the development of the emerging market."
To revive an emerging market, you'd have to pour in at least 100 trillion won.
Even with such an astronomical amount, success was uncertain. Whether the money actually went into building infrastructure or ended up lining someone's pockets could make all the difference.
"Do you really think the BRICS funds will fail, Vice Chairman?"
"It depends on how the funds are structured, but I doubt they'll even make half the return of the funds we currently operate."
"Thank you. I think I've finally gotten a clear idea."
"Where do you plan to focus investments?"
"I intend to keep investing in IT company stocks in the U.S. and Korea, like now."
Park Man-deok had a good eye for the market.
I shared a piece of news that might be helpful to him.
"For the next two to three years, investing in IT companies will definitely not lead to losses."
"Do you think the situation will change after three years?"
"I have a vague feeling that an economic crisis cycle might hit around then. I'll need to observe Wall Street's and the market's reactions more closely before I can say more."
"I'll keep that in mind. Then I'll structure the funds to have a two-year maturity and sell them."
He was a very quick learner.
Unlike Woo Sung-il, Park Man-deok was very suitable for the CEO position at Taewoo
Securities.
Of course, once Team Leader Han returns to Korea, he'd have to step aside, but if he keeps
performing like this, Park Man-deok could rise even higher.
***
A few days later.
Dimon visited Korea after a very long time.
Officially, it was to inspect the foreign exchange bank under the fintech bank, but in reality, it was a visit to meet me.
"Bank President, how have you been? Your face and presence radiate such dignity since we last met."
"Hoo! Even if you're joking, please don't say that. I really miss the days when I used to hang out in Myeong-dong. Wearing a tight necktie all day and meeting high-ranking elders is really wearing me down."
Dimon roughly loosened his tie.
Since it was Captain Kang's office, he practically lived in, his body and mind relaxed here.
"Is this place more comfortable than your home?"
"I'd love to move Captain Kang's office to Silicon Valley if I could."
"Have you been catching up with Captain Kang separately? What's the real reason you came to Korea?"
Dimon slumped down on the sofa.
But when I asked the main point, he immediately straightened his posture, and his eyes changed in an instant.
"The situation is unfolding just as you said, CEO."
"You mean the U.S. real estate situation?"
"The U.S. real estate market is completely insane right now. It's one thing for ordinary people to go mad, but even experts and bankers have lost their minds!"
Dimon twirled his finger in circles, describing the current U.S. real estate market in one gesture.
"Can you tell me how insane it really is?"
"They're giving unlimited loans even to people with low credit ratings, the subprime borrowers."
"That alone isn't enough to say it's crazy."
"There's more. Now they just lend money if you simply declare your income and assets. Even if you lie and write your income as 1 billion won on the loan documents, they don't even check!"
Anyone who's applied for a bank loan knows this.
You had to go through strict procedures, bringing proof of income and assets to get approved.
But now, U.S. banks have no such procedures.
They just hand out loans as long as you fill in the income and assets on the documents, however you like.
"Is that all there is?"
"What else could there possibly be at this point?"
"The banks now see mortgage loans as golden geese that lay golden eggs. So wouldn't they want to lend to as many people as possible? Soon, loan products that require nothing at all will be introduced."
The so-called NINA loans.
No Income, No Asset.
Loans are given without asking about income or assets.
"Even if the banking sector is crazy, would they really come up with such loan products?"
"You said it yourself — they're swept up in madness. When blinded by madness, even
irrational things get done."
"No matter what, surely they can't approve loans without even the minimum procedures..."
"Do you know what happens if it gets even crazier? Loans can be taken out using the name of a deceased person. As long as the name exists, you can get a mortgage loan."
"Surely not that far."
"Oh! Later on, you'll even be able to get loans under a dog's name."
There was a movie about the subprime mortgage crisis.
Based on true events, it showed cases where mortgages were taken out in dogs' names.
It was literally madness.
A reckless game is played by banks obsessed only with money.
But what's worse is that nobody called out the banks for their reckless antics.
That was an even bigger problem.