Foreign Minister Okamoto had to turn back without even entering the OTK Company headquarters.
As the car departed, the protesters who had been demanding an apology in front of the building all applauded in unison, and the victims wiped away tears. Kang Jin-hoo bowed deeply to them before going back inside.
This scene was captured by cameras and broadcast worldwide.
News outlets poured out articles:
[Foreign Minister Okamoto Humiliated in Front of OTK Company Headquarters]
[Kang Jin-hoo Says He Will Not Return a Single Share]
[Blue House, No Reason to Meet with Foreign Minister Okamoto]
[Comfort Women and Forced Labor Victims Demand Apology from Foreign Minister Okamoto for Abusive Language]
[Kang Jin-hoo's Diplomatic Blunder. Damages Korea's National Image]
[Growing Voices Calling for Our Government to Apologize]
[Negative Impact of Kang Jin-hoo on Japan-Korea Relations?]
[Diplomatic Disadvantages the Korean Government Will Have to Bear?]
While some conservative media outlets, such as Chosun Ilbo and Joongilbo, expressed serious concerns about the worsening Japan-Korea relations, most reactions were of relief and satisfaction.
- lol that crazy bastard.
- Kang Jin-hoo dissed Korea, China, and Japan. Triple Crown achieved!
- At this point, we have to acknowledge his all-rounder trashing hat-trick.
- This time, I approve of the good trashing.
- Kang Jin-hoo's guts are amazing! I feel so relieved just watching.
- Even if Okazaki comes and begs on his knees, don't return it.
- Diplomatic blunder my ass. Isn't it the fault of the guy who showed up uninvited?
- Kang Jin-hoo is a civilian, not a public official, what is the government supposed to do?
- OTK Company is an American company, why should the Korean government bear the diplomatic disadvantages? If you want to complain, go to America and complain to Lord Ronald.
- Who is it? Who is voicing that our government should apologize?
- Those pro-Japanese bastards are possessed by evil spirits, evil spirits!
***
I went over to the Golden Gate Korean branch with Taek-gyu. noona Hyun-joo and Ellie were waiting together.
They both looked exhausted from the recent series of events.
"noona, did you have a good lunch?" Taek-gyu asked.
Hyun-joo noona shook her head. "No."
"Why didn't you eat?"
"Do you think I'm in the mood for food right now?"
"I had a sandwich," Ellie said.
"Good job."
Her beauty is shining even today. I can't wait to get off work and go on a date.
As we sat down, Hyun-joo noona said, chewing on a nicotine gum, "Foreign Minister Okamoto went back."
"I guess he still doesn't think he's short on time."
"Are you really going to do it?"
"Of course."
OTK Company's account holds 14.87 million shares of Toyota stock. Even if we are not legally obligated to return them, it is difficult to continue holding these shares.
Even if we hold the stock, we cannot realistically exercise management control over Toyota. The Japanese government will not stand idly by.
In the end, there are two options: sell them somewhere, or negotiate with the Japanese government and return them.
"The Japanese government also knows well that it will be difficult to get everything back. Word is starting to circulate that they want to negotiate to return about 70 or 80 percent."
Returning only 70 percent would mean officially recognizing ownership of the remaining 30 percent. That alone is roughly 700 billion yen.
This is still a profitable deal.
If the Japanese government succeeds in getting the shares back, Prime Minister Okazaki and the Liberal Democratic Party will breathe a sigh of relief, and their approval ratings may recover.
"If I return 10 million shares, will they thank me for returning this much, or will they later complain about not returning the 4.97 million shares?"
Taek-gyu said as if it was obvious. "When have the Japanese ever kept their word?"
"Right, I thought so."
Considering what they've done so far, it's not right to just end it like this. It's a good opportunity, it's a shame to let it slip away.
Hyun-joo noona asked, chewing on her nicotine gum, "What did Ronald say?"
I recalled the previous phone call. "He told me to take it easy."
"That's practically permission."
If Ronald was concerned about Japan's position, he would have mediated for us to return the shares at a reasonable level. The fact that he didn't means he doesn't care what we do.
The weak yen was achieved with the US's consent. Back then, the US and Japan's export items did not overlap, and there was a need to check the Chinese economy.
Now, with the US also focusing on manufacturing and exports, there is an atmosphere that they will no longer tolerate the weak yen. However, Prime Minister Okazaki continues to push for a weak yen.
From Japan's perspective, if exports collapse in a situation where the fiscal deficit is increasing and the domestic recovery is slow, there is a high risk of the Japanese economy collapsing again.
Hyun-joo noona said, "Either way, the US was planning to deal with Japanese automakers. Talk of imposing tariffs is starting to surface. They have no reason to stop you if you're the one to strike first."
CarOS is cooperating with GM and Ford, and auto workers are Ronald's most important supporters. However, the Japanese government and Toyota launched a smear campaign against CarOS worldwide.
Although he didn't mention it directly in the call, I felt confident that if I moved, the US would also support me.
"By the way, doing this will get us criticized again." Taek-gyu said.
"We've already been criticized enough anyway."
"That's true."
Getting criticized a bit more here won't change much. But I don't intend to be criticized alone. If we're going to get criticized, we should all get criticized together.
I repeated Karl Marx's famous quote, "History repeats itself, first as tragedy, second as farce."
Taek-gyu added, "There's also a saying that slaves stab twice."
I don't know where that saying comes from, but it's a very good one.
The clock hand was slowly pointing to 12:30. It was time for the Nikkei afternoon session to open.
I clapped my hands lightly and said, "Shall we begin?"
***
Government Pension Investment Fund (GPIF) of Japan.
With managed funds exceeding 1,500 trillion yen, it is one of the world's largest institutional investors.
After the order error occurred at Nishida Securities, protests poured in from all over Japan. Who would be happy when 2.3 trillion yen of retirement funds were lost?
In fact, this was an accident that should never have happened if the manual had been followed.
If operations had been entrusted to several securities companies as before, even if an accident had occurred, the losses would have been limited. However, this incident happened because the operational authority was concentrated in one place, Nishida Securities.
Nishida Securities President Okuta apologized, disciplining the employee who made the mistake and promising to rectify the situation as quickly as possible. However, no matter how deeply he bowed his head, the problem was not solved. If they fail to recover the shares, bankruptcy will be difficult to avoid.
There are more than a few people who will have to take responsibility. Some rumors circulated that if the problem grew, even the Prime Minister would have difficulty retaining his position.
Chief Investment Officer (CIO) Namiki Koji desperately hoped that Kang Jin-hoo would change his mind and return the shares.
No one can ignore Japan's power. If we negotiate well, can't we get the shares back?
But...
12:30 PM.
As soon as the Japanese stock market opened, sell orders for Toyota shares poured in. Sell orders for tens of thousands of shares were pouring out at once, as if bombs were dropping.
The selling bomb dropped from the Golden Gate account pulled down the entire Nikkei index.
The sudden situation shocked the Japanese financial world.
There was no need to even figure out who was selling.
"This crazy bastard. He's going to sell those shares on the market?"
There's no fighting against volume. The stock price, which had been hovering at 143,000 yen, fell more than 10 percent in less than 5 minutes.
As the price was much lower than the market price, buy orders poured in from everywhere, but the selling pressure did not stop.
If they had sold in a block deal, they could have received a higher price than selling on the market. But why are they selling at such a bargain price on purpose?
'Why…?'
At that moment, something came to mind. Today was none other than options expiration day.
"Where did they buy futures and put options?"
Namiki quickly reviewed the transaction history of futures and options.
They were bought not only from Golden Gate but also from accounts at various securities companies. But upon closer inspection, traces of continuously selling futures and buying put options were visible.
Who could this be?
'What if they dump all the remaining shares at the market close?'
It wasn't just one person who noticed the situation.
Fear instantly engulfed the Japanese stock market.
***
Pension funds tend to be index funds, which track indices and hold top market capitalization stocks in proportion. However, Toyota shares, which they should have held the most of, disappeared due to an order error.
In this situation, when sell orders poured in, the public pension fund had no choice but to buy them back, weeping and gnashing their teeth.
Investors' attention was focused on the Tokyo Stock Exchange.
Stock price volatility increases on options expiration day. If Kang Jin-hoo is determined to attack, how much more can he increase volatility?
Investors stared at their monitors, frantically placing orders.
"They're not thinking of selling all 2 trillion yen worth of shares in just one day, are they?"
"Are they planning to take profits in derivatives while taking losses in spot?"
"Even so, the spot losses would be much larger."
"But the purchase price is only 14.97 million yen. So, they don't care if they take a loss, do they?"
Around 2 PM Japan time.
An emergency announcement was made in Washington D.C. Citing national security, tariffs would be imposed on imported automobiles and parts under Section 232 of the Trade Expansion Act. The expected tariff rate was as high as 20 percent.
It was clear who this announcement was targeting.
Investors around the world instantly grasped the situation.
"Kang Jin-hoo doing this means the US won't mediate?"
"The Ronald administration no longer intends to tolerate the weak yen!"
"The Japanese stock market will be tough for the time being."
The driving force behind the Japanese stock market's rise so far has been the weak yen. But if the weak yen ends? Naturally, the profits of export-oriented conglomerates will decrease, and the stock market will inevitably fall.
You don't stay on a sinking ship. Even if you get back on later, you have to get off for now. Before everyone could even finish their assessment, their fingers were drumming on their keyboards.
***
Activist hedge fund, Albert Management.
Founder and Chairman Albert Carl Singer was notorious as a speculator who only knew money. Warren Buffett openly criticized him, saying that what he does is no different from a vulture tearing apart corpses.
As much as that, he was reckless and unscrupulous for profit. Even he had to retreat after suffering heavy losses when he faced Kang Jin-hoo in the Korean market.
Carl Singer watched the plunging Japanese stock market and said, dumbfounded, "I've never seen a bastard worse than me."
***
As sell orders for Toyota shares poured out on the Tokyo Stock Exchange and the Nikkei plummeted, Japan was thrown into chaos.
Prime Minister Okazaki, who was out of office, returned to his official residence as soon as he heard the news.
"What is the pension fund doing?"
Finance Minister Matsukata replied, "We are doing our best."
The public pension fund began to defend stock prices by mobilizing not only domestic stocks but also cash for investment in foreign stocks, real estate, and bonds.
"Mobilize every possible method! Request cooperation from securities companies!"
Finance Minister Matsukata said, sweating profusely, "Th-that's… not only foreign companies, but Japanese securities companies are also joining the selling."
"What?"
Prime Minister Okazaki turned his gaze to the monitor. Nomura Securities was listed at the top of the list of futures sellers.
When the US tariff policy was announced in this situation, even hedge funds around the world joined the selling. The pension fund was buying to defend, but it was like trying to stop a collapsing dam with your hands.
All of this was caused by a single person.
Prime Minister Okazaki could no longer contain himself and shouted, "Kang Jin-hoo, you son of a bitch!!!"
The Nikkei index, which started at 20835, closed at 19164, down 8.02 percent, recording the biggest drop since Brexit.