Due to a mistake by Nishida Securities, Toyota shares held by Japan's public pension fund were sold off entirely at 1 yen per share, drawing worldwide attention to the situation.
Several institutions were lucky enough to successfully buy hundreds of shares at 1 yen. Even that alone was hundreds of thousands of dollars in profit.
But one single place took 14.97 million shares!
Who on earth took that huge volume all at once?
Not long after the stock market closed, an article came out.
[(Breaking News) Toyota Stock, 14.97 Million Shares. Estimated to be Acquired by OTK Company]
[(Urgent) OTK Company Becomes Largest Shareholder of Toyota for Just 14.97 Million Yen]
[OTK Company, No Statement Yet]
[Accident Due to Fat Finger. Compensation Procedures?]
[Is Order Cancellation Possible?]
[Kang Jinhoo Must Express Intention to Return Shares After Shock…]
The whole world was stunned, and Japan was thrown into chaos.
– What? OTK Company took it?
– No way!
– Damn it! Why does it have to be that Korean, Kang Jinhoo?
– That's the Japanese people's money! Return it immediately!
– Can't Toyota just eliminate those shares and issue new ones?
– It's not that simple. If that were possible, who would buy stocks?
– The Japanese government must respond strongly!
– If they don't return them, we should even consider war with Korea!
– Let's take this opportunity to reclaim Takeshima, our land!
Korea, on the other hand, was turned upside down in a different way.
– Oh sh*t! Amazing! No, I'm already blown away!
– Wow! Kang Jinhoo ripped off 2.3 trillion yen from the Japanese public pension fund?
– LOL, every time something happens in the financial world, it's Kang Jinhoo. Japan is totally screwed.
– LOL, this guy is really crazy. He's not human. He's superhuman.
– 25 trillion won! How much more money is he going to make?
– Wow! I've been in stocks for 20 years, and I've never seen anything like this.
– Hey there, young man. I've been in stocks for over 50 years, and I've never seen anything like this either.
– What happens now? Do we have to return it?
– Of course, we have to return it. This is no different from Kang Jinhoo illegally acquiring the Japanese people's assets.
– Why on earth is Kang Jinhoo taking Japanese stocks? Apologize quickly and return them!
– That's right! It's illegal, so return it according to the law.
– Huh? According to the law, we don't have to return it.
– LOL, since it happened in Japan, we can just follow the Japanese Supreme Court precedent.
– When in Rome, do as the Romans do, and in Japan, follow Japanese law.
– As long as it's a normal transaction, there's no obligation to return it. The one who made the mistake is at fault.
– Reminds me of Hansoo Securities' bankruptcy.
– If we return it, the Japanese will just get spoiled.
– We shouldn't give special treatment only to Japan.
– Tell them we won't return even a single share~
***
When it was revealed that we had gotten 10 percent of Toyota stock for free, the whole world was in shock.
OTK Company was also in chaos.
As soon as I returned to the office after meeting Hyunjoo Noona, Senior Manager Sangyeop, Michael Lee, Team Leader Seo Sangwon, and Team Leader Jung Gihong all rushed into the CEO's office.
After listening to my explanation, they all wore dumbfounded expressions.
I pointed at Taekgyu and said.
"Don't misunderstand. It wasn't me this time. He's the one who did it."
Taekgyu nodded.
"That's right. It's all thanks to me."
Team Leader Jung Gihong's eyes sparkled.
"A-as expected of the Deputy CEO. I respect you."
Then, he muttered to himself, "I will follow you for life."
Senior Manager Sangyeop said.
"Calls are pouring in from everywhere. What should we do?"
He uses honorifics when other employees are around, unlike when it's just us.
"Don't answer them. Just unplug the phone lines."
My own phone was also ringing non-stop like it was on fire. I had only briefly talked to my mother and then turned it off completely.
It's a complete mess.
I said to Team Leader Seo Sangwon.
"Check the unfolding situation and report to me every 30 minutes."
"Understood."
He suddenly chuckled in disbelief.
"What's wrong?"
"No, it's just that I remembered something you said to me in the past, CEO."
"What did I say?"
"You said that looking at the things we'd do in the future, winning the X-Cop bid by a $100,000 difference would be nothing."
I remember now.
In the X-Cop bid, OTK Company outbid Eunseong Motors by $100,000 and won the contract. The company suspected that the bid price had been leaked, and Team Leader Seo Sangwon was treated like a traitor.
When I brought him to OTK Company, rumors circulated for a while. That he leaked the information and got a position as a reward.
But now, no one brings up that story anymore.
Compared to buying 14.97 million Toyota shares for 14.97 million yen, winning a $290 million deal by a $100,000 difference is just child's play.
"How's the atmosphere among the employees?"
"They are surprised but also happy. No employee dislikes it when the company makes money. There's also some resentment towards Japan for constantly messing with our company recently."
He chuckled, and something came to mind.
"Ah! How's Yuri doing? Is she doing well?"
Shin Yuri joined OTK Company at the end of last year and is currently learning the ropes under Team Leader Seo Sangwon. She's so busy that it's hard to even see her face at the office.
"She's doing well. She's smart, probably because she takes after Vice Chairman Shin Byeong-doo. I'll train her hard so she can carry her weight."
I nodded.
"Don't go easy on her. Train her rigorously."
If she's going to be in charge of investments for OTK Company later, she needs to learn well from now.
***
The Japanese financial regulatory authorities investigated the transaction history and immediately began analysis.
As soon as the order error occurred, institutions noticed and rushed in like hyenas trying to snatch rotten meat.
About 2,000 shares were executed first, and the orders from OTK Company and Nomura Securities came in almost simultaneously.
The buy order entered by OTK Company was for 14.97 million shares. And the buy order entered by Nomura Securities was for 10 million shares. OTK Company's order, which was for 4.97 million shares more, was processed first, and Nomura Securities took the remaining shares.
If they were just 0.001 seconds faster, or if their order volume was just 5 million shares more, Nomura Securities' order would have been processed first.
In that case, the Japanese government would have been able to cancel the order and take recovery measures without much difficulty. But because OTK Company's order was processed first, this whole mess happened.
I clicked my tongue.
"You were really lucky. How fast did you press that key?"
Taekgyu grinned.
"Heh, it's thanks to the dynamic vision and finger skills I honed playing Tekken since high school. Fast command input is a prerequisite for victory, isn't it?"
"..."
Ah, so that's what it was? Using skills learned from Japanese games against Japan.
This wasn't just about pressing a button randomly. Was it thanks to stacking up coins at arcades and playing Tekken that we were able to make 2.3 trillion won?
I'm glad I left it to him. What would have happened if I hadn't gone to the bathroom then?
Nomura Securities took the second largest volume after us. They succeeded in buying about 2,000 shares.
Nishida Securities requested the return of shares from the securities firms that bought Toyota stock.
Japanese securities firms, including Nomura Securities, all expressed their intention to return the shares. However, foreign securities firms and funds remained silent, and some refused to return them or replied that they had already resold the shares and no longer had them.
Anyway, the shares they took are not even that much. The important thing is us.
Requests for share returns were already pouring in from Nishida Securities and the Japanese public pension fund. Some representatives even rushed to our company directly.
The situation at both their headquarters must be a sight to behold.
"What will happen to Nishida Securities?"
"The public pension fund will probably file a claim for damages."
The public pension fund is not entirely without responsibility for how things turned out. However, the primary responsibility lies with Nishida Securities, so they have to compensate for the losses incurred on their client's assets.
"Can they even afford to pay that?"
"They're practically bankrupt."
"Bankrupt because of one employee's mistake?"
"Things like that happen sometimes. Hansoo Securities was like that too, you know."
The Barings Bank collapse is the most representative example.
Barings, a British investment bank with a 200-year history, went bankrupt because Nick Leeson, who was in charge of futures and options trading at the Singapore Exchange, incurred losses and hid them.
The money he lost was a whopping 830 million pounds!
But Nishida Securities lost 10 times that amount. This was more than double Nishida Securities' market capitalization.
"Want to hear a funny fact? Japan's public pension fund is the second-largest shareholder of Nishida Securities. They hold a 14 percent stake."
Taekgyu burst out laughing.
"If they file a claim for damages and Nishida Securities goes bankrupt, they'll lose even more."
"Exactly."
I looked out the window.
Reporters from both domestic and international media were camped out in front of the main gate. Broadcast vans were blocking one lane of traffic as if they were a barricade.
They kept grabbing employees coming and going and trying to interview them.
"It's time to release a statement."
I called the reporters into the lobby.
Employees set up a photo line and placed the Japanese reporters in the front row, followed by Korean reporters, and then foreign reporters behind them.
After the press conference preparations were complete, I went down to the lobby.
As soon as I stepped out of the elevator and started walking, camera flashes went off incessantly. I stood at the prepared podium and said.
"It has been confirmed that OTK Company acquired 14.97 million shares of Toyota stock."
As if waiting for this moment, questions poured in.
"How did you know to buy the shares?"
"Did you have inside information beforehand?"
"Were there any problems in the acquisition process?"
"We understand that Nishida Securities and the public pension fund have requested a return. When will you return them?"
I answered the questions.
"We are reviewing all possibilities."
"What review is needed?"
"Are you trying to delay the return and buy time?"
Japanese reporters asked questions as if it were a given that we should return them, as if it was a foregone conclusion.
Says who?
"If I arbitrarily return the shares and cause losses to other shareholders, wouldn't that be a breach of trust?"
My words left the Japanese reporters looking dumbfounded. Because the other shareholders are just two people.
An NHK reporter said.
"Since it was an accident due to an order error, shouldn't you obviously return them?"
I asked calmly.
"Who can judge whether it was a mistake or a normal transaction?"
The NHK reporter asked again, as if bewildered.
"Then, are you saying that selling 150,000 yen shares for 1 yen is not a mistake?"
"It's highly likely to be a mistake."
"Then, of course…?"
"But who in the stock market doesn't make mistakes even once? Mis-entering the price or quantity, or entering buy and sell orders in reverse. How many shares are traded by mistake in the stock market in a single day? If we had to return them all every time, could proper trading even take place?"
"OTK Company made a profit of 2.3 trillion yen from that transaction!"
"If we have to return it because we made a profit, let's consider the opposite case. If Toyota goes bankrupt tomorrow and the shares bought for 1 yen become 0 yen, will you compensate OTK Company 14.97 million yen then?"
"That doesn't make any sense!"
"Then, shall we talk about something that makes sense? Let's assume I mistakenly entered a price of 160,000 yen and bought 14.97 million shares. If I ask for the return of the difference of 10,000 yen per share, totaling 149.7 billion yen, will you compensate for the difference? Can the Japanese government promise to compensate all investors who mistakenly sell stocks cheaply or sell them expensively in the Japanese stock market from now on?"
"Th-that's…"
The conclusion is that there is no clear standard to distinguish between a mistake and not a mistake. Well, in this case, anyone can see it's a mistake.
A Sankei Shimbun reporter shouted.
"That's the Japanese people's retirement assets! Whether it's a mistake or not, the act of taking it is no different from theft or looting."
"OTK Company must act responsibly!"
"The international community is watching."
"Are you considering the negative impact this matter will have on Korea-Japan relations?"
As other Japanese reporters chimed in, the Sankei Shimbun reporter raised his voice even louder.
"Don't you have any apologetic feelings towards the Japanese people?"
"Apology?"
I tilted my head as if I didn't understand.
"Japan made the mistake, so why should I apologize? People should have a sense of shame. They should know how to be ashamed of their mistakes, keep their promises, and follow the law."
At that, the questioning reporter's face flushed red with anger.
"Are you saying that to the Japanese people?"
Other Japanese reporters also got angry all at once.
"Is that your official position as CEO of OTK Company?"
"Are you insulting Japan right now?"
"Apologize immediately for your rude remarks!"
I shook my head.
"That's not my opinion, but a statement made by Chief Cabinet Secretary Hayashi when Korea demanded compensation for the Hansoo Securities incident."
I thought it would be fitting to say it once in this situation.
I looked around at the reporters and continued.
"The Japanese Supreme Court has already concluded that there is no need to return or compensate for profits gained from order errors. And Chief Cabinet Secretary Hayashi said that Korea must respect the judgment of the Japanese court. I will respect the judgment of the Japanese court. That's all."