I was working when Taek-gyu spoke up.
"Oh! You're number 1 on the real-time search rankings right now."
"Huh?"
I couldn't count the number of times I'd hit number 1 on the real-time search rankings before. Not long ago, I even topped the list when I clashed with the Ministry of Gender Equality and Family over the game regulation issue.
But there haven't been any major issues lately, have there?
I opened a portal site.
[Fantastic Investment CEO Park Ho-jin Announces Last Year's Returns Surpassed Kang Jin-hoo's]
[Fantastic Investment: Growing into the Next OTK Company?]
[Unlike OTK Company, Incorporated in a Tax Haven, Fantastic Investment is a Homegrown Korean Investment Firm]
[Young Investor Park Ho-jin: What's the Secret to His Success?]
[Startup Investment Whiz Park Ho-jin Invests in Various New Industries Poised to Lead the Future]
[Park Ho-jin Posts Bugatti Photo at Dawn on Facenote with Sentiments: 'If you sleep, you dream, but if you don't sleep and strive, you achieve your dreams. I won't stop today either, aiming to surpass OTK Company within 5 years'...]
Taek-gyu, who had been lying on the sofa, shot upright.
"Gasp! Park Ho-jin just snatched the number 1 spot from you! Are you just going to let that happen?"
"..."
What was I supposed to do?
I clicked on a few articles and read them.
Park Ho-jin, known for taking a leave of absence from a prestigious university to make money in stock trading, established an investment company called Fantastic Investment.
He began to seriously make a name for himself starting the year before last.
He appeared on Korea Economy TV, one of the cable economic channels, as an expert in over-the-counter (OTC) stocks. He gained fame by consistently posting photos on SNS of his lavish Cheongdam-dong mansion and supercars, including a Bugatti, which eventually led to appearances on entertainment shows.
As he became famous, viewership for his investment broadcasts soared, and the media hyped him up even more. Now, just posting a photo or saying anything on SNS was enough to become an internet news article.
The media enthusiastically promoted him as a self-made genius investor or the next Kang Jin-hoo.
Taek-gyu, looking over the articles with me, couldn't hide his surprise.
"Wow! There was such a fantastic investor in Korea? He looks like he'll catch up to Kang Jin-hoo soon."
He mainly invests in unlisted companies.
Unlike listed companies on KOSPI or KOSDAQ, trading unlisted companies isn't easy.
Of course, there are OTC exchanges specializing in trading these companies' stocks, but the convenience of trading doesn't compare to listed stocks.
Listed companies disclose sales, operating profits, financial status, etc., and undergo regular audits. However, unlisted companies are free from such obligations.
Therefore, accurate valuation is difficult, which tends to undervalue their stock prices. But looking at it differently, if you can pick out the hidden gems, it means you can achieve returns incomparable to investing in listed companies.
"Looking at it this way, it's similar to OTK Company's growth model, but there's one big difference."
At my words, Taek-gyu asked.
"What is it?"
"He takes investments from the general public."
To be precise, he's actively selling not only the unlisted stocks they hold but also shares of Fantastic Investment itself. For us, that would be like selling off stakes in CarOS or FaceIt, and OTK Company itself.
Park Ho-jin lured investors by claiming that once the companies go public, they could earn returns of at least tens of times, up to 1,000 times.
He frequently used OTK Company as an example. Indeed, we had achieved such returns through startup investments.
But....
Taek-gyu blinked.
"If there's stock that will rise hundreds of times just by listing, shouldn't he borrow money if needed and hold onto it himself? Why sell it to others?"
"Maybe he felt bad keeping it all to himself. Or maybe he's doing charity work."
OTK Company, which started with a mere 13.8 billion won in capital, is currently valued at over 1 quadrillion won. If someone had bought just 1 percent in the early days, they would have made over 10 trillion won. But we didn't accept any external investment, and we kept the equity amongst ourselves.
So, when someone establishes a similar type of company, and the media hypes them up as the next Kang Jin-hoo or the next OTK Company, do people just flock with their money?
"But they say he's been quite successful. Apparently, among the OTC stocks he recommended on TV, some went up over 30 times."
"Investment outcomes are ultimately one of two things: they go up, or they go down. It's like flipping a coin. If he recommends ten stocks, wouldn't it be stranger if one or two didn't hit?"
Just turn on an economic channel, and all sorts of investment experts are talking nonstop, 24/7, about stocks, real estate, and whatnot.
I don't know what these people actually do, but they all seem to have titles like 'Director' of some research institute. Director of the Real Estate Trading Research Institute, Director of the Stock Investment Research Institute, Director of the World Economy Research Institute, etc.
Are these real research institutes, or do they just call it that while studying off the internet at home?
You could see it as similar to health programs bringing in doctors or legal programs bringing in lawyers for opinions, but at least those people have medical or law licenses.
But investment experts have no way to prove their expertise. There's no way to verify if they really have skills or if they've actually made money investing.
What they say when they appear is predictable.
They recommend specific stocks or real estate, urging people to buy because they will rise. Surprisingly, these people have either already invested in the recommended stock beforehand or earn commissions from real estate brokerage.
If they're right, great; if not, oh well.
Broadcasting companies display disclaimers before and after the program to avoid liability: 'The expert's recommendation is solely their personal opinion, and we bear no legal responsibility for investment results based on the information provided.'
Among these experts, Park Ho-jin could be considered the biggest success story. I mean, he even shows his face on entertainment shows, right?
As Taek-gyu and I were talking while watching a video featuring Park Ho-jin, Sang-yeop sunbae came up to the CEO's office.
Hearing our conversation, Sang-yeop sunbae said.
"Ah, Park Ho-jin. I met him once."
"You did?"
"Ran into him by chance at some party. Shook my hand, said he respected me, that sort of thing."
"What did you think of him, Sunbae?"
To my question, Sang-yeop sunbae answered as if it required no thought.
"What do you mean, 'what did I think'? It was obvious he's a fraud. Successful entrepreneurs or investors usually have a certain charisma, an aura, right? You know the feeling?"
I nodded.
"I know."
"But he had none of that. I got curious and looked into the companies he supposedly invested in – never heard of them. And his behavior is more like a salesman than an investor."
"The media calls him the next Kang Jin-hoo, though."
Sang-yeop sunbae burst out laughing at Taek-gyu's words.
"That's just media play. Is he even comparable?"
Taek-gyu patted my shoulder.
"Right. No matter how much he boasts about his Cheongdam-dong mansion and Bugatti, compared to our Jin-hoo, he's practically underprivileged."
"There are many guys like him in Yeouido these days. They set up a small investment firm, then hold investment seminars and hover around broadcasting stations to gather people with money. You could probably assume 90% of them are scammers."
Whatever Park Ho-jin was doing didn't really concern me. It wasn't hurting me.
But Taek-gyu seemed to think differently.
"What are you talking about? Shouldn't we lightly crush a budding scammer?"
"It's annoying. Do we really need to?"
Taek-gyu grinned.
"It'll be fun."
"..."
Is catching scammers some kind of hobby now?
Taek-gyu called Team Leader Jung Gi-hong.
"Talk to the Golden Gate side and find out about Fantastic Investment and the companies they've invested in. Let's see if he deserves to beat Kang Jin-hoo for the number 1 trending spot or not."
***
OTK Company started as an investment firm and grew into a mega-corporation.
Before that, the world's largest investment firm was undeniably Berkshire Hathaway. However, OTK Company's current market capitalization is estimated to be double that of Berkshire Hathaway. What's more surprising is that this achievement was made in just a few years.
After OTK Company's success story became known, everyone dreamed of becoming the second or third OTK Company. Investment firms sprang up like mushrooms, and people calling themselves the second or third Kang Jin-hoo appeared.
Park Ho-jin was one of them. A previously ordinary stock investor, after seeing OTK Company's success, he used the money he had earned to establish Fantastic Investment and ventured into startup investing.
However, he lacked Kang Jin-hoo's insight. The companies he invested in collapsed within a few months, far from growing into unicorns. The stocks he bought were all on the verge of becoming worthless scraps of paper.
To avoid losses, he went around trying to resell the stocks he held. Of course, he promoted them not as companies about to go bankrupt, but as ones that would grow hundreds of times once listed. Surprisingly, many people wanted to buy the stocks.
This too was because of Kang Jin-hoo's success. When people see someone reach the top, whether in studies or sports, they assume tremendous effort and talent must be behind it.
But investing is different. Nothing looks easier than someone else making money. It seems like all you need to do is find a company like CarOS or FaceIt and put your money in.
From this point on, he began to walk the path of a full-fledged scammer. For a scammer, appearances are paramount.
He moved to a mansion in Cheongdam-dong and stretched his finances to buy a Bugatti. Then, through SNS, he boasted about it as the wealth gained from successful investments.
The media was also paying attention. The concept of a successful investor of a similar age to Kang Jin-hoo was exactly what all media outlets wanted.
After appearing on Korea Economy TV as an OTC stock expert, everything went smoothly. Virtually worthless stocks were sold off at prices tens or hundreds of times their value, based solely on his word.
He lived in a mansion, drove multiple supercars, and even dated a former idol group member model. He had seemingly achieved everything he had ever dreamed of.
The media eagerly reported his success, and Park Ho-jin confidently declared at various investment lectures and broadcasts:
"We will list Fantastic Investment on KOSDAQ within the year. The market capitalization is expected to be 3 trillion won. As the startups we are currently investing in get listed one after another, the future value of Fantastic Investment will increase to over 30 trillion won. Within 5 years, I will grow Fantastic Investment into a company that surpasses OTK Company!"
As Park Ho-jin's fame grew, unimaginable amounts of money rolled into his hands. And that money, in turn, further enhanced his reputation.
The media lavished praise, calling Fantastic Investment the largest Korean investment company born after OTK Company.
But such a situation cannot last forever. A scam is bound to be revealed eventually.
Park Ho-jin also felt uneasy. He thought he should wrap things up and flee soon and was starting to prepare.
Since he was committing fraud anyway, he figured he should grab as much money as possible.
So today, too, he gathered hundreds of people and passionately engaged in selling OTC stocks under the guise of an investment lecture.
"Fantastic Investment will soon begin selecting an underwriter for its listing. KYB Securities and several other securities firms are competing for this. Currently, Fantastic Investment is trading over-the-counter at 30,000 won, but the IPO price is expected to be 900,000 won. This is your last chance to become a shareholder of Fantastic Investment!"
People listened intently, their eyes shining. But suddenly, people started murmuring. Everyone looked surprised and pulled out their phones.
No one was listening to the lecture anymore. Someone raised their hand and shouted.
"Is it true that Fantastic Investment is a scam?"
"Excuse me?"
At that moment, everyone in the lecture hall stood up and shouted simultaneously.
"What? This was a scam?"
"You were selling us garbage stocks?"
"Give me back my money!"
Flustered, Park Ho-jin took out the phone from his pocket. On the news section of a portal site, an announcement from OTK Company's PR team was trending as breaking news.
[OTK Company is currently analyzing companies scheduled for listing for financial investment purposes. However, in the case of Fantastic Investment and several companies it claims to have invested in, they not only fail to meet listing requirements but also have a high probability of serious insolvency. As fraud is suspected, we urge investors to exercise extreme caution.]
Park Ho-jin was horrified.
'W-what? Why is Kang Jin-hoo paying attention to a small fry like me?'
***
Appearing on Korea Economy TV, Park Ho-jin spoke as if wronged.
"Fantastic Investment was scheduled to receive large investments from Chinese and Hong Kong investors. But all those investment plans have been canceled. How is this different from a large corporation trying to kill off a small-medium enterprise? But I will never give up. I will keep fighting, especially for the investors who believed in me."
Conservative media outlets, having accumulated grievances, published articles defending Park Ho-jin.
[Kang Jin-hoo Kicks Away the Ladder: Checkmate or Jealousy?]
(Excerpt) Compared to its rapid industrial development, Korea's investment culture has not properly matured. In foreign countries with developed investment cultures, it's common to see successful investors guiding junior investors.
Warren Buffett, in a book he authored, expressed concern that investors like himself might never emerge again in America.
However, Kang Jin-hoo's recent actions are the exact opposite. As if kicking away the ladder after climbing it himself, he cast baseless suspicions on a new investment company, putting it in difficulty.
At a time when the financial market is facing difficulties, ethical awareness as an investor is more important than ever. At the very least, trampling the reputation of a young investor just starting to make a name for himself out of rivalry or jealousy should never happen.
Unfortunately, public reaction was cold.
- Told you Park Ho-jin seemed like a scammer. Knew it when he started driving that Bugatti.
- LOL, talking about surpassing Kang Jin-hoo and all that.
- Wait, couldn't Kang Jin-hoo be wrong? Isn't he just trying to crush him because he feels threatened?
- What a petty move. Is he doing this just to hog everything for himself?
- What is this nonsense? Like Bill Gates pirating Windows or Warren Buffett getting investment advice from a brokerage newbie?
- In cases like this, Kang Jin-hoo is definitely right. I'd trust Kang Jin-hoo's word over 100 other experts.
- True. When it comes to money, Kang Jin-hoo is always right.
- For real. My grandpa curses Kang Jin-hoo as a North Korean sympathizer commie every day, but when OTK Company announces an investment, he scrutinizes the related stocks like his eyes are on fire.
- LOL, I bet my wrist that even the Parents' Association members rallying for Park Si-hyeong's release would all rush to the brokerage if Kang Jin-hoo recommended a stock.
- Whether he's a leftist commie or a right-wing fossil, I don't care. What's important is that he hasn't failed in an investment yet.
As suspicions grew, investors who had bought unlisted stocks based solely on Park Ho-jin's word flocked to his company demanding their money back.
In response, Park Ho-jin stalled for time, offering to exchange their holdings for Fantastic Investment stock.
With investor complaints flooding in, financial authorities launched an investigation. Despite this, Park Ho-jin continued to appear on broadcasts, pleading innocence and boasting that Fantastic Investment had no problems.
However, as the investigation intensified, he was arrested at Incheon Airport while attempting to leave the country for Singapore under the pretext of attracting investment.
Prosecutors indicted him under arrest for violating the Capital Markets Act.
The investigation revealed that his business plans were bogus, and asset sizes were exaggerated. The Cheongdam-dong mansion and the building used as his office were rented, and the Bugatti was leased. Even that had recently been parked because he couldn't afford repairs.
The fraud method was simple. He spread false information through broadcasts or lectures himself, then resold unlisted stocks bought cheap to investors at prices tens or hundreds of times higher, reaping unfair profits.
The media bore the greatest responsibility here. They introduced him as an OTC stock investment expert without even minimal verification.
People who had invested in Park Ho-jin after watching those broadcasts were devastated. Once he was arrested, the media outlets that had previously hyped him up collectively shut their mouths.
***
The number of victims exceeded 5,000, and the damages surpassed 100 billion won.
The OTC stocks Park Ho-jin sold off, claiming they'd hit the jackpot upon listing, were found to be worthless. They were companies likely to go bankrupt immediately, let alone get listed.
When victims demanded their money back, Park Ho-jin claimed he had no money due to asset seizures and made no repayments. Yet, he hired Jung & Kim, the nation's largest law firm, assembling an ultra-luxurious defense team of ten former judges/prosecutors turned lawyers.
This is one of the problems with financial fraud.
Victims worry about their livelihood due to lack of money, while the perpetrator hires elite former officials-turned-lawyers using the money they scammed. In effect, they're defending themselves with the victims' money.
Taek-gyu, looking at the arrested Park Ho-jin, said.
"First Gold Coin, Fantastic Investment... why are there so many scammers in this country?"
"Because Korea is lenient towards financial crimes."
This also has a lot to do with cultural differences. Developed countries tend to value trust highly. Therefore, they thoroughly hold accountable those who break trust. If damages exceed a certain amount, they might even impose life sentences.
But in Korea, even if you swindle over 10 billion won, you get out after a few years, and that's it. Some guys even hide the money after the scam and then turn themselves in. Turning oneself in reduces the sentence. After release, they live lavishly on the hidden money.
To prevent this, our country also needs to increase sentences for financial criminals. If you have to rot in prison for 20 or 30 years, what use are the billions waiting outside?
I shook my head.
"In a way, financial criminals are worse than murderers."
"A murderer kills one or two people at most, but a financial criminal ruins countless families and drives entire families to suicide."