August 11, 1997.
After a weekend break, Seok-won returned to the office and sat with one leg crossed on the plush leather sofa in his CEO suite, watching CNN's satellite broadcast on the large TV across from him.
On the big screen, Henry Woo, Chief Executive of the Hong Kong Special Administrative Region, appeared, passionately addressing reporters with an impassioned expression.
"Our Hong Kong government has successfully defended against the massive sell-off of the Hong Kong dollar by greedy international currency speculators, relying on our abundant foreign reserves and firm resolve.
Today's victory was possible thanks to the citizens who endured the pain of short-term interest rate hikes and the shock of a plunging stock market while standing by the government.
Although the speculators have retreated, we cannot afford to let our guard down just yet. My administration and I will continue to closely monitor international currency market trends and respond immediately with appropriate measures.
So I urge all citizens to trust the government and remain calm.
Lastly, I want to make it clear here and now: all speculators attacking the Hong Kong dollar will face severe punishment and will ultimately leave the market with nothing but huge losses and failure to show for their efforts!"
Flush with confidence after the victory over the currency speculators, Chief Executive Woo spoke in a forceful tone, brimming with self-assurance.
Seok-won smirked slightly and muttered to himself,
"George Soros must be feeling pretty sore watching this."
Just then, Na Seong-mi knocked and stepped in to announce a visitor.
"Manager Choi from the Fund Management Department is here to see you."
"Let him in," Seok-won replied.
"Yes, sir."
Na Seong-mi stepped aside and gestured toward the interior.
"Please, go on in."
Choi Ho-geun, waiting outside, entered and gave a polite nod.
Seok-won picked up the remote and turned the TV volume all the way down, then gestured toward the empty seat with his chin.
"Have a seat."
"Thank you," Choi replied.
As Choi settled onto the sofa to Seok-won's right, Seok-won asked,
"What would you like to drink?"
"Oh, no need, I'm fine," Choi Ho-geun politely declined.
Seok-won glanced Na Seong-mi, standing by, and gave a small shake of his head.
"I'm not in the mood for anything either. You can go now."
"Yes, sir."
As Na Seong-mi quietly closed the door behind her, Choi Ho-geun stole a sideways glance at the TV still showing the CNN broadcast.
"You were watching Chief Executive Henry Woo's victory speech, I see."
"Victory speech... that's an accurate way to put it," Seok-won replied, leaning one arm on the sofa's armrest. Then he got to the point.
"So, what brings you here?"
Prompted by the question, Choi Ho-geun's face brightened slightly as he spoke.
"I've come to report that the profit settlement has been completed."
Seok-won, who had been waiting for this, straightened up with interest.
"Judging by that look on your face, I take it the returns turned out pretty well?"
With a confident smile, Choi lifted the file folder he had resting on his lap and offered it forward.
"See for yourself."
"I'm looking forward to this," Seok-won said as he took the folder and opened it.
Choi added further explanation as Seok-won scanned the pages.
"It's all detailed in the report, but in summary, we sold Hang Seng futures at an average price of 15,500 and closed all positions at 6,450, which yielded a return of 58.3%."
Buoyed by the strong performance, Choi unconsciously squared his shoulders as he continued.
"Starting with a principal of $307.26 million, we used 4x leverage to generate a profit of $716.53 million. After deducting taxes and expenses, the final net profit comes to $650.5 million."
Closing the folder again, Seok-won smiled softly.
"So, roughly, we've doubled our original capital."
"That's correct," Choi nodded, though his voice trailed off slightly at the end.
"If we'd applied even more leverage, the profits could've been even larger. It feels like a bit of a missed opportunity."
"This result is more than satisfactory as it is. No need to push beyond that just yet. Besides, this is just the first step—we'll have plenty more chances to make bigger bets from here on out."
At that, Choi's eyes lit up, and a look of eager determination crossed his face.
"Yes, sir. Next time, I'll make sure we secure an even better return."
"I'll look forward to it," Seok-won replied with a nod.
Seok-won placed the file folder on the table and issued his next instruction.
"Also, don't bring the profits back into the country. For now, just keep them in the El Dorado Fund account."
Hearing this, Choi Ho-geun leaned in closer, his voice filled with curiosity.
"Are you planning to invest elsewhere?"
With a faint grimace, Seok-won met his gaze.
It seemed Choi Ho-geun was hoping for another large-scale deal like the last one. Unfortunately, things were unlikely to be so exciting from here on out.
"Of course, I'll continue investing. But more importantly, I believe the Korean won exchange rate is going to rise significantly soon."
Choi Ho-geun, initially confused, widened his eyes as a realization struck him.
"Are… are you predicting that the hedge funds are going to attack Korea?"
Seok-won nodded calmly and spoke in a voice that carried a weight of certainty.
"Yes."
"Well, as you know, sir, the hedge funds suffered huge losses in Hong Kong. It would be difficult for them to engage in currency speculation so soon again, wouldn't it?"
"That's exactly why they'll want to recover those losses quickly."
Choi Ho-geun, who had been denying the possibility, fell silent, his expression turning grim.
Seok-won observed him and continued explaining in a calm, steady tone.
"You must be aware that the exchange rate has been steadily rising, now up to 989 won."
"…"
"On top of that, companies are still struggling with bankruptcies and liquidity shortages. Things are only worsening day by day."
Interlacing his fingers, Seok-won leaned in slightly and softly asked,
"Choi, if you were the head of hedge fund investments, what would you think about Korea's situation?"
It took a moment for Choi Ho-geun to fully process the situation, after which he let out a low hum of realization.
"It seems like easy prey."
"I agree. That's why I'm preparing for it in advance."
"I see what you mean."
Choi Ho-geun responded in a stiff voice, hesitating for a moment before cautiously asking,
"Will you be selling the won along with the hedge funds?"
Seok-won chuckled softly and countered,
"Why? Do you think I would?"
Without answering, Choi Ho-geun simply glanced around, waiting for a cue. Seok-won shook his head slightly and spoke.
"Don't worry, I'm not planning to do that."
"I thought as much."
Choi Ho-geun, relieved, finally relaxed his tense posture.
"Although I hope I'm wrong, based on how things are unfolding, I don't think that will be the case. For now, just make sure you're prepared, and keep it between us."
"Understood."
After that, they continued talking for a while, but Choi Ho-geun left the office with a heavy heart, much different from his arrival.
Seok-won stood up from the sofa and walked to the window. He gazed down at the pedestrians going about their day, unaware that the terrifying nightmare of the IMF crisis was about to engulf them all.
At that moment, he heard the vibrating sound of his phone. He walked over to his desk and picked it up.
[President Park. It's Woo Chun-il.]
Seok-won furrowed his brows, surprised by the caller's identity.
"What's going on, Secretary-General Woo?"
[I have something urgent to discuss. Is now a good time?]
"Yes, go ahead."
[Do you happen to know a politician named Kwon Ju-in?]
"If it's Kwon Ju-in, he's the one who passed away in the plane crash in Guam a few days ago, right?"
[That's right. You're aware.]
"I didn't know him personally, but I heard he was on the plane that crashed."
Woo Chun-il's voice turned somber as he spoke.
[Yes, he was a young talent that the candidate had been fond of. He was traveling with his wife and 24 party members for an overseas training program, and sadly, they all perished.]
"It was a tragic accident that took many lives, including Kwon's group."
[Yes... Anyway, I got a little sidetracked thinking about him. There's an important matter I wanted to discuss.]
"It's alright."
Woo Chun-il cleared his throat and shifted to a serious tone.
[While we mourn the dead, those of us who are still alive must continue living.]
"That's true."
[Since Kwon passed away, his district is now vacant, and there will be a by-election in December alongside the presidential election.]
"…!"
In an instant, Seok-won realized the purpose of the call, and a glimmer of interest appeared in his eyes.
[So, I'm planning to have Choi, whom you recommended, run in Kwon's district?]
"Kwon's district...?"
[It's in Gwangju, Jeonnam.]
Seok-won was surprised when he heard the name of the district.
"Isn't that practically the New Era National Assembly's stronghold?"
[That's right. It's a region with strong support for the candidate, so just putting our party's banner up would almost guarantee a win.]
"With a district like that, I imagine many people would have wanted to run."
It was an obvious fact, so Woo Chun-il didn't try to deny it.
[To be honest, several people were eager. There were former Gwangju mayors and people from Jangseong, for example.]
"So why Choi?"
[The candidate (president candidate) spoke first.]
"The candidate?"
[Yes. The candidate said that since you've done so much, he wants to repay you, so he decided, through his authority, to make Choi the candidate for the by-election.]
Though the term would only be a little over three years due to the by-election, it was essentially like giving Choi a seat in the National Assembly, and Seok-won was slightly taken aback.
"I'm truly grateful that the candidate would go this far."
[This shows how much the candidate values you. I hope you understand that.]
"Of course. I would like to personally thank him, but since we're close to the presidential election, I'll be careful, so please convey my gratitude to him."
[Understood. I'll make sure to pass it along.]
Woo Chun-il answered readily and added,
[Oh, and I'll contact you separately, but you should let Choi know the good news first.]
"I will."
[Well, you must have a lot to do, so I'll contact you later.]
"I wish you good results in this presidential election."
Woo Chun-il laughed heartily and replied,
[That's what I hope for, too.]
After ending the call, Seok-won held the phone to his ear for a moment longer before gently tapping his desk with one hand.
"A by-election in Gwangju... I thought it would take much longer to get a seat in the National Assembly. This is an unexpected gift."
He knew that he had earned the favor of Kim Jae-chun, but he hadn't expected such a grand gesture.
"If I win the by-election and solidify the district, I can easily secure at least two terms."
For a moment, Seok-won thought about how to help Choi Bok-nak advance, then he stretched out his arm and pressed the intercom button on his desk.
Soon, Na Seong-mi's voice came through the speaker.
[Yes. What can I do for you, sir?]
"Please have Deputy Lee come in for a moment if he's outside."
[Understood.]
Seok-won sat back in his chair, leaning slightly as he muttered to himself.
"Even though it's the New Era National Assembly's stronghold, a parachute candidate won't be welcomed easily. I'll need to show some goodwill to soften the hostility. First, I should make sure to secure enough funds for the campaign."