"You said you got hold of the minutes from the creditors' meeting in New York, right?"
Deputy Prime Minister of Economy Choi Jin-woo, dressed in a white shirt and red tie, asked Vice Minister Shin Seung-gi, who was seated on the sofa to his right.
"Yes. The consensus appears to be that some of the short-term debt held by domestic banks
maturing this year will be exchanged for government bonds issued by the Korean government. Additionally, they're requesting the issuance of more bonds to raise fresh capital."
On December 29th, under the initiative of JP Morgan, representatives from thirteen major banks across eight countries—including Citibank and Chase Manhattan—had convened in New York.
They discussed how to handle Korea's maturing short-term external debt and came up with a
rough solution.
Of course, Korea's position as the party directly involved had been completely excluded from the discussion.
Reflecting this, Deputy Prime Minister Choi Jin-woo didn't bother to hide his displeasure as he spoke.
"They're going ahead entirely on their own, without including the most important party—us."
"I'm not happy about it either, sir. But at least the fact that extending the maturity of toxic short-term debt is being positively discussed is a good sign, isn't it?"
Vice Minister Shin replied in a cautious tone, trying to soothe him.
Though furious at the high-handedness of the foreign creditor banks, Deputy Prime Minister Choi Jin-woo could only grit his teeth and swallow his frustration. After all, the power was not in Korea's hands right now.
"Thanks to President Park's efforts in reining in the speculative forces, the soaring exchange rate has settled somewhat. But until we renegotiate and convert all the short-term debt into mid- to long-term obligations, we'll continue walking on thin ice."
"To ensure smoother negotiations, we've included representatives from President-elect Kim Jaechoon's camp in the working-level delegation. I believe that will lead to good results."
"Yes. That's the only way forward."
Choi Jin-woo's voice hardened as he spoke with resolve.
With only a month left until the administration change, no agreements could be finalized without approval from the incoming government. To address this, Choi had taken the step of including the President-elect's people directly in the delegation—allowing the incoming administration to take the lead while he supported from behind the scenes.
Even though he was now simply awaiting the transition and preparing to vacate his post, the
ongoing currency crisis continued to weigh heavily on his mind.
Just then, a knock came at the door and his secretary stepped in.
"Pardon the interruption, sir."
"What is it?"
"President Park Seok-won from Daeheung Investment is here to see you."
Choi Jin-woo glanced at the watch on his wrist as he rolled up his sleeve.
"Ah, is it that time already?"
"Then I'll take my leave now."
"Very well."
As Vice Minister Shin Seung-gi quickly gathered the file folder on the table and stood up, Deputy Prime Minister of Economy Choi Jin-woo turned to his secretary and said,
"Bring in President Park."
"Yes, sir."
Outside, Shin Seung-gi emerged from the office and saw Seok-won waiting in the antechamber with his assistant. With a warm smile, he approached and greeted him.
"President Park. It's been a while."
"I hope you've been well," Seok-won replied with a smile, extending his hand for a handshake.
"I'd love to have a longer chat, but the Deputy Prime Minister is waiting for you. Let's catch up properly another time."
"Of course."
After exchanging brief pleasantries, Shin Seung-gi left first. Seok-won turned to his assistant Han Ji-sung and said,
"Wait for me here."
"Understood."
Leaving Han Ji-sung behind, Seok-won passed the waiting secretary, who held the door open for him, and entered the inner office.
Deputy Prime Minister Choi Jin-woo stood up and greeted him warmly.
"Come on in."
"Thank you for making time for me despite your busy schedule."
Seok-won bowed respectfully as he spoke, and Choi Jin-woo took his hand and shook it with a smile.
"For you, I'd make time even if I didn't have any. But enough standing—let's sit and talk."
Guided by the Deputy Prime Minister, Seok-won sat on the sofa. A secretary approached them.
"Shall I bring you some tea?"
"Just a simple coffee is fine."
"I'll have the same," Choi Jin-woo added.
The secretary nodded. "I'll bring it right away."
After she stepped out and closed the door behind her, Choi Jin-woo looked at Seok-won.
"By the way, I saw your article in the newspaper this morning."
A faint smile spread across his tired face.
"Donating ten million dollars to help repay the IMF bailout—once again, I'm impressed."
"With the whole nation coming together, bringing out even the smallest gold pieces from their closets, I simply wanted to contribute in my own small way," Seok-won replied modestly.
Choi Jin-woo responded with warm appreciation.
"How could anyone call ten million dollars small—especially at a time like this?"
He repeated his praise with genuine admiration.
"No matter how wealthy a person may be, doing something like that is never easy. Truly
remarkable."
Seok-won didn't respond, simply offering a faint, modest smile.
Just then, a knock sounded at the door, and the secretary returned with a tray, placing two
steaming cups of coffee on the table before quietly exiting again.
Deputy Prime Minister Choi took a sip from his cup, then set it down and asked,
"So, what is it you wanted to talk about?"
Seok-won straightened his posture and got to the point.
"You're probably aware of the nationwide gold donation campaign to help overcome the financial crisis."
"Of course."
Deputy Prime Minister Choi Jin-woo's expression turned grave.
"To think we've pushed our people to bring out even the gold they had tucked away in their
drawers to save a country in crisis… As the head of the Ministry of Finance, it's nothing short of shameful."
Though he had taken on the role when the country was already cornered, it didn't completely absolve him of responsibility for the IMF crisis.
"But what made you bring up the gold collection campaign?"
"I heard the collected gold is being refined into bullion under the supervision of the Ministry and the Bank of Korea, then exported to secure foreign currency."
"That's right. Once the crisis passes, the government plans to return the proceeds—plus a small amount of interest—to the citizens who donated their gold."
It was only natural to offer some compensation to the citizens who had willingly turned in their treasured gold during such hard times.
'But even so, considering how gold prices skyrocketed later on, what they got in return was
almost nothing.'
If people had kept their gold instead, their assets would've increased dramatically.
Shaking off the distracting thought, Seok-won spoke again.
"In order to sell the gold bullion, it will have to go through intermediary exporters. That would incur additional costs, wouldn't it?"
"Well, yes. But it's not like the Ministry or the Bank of Korea can directly handle exports. There's no way around that."
"If you'll allow it, I'd like to purchase all of the collected gold myself."
"What?"
Caught completely off guard, Deputy Prime Minister Choi looked stunned.
"You're saying… you'll buy all of it?"
Meeting his eyes, Seok-won calmly replied.
"Yes. By cutting out the middlemen, the government can reduce costs and secure every last dollar possible."
"Well, that may be true…"
As Choi hesitated, unable to respond immediately, Seok-won leaned forward in his seat and continued.
"I heard that even though the campaign only began a few days ago, over 20 tons have already
been collected."
News outlets were reporting daily tallies, so the figures were easy to track.
"Considering the passionate public participation, the total amount collected is bound to increase further."
"That does seem likely."
"If that much gold suddenly floods the international market, it will inevitably crash global prices."
In fact, when Korea began exporting the collected gold during this time, the sudden glut caused international gold prices to drop by as much as 15%.
But Deputy Prime Minister Choi, who had no idea the campaign would ultimately gather over 227 tons, still looked doubtful.
"The amount's large, yes, but would it really have that much impact?"
"Unlike volatile markets, the gold market is relatively stable unless there's a major event. But if dozens—or even hundreds—of tons of gold suddenly hit the market, what do you think would happen?"
"Hm… If supply outpaces demand, the price will fall. That's basic economics."
Choi crossed his arms, reluctantly accepting the logic.
"And if that happens, the heartfelt gold donations of our citizens—each with a story—will be melted into bullion only to be sold at a loss. There's nothing more heartbreaking."
Choi's face darkened.
"It's already shameful enough that we've mismanaged the economy and are relying on our citizens' sacrifice. Selling their gold at rock-bottom prices? I couldn't stomach that."
"That's why I'm proposing to buy all of it myself."
"Hmm…"
"Of course, I'll pay in dollars at international market prices. That way, the government saves on intermediary costs, and there's no concern over falling prices—so it's the best way to ensure the gold fetches the highest possible value."
With no leakage in the middle, Seok-won's offer was the most efficient and profitable way to
handle the gold donations.
'On top of that, this would shut down any chance of shady dealings by the big trading companies handling exports.'
Even though the corporate misconduct would eventually come to light, by then the statute of
limitations would be up. No real punishment was given—only finger-pointing and headlines.
Worse, employees who embezzled millions lived luxurious lives thanks to stolen funds, leaving deep scars on public trust.
Knowing how painful the outcome would be, Seok-won intended to prevent it entirely.
"I understand your position," Choi finally said. "But if we sell all the gold to one person, there might be public backlash later."
It was a cautious objection.
But Seok-won, clearly prepared for this, replied smoothly.
"If I'm allowed to purchase the gold, I will not move it abroad. I plan to keep it stored
domestically, at least for now."
"...?"
Deputy Prime Minister Choi Jin-woo looked puzzled, and Seok-won continued calmly.
"I may have temporarily suppressed them before, but you know as well as I do—if we show even a hint of instability, the currency speculators will come right back to attack the won."
"That's true. That's why I still can't let my guard down."
Choi furrowed his brow, as if a headache he had briefly forgotten had suddenly returned.
"If the gold collected through the campaign is sold and brings in a significant amount of dollars, and if those dozens or even hundreds of tons of gold remain within the country instead of being exported, wouldn't that make speculators think twice before launching another attack?"
Finally grasping Seok-won's point, Choi's eyes widened and he leaned forward.
"You mean to buy up the gold and use it as a kind of shield to defend the exchange rate?"
"Exactly."
Choi couldn't hide his astonishment and swallowed dryly.
"You wouldn't even be making much profit from this… So why go to such lengths?"
"I'm Korean too. I can't just sit back and watch foreign thieves storm in and run wild."
Though Seok-won spoke in a calm tone, it only made his conviction feel more genuine.
Deputy Prime Minister Choi Jin-woo looked at him with a deeply moved expression and nodded.
"I understand. This isn't something I can decide on my own, so I'll speak to the Blue House and the president-elect's team to discuss it."
"I'll look forward to good news."
"Don't worry. You're not trying to profit off this—in fact, you're offering us terms that are too good to refuse. I'm sure they'll all agree. And if not, I'll make sure they do."
Choi's voice was filled with newfound resolve and motivation.
Seeing that, a faint smile appeared on Seok-won's lips.