Golden Spoon Investor

Gaunt and wiry, Go Young-il, a director at Daeheung Securities, walked down the corridor with a tense expression and entered the president's office on the 10th floor.

"Welcome, Director," the secretary greeted him with a small nod.

"Is the president in?" Go Young-il asked.

"Yes, please wait a moment," the secretary replied. She got up, went into the president's office, and quickly returned. "You may go in."

Without hesitation, Go Young-il strode past the secretary and into the office.

President Choi Jin-woo, seated behind his large desk, looked up with a hint of curiosity. "What brings you here?"

"I have something to report," Go Young-il said, his face still stiff.

Sensing something serious, Choi Jin-woo gestured toward the sofa, inviting him to sit. "Take a seat."

After Go Young-il sat down, Choi Jin-woo rose from his desk and joined him, taking the main seat. "Would you like something to drink?"

"No, thank you," Go Young-il replied, his tone implying that there was no time for pleasantries.

Choi Jin-woo narrowed his eyes slightly, realizing that whatever had brought Go Young-il here must be urgent. "Alright, what's the issue?"

"I received the investment operation plan from Team Leader Park this morning," Go Young-il began.

"I expected it to take him at least a week to get a grasp of things, but it seems the younger generation moves quickly," Choi Jin-woo remarked, his eyes focusing on Go Young-il's serious expression. "But judging by your face, it seems there's something you're not happy with."

"He applied for a margin loan using the 5 billion won investment fund as collateral," Go Young-il revealed.

Choi Jin-woo tilted his head, puzzled. "A margin loan?"

"Yes," Go Young-il confirmed.

"And what does he plan to do with it?" Choi Jin-woo asked.

"He plans to short-sell," Go Young-il said, dropping the bombshell.

At the mention of short-selling, Choi Jin-woo immediately frowned.

"And what's even more shocking…" Go Young-il continued.

"…."

"He plans to short the top five companies by market capitalization, including Korea Electric Power Corporation (KEPCO)."

"Mm," Choi Jin-woo murmured, crossing his arms, clearly troubled by the news.

Go Young-il leaned forward, his frustration evident. "Short-selling in this bull market is absurd, but to target the top five companies by market cap… That's sheer madness!"

Given the strong market and the stellar performance of the top stocks, Go Young-il's reaction was entirely justified. Choi Jin-woo was also taken aback, unable to hide his dismay.

Go Young-il, his face still tense, leaned in closer as if pleading. "Even though he has discretionary power over the investments, we can't just sit back and watch this disaster unfold."

Uncrossing his arms, Choi Jin-woo looked at Go Young-il. "You're suggesting we stop him from short-selling?"

Go Young-il nodded firmly. "Yes, sir. If we let this continue, not only will we lose the entire investment, but the company will suffer significant losses as well."

Since they were going against the market, any rise in the prices of the shorted stocks would result in direct losses. While a successful short could yield significant profits, the problem was that no one believed the stocks Park Seok-won intended to short would decline.

Had it been anyone else, Choi Jin-woo might have immediately ordered them to stop. But given that it was Seok-won, the son of the chairman, neither he nor Go Young-il felt they could make such a decision on their own.

That's why Go Young-il had come to Choi Jin-woo, unable to make the call himself. But with Chairman Park Tae-hong's directive to grant Seok-won full discretion in his investments, Choi Jin-woo couldn't make a decision lightly either.

Choi Jin-woo stroked his chin, deep in thought. "This is quite a dilemma."

If he followed the chairman's orders, he'd have to let Seok-won proceed. But the scale of what Seok-won was planning was too big to ignore.

If the short sale failed and resulted in significant losses, Seok-won might get a scolding from his father, and that would be the end of it. But for Choi Jin-woo and Go Young-il, it could be career-ending.

"No matter what the chairman said, if the losses are significant, our careers could be at risk," Choi Jin-woo thought to himself.

It would be difficult to hold Seok-won accountable, so someone else would likely have to take the fall. After a long period of contemplation, Choi Jin-woo finally spoke with a cautious tone.

"I think this is beyond our pay grade," he said.

"So, what will you do?" Go Young-il asked.

"I need to discuss this with the chairman."

It was the only way to share the responsibility and potentially avoid the fallout. Go Young-il immediately agreed, relief washing over his face. "That's a good idea."

Choi Jin-woo, still seated on the sofa, turned and pressed a button on the phone beside him.

[Yes, Mr. President.]

"Connect me to the chairman's office."

[Understood.]

As he waited for the call to connect, Choi Jin-woo's mind raced, trying to figure out how best to frame the situation to the chairman.

***

Later that afternoon, Seok-won stepped out of the elevator and walked confidently down the familiar corridor.

As he entered the outer office, Chaeyeon Lee, dressed in a navy blue suit, recognized him first and greeted him.

"Oh! Hello."

The other secretaries, who had been working at their desks, quickly stood up and bowed their heads. "Welcome."

"Good to see you all again," Seok-won replied with a smile, then nodded toward the inner door. "Is the chairman in?"

Secretary Chu Se-young quickly got up and approached him. "Yes, he's been expecting you."

"Alright," Seok-won replied, nodding. He then remembered something and added, "By the way, I wanted to tell you something."

"To me?" Chu Se-young asked, surprised.

"You took such great photos at the graduation ceremony. Thank you," Seok-won said.

"Ah, you mean that?" Chu Se-young responded, beaming.

"I tried my best, but I'm glad you liked them."

"They were so good, they could have been taken by a professional. My mother was very pleased with them as well."

"Mrs. Park complimented them too?"

Chu Se-young's smile widened, clearly pleased that his efforts were appreciated.

Just then, Assistant Manager Jung Yun-kyung adjusted her glasses with a stern look and snapped, "Assistant Manager Chu, what are you doing? The chairman is waiting."

Her tone was sharp, and her words carried the clear message that he needed to get his act together. Chu Se-young gulped and quickly stepped aside.

"Oh, right! Please, go on in," he said, his demeanor resembling a mouse in front of a cat.

Suppressing a chuckle, Seok-won walked over to the door, knocked lightly, and entered.

Inside the spacious chairman's office, Chairman Park Tae-hong, dressed in a shirt, was seated on the sofa with Chief of Staff Gil Sung-ho, waiting for him.

"Come and sit," Chairman Park said, nodding toward the empty seat across from him.

Seok-won exchanged a glance with Chief of Staff Gil, then took a seat opposite his father.

Chaeyeon Lee, who had followed him in, asked quietly, "What would you like to drink?"

"Bring coffee," Chairman Park ordered.

"Understood."

Once Chaeyeon had left and the door was closed, Chairman Park, crossing one leg over the other, looked at his second son with a feigned angry expression. "You brat. Is this what you wanted full investment discretion for?"

Having anticipated the reason for his summons, Seok-won remained unfazed and responded calmly. "It seems President Choi called you."

"Of course, he did! He said you were planning to short 50 billion won worth of stocks. Is that true?"

"No."

"Huh?"

"The 50 billion won is just the collateral. I plan to short 100 billion won using margin loans," Seok-won clarified.

Chairman Park, who had been listening carefully, suddenly scowled. "Are you playing word games with me?"

Despite his father's angry expression, Seok-won remained calm. "I'm just telling you the truth."

"You little—!"

Before Chairman Park could raise his voice, there was a knock on the door.

"Excuse me, I've brought the coffee," Chaeyeon Lee said, entering with a tray.

Sensing the tension in the room, she froze for a moment, unsure of what to do.

Chairman Park let out a low growl and waved his hand dismissively. "Just put it down and go."

Nodding quickly, Chaeyeon placed the coffee cups on the table and swiftly left the room.

Once the door was closed, Chief of Staff Gil, who had remained silent until now, spoke softly. "The young master must have had a reason for his actions. Perhaps we should hear him out first."

Chairman Park, massaging his temples as if he had a headache, glared at Seok-won. "You're aware that foreign capital is pouring into the domestic stock market, creating a bullish environment, right?"

"Yes."

"Then why are you planning to short stocks?"

In response to his father's pointed question, Seok-won replied calmly, "Because there's a lot of money to be made."

Chairman Park raised an eyebrow, clearly incredulous. "You know that short selling only makes money when stock prices fall, right?"

"Yes, sir."

"So how do you expect to profit in a rising market?"

Chief of Staff Gil, equally skeptical, remained silent as he waited for Seok-won's answer.

"It's simple," Seok-won said. "Because stock prices are going to fall."

Chairman Park, his patience wearing thin, leaned forward. "You just said the market is bullish. So how can you say that prices will fall?"

Seok-won remained composed, his voice steady as he explained. "Because despite the bullish trend, the market can't keep rising without any corrections."

"….?"

"Just look at the current situation. The KOSPI hit a yearly high last week, only to drop by 30 points, entering a correction phase for several days now."

"That's just a temporary pullback after a long rally. It's nothing serious," Chairman Park countered.

Seok-won nodded in agreement. "You're right. But a pullback also means that investors are starting to feel uneasy about the sharply rising prices."

"...."

After all, the KOSPI had surged nearly 200 points from 610 just two years ago, almost reaching 800, so it wouldn't be unreasonable to consider the market overheated.

"If a major shock were to hit the market now, what do you think would happen?" Seok-won asked, his tone serious as he looked at his father, who frowned as he listened.

"Before anyone could assess the situation, they'd likely start selling off their shares in panic."

Chairman Park responded dismissively, his face still stern. "It would take something significant to cause that kind of shock. How can you be sure that will happen?"

Raising his eyebrows, Chairman Park waited for an answer. In a calm, measured voice, Seok-won replied, "Wouldn't the Real-Name Financial System be a big enough shock?"

"!"

His father stared at him, stunned by the suggestion.

TL/n - 

When South Korea implemented the Real-Name Financial System (RNFS) in August 1993, the stock market experienced a notable decline. During the first month of its launch, the Korean Composite Stock Price Index (KOSPI) fell by approximately 13%. This drop was primarily due to initial investor uncertainty and adjustments to the new regulations, which aimed to increase transparency and reduce financial malpractices.

**

A market correction is a decline in the price of an asset or market index, typically defined as a drop of 10% or more from its recent peak. Corrections are considered a natural part of market cycles and can occur in response to various factors, including:

Market Overvaluation: If prices have risen too quickly, a correction may occur as investors take profits.

Economic Indicators: Changes in economic data (like unemployment rates or GDP growth) can lead to corrections if investors adjust their expectations.

External Events: Political instability, natural disasters, or other unexpected events can trigger market corrections.

**

A pullback refers to a temporary reversal in the price movement of an asset, typically occurring after a strong upward trend. It's often viewed as a normal part of market fluctuations, allowing traders and investors to enter positions at a better price.