As Han Chan-young watched the news, he let out a hollow laugh.
“Looks like Kang Jin-hoo won.”
The whole matter began when Kang Jin-hoo pointed out the deficiencies of Hoseong Savings Bank. Initially, it was a fight between him and the bank, but then the president, the ruling party, and the dia got involved.
The governnt likely tried to lead to a conclusion that they were right and Kang Jin-hoo was wrong.
However, it ultimately turned out that Kang Jin-hoo was correct, and everyone on the opposing side beca a liar.
Exposing the problems at Hoseong Savings Bank was a masterstroke.
Eunsung Motors had no direct connection to Hoseong Savings Bank. Yet, they ended up suffering from this incident.
The governnt announced that it would designate hydrogen cars as a future growth engine and would do everything possible to support them, planning to collaborate with local authorities to establish charging stations and allocate subsidies for hydrogen vehicles.
However, with this crisis, everything beca uncertain.
As the ruling forces faced a political blow, the montum for promoting hydrogen vehicles was inevitably weakened. Even the process for acquiring land for charging stations ca to a complete halt.
Eunsung Motors planned to proceed with the launch of new hydrogen cars as scheduled, but it would be hard to receive the promised support.
“Could they have orchestrated this on purpose?”
Han Chan-young was closely monitoring the movents of OTK Company.
Separately from the battery factory established through TS Company, OTK Company set up its own battery research lab. Researchers, including Professor Kim Ho-min from Korea University, joined the team.
Professor Kim Ho-min was relatively well-known in the battery industry. However, since his research field was fundantal science, he wasn’t an imdiate necessity for companies. As a tenured professor, he wouldn’t likely move unless offered exceptionally good conditions.
Yet, Kang Jin-hoo went directly to the university to persuade him to join as the head of the research lab. Was Kim Ho-min truly such a remarkable figure?
Han Chan-young muttered, recalling Kang Jin-hoo’s deanor during the X-Cop bidding.
“What kind of picture is he painting?”
***
Hoseong Savings Bank was truly a hotbed of corruption and fraud. Like digging up sweet potato stems, it seed endless.
Five auditors from the Financial Supervisory Service working at Hoseong Savings Bank were not rely neglecting managent oversight; they directly participated in illegal loans and fraudulent accounting. The auditing firms conducted external audits while knowing about the fraudulent activities, yet they issued positive opinions indiscriminately.
The loans were so poorly managed that even junior staff mbers were found to have engaged in identity theft and docunt forgery to facilitate illegal loans amounting to 15 billion won. When investigations began, the employee cut off contact and went into hiding.
Many of the executives and employees of the special purpose corporation were essentially figureheads put in place by the executives, and the multi-million won salaries they received were shared behind the scenes.
Amidst all this, Hoseong Savings Bank claid last year to achieve its highest-ever performance, awarding huge bonuses and dividends. While the bank was deteriorating due to insolvency, only the executives and shareholders enjoyed a money feast.
During the investigation, ledgers revealing the bribery and entertainnt provided to public officials and politicians were uncovered.
The prosecution secured relevant testimonies and initially indicted 20 individuals, including Chairman Min Jeong-joo and President Min Seong-joo. This led to the unprecedented arrest of the in-laws of the current president.
The Financial Services Commission designated Hoseong Savings Bank as an insolvent financial institution and began bankruptcy proceedings. While they aid to recover loans and sell assets, it seed hopeless for depositors to receive any compensation. The only relief was that the Deposit Insurance Corporation would pay up to 50 million won per person.
Korean lawmakers argued that a special law should be created to fully compensate the depositors but were t with the opposition’s retort to first return the illegally withdrawn funds before making such claims, causing them to shut their mouths.
If depositors were rescued, what would happen to the bond purchasers? Should the governnt use taxpayer money to repay every ti such incidents occurred in the future?
There was a high likelihood that victims of the Dongyoung Gold Finance bankruptcy from a few years prior would raise fairness issues and file lawsuits for compensation as well.
Such a resolution was practically impossible and was rely a statent made to soothe local constituencies.
***
The duty and purpose of the press is to reveal the truth. However, the dia sided with the governnt until the last mont, flooding the public with false articles.
When the governnt finally admitted to its failures, the Joongilbo cleverly implicated Kang Jin-hoo in the matter.
While the savings banks that allowed the mismanagent and the governnt that stood by were indeed problems, the tone suggested that Kang Jin-hoo, who unveiled it without solutions, was also at fault.
Once the article was published, the bulletin board was flooded with protests.
– Haha, these guys still haven’t co to their senses.
– Do they still see the citizens as sheep?
– Shouldn’t they have bankrupted after milking more money from the common people? Is it wrong to go bankrupt early?
– In summary, they are saying, “Because we couldn’t profit more due to Kang Jin-hoo, it’s his fault.” Trusted and dropped Joongilbo.
– No matter how much you say here, it’s useless. The only answer is to stop subscribing.
– I realized I’m a fool for paying to read such a newspaper. Don’t let it in my house from tomorrow.
– If caught putting in the newspaper, your fingers might get cut off. Be careful.
As criticism intensified, the next day, the Joongilbo published an apology and corrective article.
However, this incident left the three major broadcasting companies and conservative dia unable to avoid a significant image collapse.
***
Ha Eun-ji hadn’t eaten properly or slept for days.
Given the nature of the locally operated savings bank that had been in business for decades, most custors were acquaintances. Many of those who had purchased subordinated bonds from her were long-ti neighbors.
If she had sold them to strangers, the pain wouldn’t have been as intense.
Imdiately after the governnt announcent, she received calls from several clients. As soon as she answered, she was t with screams and curses, and out of fear, she turned off her phone.
Cautiously, Ha Eun-ji turned her phone back on. Then, she made a call sowhere. After several attempts, she finally managed to connect.
“Uh, Eun-ji?”
“Y-yes, Branch Manager.”
Ha Eun-ji burst into tears.
“Wahhh, what are we going to do now? It’s so sad for them! If we hadn’t sold it…”
Then Park Jun-sang said irritably,
[Hey, why are you making a fuss at us when you were so happy to buy it? Let’s be honest—what did we do wrong? We just did what we were told from above. Ugh, this is driving crazy!]
Even as he spoke like that, his voice trembled significantly. He also felt the weight of guilt.
[Anyway, Eunji, you should stay ho for a while and keep quiet. It won’t do you any good to run into the victims. Got it? I’m ending the call now.]
Beep beep!
The call ended.
Ha Eun-ji put her phone down and buried her face between her knees again. In the dark room, only her sobs echoed.
***
The front of the Hoseong Savings Bank headquarters was a scene of chaos.
Depositors collapsed on the cold floor, screaming and wailing. So elderly people cried so hard they were taken away in ambulances.
Fathers who lost their money for a house, grandmothers who lost their life savings earned from working at the market, and grandfathers whose retirent funds vanished, and so on.
What kind of money was that?
It was money earned through exhausting labor without sleep. Money saved by forgoing food and clothing, even saving every single coin.
Yet now, there was no way to get that money back.
The bank, which they trusted with their deposits, squandered their money recklessly, while politicians who shouted that there would be no problems quietly withdrew their own money and fled in the night.
“What have the president and the mbers of parliant been doing all this ti? At this rate, we’re all going to die!”
“I’ve always voted for the Korean Party all my life!”
“Even if the country collapses, I’ve always supported the Korean Party! How can they do this to us?”
“What exactly did we do wrong?”
“I trusted the president’s in-laws and left my money with them. How could this happen?”
“Why must we be the only ones suffering like this?”
An elderly man grabbed the collar of a Joongilbo reporter and shouted.
“What face do you have to co here? You said you’d resu operations soon, didn’t you? That this was just a rumor spread by Kang Jin-hoo?”
“C-Co on, sir. Calm down.”
“I waited all this ti, believing your words. And now look at this? Are you feeling relieved now?”
“……”
The reporter couldn’t say a word. He knew well the kind of articles the Joongilbo had published.
Other victims tried to stop the old man.
“Please stop, sir.”
“You punks! You might as well kill ! Ugh!”
The shouting elder eventually collapsed on the spot.
A man stood up and shouted, “What good will it do for us to be here? Do you think the politicians will even listen? Instead, let’s go to Seoul! Let’s et the president or the mbers of parliant face to face and hold them accountable!”
People agreed.
“That’s right!”
“Let’s go to the Blue House or the National Assembly!”
“Let’s get our money back!”
The victims made their way to Seoul to hold a protest demanding action.
***
The Korean Conservative Party faced a barrage of criticism.
Above all, it was shocking that party leader Choi Myung-hwan was at the forefront of the illegal withdrawals. Furthermore, nurous affiliated mbers were involved, with over 30 nas listed when including local councilors.
While rookie lawmakers suggested that the illegally withdrawn funds should be returned, no one among those implicated agreed.
Politicians, like anyone else, value their own money.
Choi Myung-hwan made the absurd excuse, “These are my family’s funds, so there’s nothing I can do. The money has already been sent ho, and there’s no way to return it.” anwhile, Kim Han-cheol shouted irritably in response to ongoing dia inquiries.
“Are you trying to force to return the money? I made one comnt about lemmings, and now you keep attacking . This itself is a challenge to democracy. If you were hurt by the term ‘lemming,’ don’t act like one.”
Perhaps realizing they could no longer tolerate the situation, the Korean Conservative Party imdiately convened a disciplinary committee and expelled Kim Han-cheol from the party.
Such crises were not new; it had happened before. Over ti, public opinion usually cald down, and the citizens would cast their votes when election ti ca around.
The Korean Conservative Party remained silent, waiting for the storm to pass.
***
The fallout triggered by the insolvency of Hoseong Savings Bank spread throughout the financial sector.
For so ti, regulatory agencies had been inactive, causing other savings banks to similarly hide their financial issues. Banks, feeling the urgency, began internal audits.
Rumors about the instability of other savings banks started to circulate online, leading even stable banks to show signs of a bank run.
People hesitated to cash in deposits that were only a month or two away from maturity.
They either divided their funds under 50 million won among various banks or withdrew cash entirely. The demand for cash surged, resulting in cash shortages at branches.
Ho shopping networks saw vaults selling rapidly as people opted to keep their money at ho rather than in the bank.
Credit tightened severely, and the LIBOR rates fluctuated.
As deposits flowed out, the reserve requirent ratio and the BIS ratio fell. Savings banks collectively raised interest rates on loans, reduced new loans, and began recovering existing loans.
The resulting damage predominantly affected ordinary citizens and small businesses.
In any case, it was the financially struggling individuals who suffered the most.
The financial instability showed signs of spilling over into the real economy, raising concerns of a banking crisis.
Although the governnt continued to assure the public of stability, citizens no longer trusted the governnt or the banks.
One silver lining was that other savings banks, lacking the privileges enjoyed by Hoseong Savings Bank—whose corporate connections extended to the president—had not accumulated significant insolvency.
There was only one way to alleviate public fear.
Taek-gyu placed his hand on my shoulder and said, “My friend, it looks like it’s up to you.”
“…….”
Why ?
Comrcial banks were robust enough to weather the storm, and aside from a handful of savings banks showing clear signs of failure, the rest could hold out. However, if uncertainty persisted, even stable institutions could collapse.
In any case, if speaking up could improve the situation, it seed necessary for to step forward.
I held a press conference in the OTK Company building lobby. Dostic and foreign dia rushed in with caras and microphones.
“… Excluding the aforentioned savings banks, the rest are deed safe. Let reiterate, since principal and interest are guaranteed up to 50 million won, there’s no need for excessive worry.”
People’s actions should precede their words.
I presented the reporters with bankbooks showing that I had deposited 100 million won each in ten savings banks.
“So, I deposited my own money.”
Until now, the dia either refuted or distorted my statents. But this ti, they actively supported my remarks and published comprehensive articles.
– Let’s listen to Kang Jin-hoo regarding money matters.
– Yeah, yeah. They say Kang Jin-hoo is fine, right?
– We can’t trust the governnt, but let’s trust Kang Jin-hoo.
– I was about to do a bank run, but I stopped after hearing Kang Jin-hoo’s advice.
– Which savings banks did Kang Jin-hoo deposit in?
Thanks to that, the once chaotic financial market regained so stability.
When did my influence beco this significant?
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