OTK Company, which started as an investnt firm, had grown into a massive holding company.
Beyond simply making money, corporations must contribute to the local community. Therefore, we were also actively engaged in social activities.
We were expanding the shared office space, OTK Gate, into regional areas, and the construction of dormitories for university students was progressing rapidly.
As previously agreed, we entrusted the construction to the companies that provided the land, and they erected the buildings as if competing with each other. I personally called the presidents of the construction companies to request they build well without defects, so I trust they will.
Places with faster construction progress could begin housing students as early as the next sester, and applications were accepted in advance. The competition ratio for admission was typically several dozen to one.
After OTK Company took the lead, universities that had been hesitant also announced plans to build dormitories. Once again, studio apartnt owners and local residents protested, but this ti, students also organized and acted collectively.
So universities responded by transferring the registered addresses of students already living in existing dormitories. This allowed university students to vote for local governnt heads and regional council mbers in local elections. As public opinion also favored dormitory construction, local governnts granted the permits.
The Homin Foundation, established with the OTK Research Institute as its core, began supporting basic science. In fact, South Korea has the highest R&D investnt relative to GDP globally. The problem was the unnecessarily high success rate. It seed every investnt succeeded. In other words, this ant researchers were avoiding challenges with a high probability of failure altogether.
Therefore, the Homin Foundation decided to focus its support on long-term projects (5 years) and research tasks with a high probability of failure. Particular attention was paid to preventing unnecessary leakage of research funds.
Embezzlent of research funds is commonplace in Korea, with various thods employed: skimming labor costs, falsifying docunts, submitting fake patents, etc. The reason such corruption persists is that it's a relatively closed community, and if an investigation occurs, it's obvious who reported it.
Professors hold significant influence in Korean society. Being singled out doesn't just an expulsion from the university; it can block future employnt paths as well. Having been a professor for a long ti himself, Professor Kim Ho-min knew these academic practices better than anyone.
He implented regular audits and created a system for anonymous reporting to prevent the misappropriation of research funds. If a report was found to be true, the foundation even guaranteed employnt for the whistleblower. A system was established where improper use would result in future funding being denied and research funds being recovered. They even collaborated with relevant governnt ministries to revise guidelines and establish them as administrative rules.
So professors complained, but Professor Kim Ho-min didn't budge an inch. If they didn't like it, they could simply not accept the funding. What kind of attitude was it to want the funding but refuse the audit?
The establishnt of a foundation for victims of Japanese colonial rule also proceeded gradually. The scale was a staggering 5 trillion won. Although not explicitly stated, everyone knew the source of the funds.
dia outlets like the Sankei Shimbun fiercely criticized it as 'thievery, plundering Japanese citizens' retirent funds to lavish on Koreans,' and so mbers of the Liberal People's Party still insisted on apologizing to Japan and returning the money. When I suggested they first pool their parliantary salaries to contribute, they all fell silent. Why were these people, so precious about their own money, making such a fuss about telling to return money?
Anti-Korean sentint was very strong in China due to the Zhou Auto technology theft issue and the US-China trade dispute. However, the mood softened slightly after the events in Japan. Neighboring countries all enjoyed seeing Japan take a hit. Zhou Auto, relieved not to have suffered a similar fate, moved to consolidate control over its joint venture, ZhouToyota. Toyota, with its largest shareholder's stake fragnted and major shareholders embroiled in disputes, was too busy dealing with internal issues.
Japan held a new general election. Despite nurous calls within the party for him to step down, Okazaki did not relinquish his position as party president, and the Liberal Democratic Party narrowly managed to retain power. Although their number of seats decreased significantly, Okazaki Yusuke succeeded in reclaiming the position of Pri Minister.
***
After finishing work, I sat talking with Taek-gyu at the cafe on the first floor.
Taek-gyu excitedly recounted the events at the pub a few days prior. It was quite an interesting story, and I listened attentively.
"So, what are you planning to do going forward?"
"Maybe I'll contact him occasionally when I'm bored just to ss with him. Next ti, maybe I'll say I'll send him to the lithium mines in Chile?"
"No, I an about Min Ha-young and Yang Ha-na."
I had little interest in what happened to that Kwak Do-hoon guy.
"Huh? Why them?"
"Even assuming Min Ha-young was a planned eting, why do you think Yang Ha-na showed up there?"
"She probably ca because I offered to buy her drinks."
"......"
'Does this guy know and is just playing dumb, or is he really this clueless?'
"Anyway, I'm heading out first."
"Where are you going?"
"Gotta go play with our Oh Geon. Noona and my brother-in-law are both coming ho after dinner tonight."
He has a busy schedule in many ways.
I was drinking coffee alone and reading one of Oh Taek-gyu's recomnded masterpiece manga when Yuri ca down shortly after.
"Have you been waiting long, Sunbae? Oh, I an, CEO."
"Call comfortably after work."
Yuri was dressed in a suit, her blonde hair tied back neatly. She seed to exude a bit of a finance professional vibe.
"It suits you."
"My dad teases , saying I look like a kid trying to act like an adult."
Yuri ordered coffee and sat down. "It's been hectic, but I can finally catch my breath now."
"I heard from Sang-yeop sunbae that you're incredibly popular among the male employees? Anyone asked you out?"
At my words, Yuri shook her head. "Where would I find ti to date? I'm too busy learning the ropes."
"The fact that you're not denying it ans soone really did hit on you."
"Of course. I've always been popular."
I had been thinking I should treat her to a al soti since she joined OTK Company, but various things kept coming up, making it hard to find ti.
Yuri sipped her coffee and asked, "What are you treating to? I expect sothing delicious."
"Let's go get pasta. I've already made a reservation."
"What about Ellie unni?"
"She just contacted saying she finished, so she should be here soon."
No sooner were the words out of my mouth than Ellie walked into the cafe. Yuri quickly stood up and greeted her. "Hello, Unni."
Ellie took a small shopping bag from her purse and gave it to Yuri. "It's belated, but congratulations on getting the job. This is a gift."
Yuri bead like a child. "Thank you, Unni. Can I open it now?"
"Of course."
It was a small wallet suitable for carrying in a suit pocket, designed to hold business cards and credit cards.
"Many people in finance still consider business cards important, so you'll need it."
"I love it. I'll use it well."
"Don't ntion it. Let's hurry and get dinner."
We took a car to a restaurant in Apgujeong.
The restaurant had a European atmosphere, and about half the custors were foreigners. As we went inside and sat down, people started whispering, likely recognizing and Ellie.
This too was familiar now.
Ellie said, "Jessica and Henry co here often these days. The food is good, but the beer is especially delicious."
I said to Yuri, who was looking at the nu, "Order whatever you want."
"Then I won't hold back."
Yuri ordered a variety of dishes including salad, pasta, and lasagna. For drinks, we all chose beer.
Ellie asked, "How is it? Is the work manageable?"
"I'm enjoying it with a learning mindset. But there's so much I don't know, it's overwhelming."
Hearing Yuri, Ellie nodded understandingly. "I was the sa when I first joined. I thought I was pretty smart, but for the first few months, I felt like a complete idiot."
"You too, Unni?"
"I made a lot of mistakes and got scolded terribly by Jessica. But that's how we beca close."
I added my two cents. "Working life isn't easy."
At that, both of them looked at simultaneously.
"What does Jin-hoo know about working life?"
"That's right. Sunbae went straight to being the boss."
"......"
'Wait, isn't being the boss also part of working life?'
Shortly after, the dishes we ordered arrived one by one, and we clinked our beer glasses. As we talked, the Vester comrcial featuring Ellie played on a TV screen in a corner of the restaurant.
Ellie blushed slightly, looking embarrassed, while Yuri exclaid in admiration, "I love this comrcial so much. Unni, you look absolutely gorgeous. Even as a woman, I'm falling for you."
"Really? In my eyes, Yuri is much prettier."
"Ah, thank you."
It was nice seeing them exchange complints.
"I should have a drink with Chairman Ryu Cheol-gyun soti."
"He's on a business trip to China right now."
"Beijing?"
"Shanghai. Pudong."
Shanghai is China's largest city. The Chinese governnt developed Pudong, which was practically empty land, into an economic zone, attracting foreign capital and companies. In just 20-30 years, Shanghai Pudong transford into a cutting-edge city lined with skyscrapers. If Beijing is China's political center, Shanghai is its economic center. This growth allowed the ergence of the powerful political faction known as the Shanghai clique. Well, although now they've mostly been purged, barely maintaining their existence.
"He rarely cos to Korea recently, stays in China most of the ti."
RCK Bros is the largest PEF not just in Korea but in Asia. While actively involved in M&A dostically, their largest investnt proportion is undoubtedly in the Chinese market.
Ellie said, as if rembering sothing, "Co to think of it, RCK Bros has been selling off so assets within China."
"It's natural for a private equity fund to exit," I replied.
"That's true."
While industrial capital aims to acquire companies and integrate them as subsidiaries for growth, financial capital aims to maximize value and then sell. This is called an exit, and it's arguably more important than fund-raising or deal sourcing. Only when the investnt is recovered and returned to investors is the profit truly realized.
Typically, an exit strategy is planned before investing, but things don't always go according to plan. In reality, there are surprisingly many cases where a company makes a good acquisition but fails to sell it, getting stuck.
I thought of Chairman Ryu Cheol-gyun. "Could he be trying to reduce his China exposure this ti?"
"I'm not sure. But aren't there a lot of concerns about China's economy being unstable these days?" Yuri asked.
The risks in the Chinese economy beca more prominent after the trade dispute with the US.
I asked Ellie, "What do you think?"
"Talk of a Chinese economic crisis isn't exactly new, is it? Discussions about debt and statistical manipulation have been around for a long ti too."
China's growth rate last year was 6.6%. The "Baoba" policy aiming to defend 8% growth was broken long ago, and now even the 7% mark was breached. As China's economy grew to beco the world's second largest, a decline in the growth rate is natural. In fact, even though the rate dropped, the total increase in GDP at 6.6% now is larger than the increase at 10% growth in the past, simply because the base value is larger.
The problem is that even this 6.6% figure is hard to trust completely.
Benjamin Disraeli, who served as British Pri Minister, famously said, "There are three kinds of lies: lies, damned lies, and statistics." The reason this quote is still used as an aphorism is that manipulating statistics is so commonplace.
Companies can inflate their market capitalization just by changing a few numbers on their financial statents. Similarly, countries can manipulate statistics to make their economy appear to be growing. In truth, while the degree varies, almost every governnt engages in this to so extent.
After the Nishida Securities incident, it was revealed that Japan had been manipulating economic indicators for years, obviously to inflate the achievents of Okazakonomics.
Korea, too, has continuously changed its statistical survey thods to favor the governnt. For example, if the price of gold rises too much, gold might simply be removed from the price index calculation, creating the effect of lower inflation.
Still, most countries have open financial markets and follow international accounting standards, so they tend to adhere to regulations to so extent. But in China, with the Communist Party's one-party rule compounded by Zhang Pinghua's extended term, it's difficult even to determine what is manipulated and what isn't.
Yuri put down her beer glass and asked cautiously, "Sunbae, do you think another financial crisis will co?"
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