[30 Dostic Securities Firms Granted Currency Exchange Licenses Starting Next Year
On the 11th, the Ministry of Finance and Economy announced that starting in March of next year, 30 dostic securities firms will be authorized to handle currency exchange transactions related to dostic and international stock investnts, similar to foreign exchange banks.
This decision is part of a plan to gradually allow foreign exchange operations, which were previously monopolized by banks, to other financial institutions as part of foreign exchange system reforms.
However, to ensure the stability of these currency exchange operations, only securities firms with at least 100 billion won in capital and a managent rating of B or higher will be granted authorization.
Initially, the ministry had planned to allow foreign securities firms to participate in these operations only after the Securities and Exchange Act was anded. Specific criteria were to be introduced later, permitting eligible foreign firms to handle currency exchanges.
However, due to strong demands from foreign investors who cited significant inconvenience in currency exchange, the ministry decided to accelerate the process and include all firms in this round of approvals.
As a result, dostic and international stock investors will now be able to transfer investnt funds directly to securities firms' local currency and foreign currency accounts through foreign exchange banks.
Securities firms will charge a 0.4% fee on the exchange amount…]
Sitting alone at his desk in his private office, Seok-won frowned slightly as he read the article in the newspaper.
"Donghae Peregrine Securities managed to secure currency exchange authorization after all. I didn't expect that," he muttered.
Donghae Peregrine Securities was a Korean joint venture established last year by Hong Kong-based Peregrine Securities and Donghae Group.
The reason Donghae Group managed to establish Korea's first joint-venture securities firm, surpassing other prominent competitors, was because Woo Yong-gap, the chairman of Donghae Group, was the father-in-law of the forr president's daughter-in-law.
"Even a rotten fish is still a fish. Despite the change in administration, it seems their influence hasn't completely disappeared."
Although the new administration had replaced many key officials from the previous regi, it was impossible to entirely overhaul the vast governnt bureaucracy at once.
"I heard their brokerage commission revenue increased by a staggering 2,353.9% compared to last year, the highest growth rate among securities firms. Now, with the ability to handle currency exchanges, their growth will likely accelerate further."
Tapping his finger on the newspaper, Seok-won revealed his mixed feelings toward Donghae Peregrine Securities.
The company's rapid growth, supported by Peregrine Securities and Donghae Group, was certainly impressive. However, it was not yet a threat to Daehung Securities, one of the top ten securities firms in the industry.
Despite this, Seok-won was wary because Donghae Peregrine Securities had played a pivotal role in the downfall of the Daehung Group in his previous tiline.
"There's still so ti before things escalate, but it's better to take preventive asures than to clean up a ss afterwards," he thought.
After a brief mont of contemplation, Seok-won made up his mind and spoke aloud, "I should act now."
He picked up the phone on his desk and dialled a number. After a few rings, a calm female voice answered.
[This is Kim Sang-hee, Secretary to Executive Director Park Jin-hyung of Daehung Textiles. How can I assist you?]
"Is my brother in his office?"
Recognizing his voice from past calls, the secretary replied imdiately, [Please hold for a mont.]
After a short wait, the secretary returned. [I'll connect you now.]
After another brief signal, his older brother, Park Jin-hyung, picked up the call.
[Hello?]
"Hey, it's ," Seok-won said.
[What's the occasion for calling my office?] Jin-hyung asked.
"Are you free for dinner tonight?"
[Why?]
"I thought we could have a al together if you're available," Seok-won replied casually.
Jin-hyung's voice grew slightly cautious. [Is sothing wrong?]
"Not at all. I just have sothing I'd like to discuss."
[Can't we talk over the phone?]
"I'd rather discuss it in person. If you're busy, we can schedule it for another day," Seok-won said, sounding understanding.
After a mont of silence, accompanied by so rustling noises, Jin-hyung replied, [Wait a mont.]
He called his secretary to check his schedule, and after a few minutes, he returned to the call.
[There's a good Japanese restaurant in Myeong-dong. How about that?]
"Sounds great. You're paying, right?" Seok-won teased.
Jin-hyung chuckled in disbelief. [I heard you earned a hefty incentive with your recent profits, yet you expect
to treat you?]
"Co on, you're the group's heir. You wouldn't make your younger brother pay, would you?"
[You have a way with words. Fine, let's et at Haepung by 5 PM.]
"Got it."
After hanging up, Seok-won folded his arms and muttered, "It won't be easy to convince him, but it's better to give him a warning."
A knock at the door pulled him out of his thoughts.
"Co in," he said.
Manager Choi Ho-geun entered and approached the desk. "The investnt funds have just been deposited into the account."
Taking the thin folder that Choi handed him, Seok-won opened it and reviewed the deposit confirmation. He nodded slightly.
"As instructed, split the funds evenly between Ogwang Industries and Chunho Steel," he said.
Choi hesitated for a mont, causing Seok-won to glance at him curiously.
"Is there a problem?"
"No, sir," Choi replied, though his expression suggested otherwise.
"You seem to have sothing on your mind. Feel free to share it," Seok-won encouraged.
Manager Choi Ho-geun hesitated for a mont before carefully beginning to speak.
"It makes perfect sense to purchase additional stocks of Ogwang Industry, which has greatly benefited from the recent increase in interest in low price-to-earnings ratio (PER) stocks."
He glanced at Seok-won's expression, gauging his reaction. Seeing that Seok-won was listening quietly, he continued.
"However, wouldn't it be worth reconsidering the decision to invest 50 billion won in Chunho Steel? It's not a low PER stock, its sales are poor, and this is intended as a long-term investnt."
Unlike Ogwang Industry, Chunho Steel was a small company. Purchasing shares as planned would make them the largest shareholder, but the stock wasn't particularly active in the market.
Given its low trading volu, if the stock price didn't rise as expected, it could beco a liability, making it difficult to cut losses. Choi's concern was reasonable.
"I believe I explained the rationale for investing in Chunho Steel at our last eting," Seok-won said calmly.
"Are you referring to the value of the factory sites in Busan, Changwon, and Yangsan?"
"That's correct."
Manager Choi responded with a sceptical tone.
"As you ntioned, the factory site value is indeed undervalued. However, unless the factories are relocated, there's no way to cash in on that value. Even if relocation occurs, the sites are either zoned as exclusive residential areas or located within industrial complexes, limiting their potential for redevelopnt. In such cases, even if the sites are sold, the profit margin would be minimal."
Despite his investnt plan being challenged, Seok-won showed no signs of irritation. On the contrary, he felt pleased.
He appreciated Choi's thorough examination of the company's assets and financial status, as well as his willingness to express concerns openly. It was an attitude far more valuable than blind compliance.
'Impressive,' thought Seok-won, slightly raising his evaluation of Choi.
Looking at Choi's nervous face, he spoke.
"You've done your howork," Seok-won said with a faint smile. "But you've overlooked one detail."
"What would that be?"
"It hasn't been officially announced yet, but the soon-to-be-revealed subway Line 2 will pass through Chunho Steel's Busan factory, with a station planned right in front of it."
Choi's eyes widened in surprise. "Is that true?"
"Yes," Seok-won replied with a faint smile. "Once the announcent is made, the value of the factory site will skyrocket."
The difference a subway line could make was enormous.
Additionally, the Busan factory's location in a residential area ant it could be redeveloped into a large apartnt complex, drastically increasing its real estate value.
Choi, still processing the revelation, quickly recalled Seok-won's background.
'If anyone would know about this kind of developnt information, it'd be the chaebols.'
"What do you think will happen once this news hits the market?" Seok-won asked, breaking Choi's thoughts.
"The stock price will rise significantly as it garners attention from investors," Choi replied.
"Exactly," said Seok-won, flashing a confident smile.
"It may have been overlooked and undervalued, but once this type of windfall attracts attention, the stock will soar," he explained.
Choi nodded but offered another perspective. "Then wouldn't it be wiser to aim for short-term gains and exit before the market corrects itself?"
It was a sharp observation, but Seok-won shook his head.
"If it were a short-term opportunity, you'd be right. But in this case, I believe the upward trend will continue for quite so ti."
"How long are you predicting?" Choi asked sceptically.
"One year at the very least, and up to two years at most," replied Seok-won, raising one finger for emphasis.
Choi still felt uncertain. While rising real estate values were undoubtedly good for stock prices, he doubted they could sustain investnt enthusiasm for that long.
Still, seeing Seok-won's confidence made him wonder if there was more to the story than he knew.
'Regardless, there's no doubt the stock price will rise. At worst, it won't drop below its peak.'
Choi put aside his reservations and decided the investnt was worth pursuing.
"I was short-sighted and didn't realize such developnts were happening," he admitted.
"No need to apologize. If you ever have concerns, feel free to share them anyti," said Seok-won, his tone reassuring.
Relieved that he hadn't offended his superior, Choi nodded. "Thank you. I'll take my leave now."
After bowing respectfully, Choi exited the office.
Leaning back in his chair, Seok-won stared at the closed door and muttered to himself, "His skills are solid, and he's not afraid to speak his mind. Not bad."
He preferred people who could stand their ground over those who only aid to please.
"There's potential there… Keeping him close and letting him work more might not be a bad idea," he concluded with a faint smile.
anwhile, outside the office, Choi shivered unexpectedly, as if sensing sothing unseen.
***
Late Afternoon, Myeong-dong District
As the sun dipped below the horizon, the high-rise buildings cast long shadows, and the evening glow painted the sky a vibrant red. Myeong-dong's bustling streets were alive with people, and neon signs began flickering on, creating a dazzling cityscape.
A sleek black BMW 540i pulled into the parking lot of a high-end Japanese restaurant, drawing curious glances from passersby. Foreign cars were still a rarity, and the luxury vehicle stood out.
As the driver's door opened, Seok-won stepped out, dressed sharply. A young valet quickly approached him, bowing politely as he handed over the car keys.
Leaving the valet to park the car, Seok-won strode confidently toward the restaurant entrance.
The entrance, adorned with dark ebony tiles, featured a small Japanese-style garden with an artificial stream that softly gurgled, adding a serene touch to the setting.
"Exactly the kind of place my brother would like," Seok-won thought. The restaurant's calm and sophisticated ambience matched Park Jin-hyung's reserved personality perfectly.
Inside, the restaurant was designed for privacy, with a spacious hallway flanked by private dining rooms on either side. It was an ideal setting for uninterrupted conversations over a al.
"Welco," greeted a female staff mber in a neat two-piece uniform at the counter. She smiled warmly at Seok-won.
"Are you eting soone?" she asked.
"I believe there's a reservation under the na Park Jin-hyung," he replied.
"Ah, Mr. Park's party. Please follow ," the staff mber said, stepping out from behind the counter. She led him down the hallway to a VIP room.
"Your companion has arrived," she announced, knocking lightly before sliding open the wooden door.
Inside, seated alone in the tatami-lined room, was his elder brother, Park Jin-hyung. A few small dishes of appetizers were laid out on the table, alongside a glass of sake.
"You're here," Jin-hyung said curtly, turning his head to glance at Seok-won.
"Yeah," Seok-won replied, stepping inside.
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