#85 Hong Kong’s Choice.
“Yes, yes. I understand.”
Lee Yong-hyun, the Association Leader of the Blue Wind Association, was holding the phone respectfully while talking to someone. A moment later, after hanging up, he was lost in thought with a serious expression.
“Association Leader, Candidate Choi Chang-geun has arrived.”
“Is that so? Let him in.”
The door opened, and the person who entered was Choi Chang-geun, one of the candidates in the upcoming presidential election. He approached Lee Yong-hyun and gave a deep bow.
“Association Leader. I trust you have been well.”
“It’s been a while. How are the preparations for the election going?”
“Yes, thanks to you, Association Leader, I was given a great opportunity. Thank you once again.”
It was Lee Yong-hyun who had taken Choi Chang-geun, pushed out of the ruling party’s primary, and created a new party to put him forth as a presidential candidate.
“Association Leader, Candidate Seong Dae-gyu has arrived.”
At the name Seong Dae-gyu, Choi Chang-geun, who had been bowing his head, lifted it to look at Lee Yong-hyun’s face. Lee Yong-hyun paid no mind to Choi Chang-geun’s gaze.
“Show him in.”
“Yes.”
The door opened, and Candidate Seong Dae-gyu, the presidential candidate for the current ruling party, the Conservative Party, entered. Seong Dae-gyu did not bow as deeply as Choi Chang-geun, but he lowered his head to show his respect.
“Sir, it has been a long time.”
“Hahaha. I never thought you’d become a presidential candidate. Sit here. Chang-geun, you get up and come over here too.”
Lee Yong-hyun sat in the seat of honor, with Choi Chang-geun to his left and Seong Dae-gyu to his right. Choi Chang-geun and Seong Dae-gyu glared at each other with hostility in their eyes. Watching them, Lee Yong-hyun slowly began to speak.
“Look here, you two. Stop glaring and listen to what this old man has to say.”
“Yes, Association Leader.”
“Yes, sir.”
As if they had never been glaring at each other, the two began to focus on Lee Yong-hyun’s words.
“You became the Conservative Party’s presidential candidate, but I hear you have no support from the president?”
“…”
Seong Dae-gyu didn’t answer, but his face was filled with dissatisfaction. Lee Yong-hyun chuckled.
“Haha, my good man. Am I the type to call you here just to talk nonsense? Chang-geun, your approval ratings aren’t rising easily either, are they?”
“No…”
Lee Yong-hyun, looking back and forth between the two, clicked his tongue.
“If you two fight, it just increases the chances of that fellow from the Progressive Party winning by a fluke. You both know that, don’t you?”
Seong Dae-gyu and Choi Chang-geun did not answer.
“The Progressive Party candidate was first in the polls, wasn't he? If the government suddenly changes hands because of this, you’ll be ridiculed for the rest of your lives. What you’re doing is no different from the work we did on the opposition party back in the Fifth Republic.”
It was Lee Yong-hyun who had uprooted the ruling party's assemblymen, delegates, and members to create a new party and make Choi Chang-geun a presidential candidate. A fact that both Seong Dae-gyu and Choi Chang-geun knew well. But no one dared to point it out.
“Unify your candidacies.”
“Association Leader!”
Choi Chang-geun raised his voice without realizing it.
“Chang-geun, did you just yell at me?”
“Th-that’s not it.”
“Hahaha. I’ve lived a long time to see this.”
Lee Yong-hyun was laughing, but his eyes were cold. Choi Chang-geun bowed his head low.
“Association Leader. I have committed a crime worthy of death.”
“No. When you get old, you should die. Isn’t that right?”
“I’m sorry.”
Choi Chang-geun stood up from his seat and knelt before him.
“Get up. How can a man who wants to be president of a country be so quick to kneel?”
“Please forgive me.”
“Alright. I understand.”
“Thank you, Association Leader.”
With a cowed expression, Choi Chang-geun got up and returned to his seat.
“Seong Dae-gyu, what is your opinion?”
“I do not know what you are thinking, sir.”
“What does my thinking matter? Your thoughts are what’s important. If you don’t have the president’s support, you should at least accept mine. Don’t you think?”
“…What do you want from me?”
“Give the next term to that fellow over there. And grant me a few favors. It’s something that will bring you one step closer to the presidency. You can do that much, can’t you?”
At Lee Yong-hyun’s words, Seong Dae-gyu turned his head to glance at Choi Chang-geun, then bowed his head.
“I understand. I will follow your words, sir.”
“Hahaha. Thank you.”
No one cared about Choi Chang-geun’s opinion. Lee Yong-hyun continued speaking as if the unification had already been decided.
“The economy is seriously ill. You know that, right?”
“Yes, sir.”
“Starting next month, all the money that came in from Japan will probably pull out. That would be a fatal blow to our country. The president has been too aggressive with Japan. Korea can’t win against Japan, you know. What a foolish man.”
Just as Lee Yong-hyun said, the current administration had thoroughly adopted an anti-Japan stance. Under the banner of “righting history,” they not only tracked the assets of descendants of pro-Japanese collaborators but also demolished the Japanese colonial headquarters building. After the Japanese Prime Minister’s reckless remark about Dokdo, the words spoken at a press conference were the final touch.
‘Including this reckless remark, Japan has said such things about thirty times since the founding of our nation. That is why we must fix Japan’s bad habits. In accordance with the proud morality of this administration, we need to show Japan that we are different from the military government.’
After this press conference, Korea-Japan relations deteriorated rapidly.
“When you become president, I will make it so you can borrow a large sum of dollars from Japan. You will leave your name in history as the president who saved the Republic of Korea’s economy. You will single-handedly rebuild the economy that the current president has ruined. Isn’t it a pleasant thought just thinking about it?”
“Thank you, sir.”
As Seong Dae-gyu spoke politely, Lee Yong-hyun let out a hearty laugh.
“Hahaha. What is there to thank me for? You should be thanking Japan. Don’t be too hostile towards Japan. Just pretend to be hostile enough. Only to the extent that the public can understand.”
“Yes, sir. I will keep that in mind.”
“Good. Don’t spread any rumors yet. When the election mood heats up enough, let’s play the unification card then.”
“Understood.”
“You can go first. I need to talk more with this fellow Chang-geun.”
“Yes, sir. I will visit you again next time.”
Seong Dae-gyu stood up, bowed his head once more, and left. Once the door closed, Lee Yong-hyun looked at Choi Chang-geun, who had his head hung low, and spoke.
“Even if you’re dissatisfied, swallow it. This is what Japan wants, so even I can’t do anything about it. Do you think I wanted to make you give up?”
“But…”
“Yes, I know. I know how you feel. You got the promise for the next term, didn’t you? After the unification, return to the Conservative Party and take control of it first. I’ll back you up.”
“I understand.”
“You can be the next one. Trust me. When have I ever spoken nonsense?”
“Yes. I will only trust you, Association Leader.”
The future Kim Mu-hyeok knew was changing. The small change he had created was approaching him as a storm, its next move impossible to predict.
Indonesia, the Philippines, and Malaysia were all defeated by the allied hedge funds. Malaysia’s Prime Minister Mahathir fiercely condemned ‘George Soros,’ naming him as the man behind the currency speculators. Thailand eventually applied to the IMF for emergency financial aid, and the economic crisis in East Asia fell upon Korea, Taiwan, and Hong Kong like a nuclear bomb.
“Hey. The U.S. stock market is crashing too.”
“I know. Leave it. It’ll go back up.”
“The drop is bigger than I thought.”
“Why are you so worried all of a sudden?”
“Because the company employees are getting anxious.”
“Don’t get eaten by fear. An investor has to overcome fear. Just get the employees ready to commit everything to Hong Kong. Don’t worry about the stocks.”
“Okay.”
August 1997.
The allied hedge funds were preparing their attack on Hong Kong.
“They’re telling us to participate this time.”
“Of course we have to participate.”
“How much?”
“Just put in 10 billion.”
“Just?”
I was so dumbfounded that I was at a loss for words for a moment. To call 10 billion dollars ‘just’…
“Brother… that’s 10 billion dollars. Not ‘just’.”
“Sorry. I’ve been throwing around 10 billion dollars so easily lately that I’ve lost my sense of money.”
“You should be careful too, brother. One wrong move and you could go broke and end up at the Han River.”
“Got it. I’ll tell them we’re putting in 10 billion dollars for now.”
“Yeah, let’s watch the situation and then make our move.”
History was ironic. Though completely unrelated, the collapse of the Thai baht, which signaled the start of the Asian financial crisis, occurred exactly 24 hours after Hong Kong was returned to China. Hong Kong’s inflation rate was considerably higher than that of the United States.
It was under constant pressure from speculative capital. Hong Kong’s pegged exchange rate was a double-edged sword.
“Preparations complete. The attack begins tomorrow.”
“Order the employees to move in sync with the hedge funds, and you and I will bet on the market crash.”
“Got it. Hold on.”
I could hear Han Gyeong-yeong’s voice giving orders in English over the receiver.
“Everyone, forget about going home for a few days. You’ll eat and sleep at the office and be on standby. When this is over, a sweet vacation and money will be waiting for you. Let’s just tough it out for a little while.”
I heard sounds from behind him that could have been either screams or replies. A small smile appeared on my face at the sight of Han Gyeong-yeong now skillfully managing his employees.
“This is the beginning. Even if we lose money, we keep betting on the decline. Don’t be afraid even if we lose all the money in the corporation.”
“Your words are scarier. You’re saying we should go in prepared to take a loss.”
“That’s right. But in the end, it will bring us huge profits.”
If history flowed as it should, Hong Kong would abandon its stock market and focus all its efforts on defending its currency. But since I had intervened, I had no way of knowing how history would change. That’s why I planned to use all the money in the ghost company without touching the capital in the American corporation.
Before long, the allied hedge funds and speculative capital from around the world began their attack on the Hong Kong dollar. The Hong Kong government, trusting in China, was mobilizing all its resources to defend its currency.
“Phew… this is crazy.”
“Don’t worry. It’s not time yet.”
From August to October, the amount we had lost betting on the fall of the Hong Kong stock market had already exceeded 30 billion dollars. It was declining gradually, but this wasn't the kind of fall we were betting on.
We were borrowing stocks from brokerage firms all over the world and selling them short, gently guiding the price down to at least reduce our losses. According to history, the Hong Kong Monetary Authority should have started making its move by now. I didn’t say anything for fear of making Han Gyeong-yeong anxious, but I was also on edge.
‘Did I twist history?’
But it was too late to give up now.
“What should we do? Do we continue?”
“Hold on. Let me think.”
Thanks to its solid foreign currency reserves, it was still holding on, but it was clear that it was reaching its limit. The goal of the hedge funds and other global speculators was simple.
To invest in the future decline of the Hong Kong dollar in the forward market, flood the market with large amounts of Hong Kong dollars, and force Hong Kong's financial authorities to abandon their pegged exchange rate and devalue their currency. Hong Kong has a slightly different currency system from other countries.
In other words, when U.S. dollars flow in, they adjust interest rates to keep the value of the Hong Kong dollar constant. And it is basic financial knowledge that when interest rates rise, stocks and bonds fall.
“Brother, bet all the funds in the U.S. corporation on the crash of the American, Japanese, and European stock markets.”
“What?”
“Don’t make me say it twice. Bet on the stock market crash of all those countries.”
“…Are you crazy?”
“It’s an order. We agreed that I would make all the decisions. Don’t forget our promise.”
Han Gyeong-yeong didn’t answer.
“Brother?”
“Fine, I don’t know anymore either.”
If this gamble fails? I can just start over from the beginning. I still have 10 billion dollars in secret funds, and the 30 billion dollars I bet on Korea’s collapse.
Han Gyeong-yeong faithfully carried out my instructions. Despite the protests of his employees, and with the words that he would take full responsibility.
October 23rd.
According to the original history, today was the day. I couldn't focus on anything. I just sat motionlessly on my bed, passing the time.
Just then, my cell phone rang. A sense of anxiety washed over me.
“Hello. This is Kim Mu-hyeok.”
“Mu-hyeok! We have a huge problem!”
It was Han Gyeong-yeong on the phone.
< Hong Kong’s Choice. > End