CH120

Chairman Park Tae-hong frowned at the completely unexpected response. He had assumed Seok-won would be in full agreement.

"Are you saying we absolutely shouldn't acquire it?"

"Yes."

Seok-won met his father's gaze directly and spoke firmly.

"If we recklessly win the bid for the Sampoong Department Store site, not only the department store but the entire group will fall into the winner's curse, putting everything at risk."

Chairman Park had initially asked his Seok-won's opinion casually, expecting nothing more than a quick confirmation of his plan. But now, hearing Seok-won's serious opposition, he found himself taken aback.

Still, he maintained his composure, crossing his arms and asking in a measured tone,

"You called it the winner's curse?"

"Yes."

"Explain why you think we shouldn't go through with the acquisition."

At his father's slightly subdued voice, Seok-won leaned forward and began to explain.

"There are several reasons, but the first is the poor financial condition of both the department store and the group as a whole."

"Not just one reason, but several?"

Chairman Park muttered unconsciously, then gestured for him to continue.

"You know the group's situation better than I do, but up until now, Daheung Group has relied on the cash flow generated by its two main pillars—Mido Department Store and the textile business—to sustain its operations."

In fact, the revenue from these two businesses alone far exceeded the combined sales of the group's nearly 20 subsidiaries.

Aside from a recently acquired securities firm that was turning a profit, most of the other subsidiaries were struggling, running at a loss.

"In short, the department store and textile business, which generate stable profits, are being drained to cover the deficits of underperforming subsidiaries—like pouring water into a bottomless pit."

Chairman Park's expression stiffened slightly at the blunt remark, his discomfort evident.

He was well aware of this issue and had been trying to fix it, but the situation was far more difficult to resolve than he had hoped.

Hearing it pointed out so directly, right to his face, was naturally unpleasant.

There was a risk that this conversation could sour their father-son relationship, but Seok-won knew the matter was too critical to avoid. He was prepared for the worst.

"There's no problem as long as our two core businesses continue to perform well, but as you know, the business environment has changed drastically over the past few years, and this structure has started to crumble."

"With the textile industry in a slump and a sharp rise in wages driving up costs, Daheung Textile's operating profit has plummeted. At the same time, Mido Department Store has also been struggling to maintain its previous level of profitability due to intensifying competition."

Seok-won had softened his words as much as possible in front of Chairman Park, but the reality was that both businesses were barely managing to sustain themselves.

"Despite these difficulties, the group has continued to support its subsidiaries, pushing our debt ratio to dangerously high levels."

Most of the subsidiaries wouldn't survive for even a few months without financial support, meaning the company was essentially trapped—unable to withdraw its aid even if it wanted to.

"In this already precarious financial situation, taking out additional loans amounting to trillions of won will be an unbearable burden."

Chairman Park countered with a deep, steady voice,

"You're right that the group is struggling. That much is undeniable. But if we just shrink back or retreat, we'll fall behind in the competition and eventually become obsolete."

He straightened his posture, his tone unwavering.

"It's precisely in times like these that we need to take bold action to survive."

"Father, you're not wrong, but courage that ignores timing and circumstances is nothing more than recklessness."

At this, Chairman Park Tae-hong raised an eyebrow, looking displeased.

"Are you saying that I'm being reckless?"

Seok-won quickly shook his head.

"Of course not. What I mean is that this isn't the right time to act boldly. That's also my second reason for opposing the land acquisition."

"The timing isn't right?"

Chairman Park furrowed his brows.

"What do you mean by that?"

"It's because the U.S. has significantly raised interest rates."

Seeing the question in his father's eyes, Seok-won immediately explained why this was a problem.

"As you know, from last year until this January, the Federal Reserve raised interest rates seven times, doubling the U.S. benchmark rate to 6%."

"Of course, I know that."

"It's a measure to combat severe inflation in the U.S., but when the Fed raises rates like this, global liquidity that had been circulating freely gets pulled back into the U.S., inevitably causing serious side effects."

Watching his father's expression carefully, Seok-won continued.

"In other words, the abundant liquidity in the market suddenly dries up, disappearing like a receding tide."

"...!"

"The recent currency crises in Mexico and other South American countries are prime examples of this."

"But that's their problem. Thanks to the strong dollar, our exports are actually increasing. This has nothing to do with us."

Indeed, while Japan was struggling in the aftermath of a major earthquake, South Korean exporters were enjoying a boom, benefiting from the weak yen and strong dollar.

"Is that really the case?"

"...?"

"As you said, countries like Korea rely on exports to earn dollars, so on the surface, it might seem like we're unaffected."

"...."

"But if you look at it from another perspective, many countries have taken on massive debt to build factories and invest in infrastructure for economic development. This means they're holding an even bigger financial time bomb."

"Are you saying Korea could face an economic crisis like Mexico?"

Seok-won wanted to blurt out that a devastating financial crisis was just around the corner, but he knew that saying such a thing now would only make him sound crazy.

"I'm saying we can't completely rule out that risk."

He bit back his urge to say more and responded calmly.

"Moreover, considering the massive investments we've already made in Chinese factories and duty-free stores, taking on another multibillion-won project right now would be reckless."

Yet, Chairman Park still didn't look convinced.

"I understand the need for caution, but aren't you being overly pessimistic? If we hesitate too much, the opportunity might never come again."

"Rather than overextending and watching everything collapse, wouldn't it be better to move a little slower but more steadily?"

Remaining composed, Seok-won urged once more.

"Right now, instead of expanding, we should focus on cutting away the dead branches and strengthening our foundation."

Unfortunately, his words failed to convince Chairman Park.

"I've heard your thoughts. I'll take them into consideration, so you should head to the office now."

"...."

From his father's indifferent tone, Seok-won instinctively realized that Chairman Park Tae-hong was going to proceed with acquiring the Sampoong Department Store site, just as he had planned.

To Park Tae-hong, everything Seok-won had just said probably seemed like needless worry over problems that hadn't even materialized yet.

Seok-won wanted to try persuading him again, but seeing how resolute his father appeared, he decided against it. Pushing further would only strain their relationship without achieving anything.

"Understood."

Clicking his tongue in frustration, Seok-won grabbed his coat from the chair and stood up.

"Then, I'll be going."

As he bowed slightly, Park Tae-hong responded in a calm tone.

"Alright. Have a good day at work."

Stepping out of the study and closing the door behind him, Seok-won let out a deep sigh.

"Haa… This is a disaster."

He had thought the only challenge would be blocking a hostile takeover. Never in his wildest dreams did he expect his own father, whom he trusted, to be the one causing such a massive problem.

"Ugh…"

Letting out a groan of frustration, Seok-won walked on, his face filled with concern as he tried to figure out how to deal with this mess.

***

Thursday, February 23, 1995.

Swoooosh.

Amid thunder and heavy rain, the Singapore International Monetary Exchange (SIMEX) trading floor was ablaze with activity. Traders, dressed in colorful jackets, were shouting at the top of their lungs, their voices blending into a chaotic symphony of frantic deals.

"Sell 300 contracts at 17,500!"

"250 contracts at 480—sell!"

"Damn it! No buyers at all."

"Today's a complete disaster!"

The Nikkei index, which had opened 100 points lower in pre-market trading, plunged without a single rebound, falling like a waterfall.

"At this rate, it might even break below 17,000."

As waves of sell orders flooded the market at the opening, traders who had taken long positions scrambled desperately to unload their holdings.

But with the index plummeting non-stop, no one was willing to buy.

Panic spread as traders, now in sheer desperation, slashed their prices, dumping their positions at a loss. The market spiraled into an even deeper abyss.

Amid the deafening noise of despair, shock, and traders' frantic screams, one man stood motionless.

Brad Cooper, positioned at the Barings Bank trading pit, stared blankly at the giant price board, his face drained of all color.

By mid-morning, the Nikkei had plummeted over 300 points, racking up losses exceeding 30 million pounds.

And to make matters worse, his desperate gamble on Japanese government bonds—meant to recoup losses from the Nikkei—had also gone completely against him, pushing the losses even higher.

At this point, the hidden losses in the infamous "88888" account had snowballed so much that he was too afraid to even check how bad it had become.

Even as he momentarily lost himself in thought, the Nikkei continued its relentless descent.

At this rate, the index could very well drop over 400 points by the end of the day.

Fortunately or unfortunately, the Nikkei finally stopped its downward spiral at a 380-point loss, just as the closing bell rang.

As traders who had suffered heavy losses groaned in despair or clutched their heads in frustration, Brad Cooper sat at his trading desk, punching numbers into his calculator to check the day's final tally.

[-42,000,000]

He had lost 42 million pounds in a single day.

In the past, his hands would have trembled at such an astronomical figure. But with an even greater fortune buried in the infamous 88888 account, he felt nothing.

It was as if none of this was real.

At that moment, a bespectacled accounting clerk hesitantly approached him and spoke cautiously.

"Brad… are you okay?"

Snapping back to reality, Brad forced a nonchalant smile.

"Just a streak of bad luck these past few days. But for every good day, there's a bad one, right?"

Hearing this, the accountant's tense expression relaxed slightly.

"London headquarters called. They want you to get in touch regarding your latest request for additional funds."

He handed Brad a small note with the contact person's name and phone number.

Brad's eye twitched slightly, but he casually took the memo and stuffed it into his pants pocket.

"Alright. I'll handle it. Just wrap up today's transactions and leave them on my desk before heading home."

"Understood."

With that, the accountant nodded, and Brad turned on his heel, making his way out of the now-chaotic trading floor.

The moment he received that memo, Brad knew—it was time to end this nightmare.

Another massive loss meant he needed to deposit more margin at the exchange.

"London is already getting suspicious of the ever-increasing transfer requests. There's no way they'll approve another few million pounds."

To make matters worse, an audit team from headquarters had just arrived in Singapore.

He was completely cornered, with no way out.

Yet, as soon as he resolved to let go of everything that had been tormenting him, he felt strangely relieved.

A peculiar sense of liberation washed over him as he pulled out his phone from his jacket's inner pocket and called his wife, who was at their apartment.

[Hello?]

"I'm coming home now. Pack a small bag and be ready."

[Pack a bag? What are you talking about?]

"You always said you wanted to go to Bali. Spend the day swimming, have a beautiful dinner at a nice restaurant, then fall asleep in a private villa with just the two of us, sipping wine by the pool."

[I did say that, but…]

"Let's go today. Right now. We're getting on a plane."

[Just like that? What about your job?]

"I took time off. I'll be there in ten minutes—be ready when I call again."

Brad glanced at the Rolex on his wrist and added,

"You've got ten minutes to pack."

[How am I supposed to pack everything in ten minutes? Brad, is something wrong?]

His wife's voice had a tinge of concern now.

She had already been nagging him to see a doctor for his worsening insomnia and growing reliance on alcohol. It was only natural for her to worry.

"I'll explain everything when I see you. Just pack the essentials. We don't have much time."

[Brad…]

"I love you."

Before she could say anything else, Brad pressed the end-call button firmly.

Shoving the phone back into his pocket, he strode toward the parking lot, opened the door to his car, and slid into the driver's seat.