A Lie Has Become Reality

27 – Before the Storm

Taewoong Foundation.

The Taewoong Foundation refers to all social welfare corporations, starting with the Taewoong Cultural Foundation founded by Chairman Kim Young-hoon.

Currently, chairman Kim Young-hoon’s younger brother, Kim Dong-ho, is running the foundation. You can call me a person who becomes a great-grandfather. I am now sitting facing him in the office of Chairman Kim Dong-ho.

“Heh heh, yes. Let’s see if I can hear it. Why did you come all the way here yourself?”

Director Kim Dong-ho, smiling benevolently in front of me with a kind smile.

I chose Chairman Kim Dong-ho as my helper to wipe out both Kang Min-wook and Choi Jae-young.

He may look like a toothless tiger, but he is a dangerous man like a venomous snake hiding his true feelings.

I came here personally to propose a deal to him today.

“Yes, Grandpa. First, I will explain the situation.”

“Recite it.”

Whoa…

This is quite tense. He is an aristocrat who cannot predict what will happen if the number is even slightly wrong.

But I can’t lose my temper here. I met eyes with Chairman Kim Dong-ho.

“I think you are aware of the recent short sale of Unilabs.”

“Everyone knows. I don’t know if my older brother had a lot of fun or how much he boasted about you as a voice actor.”

“Anyway, it seemed that Seoul Mayor Kang Min-wook harbored a grudge against me.”

“It has to be. Seongwoo: They must have bet everything on the scam you threw away. How bad was that follow-up?”

hahahaha, look at that attitude that has already drawn the line.

This venomous man is now trying to scoop me up. It must be that he will decide whether or not to help after seeing what cards I am holding.

I’m quite offended by the thought of eating it raw, but it doesn’t matter to me.

“They were so incensed, they plotted quite cunningly.”

“Heh heh, Kang Min-wook is a nobleman with a knack for tricks.”

“Short selling. Kang Min-wook intends to destroy Leon Play by selling short.”

“Hmm?”

Director Kim Dong-ho looked at me with an interesting expression and tilted his head.

“Wouldn’t Leonplay be small enough to collapse with just short selling?”

“That’s right. The size of the Leonplay I raised is different from before.”

The market capitalization of Leonplay, which was only 70 billion, now exceeds 200 billion.

As he said, Leon Play is not the size to collapse with short selling designed by Kang Min-wook and the like.

“It is impossible with the funds that Kang Min-wook can roll.”

As expected, he pointed out the point at once.

As he said, Kang Min-wook can’t raise enough funds to destroy Leon Play.

If the stock market rolls according to ‘common sense’, that is.

“It is possible.”

“What channel?”

“It is CFD.”

“… !”

Contract For Difference (CFD), also known as Contract For Difference.

It is an over-the-counter derivative product that can realize profit or loss through the difference caused by price fluctuations without actually owning stocks.

What this means is that when a securities company buys and sells a specific stock on behalf of the investor, the investor settles the profit or loss with the difference arising from the price difference.

Then, what is the difference between buying and selling stocks yourself?

“Heh heh, are you saying that Kang Min-wook carried out short selling with CFD leverage?”

“Exactly.”

Leverage, also known as leverage effect.

This is an extreme high-risk, high-return investment method in which a large amount of money can be rolled with a small amount of money. That is, borrowing money to make money.

The reason for doing CFD is because of this leverage.

Depending on the stock, you can leverage up to 10 times, which means that if the case is right, you can invest by rolling 1 billion even with 100 million funds.

Min-Wook Kang and Jae-Young Choi must have carried out short selling with a lot of leverage with 100-100 CFDs.

“… So, is there a workaround?”

“Of course.”

I let out a bleak laugh, holding on to my cynicism.

Kang Min-wook, he must have rolled his head desperately in his own way. Unfortunately, I could clearly see the loopholes in the blueprint he had drawn.

“20 Billion. Please proceed with a total investment of 20 billion in Leonplay in the name of Taewoong Cultural Foundation.”

“Hmm. It’s not like you’re asking me bare-mouthed. What are the conditions?”

Chairman Kim Dong-ho’s pupils shook with demonic spirit. Now that I’ve bitten the bait, let’s pull the fishing rod.

It’s your turn to listen to the devil’s whispers that he can’t deny.

“If you invest 20 billion won, I will make you earn more than three times the amount you invested.”

“…?”

“Kang Min-wook will probably use the cards called tax audit and accounting audit to throw short sales at the upcoming large-scale collaboration event with Leonplay.”

“I guess so. A bomb that explodes when the largest number of people gather has the greatest killing power.”

“What Grandpa will do is simple.”

Ssiik-

Kang Min-wook probably wanted to repay me for the way he suffered.

But what can I do? His struggles can only give me the inspiration of a joke party.

“Leverage can be applied using CFD, just as Minwook Kang did.”

“No way… ?”

“Yes, since Kang Min-wook took the short position, you can take the opposite position and receive all the stocks thrown by Kang Min-wook and his forces.”

Director Kim Dong-ho’s role is, simply put, tanking.

Why do I ask Dong-ho Kim, the chairman of the board, instead of directly accepting the short sale?

First, it is because the picture of the CEO receiving short selling to defend the stock price is not a very good picture. And secondly, to use the weight of the name Taewoong.

The fact that the Taewoong Cultural Foundation is investing 20 billion won in itself is a huge boon in itself.

What if someone swallows up all the short selling stocks that are pouring in at the right time?

Naturally, people would think that Taewoong was directly involved in tanking.

“You look like a bold guy. Are you planning on using Taewoong’s name value to make a fuss?”

“The fruit you will get will be quite sweet for just lending your name.”

If you ask me to describe the Korean stock market in two words, I can answer without worrying for a second.

Insanity. Is there any other word more suitable for this stock market than madness?

Even companies that are not related to each other in the slightest become involved in related stocks when only rice cakes start to circulate in the stock market.

‘Taewoong Group and Leonplay are in the same fence’.

Once the rice cakes start burning, the flames grow out of control and burn the entire stock market.

Large-scale accounting audit and tax audit? I bet it won’t be enough to quell this overwhelming fire.

“What if the stock price pierces the sky when the short selling stock is eaten as soon as it is thrown, and to make matters worse, even a super-large good news explodes?”

“…… Margin call.”

Bingo.

Short selling is not omnipotent. If you sell stocks you don’t own, it’s natural to buy them back and pay them back.

However, what if you have to pay back the stock you sold at a low price and buy it at a high price several times?

That’s all.

There are many people who want to buy stocks, but who will sell stocks that are sure to go up?

By the time of the repayment date, the amount left in the market will not be even half of the amount Kang Min-wook has to repay.

“When the redemption date of the short sale comes, the securities company will proceed with the reverse trade.”

“If that happens, trading losses will be overwhelmingly greater than the margin that Min-wook Kang put in.”

“Yes, then, of course, the securities company will ask Kang Min-wook to pay the difference. Of course, since he would have dragged in money he didn’t have and put all of his property into a pile, the possibility of Kang Min-wook paying the bill would be zero.”

Truly ruin.

The ruthless violence in the name of finance will bring Kang Min-wook and Choi Jae-young down to the abyss.

At that time, a living hell in which it is impossible to even revive will unfold before them.

“You will make a pretty good slush fund, Grandpa.”

“Ha ha ha ha!!!!!”

Thump-!

Director Kim Dong-ho hit the desk one after another with a fist the size of a pot lid and stomped on his stomach.

Looks like you liked the board I designed.

I sipped the coffee in front of him without batting an eye until he calmed down.

“Ha… hahahaha… Now I understand why my older brother wraps around you like that.”

“Can I take this as a sign of acceptance?”

“Accept? Under! Would you refuse to say that you are crazy because it is not enough even if you pray?”

Ssiik-

All preparations are complete.

Did you say that these days, money-eating, money-copying?

I shook hands with Kim Dong-ho with a satisfied expression.

The time for condemnation is not far.