Investor That Can See The Future

Chapter 140

When Park Si-hyung heard the news that OTK Company was depositing 200 billion won in Hoseong Savings Bank, he thought he had finally knelt down.

However, Jinhoo Kang hit the back of the head by exposing his insolvency and causing a bank run. Upon learning that he had been deceived, Park Si-hyung was furious.

Hoseong Savings Bank was managed by Park Si-hyung’s in-law, and he received numerous benefits throughout his tenure.

If Hoseong Savings Bank collapses and insolvency or corruption is discovered in the process, it will inflict a huge political blow.

Park Si-hyeong immediately defined Kang Jin-hoo’s remarks as rumors and reassured the public. Because he was confident that he could cover any insolvency.

By the way… … .

This is already far beyond what is possible.

Park Si-hyung asked Cha Jong-ho.

“What would you like to do now? Let me tell you how.”

“Well, that’s the way… … .”

So why didn’t you look for a way?

When such a large-scale insolvency occurs, management and supervisory bodies cannot escape responsibility.

If funds are not provided immediately, Hosung Savings Bank will collapse in less than a day. To provide funds, the audit results must be disclosed, and the moment Hosung Savings Bank collapses.

So there is no way.

Cha Jong-ho opened his mouth with difficulty.

“Tea, let’s find it.

After letting him go, Si-hyung Park sat down and meditated.

He has overcome numerous crises so far. Sometimes he evaded with lies and deceit, and sometimes he boldly broke through.

Business and the press were on his side, and the opposition was incompetent.

Whether or not he is a good president is debated, but he has certainly rewarded his supporters at least.

He granted various preferential treatment to corporations, and granted pardons to politicians and economists who supported him. He lifted house prices by loosening real estate regulations, and allocated as much budget as possible to the ruling constituency.

Thanks to him, despite many controversies, many people still supported him.

There are not many people who feel that they have suffered directly because the government has wasted 10 trillion won in taxes. Control of the press, parachute personnel, and election intervention are all political issues. Civilian illegal inspections or illegal investigations do not matter as long as they have been subjected to it.

But flying away my money is an entirely different matter.

If bankruptcy becomes a reality, local residents will suffer direct and tangible financial losses. As a result, when a crisis occurs in the local economy, the damage is further spread.

Currently, customers of Hoseong Savings Bank are waiting for the resumption of business and only look at the president’s mouth. And they are the core supporters of the Korean Song Party.

‘How the hell did this happen?’

The reason is, of course, that the management of Hoseong Savings Bank hid the insolvency, and the government agency that was supposed to manage and supervise it did not do its job properly.

But Park Si-hyung found another reason.

‘After Kang Jin… … .’

Looking at what no one knew until now, at least it wasn’t a bankruptcy that would be revealed immediately.

If it had been well hidden and managed carefully, could it have been avoided during the tenure? However, Kang Jin-hoo broke it with a single word.

Park Si-hyung sharpened his teeth.

‘Did you know it was going to be like this from the beginning?’

* * *

The media plays a public role in checking power and fulfilling the people’s right to know, but it is strictly a private enterprise.

When the government puts pressure on them and businesses stop advertising, they don’t have the guts to survive.

Park Si-hyeong properly treated the press with carrots and sticks from the beginning of his tenure, which made most mainstream media a faithful trumpeter of the government.

Among them, Cho Joong Ilbo is the most pro-government, and has a private affair with OTK Company.

For this reason, Cho Jung Ilbo defined this incident as a battle between the government to prevent damage to the people and speculative capital to make a profit by disturbing the financial market from the beginning, and wrote an article accordingly.

OTK Company stated that it did not invest in any derivatives in relation to this incident, but Cho Jung Ilbo argued that it may have transacted through offshore companies due to the nature of the company in a tax haven. In other words, the absence of evidence itself was the logic of evidence.

A full-page advertisement for Hosung Savings Bank appeared next to the article criticizing Kang Jin-hoo.

[We sincerely thank our customers for trusting and waiting for us. We will be reborn as a more loved Hosung Savings Bank.]

* * *

An urgent discussion was organized on TV.

The topic was, of course, the Hoseong Savings Bank incident.

Experts and members of the ruling and opposition lawmakers appeared on the panel and had a fierce battle of words. Meanwhile, when the bank run was talked about, Rep. Kim Han-cheol of the Korean House of Representatives spoke with a strong tone.

“It is a problem to spread rumors with malicious intent, but it is also a problem to believe and follow such statements without critical thinking. A bank run is a kind of self-fulfilling prophecy. Bank runs do not happen because banks fail, but because banks fail because bank runs occur. There is no problem as long as we don’t withdraw money, but wouldn’t it be a problem if we tried to withdraw money first?”

Rep. Yoon Chan-young of the New Political Party immediately objected.

“What’s wrong with a bank run? Why do banks blame customers for the money I have entrusted to them, even though the interest on the loan is delayed by a few days?”

“Are there any banks on the planet that can withstand a bank run? So, do you mean that you should not lend a single penny of the money you received from the bank report and just keep it in the safe?”

“I agree that no bank can survive a bank run. However, if a bank is sound, it will not collapse immediately when a bank run occurs. When the bank shows that it can give out money even when depositors flock, the bank run naturally stops. Isn’t there a problem with the business being suspended after not being able to hold out for even a day in the first place?”

Rep. Kim Han-cheol said as if stinging.

“So, Senator Chan-young Yoon, are you saying that Kang Jin-hoo is right, not the government announcement now? No, what the hell is Jin-hoo Kang? When I see a young man who hasn’t even gone to college, rushing to the bank to get money, I think it’s kind of like a lemming. There are rodents that act collectively.”

Rep. Yoon Chan-young, who spoke calmly throughout the discussion, shouted for the first time.

“You mean depositors are lemmings? Is that what the people elected members of the National Assembly say?”

Rep. Kim Han-cheol quickly made excuses as if he didn’t want to even say it himself.

“Oh, no, I didn’t mean to demean the depositors, I meant that the problem was the Gang Jin-hoo who instigated them.”

Then he smiled and said to the host.

“Please edit this part when it goes on air.”

The host looked at him with a puzzled expression.

“We are discussing live right now.”

“… … .”

* * *

The government first said that the investigation period was 10 days, and that it would make an interim announcement as soon as possible.

The reason that no major chaos occurred despite the business suspension was that depositors trusted the government and the media and waited.

However, when there was no news for a week, agitation began to arise.

Market merchants, including Kim Soon-rye, gathered in one place.

“When are you going to reopen?”

“It’s strange. Why don’t you say anything?”

“Isn’t this really going to happen?”

said one merchant.

“No worries. The government is responsible for paying up to 50 million won in principal and interest per person.”

Then the other merchant shouted nervously.

“Who drives it? But beyond that, there’s no protection, so it’s not a problem, is it?”

Since it is a savings bank that has been operating in the region for a long time, there were not only one or two people who deposited large amounts of money. They were feeling more anxious.

Park Yong-cheol, a hardware store owner, calmed the merchants.

“Wait. The government is also taking measures.”

Kim Soon-rye told Park Yong-cheol.

“Did you say you went to college?”

“Yes. grandmother.”

Kim Soon-rye showed him the bankbook he had.

“Then take a look at this. I heard that this is similar to a deposit, can I be compensated for this?”

Park Yong-cheol received two bankbooks and checked the amount.

“I listened to it in 43 million won each. Deposits are guaranteed up to 50 million won per person, so don’t worry, Grandma.”

At those words, Kim Soon-rye let out a sigh of relief.

“Is that so? I’m glad. Good luck.”

However, as he looked at the bankbook, his expression hardened.

“Come on, wait a minute. These are subordinated bonds, not deposits.”

Kim Soon-rye blinked her eyes and asked.

“Isn’t that the same as deposits?”

Park Yong-cheol raised his head and asked the merchants.

“Have any of you bought subordinated bonds here?”

About a dozen of the merchants raised their hands.

“I heard that the interest rate is high.”

“I’m going to the deposit, so I suggest you pick up this.”

“I’ve been there before and the staff recommended it.”

Most of them were elderly people who had been in the market for decades. They probably didn’t know what subordinated bonds were, and the bank staff said they liked it unconditionally, so they just stamped it and signed up.

“Bonds can only get their money back when the bank is in good shape until maturity. If you fail before then, you won’t get a penny.”

At this, the merchants were astonished.

“Hey, what does that mean? Why can’t I get a reward? Do you have a depositor protection corporation or something?”

Park Yong-cheol said as if frustrated.

“The Depositor Protection Act only applies to deposits, not bonds. Subordinated bonds are as risky as stocks.”

Kim Soon-rye held Park Young-cheol with her two hands as if by the collar.

“Well, then what about my money?”

86 million won may not be a lot of money to others.

However, Park Yong-cheol, who worked in the same market, knew better than anyone how Grandma Kim raised this money.

“Hey, once we resume business, there won’t be any problems… … .”(Read more @ wuxiax.com)

“Otherwise? Don’t, what if the bank doesn’t open?”

“… … .”

He couldn’t say anything at all, and Kim Soon-rye sat down on the spot as if collapsed.

* * *

News Breakthrough posted videos on its website and YouTubers.

As it is an internet media company, it would have been buried by the mainstream media if it had been normal, but this time the situation was different.

The number of users exploded because all eyes were already on the Hoseong Savings Bank crisis.

President Jin Yeo-joon and reporter Jo Woo-jin had a conversation in front of the camera as if they were hosting a radio.

Jin Yeo-jun opened his mouth first.

“I prepared the 2nd edition of the so-called ‘Sir VS Otaku’ as a special feature. As we all know, it happened because of the remarks of OTK Company CEO Kang Jin-hoo. And because of that, I was even investigated by the prosecution a few days ago.”

Jo Woo-jin nodded his head.

“If I had just said that the bankruptcy was suspected, I could have skipped over it, but it was because I told him to withdraw money from Hosung Savings Bank. If the insolvency is not revealed, there is a possibility of arrest.”

“So, depending on the outcome, either Kang Jin-hoo is arrested or the Hoseong Savings Bank goes bankrupt. Personally, I wish Kang Jin-hoo was wrong. Because if Hoseong Savings Bank goes bankrupt, the damage to ordinary people is too great.”

“right. Hosung Savings Bank is currently the second largest savings bank in the industry. If done wrong, the local economy could collapse.”

“Before proceeding with the full-scale news, I came out with a product description of subordinated bonds sold by Hosung Savings Bank. If you look here, it is written that the interest rate is 5.6% per annum. Interest is paid at a rate of 1.4% every 3 months, and the issuance amount, issue date, maturity date, and subscription unit are written all over the place. The important thing is to see the last one here.”

Jin Yeo-jun held out the product description in front of the camera. At the bottom, something was written in clear letters.

“You won’t see it at all. Actually, I can’t see well either. The letters are less than 1 millimeter long, so you can barely see them with a magnifying glass. Anyway, if you read what it says, ‘Please note that subordinated bonds have a lower repayment priority than general bonds. This debenture is not protected by the Depositor Protection Act, and the investment risk due to non-payment of principal and interest of the debenture belongs to the investor. Do you know what this means?”

Woojin Jo explained.

“Even if Hoseong Savings Bank goes bankrupt, the principal and interest per person can be returned up to 50 million won. If the bank runs out of money, the Deposit Insurance Corporation pays the money. If you deposit 80 million won, you will get 50 million won back even if you lose 30 million won. However, there is no such thing as subordinated bonds. If the bank goes bankrupt, it’s all over. In fact, it is difficult to get a single penny back.”

“But these bastards… … No, Hosung Savings Bank employees sold these to customers at the window until the day before they closed. By the way, if you had financial knowledge and knew what subordinated bonds were, you would understand, but most of the people who bought these were senior citizens. They just think it’s like a deposit.”

“When you sell financial products to customers, you need to be fully informed about the basics of the product and the risks of investment. This is very likely an undersell.”

“Subordinated bonds are also a problem, but there is a really important problem right now. Before we get into the actual discussion, let’s clear up the situation. The first time Jinhoo Kang spoke out was around 7pm. By this time, the bank is already closed. Surprised customers connected to internet banking to withdraw money, but the site and app were all down in less than 10 minutes due to a flood of visitors. And there was no connection again.”

Jo Woo-jin nodded his head.

“It must be said that Hoseong Savings Bank blocked access to prevent an Internet bank run from occurring.”

“So the next morning, customers rushed to the bank directly, but shortly after opening, it closed and went into business suspension.”

“Ordinary customers rarely find money.”

Jin Yeo-jun looked at the camera and said.

“Now then, this is the important point. After Kang Jin-hu’s remarks went out, until the next morning, what happened in between? We now have some very shocking information. You will be amazed when you hear it.”