Chapter 24: Daeha Securities (1)

The June Democracy Movement was in full swing, but I observed the political turmoil from a distance.

I couldn’t, and shouldn’t, interfere.

‘Just ten more years…’

This world isn’t ready for me yet.

I could occasionally exchange a few words with Kim Haeik, Senior Secretary for Economic Affairs, but even that had its limits.

‘I don’t have much to say.’

I can’t offer input on political matters, only economic ones. If he remains in the next administration, he could be a valuable source of information…

But it’s unlikely.

He’s a pro-democracy official who served under Jeon Doohwan. While currently Senior Secretary for Economic Affairs, direct presidential elections will favor the two Kims (Kim Daejung and Kim Youngsam).

Even with his political acumen, he wouldn’t predict the failure of the two Kims’ unification and a military regime second-in-command becoming president.

Even if he predicted it, he’d likely bet on the two Kims. That’s his belief.

‘Difficult. Focus on what I do best.’

On a chaotic day during the June Democracy Movement, I was heading to Daeha Securities.

After all… my most significant investment is Daeha Securities.

Yu Jinseok and Yu Jinha could interfere with other ventures, but not Daeha Securities.

Daeha Securities is where I can freely display my talents and future knowledge. Managing my personal assets or directly interfering in the company is still difficult, but this is due to legal restrictions, not family interference.

Daeha Securities was given to me directly by Yu Seongpil. It hasn’t been officially approved at a family meeting, but barring any major issues, it will be transferred to me.

My own company… This resonates deeply with me.

‘Working for others doesn’t suit me.’

Therefore, the Yu family hasn’t interfered with my activities within the group.

Or rather, they couldn’t. Yu Seongpil, despite his declining energy, is still a healthy man in his early sixties.

In the 21st century, early sixties isn’t considered old. People worry about his health, but I’m not concerned, having lived to the 21st century and knowing his year of death.

He’ll live to eighty.

I reflect on this as I enter Daeha Securities.

-Creak.

My secretary, Lee Sihyeon, opens the door, and people widen their eyes at my appearance.

“Miss, you’ve arrived.”

“Ah! Miss Hayeon, it’s been a while.”

Sihyeon stands guard, resuming her protective role, and Daeha Securities employees part to make way, bowing.

An older employee who knows me leads me to the CEO’s office.

Ha Jusung awaits.

“Hahaha. Miss Hayeon. You’ve arrived. I’m Ha Jusung, CEO of Daeha Securities.”

A middle-aged man bows excessively, his joy unconcealed.

He recently became CEO.

The Plaza Accord dramatically devalued the dollar. Even after earning 10 billion won, I accurately predicted the dollar’s future value; Ha Jusung, demonstrating his loyalty, used high leverage to trade foreign exchange.

He made a fortune and was promoted from executive director to CEO.

It was an unusual promotion, but no one questioned it.

Ha Jusung is almost my sole confidant amongst Daeha Securities’ executives. Those with eyes and ears would know.

Ha Jusung has become my right hand.

“You must be pleased, sir? The other executives must be seething.”

“Haha, it’s all thanks to you, Miss.”

He smiles, nodding.

He pledged allegiance to the future owner of Daeha Securities, even when no one believed in my abilities…

This is an undeniable political achievement. Companies aren’t wrong to favor those loyal to the chairman; their value lies in their unwavering loyalty.

Ha Jusung is incredibly competent, unlike most, yet the perception is the same.

Knowing this, he unconditionally believes me, or at least pretends to.

“Oh, as I mentioned before, Miss, I don’t blindly follow. I follow because I believe you’ll be a superb CEO of Daeha Securities.”

“Well, me becoming CEO is a foregone conclusion.”

Everyone knows I’ll lead Daeha Securities. I proved my abilities before turning ten; I’m no parachute appointee.

Therefore, openly supporting Ha Jusung faces no opposition. Challenging me or him now would be insane.

The current Daeha Securities chairman is just a figurehead, a close associate of Yu Seongpil, loyal to him alone, not the other family members.

I don’t need to fight the current chairman. Yu Seongpil’s single command—“Return to headquarters”—would end it all.

Since Yu Seongpil himself appointed me, I wield absolute power in Daeha Securities, despite my age.

Even more than the current chairman.

I laugh, brushing off his flattery. It feels good, but such things are dangerous.

“I’m here to discuss business, sir.”

Ha Jusung’s eyes change.

“Business…?”

When I speak like this, it’s usually about something big. Knowing this, Ha Jusung strokes his chin, staring at me.

I’m tall enough now that our eyes meet. I smile faintly.

“Daeha Securities… honestly, it’s too small, don’t you think?”

He seems to sense something, frowning.

“You mean…?”

“It’s time for expansion.”

Daeha Securities currently handles limited tasks. Strict regulations and limited assets restrict its activities.

It only has one CEO and low importance within the group.

That’s why it was given to me. It’s not a profitable affiliate yet.

That will change.

***

Daeha Securities is unique.

The Chairman values it, but it’s not large.

There’s a reason.

Korea’s financial industry is underdeveloped.

That’s all.

“Daeha Securities currently handles three main tasks, right?”

Ha Jusung nods, speaking.

“Brokerage, corporate IPOs, and… limited proprietary trading. The stock market is growing, so securities firms are expanding.”

Brokerage is retail finance, mediating trades for clients. Derivatives are also traded, but they’re difficult to trade at this point.

Corporate IPOs involve raising funds during the listing process, but securities firms now only assist, not lead, IPOs.

Proprietary trading is simply investing the firm’s own capital. Strict government regulations severely restrict this.

It seems like there’s little they do?

That’s correct.

Before the 1997 Asian Financial Crisis, the financial industry was dominated by banks. Money was borrowed from banks; people bought real estate or started businesses instead of trading stocks and bonds.

This is inevitable. Finance is allocating funds; business creates value.

A developed financial industry requires a certain level of national wealth.

“And you were investigated for speculative proprietary trading… If the Chairman hadn’t intervened, it would have been disastrous.”

“Right. It was illegal, even if I didn’t know it.”

The 1962 Foreign Exchange Management Act strictly regulated overseas investments by securities firms. Before the financial crisis, securities firms could only invest in domestic stocks and bonds.

They needed government approval; it was practically impossible for speculative purposes.

Ha Jusung’s proprietary trading with Daeha Securities funds was illegal.

But he ignored this, using his connections.

It’s simple.

Forgiveness is easier than permission.

He profited from the Plaza Accord, but suffered political damage. This is why I didn’t trade options afterwards.

“…You agreed to this, Miss. It turned out well.”

“It was fine then because I wasn’t at risk.”

Now that Daeha Securities is essentially my company, I bear that political risk.

And… I had another goal.

“And… that’s how I bought Daeha Electronics stock. So it’s fine.”

Daeha Securities, having illegally traded foreign exchange, was under government scrutiny.

Thus, funds were redirected domestically…

Naturally, I bought Daeha Electronics stock, a major beneficiary of the Three Lows boom. As an affiliate, this was a form of circular shareholding.

Ha Jusung raises an eyebrow.

“You… Miss, did you plan this?”

Yes, I did.

I needed a way to acquire Daeha Electronics stock without raising suspicion. If I control Daeha Securities, its Daeha Electronics shares become mine.

This will be crucial in taking over Daeha Group.

But I simply smile.

“Just a thought; I didn’t specifically aim for that.”

“Hmph, let’s say that’s true. What business will you expand into?”

How can I maximize the financial crisis and increase my influence?

After much consideration, there’s only one answer.

“Investment banking (IB).”

I need to do what I do best.