Chapter 20: Boom (1)

The significance of the Plaza Accord is… the government’s direct intervention in exchange rates.

It’s also considered a successful suppression of Japan’s burgeoning economy by the US.

It’s complicated… but the details aren’t important.

The results matter, right?

“Japan’s economy will soon go crazy. Ours will seem trivial in comparison.”

I started our conversation with Ha Jusung this way.

Perhaps he’d heard from my grandfather, or perhaps out of respect for my abilities, Ha Jusung was far more polite.

“With the yen’s rise… exports are doomed. It’s a domestic market problem then.”

Right.

Ha Jusung, having worked at the Tokyo Stock Exchange, understands.

Most Koreans would realize this easily. Money isn’t flowing outward. So… where will it go?

Real estate.

“Real estate will boom. Can I invest my money there?”

Japan’s insane bubble economy of the 80s is well-known.

Selling land in Tokyo could buy all of America. This describes the real estate bubble.

It’s no joke. Land prices in Japan were 100 times higher than in the US; 700 times higher in Tokyo.

Makes sense?

No, of course not. The bubble eventually burst, and Japan suffered through painful years of recession.

But I intend to ride that bubble and milk it dry. I will do the same during the IMF crisis and the subprime mortgage crisis.

Why stop money from rolling in? I have no obligation to prevent people from suffering during a recession.

It might not even work, and the incompletely burnt bubble might become an even bigger one later.

“Aren’t you considering the stock market? I heard you preferred stocks over real estate…”

Ha Jusung cautiously suggests stock investment. It’s his area of expertise and suits my preferences.

I was a financial professional in my past life, after all.

“Hmm, true. Stocks will also rise sharply. But this time… I need some… black money.”

“Ah, then it can’t be helped. Japanese tax laws are complicated; I’ll leave it to an expert.”

Honestly, I want to buy NTT stock en masse. It’s an invincible stock until the bubble bursts.

NTT… a telecommunications company listed this year. It was a public company that was privatized through listing.

Not particularly famous in the 21st century, but at this time, NTT is the world’s top company by market capitalization.

NTT’s market cap in 1988 was approximately $277 billion. Compared to IBM at $76 billion, it’s an unbelievable difference.

For reference, Korea’s GDP barely exceeded $200 billion at the time. A single Japanese company was far larger than the Korean economy.

That was Japan’s bubble economy. An unimaginable level of insane growth and economic scale.

This is why Yu Seongpil was considered insane for entering the semiconductor industry to challenge Sony.

The status of Japan in the 80s and after the Lost Decade of the 21st century is worlds apart.

But… this is difficult.

Unlike real estate, stocks are different. Money laundering is difficult due to financial institution oversight.

I need to prepare for black money accumulation. It seems excessive at my age, but the difficulty increases sharply if the real-name financial system is implemented.

I need to prepare in advance. I can earn more money later.

“I’ll use my personal funds for land. Holding it and reselling at a higher price should yield a 5x return.”

Now isn’t the time to actively earn money.

It’s time to consolidate my position and prepare for the future.

Until that time comes, when I’ll overturn everything in South Korea, I will calmly navigate this boom.

***

Later.

I met Kim Haeik, Senior Secretary for Economic Affairs. He was happily pondering how to maximize the benefits of the Three Lows boom.

“You were right, Hayeon. The dollar fell. More sharply than expected. Haha, our foreign debt will soon decrease.”

With Japan’s export collapse, Korea has almost no competitors.

As a developing country, our quality is decent, and labor costs are still low, giving us a significant price advantage over developed countries.

For him, leading Korea’s economy, this couldn’t be better.

“Hehe, I was lucky. This major opportunity arrived just as I entered the field.”

Semiconductors are a major export. It’s only natural that I, starting with semiconductors, would be interested in exports.

My focus on the Plaza Accord wasn’t arbitrary. The yen’s strength, semiconductor exports, and the semiconductor industry are interconnected.

As a child, it’s difficult to enter unrelated fields.

Unaware of this, Kim Haeik chuckles.

“You were incredibly confident, weren’t you? I heard you made an amazing gamble.”

“Well… just a shot. A calculated investment.”

I shifted the risk to Daeha Securities, but that’s standard practice for powerful people.

Profit is mine; losses are covered by company funds; that’s the basic principle of embezzlement.

I limited the losses to my own assets; that’s pretty ethical. Hmm… maybe too ethical.

Ah, being this ethical will cause problems later.

“You’ll be a second-grader soon. You’ve grown a lot. Taller than your peers?”

He looks at me, tilting his head, surprised.

“Yes. I’m probably first in my class.”

I smile, standing on my tiptoes.

Thanks to my reincarnation abilities, I’ve grown quickly. I’ve formulated some hypotheses about hormones, but without significant results.

Aging probably stops around 17, when growth ends…

This mitigates my age disadvantage. Adults judge a child’s age by height.

“A boom is coming. Korea lacks resources, but we’ve caught up in terms of people and technology. We’ll reap the rewards… now.”

A wistful smile appears on his face.

“You must be pleased?”

He nods, smiling.

“Of course. This kind of luck as an economic official… it’s rare. This country is too large for a single economic official to influence its direction anymore.”

Kim Haeik adds.

“But… we should prepare for the coming recession.”

Booms always end with recessions.

Prioritizing economic stability over growth, he prepared for the future recession even before the boom.

I have a question. Anyone would.

“Do you think you can prevent a recession?”

Will preparing diligently now prevent the Asian Financial Crisis?

“Well… a soft landing is my goal. Korean companies are too focused on growth.”

…

“That’s difficult.”

“It is.”

1980s Korea was barely a developing country. A superpower like the US can deflate bubbles in anticipation of a recession, but not now.

Companies want rapid growth, yet they must overcome a future crisis.

It’s nearly impossible. Even more so with political considerations.

Therefore, I’m at ease.

I won’t bury my only remaining friend.

“Don’t worry. By the time this boom ends… I’ll be much older. I’ll help then.”

I smile, like a child.

My promise to help is genuine.

I’m far more capable and beneficial to economic development than most chaebols.

I alone am enough to steal the money of ordinary people.