Chapter 183: Brexit
“Hyung, Donghyun Chemical won the trial.”
“Myeongshin is definitely skilled.”
“Their fees are expensive, too.”
Seong-hwan shook his head.
“Still, compared to securing the high-purity argon fluoride patent, it’s a bargain.”
A few tens of billions was nothing.
“Anyway, the CEO of Donghyun Chemical, Jang Byung-yoon, wants to thank you, Hyung.”
“Sure, let’s meet soon. Tell him to sign the joint venture agreement first.”
“Okay, I asked. They’re willing to establish the joint venture right away if we invest.”
“What about the others?”
Seong-hwan opened the prepared documents at my question.
“Like Donghyun Chemical, Gyeonghan Ceramics has patent issues with Ahsung, so Myeongshin will handle it.”
“High-density ceramic materials, right?”
“Yes, SiC and AlN-based for extreme ultraviolet processes. They originally used Japanese products, but Gyeonghan’s materials performed well.”
That’s why Ahsung took the patent.
Seong-hwan continued.
“It’s a shame we can’t exclusively own the patent even if we win the lawsuit, like Donghyun Chemical.”
Since they were co-developed, both Donghyun and Gyeonghan would have to register joint patents with Ahsung even if they won.
“It doesn’t matter.”
I set down my coffee cup and continued.
“Even with joint patents, securing foundational patents allows us to file divisional applications or follow-up patents for independent rights through improvements.”
That’s why we fought Ahsung in court to secure some rights.
The same goes for other companies.
“Hyung… you always have the bigger picture, don’t you?”
Seong-hwan nodded at me with admiration.
“Hey, it’s awkward. Stop staring.”
“What? You’re just so impressive.”
I shook my head, feeling wronged.
“Still, it’s weird for a guy to look at me like that.”
People might get the wrong idea.
“Then… should I call Yoon Ha-jin from Eve Media instead?”
“You idiot, I said it’s not like that!”
Despite my repeated explanations since the AGE project, Seong-hwan still doubted and mentioned Yoon Ha-jin.
“Haha, anyway, we’ve made progress with Gyeonghan Ceramics, and negotiations with Korea Precision and Daesin Precision Chemicals are going well.”
Seong-hwan flipped his laptop screen and added,
“Korea Precision will co-develop precision positioning systems with us and produce core modules for semiconductor automation equipment.”
Things were proceeding as I’d planned.
“Semiconductor processes are too complex for us to handle alone. We must thoroughly manage the materials, parts, and equipment ecosystem, even if it means forming separate organizations.”
“I know. But establishing joint ventures with dozens of companies is costly. Executive Oh is worried.”
“If it’s not enough, tell Lisa to send more.”
With so many ventures, funds were always tight.
That’s why we created DJ Capital for situations like this.
We could manage the funds.
“We used 3.5 trillion won for the Busan Optic joint venture. Are you asking for more?”
“…No. I was planning to visit DJ Capital soon anyway. Leave it for now. I’ll handle it myself.”
“Going to New York?”
Seong-hwan looked surprised.
“Yes, a big event is coming up. I’ll secure the necessary funds while I’m there.”
“Event?”
Seong-hwan looked puzzled as I tossed him the newspaper on the table.
The headline read:
[UK Government Considers Brexit]
“Brexit?”
Seong-hwan alternated his gaze between the article and me.
“Brexit means the UK leaving the EU, right? Is that the event you’re talking about?”
I nodded.
Brexit, a combination of Britain and Exit, meant the UK’s political and economic separation from the European Union.
I’d been waiting for this moment.
＊＊＊
“Representative.”
“Long time no see.”
Lisa and Grant welcomed Seong-hwan and me with smiles.
“Everything okay?”
“Everything? A lot…”
I was slightly surprised.
“A lot?”
“Haha, following your strategy, our profits keep growing.”
I chuckled at Grant’s joke.
“How much profit are we talking about?”
“Shall we start the report?”
I nodded at Lisa’s question.
In the meeting room, Lisa had already prepared the report on the screen.
I took a sip of coffee and signaled her to begin.
“Over the past two years, we’ve actively invested using 50 divided hedge funds across four major contexts.”
-
End of US quantitative easing, interest rate hike
-
Japan’s Abenomics → Quantitative easing
-
Greek financial crisis triggering ECB’s large-scale quantitative easing
-
Strong dollar → Increased Middle East profits → Strengthened emerging market investment by Middle Eastern sovereign wealth funds
All strategies were based on my advice.
“After establishing the 50 hedge funds, our assets were $21.3 billion, right?”
“Correct. That was the final amount after deducting establishment fees.”
“And now our assets are $43.8 billion?”
Despite using 3.5 trillion won for the Busan Optic investment,
Our assets had grown significantly.
“Thanks to your guidance, Representative.”
Grant deflected the credit, but doubling our assets in less than two years
Would’ve been impossible without Grant and Lisa.
Lisa smiled and moved to the next slide.
“Let me explain in detail.”
The screen displayed detailed returns and amounts for each category.
【End of US Quantitative Easing & Rate Hike】
-Total investment: $75 billion → Valuation: $158 billion, Return: +110.7%
-Shorting 10-year US Treasuries
·Investment: $35 billion
·Valuation: $69.5 billion (+98.6%)
-Shorting companies reducing share buybacks (energy & tech)
·Investment: $40 billion
·Valuation: $88.5 billion (+121.3%)
【Japan’s Abenomics Quantitative Easing】
-Total investment: $55 billion → Valuation: $133 billion, Return: +141.8%
-Betting on yen weakness
·Investment: …··
·Valuation: …··
-……
【ECB Quantitative Easing Due to Greek Crisis】
-Total investment: $43 billion → Valuation: $77 billion, Return: +79.1%
……
【Middle Eastern Sovereign Wealth Fund Investment】
-Total investment:……
I nodded, reviewing the numbers again.
“Betting on US Treasury yields and yen weakness was particularly effective.”
“Wow, it’s like raking in money!”
Seong-hwan exclaimed, continuing,
“We’ve never doubled our assets like this before, have we?”
“It’s not entirely unprecedented, but it’s rare.”
I provided the direction,
But growing funds at this scale isn’t easy.
“Um… Representative, do you have another good tip for us?”
Lisa and Grant looked at me expectantly.
I always brought short-term profit opportunities,
And they expected the same this time, which was true.
“Brexit, if handled well, could be another big opportunity.”
“Brexit…?”
They exchanged glances, then looked back at me, surprised.
“The market sees a low chance of Brexit passing.”
Grant added,
“Polls favor remaining, and institutions predict the UK will stay in the EU. Financial markets view Brexit risk as low.”
Recently, the British pound and European indices had stabilized.
I continued seriously,
“When the market is complacent, the biggest opportunities arise. I believe the upcoming referendum will yield a completely different result.”
Seong-hwan asked curiously,
“Why? Polls suggest a higher chance of remaining.”
I displayed prepared data on the screen and explained,
“People often hide their true opinions in polls, especially on sensitive issues like immigration and sovereignty.”
“So, there are hidden votes?”
I nodded.
“More people actually want Brexit. They pretend to support remaining in public but will vote their true feelings in the booth.”
Lisa added seriously,
“If Brexit happens, it’ll shock the market.”
The pound would plummet, and European stock markets would crash.
I smirked.
“That’s my target. I’ll short assets vulnerable to Brexit shock and go long on safe-havens like gold and US Treasuries.”
In crises, safe-havens like gold and Treasuries naturally rise.