Returning to the office after a long time, Seok-won first went up to the CEO's office to check in with President Go Young-il.
After that, he called a meeting with the heads of the PI (Private Equity Investment) division.
"The additional stock market stimulus measures announced by the government during your absence, following the deregulation measures on the 10th of last month, don't seem to be having much of an effect yet."
Seok-won, seated at the head of the table, listened attentively as Kim Jung-sik, the most senior of the team leaders, gave his briefing.
"The KOSPI (Korea Composite Stock Price Index) hit its lowest point of the year at 876.89 on the 24th of last month and has been struggling to break past the 900 mark ever since."
This was in stark contrast to the beginning of the year when the index had surged past 1,000 points with strong momentum.
"The government has already introduced two rounds of measures, yet the market remains sluggish. What do you think is the reason?"
"When stock prices rose sharply, a flood of sell-offs for profit-taking followed. On top of that, several major stock manipulation scandals—starting with Boseong Telecom—have rocked the securities industry this year, just as they did last year, further damaging investor sentiment."
At the mention of Boseong Telecom, Choi Ho-geun, the leader of Team 4 sitting to Seok-won's left, flinched slightly.
"The financial income tax reform, which takes effect next year, must also be playing a role in dampening the mood."
At Seok-won's remark, Kim Jung-sik nodded in agreement.
"That has definitely had some impact as well."
The financial income tax reform meant that interest and dividend income would now be combined with other taxable income and subjected to a progressive tax rate.
Since income tax increased progressively with higher earnings, this meant that investors would end up paying significantly more than before.
One of the team leaders let out a frustrated sigh and said,
"We were expecting that once the financial income tax reform took effect, a large amount of idle capital from bank deposits would flow into the stock market. But instead, even the money that was already in the market is leaving—it's honestly disheartening."
"No one likes paying taxes. And just because you put money into stocks doesn't mean it's exempt from taxation. The idea that capital from bank deposits would automatically flow into the market was flawed from the start."
As Seok-won coolly pointed out the issue, the team leaders nodded in agreement.
"If this continues, wealthy investors will keep selling off dividend stocks en masse at the end of each year to avoid taxes, leading to increased market volatility."
"Do you really think it will go that far?"
Kim Jung-sik, the head of Team 1, seemed to think Seok-won was overreacting, but Seok-won had a different perspective.
"There's a saying that nothing is scarier than taxes. Imagine this—Kim, let's say you receive 100 million won in dividends at the end of the year, but then you're hit with a 150-million-won income tax bill. Now, if selling your stocks at the end of the year allows you to take a smaller loss but still save at least 50 million won, what would you do?"
As all eyes turned to him, Kim hesitated for a moment before answering.
"I'd sell my stocks."
"Exactly."
Seok-won glanced around at the other team leaders sitting on the sofas.
"They can dress it up with all sorts of justifications, but in the end, this is nothing more than a way for the government to collect more taxes from the people."
Sure enough, once the financial income tax reform was implemented, large-scale sell-offs by high-net-worth investors became a recurring pattern at the end of every year, causing massive swings in the stock index.
'This is exactly why the KOSPI starts strong at the beginning of the year but always struggles by the end.'
On top of that, it discouraged Korean companies from issuing higher dividends, even when they were sitting on large cash reserves.
'If most of the dividends just get eaten up by taxes, there's no incentive for major shareholders or business owners to increase payouts.'
While the policy had several unintended consequences, the hardest-hit group was elderly retirees who relied on interest income from their savings.
At the time, one-year fixed deposit interest rates were around 8.5%, meaning retirees could live off the interest from their severance pay and lifelong savings. But with this sudden policy shift, they were blindsided.
Seok-won brushed aside his brief thoughts and spoke up.
"The index isn't likely to fall much further, but we also won't see a significant rebound anytime soon. A period of sideways movement will probably continue for a while."
At Seok-won's market prediction, Kim Jung-sik, the head of Team 1, hesitated for a moment before carefully offering a counterpoint.
"But with the local elections coming up next month, don't you think the government will introduce additional stimulus measures?"
Whether in the U.S. or Korea, a weak stock market during an election season was never good for the ruling party.
The government had already announced two rounds of market stimulus within less than a month, hoping to prevent any negative impact on the election.
"That's likely the only reason the index hasn't fallen further."
"..."
"More importantly, as I mentioned before, with the foreign investment cap already maxed out, it's difficult for additional funds to enter the market. Unless that changes, a major turnaround in sentiment is unlikely anytime soon."
One of the attendees adjusted his glasses before speaking.
"So, are you saying the market will only start recovering around July when the foreign investment limit is increased?"
"Exactly."
Seok-won took note of Ahn Soon-hwan, the head of Investment Team 2, who had asked the question, and continued.
"There's no stronger driver for an index rally than capital inflows. If my prediction is correct, the market will likely establish a bottom until June, then begin rebounding in July. By the time the cool autumn breeze rolls in around September, we might even see the index reclaim the 1,000-point mark."
The team leaders seated on the sofas stirred at his bold forecast.
The composite index, which had soared to record highs, had been in freefall since the beginning of the year, showing no signs of recovery. The idea of it returning to the once-distant 1,000-point level seemed almost unbelievable.
Despite the skepticism evident on their faces, Seok-won deliberately ignored it and continued.
"Let's proceed with this broad framework in mind as we plan our third-quarter investment strategy."
"Understood."
Although a market rebound seemed possible, the team leaders still felt that reclaiming the 1,000-point mark would be difficult.
However, given Seok-won's track record, they followed his orders without complaint—not just because he was part of the owner's family, but because he had consistently demonstrated his ability.
Deep down, they figured that if the market didn't rise as much as expected, they could always adjust their strategy later.
"How is our investment in insurance stocks doing?"
At this, Kim Jung-sik, the head of Team 1, picked up the prepared documents and responded.
"As you predicted, after the Seongsu Bridge collapse heightened market anxiety, another disaster struck while you were away—a gas explosion at the Daegu subway construction site. This sent insurance stocks soaring, and as of today, our returns have exceeded 15%."
The Daegu subway construction site explosion was a catastrophic accident. During a building construction project near the Daegu Subway Line 1 site, an underground gas pipeline was mistakenly damaged, causing a massive gas leak. Unaware of the danger, workers continued welding, triggering an explosion that resulted in over 300 casualties.
"It's remarkable that we bought into insurance stocks just before the surge. The timing was perfect," said Ahn Soon-hwan, the head of Investment Team 2, his voice filled with excitement over the high returns.
However, Seok-won's expression remained somber.
Despite the significant profit, it was hard to celebrate when the stock surge was driven by such a devastating tragedy.
Noticing the shift in atmosphere, Choi Ho-geun nudged Ahn Soon-hwan with his elbow. Only then did Ahn realize Seok-won's expression had stiffened, and he quickly fell silent.
As the mood in the room grew slightly tense and the team members exchanged uneasy glances, Seok-won made an effort to relax his expression and smoothly changed the subject.
"Insurance stocks will remain strong until the end of the year. Maintain our positions as they are."
"Yes."
"Understood."
"And make sure to buy as many shares of Hujeong Construction as possible by the end of this week."
At this unexpected instruction, Choi Ho-geun, the head of Team 4, looked puzzled.
"Hujeong Construction? Isn't that the company struggling with severe financial issues? Its stock price has been a disaster lately."
"That's right."
It was clear from their expressions that they already knew the company's financial situation wasn't good, even without saying it outright.
But why was he instructing them to buy shares?
Choi Ho-geun, the head of Team 4, pondered briefly before a sudden realization made him lean forward in his seat.
"Do you happen to know about some positive news that we don't?"
At that, the other attendees also perked up and turned their attention to Seok-won.
"Next week, there will be news about a high-rise building currently under construction in Seoul being sold."
"If they sell the building, the proceeds will come in, which would be a positive development."
Choi Ho-geun nodded, as if he had expected something like this.
Across from him, Kim Jung-sik, the head of Team 1, also responded in agreement, recognizing the significance of the news.
"I'm not sure if it'll completely resolve their financial strain, but the stock price will definitely react."
The team leaders were curious about how Seok-won had access to such critical insider information, but none of them dared to ask directly.
Had it not been for Manager Oh, who had practically treated the shoeshine shop like his second office and constantly shared bits of information, even Seok-won wouldn't have known about this.
Closing the file in front of him, Seok-won addressed the team leaders.
"That's it for today's meeting. You're all dismissed."
"Yes."
With brief responses, the team leaders stood up one by one and exited the room.
A few moments later, Seok-won, now alone, got up from the sofa and moved to his desk.
His eyes happened to land on the morning newspaper resting on the side. Picking it up, he flipped to the society section.
[80+ Daegu Tragedy Victims Still Suffering]
More than two weeks after the Daegu subway gas explosion, over 80 victims remain in hospitals undergoing difficult treatments.
Most are in critical condition, requiring at least six months of medical care, and some face uncertain recoveries, heightening public concern.
The disaster has resulted in 101 fatalities and 202 injuries, alongside extensive property damage, including destruction to nearby buildings and around 150 vehicles.
According to the Disaster Response Headquarters, a total of 690 donations amounting to 9.7 billion KRW have been collected so far, and many citizens have voluntarily donated blood, contributing 3,315,000cc of blood supplies.
The government has also approved 40 billion KRW in emergency financial aid for swift compensation to victims. However, given the sheer number of casualties and the scale of the damage...
In terms of scale, this disaster was no less than the Seongsu Bridge collapse—perhaps even larger.
But maybe because it had happened in Daegu, a city outside of Seoul.
Unlike the Seongsu Bridge collapse, which had been broadcast live all day, coverage of the Daegu subway gas explosion was limited to short news bulletins or captions scrolling across the screen.
And just a few months later, the Sampoong Department Store collapse occurred, overshadowing the incident entirely and pushing it from the public's memory.
'No matter what, this should never have been forgotten...'
Even Seok-won had completely forgotten about it—until he was in the U.S. for Netscape's IPO and heard about the accident. Only then did the memory resurface.
But by then, it was far too late.
Of course, even if he had remembered earlier, there was no guarantee he could have prevented the disaster, like with the Sampoong collapse. Still, he couldn't shake off the guilt.
As he read the newspaper article with a heavy heart, Na Seong-mi entered after a light knock. She silently cleared the empty teacup from the table and tidied up.
'I couldn't prevent the tragedy, but at the very least, I can help the victims in some way.'
Doing nothing would only leave an uneasy feeling lingering in his heart.
Having made up his mind, Seok-won looked up and spoke.
"Ms. Na Seong-mi."
"Yes, Director."
Seong-mi, who had been about to leave with the tray carrying the empty cup, stopped in her tracks.
"You know about the Daegu gas explosion, right? Get in touch with the disaster response headquarters and try to obtain a list of the victims and their contact information."
"Understood. But… may I ask what you plan to do with it?"
Seong-mi tilted her head slightly, her expression puzzled.
"I'd like to offer personal assistance to those affected."
"Oh, I see. I'm not sure if they'll share such personal information, but I'll give it a try."
"Please do."
TL/n -
The Daegu Gas Explosion occurred on April 28, 1995, in Daegu, South Korea, and is one of the worst gas explosions in the country's history.
Key Details of the Incident
Cause: A leaking liquid petroleum gas (LPG) pipeline beneath a construction site near Daegu's main train station ignited.
Explosion Site: Near the Daegu train station, where an underground area was being excavated for a new subway line.
Casualties:
101 people died, including many students on their way to school.
202 people were injured.
Damage: The explosion created a massive fireball, destroyed nearby buildings, and severely damaged infrastructure.