Golden Spoon Investor

Hearing a knock, Choi Ho-geun opened the door and stepped inside. Seeing Seok-won seated at his desk, he gave a polite bow.

"Sir, I have come as you requested."

Seok-won closed the document he had been reviewing and gestured toward the sofa in front of him with a nod.

"Have a seat."

"Yes, sir."

Choi Ho-geun carefully took a seat on the right-side sofa.

In response, Seok-won stood up, walked around his desk, and settled into the main seat in the center. Crossing one leg over the other, he looked at Choi Ho-geun and asked,

"You must still be adjusting to the new company. Is everyone getting along well?"

Choi Ho-geun gave a lighthearted smile and responded playfully,

"The company may have changed, but the work is the same, so adapting hasn't been too difficult. And since you even gave us a raise, even if there were inconveniences, I'd have to make it work somehow."

Seok-won had significantly increased the ranks and salaries of the Investment Team 4 members who had transferred to Daheung Venture Capital.

They had left their previous jobs at Daheung Securities, a much larger company, to follow him here, so this level of benefit was the least he could offer.

"I'm glad to hear that. But if you ever run into any real difficulties, don't hesitate to come to me."

"Understood, sir."

Although he said so, Seok-won knew that, given Choi Ho-geun's personality, he wouldn't ask for help unless he truly had no other choice.

He wasn't deliberately distancing himself, but being an outsider who had "rolled in" from another division, he was bound to face some resistance within the Treasury Division. Handling matters on his own was simply the wiser approach.

"Well then, I think we've had enough of a break—time to get to work."

At that, Choi Ho-geun's eyes gleamed with interest as he leaned forward eagerly.

"I was actually itching to get started."

His enthusiasm made Seok-won smile slightly as he continued.

"I assume you've already opened an account at Daheung Securities?"

"Of course."

"Tomorrow, 55 billion won will be deposited into that account. Take 50 billion and, over the next week, gradually buy shares of Korea Mobile Communications, A-One, and Jungmi Electronics."

Choi Ho-geun furrowed his brows slightly before speaking cautiously.

"There's currently a huge surge in interest for IT stocks, and companies like Korea Mobile Communications are leading the charge. The ones you mentioned are receiving a lot of attention, but their stock prices have already risen significantly. Do you think there's still room for them to go higher?"

"Do you think we've reached the peak?"

"The momentum hasn't cooled yet, so it could go higher, but I don't see much room left for an upward move. In contrast, since it has already risen significantly, the downside risk is much greater."

Seok-won leaned back against the sofa, listening to Choi Ho-geun's serious analysis with a relaxed expression.

"I agree that IT stocks are in a short-term overheated state. But I don't believe we've hit the peak yet."

"Then you think they'll continue to rise from here?"

Choi Ho-geun still looked skeptical. Seok-won nodded.

"That's right."

Interlacing his fingers and resting his hands on his knee, he continued.

"Did you see the article in this morning's paper about Saechang Telecom launching its CDMA mobile phone trial service?"

"Yes."

"If you look at the business section over the past month, you'll notice that not a single day has gone by without some mention of CDMA or the selection of new telecom operators."

"Well, that's because it's the hottest topic right now."

"Exactly."

Straightening his posture, Seok-won let a confident smile spread across his lips.

"There's a saying that the stock market thrives on dreams and expectations. As long as articles like these continue to dominate the news, painting a rosy future, stock prices will inevitably rise."

However, Choi Ho-geun remained unconvinced.

"That makes sense, but isn't it precisely because of this optimism that IT stocks have continued climbing even during a market downturn? The momentum hasn't completely faded, but with prices stagnating and struggling to push higher, I'd say we're nearing the end of the rally."

"I see it differently. It may be hesitating, but there's still one final push left."

Choi Ho-geun tilted his head, puzzled by Seok-won's unwavering confidence.

"May I ask what that is?"

Seok-won responded calmly with a single phrase.

"Foreign investment limit expansion."

"…!"

Caught off guard, Choi Ho-geun's eyes widened in shock.

Leaning forward, he quickly asked,

"Are you saying the cap on foreign investment will be increased?"

"Yes. As we've seen before, if the current 15% ownership limit is raised, foreign capital will flood in, pushing the market higher."

Still struggling to fully process the information, Choi Ho-geun watched as a sly grin appeared on Seok-won's face.

"And where do you think that money will flow first?"

Realizing the answer, Choi Ho-geun let out a low hum.

"Hmm… Naturally, it'll pour into the hottest IT stocks."

"Exactly. They're already well beyond their fair valuations, but when the floodgates open, it won't matter. A full-blown liquidity rally will take over, driving prices even higher."

Having personally experienced the impact of foreign capital inflows before, Choi Ho-geun stopped arguing and simply nodded in agreement.

In fact, the mere thought of the sluggish market—excluding IT stocks—roaring back to life made his heart race with excitement.

Then, a sudden thought crossed his mind. Hesitating slightly, he glanced at Seok-won and cautiously asked,

"But… I haven't seen any news or rumors about foreign investment limits being increased. How do you know this?"

Seok-won's response was simple yet profound.

"Because both the Blue House and the ruling party have no other choice."

"…What?"

Choi Ho-geun's expression grew even more puzzled.

"What's happening in April?"

"April…?"

Tilting his head in thought for a moment, Choi Ho-geun suddenly lifted his head in realization.

"Are you talking about the 15th general election?"

"That's right. If President Kim Seong-kyu wants to maintain stability for the remainder of his term, the ruling party must win this election and secure a parliamentary majority. But I'm sure you know the situation isn't exactly in their favor."

Choi Ho-geun nodded slightly, a bitter expression on his face.

"A series of major accidents and the slush fund scandals involving two former presidents have turned public opinion against them."

"And on top of that, the sluggish stock market is only further dragging down their approval ratings."

As he listened, Choi Ho-geun suddenly had a realization and let out a small gasp.

"Ah! So you're saying they'll expand the foreign investment cap to boost the stock market ahead of the election!"

"Exactly. They've used this trick before with great success, so wouldn't they be tempted to try it again?"

It was a plausible and logical argument, but Choi Ho-geun still felt somewhat uneasy.

'It's true that the government has a strong incentive to prop up the stock market before the election, but that doesn't necessarily mean expanding the foreign investment limit is their only option.'

After all, there were plenty of other ways to stimulate the market, such as tax cuts or encouraging institutional investors to buy more stocks.

And yet, Seok-won had singled out the foreign investment limit expansion with absolute certainty. That in itself was strange.

However, given his unwavering confidence—and the fact that he was wagering a staggering ₩50 billion on it—Choi Ho-geun was convinced there was something else Seok-won wasn't telling him.

'Considering the chairman's background as a chaebol third-generation heir, it wouldn't be surprising if he had insider sources within the ruling party or even the Blue House.'

Having constructed a reasonable explanation for himself, Choi Ho-geun quickly shifted gears, thinking about how best to capitalize on this information.

"If they want to avoid criticism that it's just an election stunt, the government announcement should be coming soon."

"That's why I told you to complete the purchases within a week."

Choi Ho-geun nodded and asked,

"How should we allocate the purchases among the stocks?"

Seok-won had already worked out the details and answered without hesitation.

"Invest ₩10 billion in Korea Mobile Communications and split the rest between the other two stocks."

Surprised, Choi Ho-geun frowned slightly.

"You're allocating more to A-One and Seongmi Electronics rather than Korea Mobile Communications?"

"Korea Mobile Communications has already risen significantly, so there's not much room left for further gains. The other two stocks have far greater upside potential. Doesn't it make more sense to invest in them?"

"Ah… Now that you put it that way, it does."

Choi Ho-geun mentally kicked himself for not thinking that far ahead.

Compared to Seok-won's broad perspective, he still felt like he was fumbling in a narrow alley.

Just then, Seok-won lowered his voice slightly and spoke in a calm tone.

"Even if foreign capital floods in and triggers a liquidity rally, the stock prices won't keep rising forever."

Since every rally had an inevitable end, Choi Ho-geun's expression turned serious as he asked,

"Then when do you expect the market to turn downward?"

"The selection of new telecommunications operators in June will be the turning point."

"So you're saying we should follow the stock market adage: 'Buy on rumors, sell on news'?"

Following the privatization of Korea Mobile Communications and the launch of the private carrier Saechang Communications, the government had decided to further open the mobile communications market to enhance competitiveness.

As part of this initiative, three new Personal Communication Service (PCS) providers were to be selected, along with operators for seven other sectors, including Trunked Radio System (TRS), leased line businesses, and wireless data communications.

Since this was a massively lucrative business that essentially granted exclusive rights, competition among companies was fierce. The surge in telecommunications stocks, despite the overall sluggish market, was largely driven by this anticipation.

"Stock prices have been rising on expectations, but once the fuel that ignited the rally burns out, the only thing left is a decline."

"Most stocks that skyrocketed in the Korean market have met the same fate, so this time will likely be no different."

Choi Ho-geun let out a wry smile.

"By the time the expanded foreign investment cap brings in additional funds, the market will already be at its peak. It's best to sell off our holdings before that happens."

"If those two negative factors hit simultaneously, the market could plunge back into a downturn."

Choi Ho-geun's expression stiffened slightly.

"Until the general election, the government's market-boosting efforts will likely keep stocks afloat, but once that effect wears off, a downturn is highly probable. Keep that in mind when managing the investment funds."

"Understood."

Etching Seok-won's instructions into his mind, Choi Ho-geun then asked,

"What should we do with the remaining 5 billion won?"

"I'll leave that for you and your team to trade as you see fit and generate returns."

"Understood."

Since the Investment Team 4 was highly skilled, Seok-won had no hesitation in entrusting them with the task.

For a long time after that, Seok-won and Choi Ho-geun continued their in-depth discussion on how to execute their investment strategy.