September 29, 1997.
As autumn rain drizzled steadily outside the window, the atmosphere inside the spacious presidential office, with its dark carpet, was heavy and tense.
"So, you're saying that U.S. Treasury Secretary Frank called you and offered to arrange a meeting with the IMF Managing Director, who's currently touring Southeast Asia?"
At President Kim Sung-gyu's question from the head of the table, Deputy Prime Minister for Economic Affairs Lee Eun-hyung, looking visibly worn from the recent turmoil in the exchange market, nodded and replied.
"Yes, that's correct."
He cast a quick glance at the president, who held a cigarette between his fingers, then continued.
"He said it was just a suggestion, but it's safe to assume he was indirectly urging us to seek IMF assistance."
At that, President Kim scowled deeply, his face contorting with anger.
"They're telling us to seek IMF aid right as the presidential race is about to begin? That's practically telling us to give up on the election altogether!"
"I agree—it won't be an easy decision. Accepting IMF support would mean having to agree to excessively harsh conditions."
Deputy Prime Minister Lee hesitated briefly as he gauged the president's expression, then carefully continued.
"But with Japan now off the table as a potential source of help… I hate to say this, but I believe our only remaining option is to request assistance from the IMF."
No sooner had he finished speaking than President Kim slammed the armrest of the sofa with his palm and bellowed in fury.
"You told me right here in this very room that with aggressive intervention, we could fend off the speculators' attacks on the won!"
Chastened by the scathing rebuke, Deputy Prime Minister Lee hung his head, ashamed.
There was no excuse—he had, in fact, made such a claim himself. Now it had come back to haunt him.
"I didn't foresee that things would spiral this badly, and so quickly."
"That's exactly why the Finance Ministry exists—to foresee those things and prevent disasters! And why I appointed you as Deputy Prime Minister!"
President Kim continued to vent his frustration, his voice sharp with irritation.
Much of the blame for the worsening economic crisis lay with the Blue House and the politicians of both ruling and opposition parties, who, distracted by the upcoming election, had prioritized political infighting over real economic solutions.
For example, even when the Ministry of Finance had submitted a financial reform bill aimed at modernizing South Korea's underdeveloped financial system—to gain a better negotiating position in case IMF aid became unavoidable—it was rejected.
The bill never even passed the subcommittee stage, thanks to the vague and evasive attitudes of lawmakers hesitant to stir up controversy ahead of the election.
Still, Deputy Prime Minister Lee knew that the primary responsibility for the failure to defend the won and properly manage external debt lay with him and the Finance Ministry. He had no excuse, no matter how he looked at it.
As President Kim, after his long tirade, tried to catch his breath, Chief Presidential Secretary Koo Hyung-gi, seated across from him, interjected.
"Mr. President, as you said, if we accept an IMF bailout, the election will be a lost cause. Are we really out of options?"
Deputy Prime Minister Lee turned to look at Secretary Koo, his expression troubled.
"The won has already broken through 1,000 to the dollar, and the exchange rate band has collapsed. On top of that, the crisis in Japan is accelerating the outflow of yen-denominated capital."
"..."
"Frankly, at this point, it's not just a matter of bringing the exchange rate back within the band—we're struggling just to keep it from rising past 1,100 won to the dollar."
President Kim Sung-gyu's face twisted in displeasure at Deputy Prime Minister Lee Eun-hyung's grim confession that even maintaining the already high exchange rate was proving difficult.
Chief Presidential Secretary Koo Hyung-gi also stiffened at the realization that the situation was far more dire than expected.
Seeing their reactions, Lee continued in a somber tone.
"To defend the won and meet our foreign debt obligations, we're burning through hundreds of millions of dollars in foreign reserves every day. Meanwhile, the inflow of dollars has all but dried up over the past few months."
Unable to bring himself to say it outright, Lee hesitated for a moment before reluctantly opening his mouth.
"At this rate… we won't last even a month. Maybe not even two weeks. Our foreign reserves will be completely depleted."
"!"
President Kim and Chief Secretary Koo froze in shock, their expressions betraying their horror.
Amid the silence, Lee spoke again, this time in a lifeless murmur.
"If that happens… we'll be facing a moratorium. In other words, national default."
"Hah!"
President Kim let out a dry scoff, as though the absurdity of the situation had sucked the air from his lungs. A low groan escaped Koo's lips as well.
"So you're saying Korea is going to default? While I'm the president?"
His face flushed with anger, Kim shot Lee a piercing glare.
Unable to meet the president's eyes, Lee lowered his head and replied quietly.
"…I'm saying that's the worst-case scenario."
"That is what you're saying!"
President Kim shouted, the veins in his neck bulging.
"To avoid hitting that wall, we need to seek help from the IMF."
"Damn it! I can't believe this is what I have to deal with at the end of my term."
Kim scowled, his face contorted in frustration, and waved one hand in exasperation.
"I'll give it more thought. In the meantime, see if there's any other solution."
If there had been one, they would have tried it already.
Lee started to speak again, lips parting as if to press further, but in the end he gave up and rose from his seat.
"…Then I'll take my leave."
As soon as the large wooden door shut behind him, President Kim Sung-gyu irritably stubbed out his nearly burnt-out cigarette in the ashtray and grumbled.
"I deeply regret entrusting the Deputy Prime Minister post to such an incompetent man."
In President Kim's eyes, the entire crisis seemed to be the result of Lee Eun-hyung's incompetence, and by extension, that of the Ministry of Finance and Economy.
At that moment, Chief of Staff Koo Hyung-gi leaned forward slightly and spoke carefully.
"It seems we have no other options left."
Kim frowned and looked at him.
"So you're saying we really should go to the IMF?"
"It's a difficult choice, but choosing the lesser evil is still better than facing the worst."
"But the election is just around the corner!"
When President Kim still seemed reluctant, Koo gently tried to persuade him.
"According to Deputy Prime Minister Lee, we won't even make it to the election before we hit the wall."
"Mm…"
President Kim let out a low groan, arms folded tightly.
"In that case, even if we buy time, we probably still can't avoid losing this election."
"…Even if the opposition splits and the votes are divided, it'd be nearly impossible to win in the middle of an economic collapse."
As Kim began to show signs of resignation, Koo continued in a coaxing tone.
"For your legacy, wouldn't it be better to be remembered as the president who secured an IMF bailout rather than the one who let the country go bankrupt?"
President Kim didn't reply, his expression growing increasingly grim.
"Sir. There isn't much time left to hesitate. You also need to consider life after your presidency."
With Koo's continued persuasion, President Kim finally made up his mind. After a long deliberation, he gave a heavy nod.
"If word gets out before the deal is made, it'll cause panic. Begin secret contact with the IMF and quietly start negotiations."
"Understood."
"And replace Deputy Prime Minister Lee. He's clearly not up to the task."
President Kim Sung-gyu gave the order with a cold expression.
To change the nation's top economic official in the midst of a crisis—with less than half a year left in his term—made Chief of Staff Koo Hyung-gi hesitate.
Honestly, it seemed like it would do more harm than good. But the president looked so resolute that Koo didn't dare object. Instead, he cautiously asked,
"Do you have someone in mind as a replacement?"
"The current Minister of Trade and Industry—Choi. Wasn't he formerly with the old Ministry of Finance before it merged into the Ministry of Finance and Economy?"
"That's right. I believe he was the Director General of the International Finance Bureau, and later served as Vice Minister as well."
"He also worked at the IMF, so he'd be the perfect fit in a crisis like this."
"Now that you mention it, I agree."
Leaning back in his chair, President Kim rubbed his temples tiredly with one hand.
"Sound him out first. If he's willing, we'll appoint Choi as the new Deputy Prime Minister for Economic Affairs."
"Understood. I'll arrange a meeting and talk to him."
"Do that."
***
Seated behind his large desk, Seok-won was reading a report when something caught his eye, making his expression shift with interest.
He reached out and pressed the intercom button. A moment later, Na Seong-mi's voice came through the speaker.
"Yes, Mr. President?"
"Contact Yoo Hyun-seok and ask if he's in his office. If he is, tell him to come to my office right away."
"Understood."
After receiving the reply, Seok-won picked up the report again. With a look of curiosity, he murmured to himself,
"Come to think of it, wasn't it around this time that Interplaza was spun off from Linecom?"
Interplaza had once been one of the top homegrown internet shopping malls, boasting a significant market share.
It was not only the first internet mall to launch in Korea, but within a few years, it had gone public on KOSDAQ and rapidly expanded its services into online bookstores, ticket reservations, and travel.
"Of course, it didn't end well… but it was one of the stocks that really benefited from the rise of the internet, with its share price skyrocketing."
In short, it was a company worth investing in.
As he continued reflecting on his memories from before returning, a knock came at the door, snapping him out of his thoughts.
"Come in," Seok-won said.
The door opened, and Yoo Hyun-seok, dressed in a gray suit, stepped into the office and approached the desk with a slight bow.
"You called for me, sir?"
"So, according to the report, Interplaza, an online shopping mall, is planning a capital increase through a rights offering?"
Yoo Hyun-seok immediately responded.
"Yes, that's correct. It originally started as an in-house venture of Linecom, but now that it's being spun off into an independent corporation, they're looking for investors to participate in the capital increase."
"The scale of the offering is said to be one billion won. Is that accurate?"
"Yes. Linecom has already contributed one billion won as founding capital, and they're planning to raise another billion through this new round."
"So the equity will be split fifty-fifty between Linecom and the new investors?"
"Initially, yes. But as noted in the report, there's already a second round of capital increase planned for next year, so Linecom's stake will be diluted further."
Seok-won nodded slightly.
"Well, it makes sense. The internet shopping mall business is still in its pioneering stage, so it must require a lot of investment capital."
"Exactly. That's probably why Linecom decided to spin it off entirely and make it a separate legal entity—they anticipate ongoing losses for the next few years."
"How's the investor recruitment going?"
Yoo gave Seok-won a brief look that seemed to ask Why are you asking this?, but answered sincerely.
"As you know, the current economic situation isn't great. They've been sending out a lot of investment proposals, but the responses haven't been particularly promising."
"In this kind of liquidity crunch, it's only natural that people would be hesitant to invest in new ventures."
Even the top-ranking conglomerates were tightening their belts and struggling to stay afloat. So it was only natural that a new business seeking investment would face a cold response.
Yoo hesitated, then cautiously asked while watching Seok-won's expression.
"Are you considering investing in Interplaza?"
Seok-won flashed a bright smile.
"That's right. It's a gold mine with massive growth potential—I'm not going to miss the chance to invest in a company like this. We'll put up the full one billion won for the capital increase."
Yoo's eyes widened in shock as he repeated,
"You mean the full one billion?"
"Yes."
Seok-won nodded lightly, still smiling.
TL/n -
Happy New Year