Seok-won sat on the sofa of his Tokyo penthouse, conversing with John Porter, the branch manager.
"Today the yen fell slightly to 128.10 against the dollar," Seok-won said, setting down his teacup.
Porter, seated on the sofa to his left, responded immediately.
"The Japanese government pressured exporters like Sony and Toyota to convert their foreign-earned dollars in large amounts, which drove the exchange rate down."
Seok-won leaned back, crossing one leg.
"If even export companies are being mobilized, it seems the government is getting nervous about the yen's continuous decline since last year."
He tilted slightly, resting back against the sofa.
"A weaker yen benefits exporters, but conversely, it makes the dollar expensive and drives up import prices, doesn't it?"
Porter shrugged and continued.
"After the bubble burst, the recession's aftereffects are severe. Rising prices on top of that would be a major burden for the government."
Seok-won nodded thoughtfully.
"On top of that, they've been watching neighboring Asian countries, including Korea, struggle with currency crises. With financial institutions shaken by bad debts, a falling yen could make them anxious about being the next target."
Porter nodded in agreement.
"Having seen speculators devastate other economies, even a country with massive foreign reserves would still be scared."
"The problem," Seok-won said, "is that it's not just external pressure. The yen's decline is a structural issue."
Porter leaned forward, curious.
"You mean you expect the yen to fall further?"
"Yes," Seok-won replied without hesitation, then explained his reasoning in a serious tone.
"What's the most effective way to prevent the economy from sinking deeper?"
"To lower interest rates and pump out massive amounts of cash?"
"Exactly. But when liquidity increases and more yen enters circulation, it actually puts upward pressure on the exchange rate."
It was the same principle as when an oversupply in the market drives prices down.
"Moreover, to rescue Japanese financial institutions facing a chain of bankruptcies due to bad debts, the government will have no choice but to provide massive bailouts," Seok-won continued calmly.
"Looking at it from every angle, there's nothing but factors pushing the yen's value down. So it's only natural that the exchange rate will surge."
"I agree with you. But the key question is how high the dollar-yen rate will go," Porter said cautiously, sneaking a glance at him.
Seok-won had already taken a short position on the yen using six times leverage since last month, totaling 3 billion dollars, so knowing the target exchange rate was crucial.
Without a moment's hesitation, Seok-won answered, as if he had already decided.
"Short term, it will hit 145 yen, and by the end of the year, it'll reach 147."
"...!"
Porter's eyes went wide in surprise at the much higher-than-expected figure.
"Y-147 yen did you say?"
"Yes."
Unlike the composed Seok-won, Porter could not hide his astonishment. Even for an economic powerhouse like Japan, a sudden jump to that level would be a massive shock.
Porter tried to regain his composure and lifted his teacup to his lips, only to recoil in surprise at the hot liquid, hastily setting it back down.
"Are you okay?"
"Yes, I'm fine."
Porter's face flushed from both embarrassment and the heat of the tea as he responded. Then, trying to hide his awkwardness, he asked,
"So you're saying it will rise a full 19 yen from the current rate?"
Returning to the topic at hand, Seok-won calmly nodded.
"You're aware that the Japanese government injected 326.6 billion yen in public funds into the Long-Term Credit Bank of Japan and Yasuda Trust Bank, whose bad debts we had purchased through bulk sales, right?"
"Of course."
"And it's not just those two. Almost all Japanese financial institutions are facing crises. To stabilize the situation, the amount of public funds poured in will increase exponentially, reaching at least several trillion yen."
At the staggering figure, Porter unconsciously swallowed hard.
"Considering that liquidity will literally flood the market all at once, it's almost fortunate if the rate doesn't break past 150 yen."
"...Now that you put it that way, it makes sense."
"If the exchange rate soars, the Japanese stock market won't be able to avoid a collapse either."
"So that's why you told me to take a short position on the Nikkei along with the yen last time," Porter said.
"Exactly," Seok-won replied, holding up two fingers.
"When the market crashes and the government is overwhelmed with handling bad debts, there are two companies to acquire."
Porter's eyes gleamed as he straightened in his seat.
"Which companies are those?"
"Ajinomoto and Sumimoto Chemicals."
Porter tilted his head, staring at him.
"Ajinomoto? That's the company that makes artificial sweeteners, isn't it?"
"Yes, that's right."
Originally, it was a company called Suzuki Pharmaceutical, but because their first product—the MSG seasoning Ajinomoto (あじのもと)—became so famous and popular, they even changed the company name to match.
The product wasn't just popular in Japan; it spread widely across Asia, including Korea.
"It's well-known as an artificial sweetener, but since they also produce pharmaceuticals and semiconductor materials, it's more accurate to call it a comprehensive chemical company."
"Now that you mention it, Sumimoto Chemicals also makes products used in semiconductor manufacturing," Porter said.
"Yes. They produce photoresist, which is essential in the semiconductor process. It's a photosensitive liquid that undergoes chemical changes when exposed to light, and it's indispensable."
Ajinomoto, for its part, developed and exclusively supplied a micro-insulating film called ABF, which minimizes interference between currents in circuits.
Since it's a core material needed in high-performance semiconductors, when the semiconductor supercycle hits, major companies line up to buy it, treating Ajinomoto as a so-called "super supplier."
Even after hearing this, Porter still looked puzzled.
"Why suddenly take an interest in these semiconductor materials companies?"
"Because they're cheap," Seok-won replied.
"Excuse me?"
Porter blinked, momentarily taken aback. Even though they were materials companies, both had considerable valuations, so his reaction was understandable.
"After the bubble burst, the stock market plummeted. As Japanese semiconductor companies lost market share, these two materials firms—and others like them—saw their stock prices fall sharply as well."
"Ah, so that's why you said they're cheap."
"Even if Korea or Taiwan gains market share, when they manufacture semiconductors, they still rely on products from Japanese materials companies. That means their current prices are clearly undervalued."
Only then did Porter nod in understanding.
"Now that you explain it, it makes sense."
The Japanese stock market crash had pushed their share prices down, but with the digital era approaching in full force, the use of semiconductors would become much broader and more extensive.
That would inevitably drive up the value and worth of these materials suppliers.
'Moreover, since governments consider semiconductors critical to national security, they make foreign acquisitions extremely difficult.'
In fact, the chance to acquire core Japanese semiconductor materials companies was almost a last-call opportunity.
"With their stock prices having fallen sharply from the highs, both companies still have considerable valuations. How much of the shares should we aim to acquire?"
Seok-won shook off the thought and answered Porter's question.
"Let's aim to secure controlling stakes and purchase as many shares as possible."
"That would require a significant amount of capital," Porter noted.
"That's fine. The Japanese branch has more than enough funds for that," Seok-won replied.
Porter met his gaze and returned a confident smile.
"Indeed, that's true."
Thanks to profits from exploiting Japanese securities firms through CDS option contracts and gains from several successful bets over time, the Eldorado Fund's Japan branch managed tens of billions of dollars.
With that, companies the size of Ajinomoto and Sumimoto Chemicals could easily be acquired without pulling additional capital from the main office.
"Then we'll start by arranging block deals with the major shareholders who own large stakes, and then purchase additional shares through the market."
"Do it that way," Seok-won confirmed.
After that, the two continued their in-depth discussion for a long time, focusing on the future investment direction of the Japanese branch.
***
Two days later, at the National Assembly Members' Office Building in Yeouido.
Choi Bok-rak, wearing a gray suit and carrying a briefcase in one hand, opened the door and stepped into his office.
The aides who were already at work immediately stood up and greeted him.
"Good morning, Congressman."
"Good morning."
Just then, a female staffer passing by spoke to him.
"Congressman, there's a package that arrived for you—it's on your desk."
"Got it. Oh, and a cup of morning coffee, please."
"Yes, sir."
Choi Bok-rak passed by the aides and went into the inner office. He hung his coat on the rack and set his briefcase on the desk. As the staffer had said, a small package sat among other mail.
He casually checked the sender, and his expression stiffened slightly. Alone in the room, he glanced around before using a cutter to slice through the sealed tape and open the package.
Inside were a thick diary bound in leather and a manila envelope.
He opened the envelope first and found documents written in English.
Being a former auditor, Choi Bok-rak immediately recognized the bank transaction lists from Switzerland and the Bahamas, as well as accounting records from the East Sea Yu-ryang U.S. branch, and his eyes narrowed.
Hurriedly, he opened the diary. Inside, meticulously organized by date, were the names of high-ranking officials in politics and business, locations, and numerical figures.
It was the bribe ledger of Donghae Group Chairman Woo Yong-gap.
The materials were explosive enough to cause a major scandal if made public, and Choi Bok-rak unconsciously swallowed hard.
Knock.
At that moment, someone knocked on the door, and he quickly closed the diary he was holding.
"Here's your coffee."
"Oh, thank you."
Congressman Choi Bok-rak watched as the staffer set the cup of tea on his desk and, with an awkward expression, spoke.
The staffer glanced at him, slightly puzzled, but soon lowered her head without paying it much mind.
"Excuse me, then."
"Go ahead."
Choi Bok-rak watched tensely as she left the room. Only after the door closed did he finally exhale.
"Phew."
He calmed his racing heart and pulled his cellphone from his pocket, dialing a number.
After the phone rang twice, Seok-won answered.
[Judging by your call, it seems the items arrived safely.]
"Yes. That's right."
Congressman Choi looked down at the package on his desk with trembling eyes.
"How did you manage to obtain such evidence?"
[It's better if you don't know the details. The less you know, the safer it is for both of us.]
"…I see. That was short-sighted of me."
[With this, you should be able to make sure Chairman Woo Yong-gap can't escape.]
"Of course. And the money he transferred abroad can be recovered as well."
[Good. Then we'll leave the follow-up to you, Congressman.]
"Yes."
After the brief call, Choi Bok-rak looked at the items inside the package, took a deep breath, and exhaled.
As he calmed his excitement with measured breaths, his reasoning returned.
'This is an incredible opportunity.'
He had already exposed the fact that Woo Yong-gap had embezzled company funds just before the company went bankrupt, which had significantly boosted the stock price.
If he made this second revelation public, it would firmly cement his name in the minds of voters.
TL/n -
Ajinomoto Co., Inc. is a Japanese multinational corporation known for its pioneering role in food science and biotechnology. Established in 1909, the company was founded by Dr. Kikunae Ikeda and businessman Saburosuke Suzuki II. Dr. Ikeda's discovery of monosodium glutamate (MSG) as the source of umami—the fifth basic taste—led to the creation of AJI-NO-MOTO®, the world's first umami seasoning
Ajinomoto operates in over 30 countries, offering a diverse range of products that include seasonings, frozen foods, sweeteners, amino acids, and pharmaceuticals. The company is particularly renowned for its expertise in amino acid-based technologies, which it refers to as "AminoScience"
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Sumitomo Corporation is a prominent Japanese general trading company, often referred to as a sōgō shōsha. Established in 1919 and headquartered in Chiyoda, Tokyo, it is a key member of the historic Sumitomo Group, which traces its origins to a 17th-century copper business founded by Masatomo Sumitomo in Kyoto.