The Next Day
Daeheung Group Headquarters
— Chairman's Office
Chairman Park Tae-hong sat on the sofa, his face tense as he tapped the armrest with his fingertips. His eyes were fixed on the telephone in front of him.
Seated on either side of him, his eldest son, Park Jin-hyung, President of Daeheung Textiles, and Secretary-General Gil Sung-ho, also failed to hide their nervous expressions.
Rolling up his sleeve to check his watch, Chairman Park loosened his tie slightly, as if feeling stifled.
"The bid results should've been announced by now. Why hasn't anyone called yet?"
"The results might be delayed due to the situation on-site. Let's wait a little longer," Gil Sung-ho replied.
Clicking his tongue in frustration, Chairman Park pulled out a cigarette to calm his nerves.
Noticing this, Gil Sung-ho quickly lit it for him.
Chairman Park took a deep drag, allowing the white smoke to fill his lungs before exhaling slowly.
As the nicotine coursed through his body, he felt a brief sense of calm.
But it didn't last long.
The telephone on the table suddenly rang, its sharp chime cutting through the silence.
His heart began to race again.
"Hello."
Gil Sung-ho hurriedly picked up the receiver.
Impatient, Chairman Park stubbed out his cigarette in the crystal ashtray and pressed it urgently,
"Is it President Min?"
Park Jin-hyung, seated beside him, swallowed dryly as he watched Gil Sung-ho on the call.
"Yes, that's correct."
Holding the receiver with both hands, Gil Sung-ho respectfully handed it over.
Chairman Park immediately snatched it up and asked in a loud, demanding voice,
"What's the result?"
[We successfully won the final bid for the Sampoong Department Store site at 250 billion won!]
Hearing those words, Chairman Park's face lit up with joy as he clenched the receiver tightly.
"We won the bid? Are you sure?"
[Yes, sir. Lotte's bid was only 245 billion won—just 5 billion less than ours. We nearly lost the site by a hair's breadth.]
Park Jin-hyung and Gil Sung-ho, who had been listening intently, erupted in cheers at the news.
"This is fantastic!"
"Congratulations, Chairman."
Meanwhile, Chairman Park let out a sigh of relief.
He had taken a bold gamble, bidding a full 100 billion won above the minimum price—yet the second-place bid was only 5 billion won lower.
"I thought 250 billion would be more than enough, but we were dangerously close to losing it."
[Exactly, sir. I was just as shocked when I saw the bid amounts from Lotte and Utopia.]
"That just proves how crucial this bid was for them as well."
[You're absolutely right, sir.]
Feeling more relaxed now, Chairman Park leaned back in his chair.
"You and the acquisition team have done an excellent job. Finish the final procedures and return safely."
[Understood, Chairman.]
As the call ended, Chairman Park lowered the receiver, and Gil Sung-ho promptly placed it back on the table.
"We've finally beaten Lotte and Utopia."
"This is all thanks to your bold decision, Chairman."
Chairman Park Tae-hong accepted their congratulations with a satisfied smile.
"We were lucky to win this time, but Lotte and Utopia won't back down so easily. They'll likely buy land elsewhere to make up for losing the Sampoong Department Store site. We need to secure a dominant position in Gangnam before they can recover."
Lotte, a retail giant, and Utopia, backed by the Saeseong Group, were sure to strike back soon. Both Park Jin-hyung and Gil Sung-ho had already anticipated this.
Seeing their solemn expressions, Chairman Park turned to Secretary-General Gil Sung-ho and said,
"President Min will handle things well, but just in case, schedule a dinner with President Jo of the bank."
"Understood."
Having overcome the biggest hurdle, Chairman Park's expression relaxed.
And when his mood improved, his wallet tended to open more freely as well.
"We can't just let a day like this pass without celebration. You all must have skipped lunch waiting for the bid results. Let's book a nice restaurant to reward everyone for their hard work. And prepare generous cash bonuses as well."
"I'll make a reservation at Taewon-jang."
"That's a good choice. It's quiet and comfortable for group dining. Do that."
Then, looking at his eldest son, Park Jin-hyung, Chairman Park added,
"When you take over the group, these will be the people you'll have to look after. You should come along too."
"Yes, Father."
Leaning back into the plush sofa, Chairman Park let out a hearty laugh.
"Today is a truly great day. Even if my wife nags me about it, I'm going to have a drink tonight."
***
The West Wing
— White House, USA
In the Oval Office, overlooking the Rose Garden, three men sat on the sofa.
President Bill Clinton, seated in the center with one leg crossed, set down his gold-rimmed teacup and spoke.
"So, Japan is asking for our help at the upcoming G7 finance ministers' meeting? They want us to weaken the yen to counteract the domestic recession and export slowdown caused by the super-strong yen?"
Frank, the newly appointed Treasury Secretary, met President Clinton's gaze and replied calmly,
"Yes, sir."
Across from him, Chief of Staff Huxley responded with a disinterested expression.
"I sympathize with Japan's struggles—they're dealing with a major earthquake and now a soaring yen—but I don't see why we should intervene."
"I agree," President Clinton said. "We've been locked in tough negotiations with Japan over automobile exports. Our trade deficit with them is already a major headache. A strong yen makes their imports more expensive, which actually benefits us, doesn't it?"
Huxley nodded in agreement.
Noticing their skepticism, Secretary Frank leaned forward.
"That might seem true at first glance, but if you look deeper, the strong yen isn't necessarily good for us either."
"Oh? And why is that?"
"As I've mentioned before, we need a strong dollar to control inflation."
President Clinton, arms crossed, gestured for him to continue.
"Since last year, the Federal Reserve has aggressively raised interest rates to 6% to curb inflation, and it's been working. But the side effects are becoming increasingly problematic."
"Are you referring to the slowing economic growth"
"That's right. The emergency bailout we provided to contain the Mexican crisis is one thing, but the high interest rates are causing the U.S. domestic economy to cool down rapidly."
As President Clinton's expression stiffened slightly, Treasury Secretary Frank continued.
"The latest unemployment figures clearly show how bad things have gotten. If this continues, we won't just be worrying about inflation—we might have to start worrying about a recession as well."
"Hmm."
President Clinton let out a low hum, his expression turning serious. Chief of Staff Huxley, sensing the shift, countered.
"But isn't the Federal Reserve already lowering interest rates to prevent a recession?"
"Lowering interest rates might help stave off a recession, but it would also worsen inflation."
Even Huxley, who had a solid grasp of economic basics, couldn't immediately refute that argument.
"So, you're saying the solution to inflation is a strong dollar?"
At President Clinton's question, Secretary Frank nodded confidently.
"Exactly. A strong dollar lowers the price of imports, which naturally reduces inflation."
"..."
"On top of that, if the dollar strengthens, global capital will flow into the U.S. This influx of money will drive up stock prices, benefiting both individual investors and corporations. As a result, not only will American households see increased wealth, but businesses will also improve their financial standing, helping to reignite the cooling economy."
After glancing at President Clinton, Secretary Frank added the one argument he knew the president couldn't ignore.
"And if the economy recovers and the Dow and NASDAQ rise, it will have a positive impact on next year's reelection campaign."
As expected, President Clinton's eyes lit up at the mention of reelection.
"That's not a bad idea."
He stroked his chin thoughtfully, clearly intrigued.
Chief of Staff Huxley, well aware of the political adage that strong markets and a strong economy favor incumbents in election years, didn't oppose the idea of boosting the dollar.
However, there was still one lingering doubt in his mind.
"I understand why a strong dollar is necessary to control inflation," Huxley said, turning to Secretary Frank. "But that doesn't mean we need to artificially weaken the yen, does it?"
Frank smirked knowingly, as if he had anticipated the question.
"To stimulate the economy, we inevitably need to adopt expansionary fiscal policies. That means issuing a massive amount of government bonds to secure funding."
As a chronic deficit nation, the U.S. was already issuing an enormous volume of bonds every year to cover budget shortfalls.
Despite running persistent twin deficits in trade and fiscal accounts, the U.S. remained financially stable because it held the unique position of issuing the world's reserve currency.
"But if we flood the market with bonds, we won't be able to maintain a strong dollar."
Issuing more government bonds meant increasing the supply of dollars in the market, which would naturally lead to a decline in the dollar's value.
"But what if a specific country were to consistently purchase those bonds in large quantities?"
President Clinton's eyes gleamed with understanding.
"You're saying Japan will play that role?"
"Exactly."
Frank gave a small nod.
"If Japan buys massive amounts of the U.S. Treasury bonds, they will have to sell yen to acquire dollars. That will allow the Japanese government to devalue the yen as much as they need. Meanwhile, we secure the capital required for economic stimulus while simultaneously absorbing liquidity, keeping the dollar strong. It's a win-win situation for both countries."
"That makes a lot of sense," President Clinton mused.
Upon hearing the explanation, President Clinton smiled.
"I must say, this sounds like a pretty good deal."
Even Huxley, who had initially been reluctant, took a moment to reflect before subtly changing his stance.
"With the debt problem already giving us headaches, this could be a simple and effective solution."
"Of course, since Japan is making a significant concession, there has to be some give-and-take. We'll likely need to offer some compromises in the ongoing auto trade negotiations."
Under normal circumstances, President Clinton would have outright rejected such an idea, wary of losing votes from the Rust Belt, where the country's major automakers were concentrated. However, having secured a much greater benefit, he readily agreed.
"If they're willing to buy up our bonds and refill the Treasury's coffers, it's only fair we give them some leeway."
Pleased with Treasury Secretary Frank's proposal, President Clinton let out a hearty laugh.