Chapter 19. KNC International (2)

I can fully understand Seonwoo's feelings.

It's understandable that he's shocked, given that his former assets have turned into unknown penny stocks.

If I were in his shoes, I would have already grabbed him by the collar. After all, 200 million out of the 500 million is his, and 80 million of that is debt.

In reality, 200 million is a lot; it would take a regular employee years of belt-tightening to save up that much.

"You should have told me you were going to use margin trading!"

"Would you have if I did?"

"You would have freaked out."

"Yeah. That's why I didn't tell you."

"......"

Seonwoo looked like his soul had left his body.

He must be recalling the time he lost everything due to a bad margin trade in college.

One of the things you should never do when investing in stocks is margin trading.

Generally, even if you lose in regular stock trading, your balance won't go to zero or into the negative, only down to 70-80%.

But margin trading is different.

Of course, securities firms never do business at a loss.

If the stock price drops and the collateral value is at risk, they will sell the stocks in your account without mercy to recover the borrowed money.

This is called a margin call.

If you can't pay back the loan even after a margin call, the remaining amount becomes a debt, and you will receive calls demanding payment.

In fact, it's not uncommon for people to become credit defaulters due to a single bad stock investment.

"Don't worry. I'll treat the 800 million as my loan. If your 200 million is at risk, I'll withdraw it immediately."

"What if a margin call happens before that?"

"It won't."

"How do you know?"

I know because I saw it myself.

But I can't tell him that.

I said confidently,

"It will drop a bit for a few days, but soon there will be a major announcement, and by then, you won't be able to buy even if you want to."

"What kind of announcement?"

"You'll see."

* * *

Kang Seonwoo went to work at LB Studio.

His team, which was developing Fantasia Tales, was busy fixing bugs before the closed beta service.

There was still a lot to do, but since the development was complete, it was a bit more relaxed than before.

While working, his mind was full of worry.

'What is this guy thinking?'

To invest all his money in an unknown stock with margin trading. Han Miru was confident it would rise, but the stock dropped 5% the day after he bought it.

The next day, it dropped 3%, and this morning, it dropped 7%.

'What if there's a margin call?'

With all his assets at stake, he couldn't sleep well. But the person who bought the stock was calm, saying it was as expected.

Seeing him so calm made Seonwoo angry, but also a bit relieved.

Being calm means he's confident.

'Was Miru always like this?'

Suddenly quitting his job and leaving the company, investing all his money in a penny stock because he had information.

'Thinking about it, his personality was always a bit off. He even broke up with his girlfriend recently. Could he have decided to go all out after that?'

While he was lost in thought, someone tapped his shoulder.

"Seonwoo."

Kang Seonwoo jumped.

"Ah!"

"Are you okay?"

"Ah, yes."

The woman who spoke was Cha Suyeon, a 23-year-old with a pretty face and an outgoing personality, making her popular among the employees.

She handed him a coffee.

"I brought you coffee."

"Thank you."

Cha Suyeon, like Kang Seonwoo, was part of the Development Team 3, responsible for character design. She was passionate about development and learned coding and programming on her own.

Kang Seonwoo taught her whenever he had free time, and she usually followed his advice.

"What were you thinking about that you didn't answer even when I called you several times?"

"Well, I was focusing on something... "

Cha Suyeon, with wide eyes, asked,

"Was it this character?"

On the monitor was an important game character, a red-haired girl warrior. Her outfit, fitting the concept of a desert warrior, was quite revealing.

'But don't people who live in the desert wrap themselves up to protect from the sun?'

Anyway, he must have looked like he was staring at the illustration of the girl.

"It's actually because of a friend I live with."

"Oh! The friend who works at DA Securities?"

"Um, yeah... "

He recently quit, but

'Wasn't he actually fired?'

Cha Suyeon, curious, leaned forward and asked,

"Why is your friend involved?"

Feeling suffocated, he wanted to talk to someone.

"My friend recently bought some stocks... "

Hearing this, Cha Suyeon was surprised.

"He borrowed money and invested 200 million?"

"Not only that, he used margin trading too."

"What's margin trading?"

"It's a loan. If you have 200 million, you can borrow another 300 million to invest."

But 80 million of the 200 million was already a loan, so it was a leverage on leverage.

"Isn't that risky?"

"Very risky."

While they were talking, someone interrupted.

"Are you talking about stocks?"

Park Geun-hwi, a 29-year-old manager from the Business Team, who had previously worked at Future Investment Securities after obtaining an MBA in the U.S. and joined LB Studio six months ago.

The Development and Business Teams worked on different floors, but he frequently visited Team 3 for various reasons.

The reason was the woman in front of him.

Park Geun-hwi fell in love with Cha Suyeon at first sight when he met her in the lobby on his first day.

Her large, clear eyes, flawless skin, and dimples when she smiled. Even in casual clothes, her natural beauty was hard to hide.

If she dressed up a bit, people would definitely stare.

'She's really attractive.'

Park Geun-hwi pursued her aggressively.

He was confident in himself.

Unlike other employees who dressed casually, he wore designer clothes and drove a Porsche. He was also quite handsome and popular with women.

Most importantly, his father was Park Hyun-jong, one of the founders of LB Studio.

He joined the securities firm to gain practical experience before learning management.

Thus, he received attention from the moment he joined.

However, Cha Suyeon showed little interest in him, always making excuses about being busy.

Indeed, Team 3 was often working overtime due to the development of Fantasia Tales.

He came to talk to her, hoping she was free, but as usual, Kang Seonwoo was there.

'Damn it! Why is this guy always hanging around Suyeon?'

Technically, Cha Suyeon was at Kang Seonwoo's desk, but it still bothered him.

The Development and Business Teams often clashed.

But despite his higher rank and being the son of an executive, he couldn't treat Kang Seonwoo casually because of his exceptional development skills.

Kang Seonwoo was the second most important person after the director, and Team 3 couldn't function without him.

'I really don't like this guy.'

Whenever he tried to join their conversation, they talked in programming languages he couldn't understand.

But this time, they were talking about stocks.

'Stocks are my expertise.'

He quickly joined the conversation.

"Seonwoo, you're into stocks too?"

"Yes, I used to do it, and recently I started again with a friend."

"Is your friend a stock expert?"

"He was an analyst at DA Securities."

"DA Securities... Oh, right. I remember. It's a small firm compared to Future Investment Securities where I worked. Didn't it have a big scandal with Premier recently?"

"Yes, that's right."

Kang Seonwoo nodded.

'My friend was the one who caused that scandal.'

Park Geun-hwi said mockingly,

"Stocks aren't something to do lightly."

He didn't really care if Kang Seonwoo did stocks; he was more interested in the woman next to him.

This was a good opportunity to show off in front of Cha Suyeon.

"What stock did you buy?"

Kang Seonwoo replied without much thought,

"KNC International. I didn't choose it; my friend did."

Park Geun-hwi chuckled.

"Ah, you don't know much about stocks. You shouldn't just entrust your money to a friend. Why did you buy this stock?"

"Because there will be a major announcement soon."

Park Geun-hwi checked the stock on his phone.

"It doubled in a month but has been declining recently. It's down 7% today. By the way, it's a risky Kosdaq stock with a low market cap. A common mistake for beginners is to look for cheap stocks. Experts and seasoned investors prefer long-term investments in quality stocks."

Park Geun-hwi lectured about stock investing as if teaching a child.

"Do you have any interest in stocks, Suyeon?"

"I have an account, but I don't know much."

"Would you like me to teach you?"

"I don't know... "

"You should definitely invest. As proven by Aaron Baker, long-term investments in quality stocks yield higher returns than savings. If you follow my advice and time your buys and sells well, you won't lose money. Many employees have made money thanks to me."

He was known for making a lot of money from stocks.

In an era where it's hard to buy a house with just a salary, many employees invested in stocks, and some sought his investment advice.

Cha Suyeon nodded half-heartedly.

"If I decide to do it later, I'll let you know."

"You should start as soon as possible. I can recommend a few stocks for you."

Park Geun-hwi continued to persuade her, but she showed little interest.