Chapter 3. New Securities Employee (2)

The time I have is not that much.

The future I know is ten years from now.

In other words, ten years from now, the information in my head will be useless. So, to avoid regretting it later, I need to do well from now on.

Thinking this way, I suddenly felt anxious.

As a new employee, I was the first to arrive at the department and sat at my desk.

“Sigh. I shouldn’t be here right now.”

While I was thinking this, the world was changing.

To seize the opportunity, I need to act as soon as possible.

Since I've returned to ten years ago, there's no need to work here. I won't become the CEO of this company by working hard.

I should write a resignation letter and set sail for the vast sea of the world.

However, one problem held me back. The incident that changed the lives of many people, including myself.

If I leave, I should solve this problem first.

After finishing the assigned task, I reported to Manager Woo Baek-hyun with the documents.

“Here are the materials you mentioned earlier.”

The middle-aged manager, with a slightly balding head and a protruding belly, looked at me with wide eyes.

“You finished it so quickly? You can’t do your work carelessly.”

Manager Woo Baek-hyun, despite his round and gentle appearance, is very meticulous. If the materials he receives are not to his liking, he will ask for them to be redone until they are.

After checking my balance, I was shocked.

“What? Why do I have so little money?”

My account balance was a mere 5 million won.

After thinking for a moment, I understood the reason.

“Oh, I paid off part of my student loan, and the rest I lost in the stock market.”

In a hurry, I decided to buy with the money I had.

The stock I wanted to buy was still unlisted.

Fortunately, large securities companies operate platforms for trading unlisted stocks to provide convenience to customers and earn commission fees.

The stocks traded here are limited, but fortunately, the one I wanted was included.

The stock price has been in a continuous downward trend due to consistent losses each quarter.

The current trading price is 6,500 won.

I clicked to buy 770 shares.

Senior Dong-ho patted my shoulder and said,

“Let’s go get lunch. I know a good place for budae jjigae.”

I was led out of the company by Senior Dong-ho.

The shabby restaurant was indeed a good place, as it quickly filled with Yoido office workers after we sat down.

“Is this your first time here?”

“Probably.”

It’s been a while since I’ve been here.

“By the way, what were you doing earlier?”

If there’s good information, we should share it, right?

I asked Senior Dong-ho,

“Do you know Redhole Studio?”

“Redhole? The one that made Hera?”

“Yes.”

Redhole Studio is a game company that developed the MMORPG Hera in the past.

“Have you heard that they are developing a new game through a subsidiary?”

“I think I’ve heard of it.”

“The official release is next week, but the beta service starts tomorrow. It’s a PC FPS.”

“So?”

“According to my friend, it seems like it will do well.”

Senior Dong-ho shook his head.

“No, it will fail miserably.”

“Why?”

“Right now, the FPS market is dominated by Overclock. Korean small and medium-sized game companies can’t compete. Also, this game will likely be rated as unsuitable for minors, while Overclock is rated for those 12 and older. From the start, it’s already at a disadvantage.”

“But if they make it well, isn’t there a possibility?”

His reaction was skeptical.

“What about marketing? The marketing budget for Overclock’s launch by IceStorm was in the tens of millions of dollars. Can Redhole Studio do that?”

“That would be difficult.”

“The company’s situation isn’t good either. There are rumors that they will soon undergo restructuring and consolidate their subsidiaries.”

“But if the game becomes popular, won’t that solve the problem?”

“Who doesn’t know that a popular game means a big success? If other game companies didn’t want to succeed, they wouldn’t release games. Even Rexon, one of the three major game companies in Korea, saw a string of failures with their new releases over the past ten years. Without their game Dungeon & Warriors, their revenue would have been halved. SmileDoor? Their new game failed miserably and was recently discontinued. They didn’t even recoup the development and marketing costs.”

As he said, recently released new games have consistently failed, and large game companies are mostly surviving on past IPs.

It’s not for nothing that they are releasing games with 2, 3, or M (Mobile) attached. Launching a new game is not an easy task.

Seeing my expression, Senior Dong-ho asked,

“Why are you asking? Are you thinking of buying the stock?”

“I might buy a little.”

Actually, I already bought it.

“Do you know it’s unlisted?”

There are about 2,000 companies listed on the KOSPI and KOSDAQ. These are called listed companies. Most companies that are not listed are unlisted companies.

Unlike listed companies, where you can easily buy stocks with a single click on HTS or MTS, unlisted company stocks must be bought through an over-the-counter market.

Even if they are penny stocks or small-cap stocks, listed companies have at least met the minimum requirements for listing. However, unlisted companies have no obligation to disclose information, do not undergo proper audits, and have opaque financial statements.

In other words, it’s impossible to know the state of the company unless you are an insider.

Investing in such companies can sometimes result in a big win, but most of the time, it results in a loss. It’s not a market for ordinary people, but for experts.

“Unlisted stocks are not something to mess with. While there are many scammers in the stock market, the over-the-counter market is a gathering place for fraudsters. Even experts can end up with a black eye and leave in tears, saying, ‘This is not a place for me.’”

Unlisted stock trading has several characteristics.

The gap between the bid and ask prices is large due to the limited number of buyers and sellers, and there are no upper or lower limits on prices.

On a good day, the price can rise tenfold in a day, but on a bad day, a stock bought for 100,000 won can be worth 10,000 won the next morning.

“Still, my friend says it will do well. Aren’t you thinking of buying a little?”

Senior Dong-ho firmly shook his head.

“Don’t buy those penny stocks. Invest in blue-chip stocks like me. How about Hanjeong Materials? It’s undervalued, so if you buy and hold, it will be a good retirement fund.”

From his response, it was clear he had no intention of buying. Even if I told him the game would be a hit, he wouldn’t believe it.

“But I saw that Hanjeong Materials broke 50,000 won.”

At my words, Senior Dong-ho frowned.

“Tsk! Don’t you know about long-term investment? Long-term investment!”

“Isn’t it just forced holding?”

“I’m going to start averaging down from today.”

“Will you end up becoming a major shareholder?”

“...Shut up.”

Thinking of the money he lost, Senior Dong-ho made a sad face.

* * *

After lunch, I was called by the department head.

In the spacious room, a middle-aged man with glasses and a meticulous look was sitting.

His name is Yun Young-cheol.

His position is department head, and he is the highest-ranking person in the research department.

At this level, meetings with institutional investors and corporate clients are frequent, so he spends more time outside than in the office.

“Did you call for me?”

Yun Young-cheol looked at me and said,

“You’ve been here for about half a year now, right? How are you adapting to the work?”

I feel like I’ve already adapted.

“I’m doing my best to learn.”

Yun Young-cheol smiled contentedly at my answer.

“Manager Woo Baek-hyun said you’re smart and work hard. He doesn’t usually praise people.”

“Thank you.”

Yun Young-cheol handed me some materials.

“We’re going to release a fund recommendation report. Please organize the content well. Highlight that it has good returns and high customer satisfaction. If you have any questions, ask others.”

“Understood.”

Assigning this task means he wants me to start handling official work.

Back at my desk, I opened the materials.

The name of the recommended fund was on the first page.

<Primus Fund.>

I smiled bitterly.

“So, this is why.”

* * *

The number of funds sold by securities companies is countless.

They are basically divided into stock and bond funds, but there are also funds that invest in real estate, raw materials, and derivatives, and mixed funds that combine these.

There are funds that invest in specific countries, industries, or sectors, and even ETFs and funds of funds.

It’s not an exaggeration to say that the securities industry is in the midst of a private fund craze. At the center of this craze is the Primus Fund.

The official name is ‘Primus Stable Bond Specialized Private Investment Fund,’ and a number and letter are added according to the issuance order.

In most cases, banks and securities companies only sell the funds, while a separate entity manages and operates them.

The company that manages the Primus Fund is Primus Asset Management.

The CEO is Park Tae-il, who is quite well-known in the private fund and bond markets. Originally, they created corporate-only funds and marketed them to businesses, but they also received many investment requests from high-net-worth individuals.

So, three years ago, they started issuing private funds for individuals, which were sold through securities companies like Future Investment and NJ Securities.

The rumor that it was as safe as a bank deposit but offered higher returns than bank interest rates spread, and it sold like hotcakes.

Primus Asset Management aggressively expanded the market, and within five years of its establishment, the fund size exceeded 3 trillion won, making it the top asset management company in the industry.

As a result, securities companies flooded with love calls, and there was fierce competition to secure the fund.

Surprisingly, DA Securities won the competition and began exclusive sales last year.

The fund in question is the ‘Primus Stable Bond Specialized Private Investment Fund.’

It is a bond fund with a target amount of 500 billion won and a target return of 5%. It invests only in the revenue bonds of AAA-rated advanced country public institutions.

The minimum investment amount was 100 million won, but it was quickly oversubscribed due to the influx of institutional investors and high-net-worth individuals.

So, they are now raising an additional 500 billion won.

Due to its popularity, it sold out as soon as it was released, and inquiries to the branches never stopped. Many customers even opened DA accounts to invest in the Primus Fund.

Not only did it bring in huge sales commissions, but it also attracted new customers. It was a model product.

...Or so I thought.

“Until the company goes bankrupt.”

If I told someone that a securities company went bankrupt due to fund losses, they would think I was ignorant.

Anyone who knows a little about funds would understand how absurd this statement is.

Funds are investments, just like stocks and bonds, and investments come with risks.

There are funds that make profits and funds that incur losses. The securities company is not responsible for these losses.

Therefore, it is impossible for a fund to cause a securities company to go bankrupt.

However, this case was different.

“Please let me know if there are any shortcomings, and I will redo it.”

Manager Woo Baek-hyun scanned the materials with a doubtful expression, but soon his expression changed to one of surprise.

“What’s wrong with it?”

“No, it’s different from last time. It’s really well done. Did you do this alone?”

“Yes, I did it alone.”

“When did your skills improve so much?”

I had already reached the level of a manager, so this was easy.

“Thanks to your good teaching, sir.”

Pleased with my answer, Manager Woo Baek-hyun nodded with a satisfied smile.

“Good job. Keep it up.”

“Understood.”

While working, it was already lunchtime.

To quit and do something, I need money. In the financial market, having information means making money easily.

Fortunately, I have a good piece of information.

The game will be released tomorrow. The stock price will skyrocket immediately. So, all I need to do is buy the stock of the game company.