Reborn to the Chaebol Family

March 1982 

It's march now. The price of gold has fallen to $320 dollars. I decided to close my position foregoing future profits so that I can prepare for the gold rush. I also remembered a opportunity which will not come easily.

Ring ring..

" Hello Daojun. I just closed our position at the average price of $317 dollars. Your 6 billion Won has turned into 92 billion won. That's more than 15 times the return. You have become a billionaire at the age of 7 years old" Oh Sehyeon said excitedly on the phone. " That's great uncle. You should come to Korea next month I think I have got another opportunity to make money"" Okay I will come next month"

I now have turned 7 years old.

I was collecting all the information that I could and I remembered a great opportunity to own a bank in Korea. Due to the president Park regime the chaebols weren't allowed to own a bank. There is one bank which is privately owned and it will become the 2nd largest bank in Korea in the future. Yes it is Shinhan bank.

Shinhan bank founded in July 1982 by Lee Hee-gun with capital provided by Korean businessmen living in Japan. It started with just 25 billion won in capital and went on to become a bank with total assets over 260 billion dollars. Now I have to opportunity to take this bank for myself.

April 1982 

"Daojun what did you want to talk to me about" " Uncle I want you find a person name Lee Lee-gun. He is planning to start a bank in Korea. I want you to go to him and invest in his bank. It would great if we can hold the majority stake in the bank"Daojun said." Did you hear about him from your grandpa and why do you want to invest in a bank"

" Yes I heard about it from grandpa. Uncle you know that the chaebols cannot own a bank. If I put my money another banks there is a risk of leak of information or maybe even freeze. That's why I thought it would be better to own a bank for the future"I explained. "Hmm. It isn't a bad idea to own bank since we mainly engage in finance" 

" Uncle I want you to create a company which no one can find who owns it. I want to keep our identity hidden as much as possible otherwise it could be bad for our family due to my uncle and aunts" " Hmm that's true. Ok I will create a company which will have offshore processing. I will create Thousands of shell company in British Virgin island, Cayman Islands and Bermuda. They will cross hold shares in each other " Oh Sehyeon said.

" Hmm that's great uncle. Uncle you should invest 25 billion won in the bank and please transfer the 6 billion back to my account" Daojun said. "Okay what do you want to do with the remaining 61 billion won" " Uncle have you noticed anything strange about Latin American countries" I asked

" Latin American countries. I only know that that U.S banks has lended a large amount of money to those countries and the political situation is not that good." Oh Sehyeon said " Yes, Latin American countries have a large amount of debt but their gap is falling. The government has been struggling to pay the loans back. Uncle what if latin American countries default on their loans." Daojun said

" How could that happen. It would mean that the country has gone bankrupt." " But uncle if you look at the situation. The country has large amounts of debt but don't have the money to pay it back. If the country goes bankrupt it will shock the financial world. So how can we benefit from it" Dajoun said calmly 

" Let's see. If the countries goes bankrupt their currency will devalue and stock market will fall. All that money will flow into safe assets such as gold .. ahh" Oh Sehyeon exclaimed" Yes uncle. The gold will soar. If all the money will flow towards gold we can build a position to long gold futures and enjoy large profits" Daojun said

" Hmm that's true but only if the country goes bankrupt." "Then uncle you should keep a watch on the situation latin American countries and then we will long gold futures if we think the chances are high." Daojun said " Yes, we can do it like this. Okay. so I will register the company and invest in the bank. What should we name the bank." Oh Sehyeon asked "Shinhan Bank"