balance (貸借)
A week has passed since Daeyang Heavy Industries announced its worst loss in history.
In the meantime, the stock price has risen day by day, contrary to earnings, and is now over 130,000 won.
It was around 40,000 won just before the start of the crisis, so it almost tripled.
In the meantime, the stock market has been in turmoil. There is nothing for sale, but there are many people who want to buy it. It was an atmosphere where no one cared about the fact that Daeyang Heavy Industries was running a huge deficit.
Rather, I wanted to see how the short selling power dried up.
– Honey! I have already eaten three times since I entered Daeyang Heavy Industries a week ago.
– I go in a few days later and it’s double. sorry.
– I don’t think it’s over yet. It is likely to double or triple in the future.
– Young tea! zero car!
– Let’s go 300,000!
– What is 300,000? A million possible!
– Let’s go a million! zero car! zero car!
The hope that Kang Yu-jin, the richest man in the world, would do anything, was making people happy.
– That’s funny. What is the stock price of a company that is almost in a state of capital erosion at a loss of 5 trillion won?
– I made plans to ruin it. It’s best to get out in moderation.
– If you’re like me, you’ll be satisfied with this and get out.
Of course, there are many warning voices.
– What is the difference between Kang Yu-jin and the operational force?
– Because of Kang Yu-jin, the wrong person looks bloody.
– Kang Yu-jin must be arrested.
For some reason, there are many voices criticizing Eugene.
– no. What’s wrong with Kang Yujin?
– It’s the fault of the Daeyang group, why are you arresting Kang Yu-jin in the wrong way?
Of course, there are far more people who don’t than voices of criticism.
Meanwhile, someone raises a question.
– But this short sale is very strange, isn’t it? Quantity is too abnormal. It can be said that it is very rare for a short sale to occur in a volume that is 30% of the total issuance rather than 30% of the trading ratio. You can’t hit that big a sheep if someone didn’t know in advance.
– Did you know? deficit announcement?
– Otherwise, it is difficult to short-sell such a large amount. After selling 30% of the issuance, collecting that amount is actually too high a failure rate. Even if you know that there is a certain bad news. But after hitting the short selling, it was as if they had waited and announced the biggest loss in history.
– Sure, then. That’s it.
– Wow! Is it true? Did you short sell 30% before the announcement of the real loss of 5 trillion won?
– If Yujin Kang hadn’t said that he would buy, the stock price would have bottomed out, so would he have made at least 1 trillion won?
– Aren’t you crazy? 1 trillion won by hitting short sales with company inside information?
– It’s like that group.
– When you bought a US semiconductor company before, didn’t you try to swallow a few billions?
– But why do you stand still when it comes to securities management? Isn’t insider trading a felony?
– The Financial Supervisory Service. Originally there was nothing to do and nothing to do.
When a few people lead the atmosphere while playing tikitika, people’s attention soon gathers.
After raising suspicions about the Daeyang Group, a new suspicion is planted again.
– The real problem is that the stock price has gone up several times, but you haven’t sold it yet. In this situation, the deficit should be 3 trillion won.
– 3 trillion won? That’s right. crazy
– How to tighten 3?
– The remaining short sale volume is 24.5 million shares, and the stock price is 130,000 won. Then, you have to buy stocks worth 3.2 trillion won and pay them back. But when it was sold, it would have sold for about 1 trillion won. The difference is 2.5 trillion won. But if you want to buy 25 million shares, there will be a short squeeze again, and the stock price will rise considerably from now. So at least 3 trillion won is a loss.
– You flirt.
– But the question is, will you just stay at the place where you lent stocks when you came here? Usually, if you ask for a recall and sell it, you can make a huge profit. And even if it doesn’t, they ask for an additional margin, and the 3 trillion won margin call has probably been done by now. I don’t know where, but is there a place where I can get a 3 trillion won margin call and put it right away?
– It’s like a big bank, right?
– Large investment banks don’t do such risky things. That’s what hedge funds usually do. And if a hedge fund of this size is top-notch in New York, why would they do such a thing in Korea?
– So what?
At the moment when people’s curiosity and interest soar, a decisive word is thrown.
– I think it has something to do with the big X group. Especially in the case of X Yang Securities. They may have sold fake stocks there.
– Fake stock?
– Securities companies can create and sell stocks that do not exist. Short selling without leverage is prohibited in Korea, but they seem to be doing it secretly.
– That’s a scam! what!
– It’s a scam, but not a scam. It is true that short selling without borrowing is prohibited, but there are no penalties.
– What? Is there any penalty for selling fake stocks? damn it’s funny
– Then Korea. It’s okay to just pay a fine.
– Then, if you reject the stock loan application, why not just create it? is it real?
– True. I also recently had cancer. Just sell it first and stop. The fines aren’t too bad either. If you pay $2 million, you’re done.
– Are you crazy? Is 20 million won worth selling fake stocks?
– What does the Financial Supervisory Service do?
– Report it now. Link attached. I hope you all read it.
This controversy started with a specific stock trading site, and from there it spread to numerous sites and communities. And soon it became to the point of being able to find it all day on social media.
Already, people were convinced that Daeyang Securities had been short selling without borrowing.
People’s anger began to burn like a flame.
[According to the stock holding reporting system, SS Partners announced that it acquired 12.57 million shares of Daeyang Heavy Industries. It was stated that the purpose of acquiring shares is management participation.]
And when the news about the announcement goes out, the stock price rises again after a brief pause. Now, no one knew how far the stock price of Daeyang Heavy Industries would go.
[Meanwhile, SS Partners expressed concern about the current share price of Daeyang Heavy Industries. He said that he intends to purchase a stake in Daeyang Heavy Industries in the future, but has no intention of buying it at an unusually high price as it is now.
SS Partners’ concerns attached to the article do not have much impact.
Now, people were much more concerned about the truth of the short sale of Daeyang Securities than the acquisition of Daeyang Heavy Industries by a wealthy man named Kang Yu-jin.
Right away, those who owned Daeyang Heavy Industries’ stocks through Daeyang Securities raised their voices saying that they would move their securities company.
And there are a lot of people who want to leave Daeyang Securities even if they do not have shares in Daeyang Heavy Industries.
In addition, other securities companies are also moving to transfer to securities companies that do not have stock lending.
However, the most vocal opinion is that Daeyang Securities should be investigated.
A consensus was being formed that non-borrowed short selling is an act that shakes the foundation of the stock market, calling it a fraudulent stock or issuance of counterfeit stocks.
* * *
“There was a riot.”
Kim Hwan, who was on the phone with Eugene, said with a smile.
“I know. There was a lot of buzz about the short sale of Daeyang Heavy Industries.”
Both of them were talking as if what was happening right now had nothing to do with them.
“It is said that the Financial Supervisory Service will start due diligence soon.”
“It can’t be helped either.”
“Yes. If this situation escalates, the government will suffer as well. If the fraudulent activity of 5 trillion won is revealed, where will the blade end up going?”
“Whether it’s true or not, no one knows.”
“That’s it. haha.”
“For the time being, keep buying.”
If it is to take over Daeyang Heavy Industries, we still have enough. But that’s not all Eugene wants.
* * *
“How do you deal with these things?”
The old man’s voice was sharp, but not as energetic as before.
Chairman Ryu had to lie in bed all week, and even with doctors’ prescriptions, his energy never returned.
He is already over ninety, so it is unavoidable even with modern medicine.
Nevertheless, Chairman Ryu’s anger could not be said to be inferior compared to the days when he was full of energy.
“How do you manage alternative media outlets?”
“I’m trying to block it as much as possible right now, but some newspapers don’t listen.”
“Did you get a phone call from the head of the Financial Supervisory Service?”
That’s why the president got up from his seat.
“yes. I got a call this morning. I’m planning on taking the time until tomorrow. In the meantime, I told you to do something about it.”
“It’s not like it used to be. If it were me, I would have taken care of it and greeted you… … .”
The old man lamented.
“So how is it going?”
“Even if not now, we are dealing with it urgently.”
Ryu Geun-il answered.
“What have you been doing up until now? Didn’t you have a week or so?”
It’s not about being angry about committing a crime. It is a rebuke for doing something and not doing it properly.
“okay. The current situation?”
“The amount of short selling that has not yet been liquidated is 23.22 million shares. We have 10.62 million shares on loan through other channels than the Korea Securities Depository, and the remaining 12.6 million shares are a problem.”
“Is the unsolved short selling volume more than half?”
“The amount listed in the Korea Securities Depository has dried up. I brought all the supplies that were out until last month, and since then, every time they come out, I’ve been sweeping them all away… … .”
“So, how are you dealing with the rest?”
“I am looking everywhere. We are also asking if the National Pension Service can provide additional loans.”
While Ryu Geun-il worked hard to make excuses, Chief of Staff Oh Kyung-duk spoke up.
“I got a call from the National Pension Service a while ago. There are 3.8 million shares left in addition to the amount entrusted to the depository, but it is difficult to lend them all. It’s probably an eye-opener. Public opinion is not very good.”
“How much if everything is difficult?”
“About half of the time, I’m going to try.”
“Hey, you put the call back in. No. Please call Rep. Heo first.”
The chairman remembered the man who served as the floor leader of the ruling party.
You will have to pay the debt later, but for now, you had to deal with the fire that fell on your feet right away.
“All right.”
The secretary-general quietly walked away.
“okay. rest of it?”
“Everyone is in a state of disrepair. I intervened for nothing, and then the public opinion…”
“You call it a horse? Is it time to look at someone else’s affairs? Don’t you have to fill it up somehow?”
The old man shouted.
“If it doesn’t work out, I think we will have to fill in the group’s holdings.”
It is their last stronghold.
“It is difficult. It is also a problem that a large shareholder lends stocks in a short sale, but even if you do a loan, you must report it within 5 days. Legally, it can cause bigger problems, such as evasion of disclosure obligations in relation to breach of trust.”
The secretary-general, who returned soon after, intervened.
“Who is Senator Huh?”
“I am not answering the phone right now. It’s probably going to be a boon. We will come up with a way to contact you again in a little while. We will take care of it within today.”
Chief Secretary Oh replied in a shrill voice.
“okay. Okay. Anyway, it’s said that it’s hard to replace with group holdings, who doesn’t know that? Just write a shortcut. If we can see a solution with the Financial Supervisory Service, how can we deal with it right now?”
“All right. Then I will present it as a solution.”
In the end, it was like leaving it to Chief Secretary Oh to take care of it.
That was then. Ryu Geun-il received a call from somewhere.
“where? 1.2 million shares in Tiger X? Telson & Co. 2.12 million shares? okay. conditions? All right, I have to do that.”
He hung up the phone with a bright face.
“I think we can get more from the place we got it last time.”
“okay. heard. What are the conditions?”
“Daeyang Securities must guarantee 150% of the collateral. The interest rate is 45%.”
“They are very, very bad guys. 150% collateral and Daeyang Securities guarantee?”
The first was that he didn’t like it.
“The situation is not good, so there is nothing we can do about it.”
“okay. You should borrow it too. So how long do you have left?”
“You just need to bring the remaining amount to the National Pension and ask for a little more.”
Ryu Geun-il cheered up and answered.
“okay. It’s been an hour Maybe heaven can help.”
Chairman Liu said still with no energy.
Hearing this, the two sons were startled at the fact that their father had mentioned heaven for the first time. As far as the children know, he never was.
Certainly not only his energy had fallen, but he was also mentally weak.