black swan
The hardships of the Daeyang Group’s Saju family did not end there. Rather, it was only the beginning.
Even if it was urgently needed, it was necessary to fill in 3.75 million shares, which is equivalent to short selling without borrowing.
To buy it from the market, you need more than 700 billion won at the market price.
The problem is that there is no way to buy that much at once, and no one can predict how much the price will go up once you start buying.
In the end, you have to borrow it from someone.
Securities companies are the only ones that have the stock right now, but they are not in a situation where they can put it out in a box where the ants are refusing to lend and threatening to move to other securities.
I have no choice but to find other means somehow.
“So, just try this once. Do you not know well that our president has a certain lesson?”
The hardest part is the secretary’s office. Here and there I tried to use the lines I had made so far.
It is trying to put pressure on the place that owns Daeyang Heavy Industries’ stock, even a little.
“no. Assistant Yoon. he can’t do that Do you remember what we did in the last parliamentary election?”
Not only the chief of staff, but also the secretaries of the group had to go around all day.
However, public opinion worsened due to the FSS Chairman’s remarks, and the extremely sensitive politicians and the administration both had a considerable burden on being connected with the Daeyang Group.
“Deputy Director. We’ll never see each other again, right? You have to think about the next day. Yes, yes. Of course, I won’t do it.”
In the end, they were only able to pressure the brokerage firms by promising some kind of price.
“It’s really dirty. Until last year, the people who contacted me to see how I could even do a snow painting.”
The eldest son of the Daeyang family grumbles after receiving a report from the secretaries about the situation.
After being entangled with Eugene, the Daeyang Group has been disliked by the public and has lost considerable influence over politics and the administration. When I was in a crisis, I could feel the change in my status through my skin.
“It’s easier for my father to recover his energy.”
Another problem was that the president’s physical condition could not afford to go out on his own.
“Okay, I can’t help it.”
For the two sons, the presence of a father was like a dilemma. The influence of the president is necessary, but the old man must quickly collapse before the group can be completely taken over.
“We have secured 37,000 shares from Shinsegi Securities.”
I’ve managed to pull a bit of stock here and there, but it’s really fresh blood.
There is no reason for securities firms to lend to Daeyang Group until they accept criticism from customers.
He only threw a few weeks away after the Daeyang had lobbied the politician’s pressure.
The next day, the chief of staff had a meeting with the staff of the Blue House’s chief economic secretary and officials from the ruling party.
Originally, for such an important event, a more weighty greeting should have come out, but in order to avoid public attention, it was compromised at the meeting of the working group.
“It shouldn’t be like this. It is very difficult in politics. It seems that it was a mistake to make such a request to the head of the Financial Supervisory Service.”
Secretary Oh, explaining the outcome of the meeting to the president’s two sons, expressed considerable embarrassment.
It was the eldest son who asked for such a word, but he was the one who had to deal with it.
“There is a lot of fuss about resolving the non-debt by whatever means, whether buying from the market or doing anything by tomorrow. There was a decree from the Blue House, but I have nothing to say. As you both know, it’s hard for us to stand when the VIP gets angry. It will not end with short selling.”
Normally, I wouldn’t have argued so strongly.
But he knew all too well how horrific the consequences of living to the wrath of a VIP would be.
Even after 20 years have passed since the era of democracy, the power of the president is still enormous.
“There is nothing special. The president and the presidents have no choice but to come as a large shareholder.”
“Didn’t you say there was a problem with that too?”
“Now things are different. There is a justification for saving Daeyang Securities. Of course, the shares of other affiliates will still not. As soon as I got lucky, I hated it. If a major shareholder lends his/her stock for a short sale, he will be embroiled in a breach of trust controversy. If that’s the case, they say we can’t stop it anymore.”
The ruling party and the Blue House did not want the Daeyang Heavy Industries issue to be entangled with politics any longer.
If the problem of breach of trust arises, Daeyang will ask for it to be resolved again. Even so, it was difficult because of the strong opposition from the opposition.
“Even if it’s short selling, how else can you prevent Kang Yu-jin’s attack if you take it out?”
“First of all, this is not the time to think about it. It is a priority to stop the president’s anger.”
He is in a situation where he meets a tiger while chasing a fox. Of course, no one knows who the culprit is.
“And it looks like we didn’t have enough supplies over there either. It is fortunate in that respect that the share price has risen so much.”
“I’m not happy.”
Losing Daeyang Heavy Industries is also a huge disaster.
“Instead, we will try to prevent the cancellation of the license for Daeyang Securities. Today, I barely managed to revoke the license of Daeyang Securities and make a fuss saying that I will prosecute the person in charge. So we need to finish this as soon as possible.”
“It’s disgraceful.”
“under. what if… … .”
The two brothers did not admit to the end that their judgment was wrong.
In the end, they had no choice but to borrow the stock of Daeyang Heavy Industries owned by the owner’s family and use it as a settlement for non-borrowing short selling.
Of course, externally, it was the dedication of the owner family for Daeyang Securities, but no one believed it.
“For the time being, the FSS seems to distance itself from us. It appears that the fire of the head of the Financial Supervisory Service has been confirmed.”
“It’s difficult. At least he was someone who could talk.”
“I have no choice. The next head of the Financial Supervisory Service is likely to come from academia.”
“I’ll try to find out who it will be as soon as possible so that we can meet in advance.”
“And people are paying too much attention to us. We need to spread it out.”
“It is not. Is there any workaround?”
“yes. I’m thinking of popping one this afternoon.”
“okay. do it yourself.”
– Isn’t today’s article a bit suspicious? Why are there so many articles about celebrities taking drugs at this point?
– Originally, the prosecution manages that kind of thing all the time, and when there is something to cover up, it pops up.
– It’s dirty. So, is the short selling without borrowings going to go away now?
– Surely. The portal has already been covered with it.
– Don’t be weak. We must endure to the end. zero car!
– What is a young car? leaked me
– Young tea! I don’t sell even if I die.
– Young tea! Whether the short selling force dies or I die, I will go to the end!
The drug use case of a top-class idol engulfed the issue.
The next day, a local lawmaker from the opposition party sued the ruling party lawmaker for s*xual harassment.
For some reason, articles related to Daeyang Securities are not displayed on the main portal. I had to go through a search to find it.
Even if the three have weakened considerably, it does not mean that Daeyang Group’s media dominance has completely collapsed.
However, there is still a lot of talk about this situation on community sites, mainly stock sites. Most of all, it is because the mainstream is saying that this work can make a lot of money.
– I bought a week yesterday and a week today. I buy every day feeling like I’m saving.
– I bought it a week ago and it has already tripled. Selling for only a million won.
– The short sellers are going to die.
The stock price of Daeyang Heavy Industries did not hit a daily high any more, but the number of sell-offs was also rare. The amount that comes out is also disappearing quickly.
In the end, before the second week passed, the share price of Daeyang Heavy Industries reached 300,000 won.
It was a miracle that the total stock price of a company that suffered a huge loss of 5 trillion won reached 30 trillion won.
“How long will the price go up?”
“Isn’t it time for the ants to get tired soon?”
“I think it would be good to pour in the selling volume once… … .”
But there’s no such thing as stock. Even if you borrow additional money from somewhere to short sell, your losses will only increase if the momentum is not dampened.
As the two brothers were so troubled, the phone rang.
“Margin call? where are you? Telson & Co? how much? 150 billion won?”
As the stock price went up, I received calls from time to time asking me to add a margin to keep the short sale going.
If you do not comply with the request right away, you will be forcibly liquidated, then the stock price will rise again, and the margin on the other side will increase.
The amount paid as margin is already close to 3 trillion won. Now, the only way to anticipate when the stock price will drop is day by day.
Moreover, the stocks of Daeyang Heavy Industries, which were transferred by ordinary investors who were using Daeyang Securities as they moved to other securities, had to be bought and filled in by the market.
The stake owned by the owner family of the Daeyang Group was slowly flowing towards it again.
* * *
– 400,000!
– You’ve finally become a 40 trillion company. It’s funny that a company that is insolvent is 40 trillion won.
– The loss of the short selling forces (written as and read as 0) is now over 10 trillion won.
– It’s not confirmed yet, so don’t be vigilant.
– Seeing that the short squeeze hasn’t come out yet, it looks like it can hold up, right?
– Waiting for the stock price to fall.
– You have to hold on. I can’t let them fall the way they want.
Ordinary investors were all too aware of the number of short-selling forces.
Of course, the same goes for the one who threw the short sale. Anyway, I plan to hold out until the price drops. This is because the astronomical damage that would otherwise occur is in front of us.
So, day by day, a confrontation situation ensued.
“Finally, we reached 500,000 won.”
Joanna said happily.
“Okay, let’s get started now.”
Eugene instructed the assassin he had been hiding for so long to run wild.
“I see. This time, let’s set a good Jailbreak.”
“You know you can’t do one critical hit, right?”
“Of course not. You have to keep hurting yourself until your whole body is covered in blood.”
The grim smile on Joanna’s face was the same as the Wall Street witch Eugene knew from her past life. Also, she suits this very well.
“president. It’s urgent. We have been reporting a recall request from the United States.”
When he received the report from his chief of staff, Daeyang Electronics President Ryu Geun-il had just returned from lunch and was about to take a break.
“Recall? how much?”
Ryu Geun-il asked with a frown on his face.
I can’t be happy that I received a return request for a stock I borrowed for a short sale. Again, there was a heavy cost.
“It is said to be 1.13 million shares. It is half of the loan volume for ABTL.”
“What? 1.13 million shares? Are you crazy?”
President Ryu Geun-il shouted.
This is not the first time the recall has been requested. It is not unusual for the person who lends the stock to change his mind. But this time the quantity is too much. Where are you looking for a million shares right now?
“What is the stock price now?”
“It was over 520,000 won a while ago. For 1.13 million, that’s 580 billion won.”
“Ugh!”
Ryu Geun-il grabbed the back of his neck. The current price is 580 billion won, but if you start buying 1 million shares, you wouldn’t know how much it would go up.
It may even exceed $600,000 right now. no. Considering the current situation, it is definitely beyond.
But there is no way not to comply with the recall request.
The stocks for which a large share is sold for short sale must be returned within two business days upon the request of the owner.
“Is there any amount left in the KSD?”
Ryu Geun-il asks, unable to give up his faint hope.
In the general case, you can purchase it from the market and return it, or replace it with another stock listed in the Korea Securities Depository. Of course, I am well aware that this is not the case now.
The Korea Securities Depository had already pulled all of the volume.
“There is not. sorry.”
Even though it’s not his fault, the chief of staff apologizes first.
“Damn you bastards! Does a recall make sense in this situation?”
This is the biggest risk of failing to short sell.
When an individual makes a short sale, the repayment period is set from 60 to 90 days, but there is no obligation to repay mid-term during the agreed period.
However, institutional investors have a repayment period of more than one year and can be extended without repayment.
In some ways, it can be said that they are exposed to greater risk than individual investors.
Of course, since institutional investors usually invest with much more accurate information, they are rarely exposed to such risks.
In the case of Korea, there have been only once since the 2000s, and once in a few years abroad, there have been cases of short selling and a major failure.
The reason why the Daeyang Group owner’s family was able to do so with such peace of mind was because they had complete control over inside information.
In particular, a large number of prepayment requests like today are rare.
In the case of Korea, it is difficult to find the origin of the massive loss of short sellers due to this recall.
Of course, I wasn’t too worried.
But just because something that didn’t happen in the past doesn’t necessarily mean it won’t happen in the future.
And when something unexpected happens, an unimaginable aftermath is bound to happen.
In economics, such an unexpected event that has a huge ripple effect is called a black swan.
Just like Long Term Capital in the late 1990s had to declare bankruptcy with an unimaginable amount of $100 billion in debt after such a misjudgment.
If in the next few years the US short selling force had met its catastrophic end due to the counterattack of the ants, the Daeyang Group would have been even more concerned.
But what happened at this point in time was unexpected for everyone.
“Please even ask for a postponement of the recall!”
Since there is no way of knowing whose intention the recall request was made, it would be possible to make such a meaningless request.