ALL NOVEL 17
“Will this really increase our YouTube views?”
In a conference room at Yuseong Investment Securities headquarters.
Sim Ju-won, the head of the WM Division and Vice President, smiled as he asked Lee Seong-hyun, who was setting up the camera, while surrounded by WM Division executives sitting in a row.
“I’ll do my best, sir.”
Lee Seong-hyun responded as if he knew how to deflect his superior’s question.
“The e-Business Department Head said you were brimming with confidence.”
At Sim Ju-won’s words, the executives seated nearby chuckled, observing the exchange between the two.
Lee Seong-hyun looked at Sim Ju-won, seemingly nervous.
“I am confident! And after meeting the participants today, I found some interesting characters.”
“Oh? What kind of characters?”
“People with similar investment styles but completely opposite personalities…”
Sim Ju-won nodded at Lee Seong-hyun’s words.
“There are such characters out there.”
The securities industry attracted all sorts of people.
Well, it might be the same in any company.
However, the securities industry dealt directly with money, which tended to bring out people’s inner personalities more vividly.
“I think showcasing these characters could make the show quite successful.”
“Like an audition program?”
“Yes, that’s the approach I’m considering.”
“Well, everyone here is sitting in on this because of what you’ve said, so you’re responsible for this project.”
Though Sim Ju-won spoke in a joking tone, Lee Seong-hyun couldn’t take it as a joke. Sim Ju-won must have meant this was their last chance.
“Understood. Then, shall we begin?”
At Lee Seong-hyun’s words, all the executives nodded, and Lee Seong-hyun nodded to his junior colleague standing beside him.
With his signal, the mock investment competition participants entered the room one by one.
It was time for the executives to review the participants’ portfolios and ask questions, much like a group interview.
This scene was meant to showcase how Yuseong Investment Securities selected stocks, not only for the mock competition but also for YouTube viewers.
“They’re all greenhorns.”
After interviewing the mock competition participants for a while, Sim Ju-won stretched and remarked. He didn’t seem pleased with the interview results.
“It’s probably because many of them are from different departments.”
An executive sitting nearby commented, and Sim Ju-won nodded.
“Still, shouldn’t they have some insight to participate in a mock investment competition?”
“There was one decent candidate. Lee Chang-jae, was it?”
“Ah, the one from the IB Division?”
“Yes, he seemed to have a good eye for the market, and working with companies gave him a solid understanding of business trends.”
“Right, if I had to pick one, he seemed the best. What do you think?”
“Yes?”
Lee Seong-hyun, who had been directing the filming from the side, quickly turned his head when Sim Ju-won called him.
“How’s the footage so far?”
“Well, I’m not sure yet.”
“Right? They’re all greenhorns, aren’t they?”
“We still have one person left.”
“Haha, sounds like you’re telling us to squeeze out more. Did you hear that?”
Sim Ju-won joked, seemingly trying to encourage the tired executives, and signaled to continue. The door opened, and the last participant entered.
“Hello, I’m Yoon Dokyung.”
Dokyung bowed his head as soon as he entered the room. Though he had heard about it from Lee Yeon-ji, who had gone through this before, it really did feel like a pressure interview.
“Oh! You’re…”
As Dokyung took his seat, Sim Ju-won looked at his profile card with interest.
“It’s been a while. How have you been?”
As Sim Ju-won spoke, everyone in the room watched the exchange between the two with curiosity.
“I’ve been well, thanks to you, Vice President.”
“Haha, it’s not because of me. I heard from Branch Manager Ryu. They say you’ve been doing exceptionally well.”
Lee Seong-hyun, who had been closely observing their conversation, whispered to his junior colleague standing nearby.
“There’s definitely something there, right?”
The junior nodded in response to Lee Seong-hyun’s question.
“Look into the Seongnam Branch, find out what he’s done. For the Vice President to praise a branch counter staff like that, he must have done something extraordinary. Let’s add more of that story to the video.”
“Got it, I’ll look into it.”
“Lee, can we start now?”
Sim Ju-won suddenly called out to Lee Seong-hyun in a loud voice, seemingly finished with his greetings.
“Yes, you may begin.”
At Lee Seong-hyun’s words, everyone lifted the papers with Dokyung’s portfolio written on them. Their expressions gradually changed to ones of interest.
“Yoon Dokyung-ssi, I’m Seo Yong-won, head of Wrap Account Team 1. Your portfolio is quite intriguing. There are no tech stocks at all.”
Tech stocks were attractive because they were seen as driving the future and, like Google and Amazon, were already leading the world. That’s why everyone usually included at least one in their portfolio.
Dokyung’s portfolio didn’t have a single tech stock that was leading the global market.
“Currently, the world is implementing tight fiscal policies. I thought stocks representing the new economy would be risky at this point when interest rates are being raised to curb inflation.”
“I see. Looking at your portfolio, except for one stock, it’s all filled with stocks representing the old economy. Oil, steel, construction, shipbuilding… even distribution.”
While preparing for this mock competition, Dokyung had chosen stocks that would drive profits over the 20 business days.
In this time when economic conditions change overnight and prices rise while we sleep, tech stocks were bound to drag down the portfolio’s returns.
“Do you see it as cyclical?”
As if they had predetermined the order, the executive sitting next to the first questioner asked.
“Yes, that’s correct. If big tech stocks led the market surge with the liquidity injected during the pandemic, I believe stocks representing the old economy are likely to lead the market now.”
The old economy was a term encompassing industries like oil refining, steel, and distribution.
“This current inflation is led by the rise in raw material prices. Historically, during such inflationary periods, stock prices of old economy companies have risen in tandem.”
“But when interest rates rise, construction stocks tend to fall.”
Dokyung’s portfolio included one construction stock.
Everyone knew that rising interest rates made it harder to get loans, reducing real estate transactions and new construction, negatively impacting construction industry stocks.
“Inju Construction in my portfolio not only builds residential spaces like apartments but also focuses on plant construction.”
“Ah, so with rising oil prices, the demand for plants will increase?”
“That’s right. I believe there’s a 2 trillion won Indonesian plant project selection happening this week. Inju Construction is participating in the bid.”
“You think they’ll get it?”
Instead of answering, Dokyung smiled.
Inju Construction was betting everything on this project. Other bidding companies were falling behind Inju.
Inju Construction’s stock price was already gradually rising due to foreign institutional buying. Dokyung thought it was a gamble worth taking.
Everyone nodded in agreement with Dokyung’s response.
“But looking at your portfolio, it’s concentrated on industry-leading stocks. That’s a bit unusual.”
All ten stocks in Dokyung’s portfolio were large-cap stocks.
“I believe you’re all familiar with the handkerchief theory.”
The handkerchief theory was a stock market concept stating that when you lift the center of a flat handkerchief, the rest follows.
“In uncertain times, market participants first buy safe, industry-leading stocks, which are large-caps. Then, when the rest start to follow, they turn their attention to the mid and small-caps they’ve been eyeing.”
“The most important thing is that this applies when stocks fall too, right?”
“Exactly. When you put down a handkerchief, the center part you lifted first is the last to touch the ground.”
That was the advantage of industry-leading stocks. First to rise, last to fall.
The executive who asked the question nodded, seemingly satisfied with Dokyung’s answer.
“But if you say that such old economy stocks will lead the stock market going forward, there seems to be one anomaly in this portfolio that stands out in terms of scale.”
Sim Ju-won, who had been observing the Q&A between Dokyung and the executives, spoke up with a sharp gaze directed at Dokyung.
“Yuseong Semiconductor. With interest rates rising and tech industries’ facility investments already peaking, isn’t it an awkward time for semiconductor stocks?”
This was a concern shared by all market participants.
“And most importantly, due to the surge in demand during the pandemic, semiconductor companies increased their capacity. Now, as they stop facility investments, there’s a risk of oversupply as they struggle to handle the volume produced by this increased capacity.”
Facing Sim Ju-won’s piercing gaze, Dokyung felt his breath catch in his throat.
Two years ago, during the interview, Sim Ju-won had also asked the sharpest questions.
“You’ve asked a very incisive question.”
Dokyung regained his composure and began to answer while looking at Sim Ju-won.
“First, Yuseong Semiconductor has a weapon that will allow it to avoid the semiconductor cycle you mentioned. That weapon is 5G communication equipment.”
“5G…”
“Yes, while demand for memory semiconductors might be peaking as tech industry investments decrease post-pandemic, as you mentioned, the communication industry is different.”
Dokyung continued with a confident expression, looking at everyone.
“During the pandemic, when remote work was prevalent, telecom companies’ investments were rigid. But now, they’ll start increasing investments in communication networks. We’re all returning to normal life and entering an era of face-to-face interactions.”
This was how Dokyung saw the business cycle, and Yuseong Semiconductor had its strengths.
“Yuseong Semiconductor’s 5G communication technology is the best in the industry. In fact, I believe negotiations are currently underway behind the scenes with VZ, the largest telecom company in the U.S.”
As Dokyung answered, Sim Ju-won’s sharp expression gradually softened.
“Second, the capacity issue you mentioned could be a statistical trap. Looking at the actual announced capacity expansion details, they were mostly in the foundry sector and concentrated in China.”
“That’s correct.”
An executive affirmed Dokyung’s answer.
“The semiconductor industry has very high entry barriers. Considering that most of the demand in China’s foundry industry is for system semiconductors, the impact on Yuseong Semiconductor, which has strengths in memory, is minimal.”
“Good. That’s an excellent answer.”
Sim Ju-won smiled and clapped as if Dokyung had given the answer he wanted, and the other executives joined in applauding.
“That concludes all our questions. We wish you the best of luck, Yoon Dokyung-ssi.”
“Thank you very much.”
As Dokyung bowed and left the room, the executives smiled and loosened their ties.
“He’s quite good.”
“Yes, I think he’s even better than that Lee Chang-jae fellow we praised earlier.”
Sim Ju-won nodded at the executives’ comments. Yoon Dokyung possessed insights different from the other participants.
Of course, that insight would need to translate into results in the competition, but his ability to logically articulate and persuade everyone made him seem like a talent well-suited for the securities industry.
“Assistant Manager, how’s the footage?”
Sim Ju-won asked Lee Seong-hyun, who appeared to be deeply moved by something.
“Haha, Assistant Manager?”
“Yes, yes! Vice President.”
“I asked if the footage is good.”
“Yes. We got some excellent footage.”
Lee Seong-hyun answered loudly with a satisfied smile.
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“They’re lining up. Look at that line.”
The next day, during lunch.
Dokyung was having lunch with Lee Yeon-ji in the company cafeteria when Lee Yeon-ji, sitting across from him, spoke in an incredulous tone.
“Pardon?”
“Over there.”
Lee Yeon-ji nodded towards a spot where Lee Chang-jae was sitting with other participants.
“Apparently, this morning Lee Chang-jae suggested that one of the other participants should sell one of their stocks.”
“Ah, so that’s why this morning…”
Dokyung picked up his phone to look at the rankings announced this morning.
[1st place Lee Chang-jae +5.28%]
.
.
[4th place Yoon Dokyung +2.71%]
.
.
[7th place Lee Yeon-ji -0.55%]
Although only a day had passed, Lee Chang-jae had already surged ahead with over 5% profit on the first day.
And as Lee Yeon-ji had mentioned in the morning, one participant had sold their stock.
“I thought it was strange that they sold when there was no profit…”
“I heard that stock completely crashed in the morning session. Apparently, the whole sector fell, and it went down with it?”
“So Lee Chang-jae-ssi’s advice was correct.”
At Dokyung’s words, Lee Yeon-ji furrowed her brow.
“That’s what’s weird. Why is he touching other people’s stocks in the competition, and why are they selling just because someone told them to? Ugh, I just don’t like it.”
Dokyung chuckled at Lee Yeon-ji’s words.
Lee Yeon-ji had a point. The people sitting around Lee Chang-jae now seemed to be hoping they might receive some help too.
“By the way, Lee Yeon-ji-sunbae.”
“What is it?”
“Your portfolio was a bit interesting…”
“Ah, so that’s the expression you’ve been wearing, like you wanted to ask something.”
Lee Yeon-ji laughed amusedly and began to speak to Dokyung.
“I just picked places I frequently visit, clothes I often wear, coffee I regularly buy, things like that.”
“Really?”
“Why do you look so touched?”
“That’s value investing, isn’t it?”
“Pfft, value investing? I just entered this competition because work is too hard, and I can take a break when I come here. That’s all.”
Although Lee Yeon-ji said it like that, it was a good approach.
Often, the brands we know best are those that occupy most of our daily lives in terms of food, clothing, and shelter.
Whether the quality of clothes has deteriorated, or if the clothes you want to buy are sold out because they’re too popular, or if clothes aren’t coming in due to a logistics crisis…
These were things one could feel most quickly and directly.
“That’s impressive.”
“Oh, stop it. If you say things like that, I might start taking this seriously. Don’t say such things.”
The Research Center was known as one of the “3D” (Dirty, Dangerous, Difficult) departments in securities companies.
They had to arrive at work at 5 AM to review the trends of overseas and domestic stocks from the previous day and deliver market conditions to clients before the market opened.
Their influence was as great as their hard work.
A single company report written by analysts could make stock prices rise or fall.
Dokyung smiled at Lee Yeon-ji’s words and continued eating.
“If it weren’t for Yuseong Semiconductor, second place would be yours, wouldn’t it, Yoon Dokyung-ssi?”
As they were eating, Dokyung heard a voice directed at him and looked up. There stood Lee Chang-jae with a disdainful expression.
“Yuseong Semiconductor fell 1.5% today. It’s not too late to sell tomorrow. And hold onto Hanseong Shipbuilding until the end. Good luck.”
Lee Chang-jae patted Dokyung’s shoulder a couple of times and left the cafeteria with his followers.
“Ugh, seriously, that guy.”
“Lee Yeon-ji-sunbae.”
Dokyung stopped Lee Yeon-ji, who looked ready to confront Lee Chang-jae, and smiled gently.
“Wouldn’t it be more fun if I beat someone like him?”
“What?”
“I can already see what kind of face Lee Chang-jae-ssi will have on the last day.”
“What do you mean…”
“You said it yourself, didn’t you? That people like him will wash out on their own if we leave them alone. I’m suggesting we watch that happen together.”
Dokyung said this as he scooped up a large spoonful of rice and put it in his mouth. Lee Yeon-ji looked back and forth between Dokyung and Lee Chang-jae, seemingly dumbfounded.