NOVEL NEXT 94
A line of luxury sedans was filing into the entrance of a five-star hotel in front of the COEX in Seoul’s Gangnam district.
“How may I help you?”
As an employee approached Dokyung’s car among the luxury sedans, Dokyung produced an invitation from his pocket.
“I’ve been invited to today’s banquet.”
“Ah, yes. We’ll park your car for you.”
At those words, Dokyung stepped out of the car and addressed the employee.
“The cost…”
“It’s complimentary for all attendees of today’s banquet.”
“Oh, I see. Thank you.”
Dokyung accepted the valet parking card and entered the hotel lobby. Perhaps because it was the weekend, the hotel was bustling with visitors, but to Dokyung’s eyes, they all seemed to be either securities professionals attending today’s banquet or ordinary people.
“Ah, geez. Occupational hazard.”
It was a stereotype he had developed from encountering securities professionals while working in Teheran Valley, where many conservative securities firms were located.
Some might ask what he meant by that, but it was an occupational hazard Dokyung had developed.
“Dokyung-ssi.”
As Dokyung stood in the lobby, he turned around at the sound of a familiar voice.
“Center Director.”
Center Director Ha Min-jae, who had just entered the hotel lobby, was calling out to Dokyung. Dokyung was able to attend the banquet held here today as Ha Min-jae’s acquaintance.
“What are you doing here? You can go into the event hall.”
Ha Min-jae spoke to Dokyung, who was bowing his head in greeting.
“Ah, I was just looking around a bit.”
At Dokyung’s words, Ha Min-jae nodded and looked around the hotel lobby.
“There are a lot of securities professionals here.”
“Pardon?”
As Dokyung asked, Ha Min-jae started walking with a smile, and Dokyung fell in step beside him.
“Stuffy suits with subdued colored ties, and company badges pinned to their lapels.”
Dokyung chuckled at Ha Min-jae’s words.
“And the fact that this hotel is located in Teheran Valley, and that a gathering of securities professionals is being held here today.”
Ha Min-jae was saying exactly what Dokyung had been thinking. The two took the elevator to the floor where the banquet hall was located.
At the entrance to the event hall, people from the hosting organization were standing.
“Welcome. May I check your invitation?”
At the host’s words, Ha Min-jae smiled and handed over his invitation.
“Ah, 20th generation senior Ha Min-jae. How are you?”
“You must be the new members who joined this year?”
“Yes, that’s right.”
Ha Min-jae nodded with a smile.
“This person is attending as my guest. Keep up the good work, everyone.”
Ha Min-jae wrote his name in the guest book, greeted the people, and entered the banquet hall. Dokyung also wrote his name and followed behind him.
“They all look so young.”
Dokyung spoke, thinking of the people at the entrance earlier, and Ha Min-jae nodded.
“This event is hosted by HMIC, the value investing club alumni from Korea University. Those young people are current club members attending Korea University.”
HMIC was a stock investment academic club within the Business School of Korea University, which was said to admit only the country’s top students.
He had heard that when it first started in 1998, it was small, but now it had become the largest stock investment club among domestic universities.
True to its reputation as a breeding ground for talent, numerous people had advanced into securities-related fields such as securities firms, asset management companies, and hedge funds. Now, they had become the pillars leading the domestic securities industry.
“Ah, I see.”
“Yes. You might think they’re being exploited, but don’t worry too much. Despite how it looks, they receive quite a hefty daily wage for this.”
Ha Min-jae spoke as if he had read Dokyung’s mind, then walked away with a drink in hand. Dokyung also picked up a prepared drink and walked alongside Ha Min-jae.
Everyone at the event was holding drinks and chatting in small groups.
“This is interesting.”
“What do you mean?”
“Usually, big banquets like this are held at the end of the year. But it’s April now…”
At Dokyung’s question, Ha Min-jae grinned and spoke.
“It’s because we’ve just passed the settlement month for traditional securities firms.”
Dokyung could understand with an “Ah!” at Ha Min-jae’s words.
While there were numerous events in December at the end of the year, for securities professionals, that was actually the busiest time.
They had to check the annual returns on traded funds and stocks, and it was the month to set investment plans for the new year.
It was far from an end-of-year event, and traditionally, the settlement month for the securities industry was March, which is why such events were held after the settlement month had passed.
“Oh, Ha-sen.”
As Dokyung and Ha Min-jae were in the midst of their conversation, someone approached calling out to Ha Min-jae.
“Sunbae.”
Ha Min-jae bowed his head politely in greeting, and Dokyung also bowed his head.
“It’s been a while. You didn’t come last year or the year before.”
The man approached and extended his hand to Ha Min-jae, and the two shook hands.
“This is an employee from our center…”
“Yoon Dokyung-ssi.”
The man spoke Dokyung’s name as if he knew him, and both Dokyung and Ha Min-jae looked surprised.
“Nice to meet you. I’m this kind of person.”
As the man handed over his business card, Dokyung accepted it with both hands and took out a business card he had prepared for emergencies from his wallet.
“I’m Yoon Dokyung.”
Dokyung handed over his business card and checked the other’s card, his eyes gradually widening.
[Taesan Securities Global Asset Management Team Leader Seo Woo-hyun]
“Haha, Dokyung-ssi seems quite surprised by my business card.”
“Ah! Not at all.”
Dokyung tried to hide his expression, thinking he might have shown too much, and looked at the man, who was smiling at him.
“I’m familiar with Dokyung-ssi, but this must be our first meeting for you. I’ve been watching you since your battle with Professor Jo Hyun-seok.”
Dokyung bowed his head as if he didn’t know what to do with himself.
“I heard you gave Lee Donghyuk a good beating this time.”
As the man said this, Ha Min-jae, standing next to Dokyung, smiled as if pleased.
“He’s not good at empty flattery.”
As Ha Min-jae spoke as if defending Dokyung, the man nodded.
“Let’s meet again when we have the chance. We’ll probably see each other often if you stay in the industry. I came to make an impression.”
“Yes, it’s an honor to meet you.”
As Dokyung greeted him, the man raised his hand in farewell and moved on to another place.
After that, several more people came to greet Dokyung and Ha Min-jae.
They were all key figures leading the Korean securities industry.
“The event is starting.”
As the time approached and the event began, the current club president started to emcee. On the screen, congratulatory messages from figures celebrating this event were being shown.
“Next, we’ll have a congratulatory speech from our 3rd generation senior, Kang Sung-ho, who defined HMIC.”
As one person’s name was announced, everyone applauded with fervent support. Then a man stepped onto the platform and stood in front of the microphone.
The man was someone Dokyung knew well.
He was the representative of a private equity fund that had established activist investing in South Korea and earned enormous amounts of money every year.
“Kang Sung-ho Fund No. 1, 488% cumulative return over 10 years, rewriting the history of private equity funds.”
“Kang Sung-ho Fund No. 2, 130 billion won raised. Sold out in 2 hours.”
“Who is Kang Sung-ho, Chairman of KFSG? A star in the securities world who created the first generation of activist funds in Korea.”
“Dokyung-ssi knows who he is, right?”
“Yes, of course I do.”
Kang Sung-ho was a figure driving recent issues in the securities world.
While there were already many asset management companies in Korea operating private equity funds that recruit a small number of investors, he was the first to create a private equity fund that added activism to the mix.
“Isn’t he the one who established activism in Korea?”
Activist investing referred to buying shares to secure voting rights that could influence a company’s management.
In other words, it was a fund that secured enough shares to strengthen voting rights, made demands about management at shareholder meetings, and based on this, generated profits in a short period.
Kang Sung-ho secured shares in domestic conglomerates, demanded structural improvements, and threatened the management rights of chaebol families.
He had become a star because of this.
“He’s also the one who turned HMIC into a value investing club.”
As Ha Min-jae said this, Dokyung looked at Kang Sung-ho standing on the platform with interest.
“Originally, HMIC was just a stock club. But there was a time when club members started leaving one by one due to views that college students shouldn’t be investing in stocks instead of studying, and views that saw stocks themselves as gambling.”
Dokyung nodded at Ha Min-jae’s words.
There had been a stock club at the provincial national university Dokyung attended, and they had to fight against such views too.
“Kang Sung-ho, who was in the 3rd generation, proposed to change the club into a value investing academic club along with the club president at the time, and after making that change, we were able to reduce the discriminatory views.”
Value investing referred to investing based on belief in a company’s value.
In other words, it was investing in growth value and profit value, viewing a company’s value as related to its net assets.
For example, Dokyung’s recommendation of Hi-On on the YouTube channel this time was an investment based on the value that the company was undervalued compared to the money it was earning.
“And most of those who came out of HMIC are now the pillars of the securities industry.”
As Dokyung picked up on his words, Ha Min-jae nodded, not displeased.
“That’s right. I couldn’t say it because it would sound like I’m bragging, but I’m glad you mentioned it, Dokyung-ssi.”
Dokyung and Ha Min-jae watched Kang Sung-ho’s congratulatory speech as they spoke.
As the short and impactful speech ended, the event transformed into a banquet fitting its nature.
People gathered in small groups, introducing each other and discussing recent industry trends and world affairs.
“I think money will flow into robotics in the future.”
Dokyung was also talking with Ha Min-jae’s acquaintances.
“Well, robotics is always a hot topic, but…”
As expected of investment professionals, the conversation was dominated by predictions about the future industrial market.
“I think we need to wait and see with robotics since there aren’t any tangible results yet. Finding a market to enter for LTI should be the priority.”
“By the way, Ha Min-jae, do you have an LTI strategy? Any themes you’re particularly bullish on?”
LTI stood for Long Term Investments.
In other words, they were asking about themes worth investing in for the long term.
“Well, I’m not sure… Do you have any ideas, Dokyung-ssi?”
At Ha Min-jae’s question, Dokyung looked at him with a surprised expression.
This was because they had internally designated sectors that would be good for long-term investment at the center earlier this year.
Seeing Dokyung’s surprised expression, Ha Min-jae nodded with a smile, and Dokyung seemed to understand his intention.
“I think renewable energy would be good. Stocks related to solar power, secondary batteries, and nuclear power.”
“For secondary batteries, do you mean the finished product side?”
“No. The finished product side would be good if the risks regarding changing global affairs are resolved, but for now, I think the materials, parts, and equipment side, especially anode materials, would be good.”
“Indeed, it seems like whoever develops and brings silicon anode materials to market first will determine success or failure, right?”
Dokyung seemed to understand why Ha Min-jae had brought him to this gathering. At first, he thought Ha Min-jae might be trying to connect him with people, but it seemed he wanted to introduce Yoon Dokyung to this industry beyond that.
If that was the case, Dokyung had no intention of running away from the stage Ha Min-jae had set.
Despite the barrage of questions, Dokyung continued the conversation with a smile.
“Yes. However, even if one company takes the lead, domestic companies are so strong in the anode material sector that I think they’ll catch up quickly.”
“Nice. I had the same outlook on that point.”
“What about the finished battery side? Is it because of the IRA bill?”
“I think all the finished battery companies except Mirae Chemical look good. They’ve already established joint ventures with U.S. electric vehicle companies and are building factories in the United States. Even if there’s a temporary setback, I think it’ll be good once the U.S. production lines start running.”
Everyone nodded with satisfaction at Dokyung’s adept answers.
“Then, are there any themes we should avoid investing in?”
As Dokyung was skillfully answering the flurry of questions, a voice came from behind, and everyone’s attention turned in that direction.
Then everyone bowed their heads in greeting, except…
Only Dokyung froze, staring at the person who had thrown the question at him.