Hannam-dong, Seoul.
Late at night, Chairman Park Tae-hong had called his two sons to the main family house after hearing the news that Deputy Prime Minister for Economic Affairs Lee Eun-hyung would be holding an emergency press conference. Together, they watched the live broadcast in the study.
[…An initial inflow of 5.5 billion dollars will be made available through the IMF's liquidity support funds, with further assistance and its conditions to be decided through consultations with the IMF, the United States, Japan, and other participating countries. Once again, we ask for the unified trust and support of companies and the public to help the government overcome this unexpected currency crisis…]
Deputy Prime Minister Lee Eun-hyung, who had maintained a grim expression throughout the announcement, stepped away from the podium and gave a deep bow to the camera directly in front of him.
Seated in the center chair, facing the large television across the room, Chairman Park Tae-hong let out a low sigh without realizing it.
On the sofas beside him, President Park Jin-hyung and Seok-won wore equally grave expressions.
"So this is how it ends up after all…"
Chairman Park spoke in a somber voice and turned to his younger son.
Seok-won replied calmly.
"As I mentioned last time, the moment we clung to the exchange rate band and failed to reduce our excessive short-term foreign debt—even after witnessing Southeast Asian countries fall into currency crises—this outcome was already set in motion."
"Seok-won is right. Not only the government and political circles, but even the business sector responded far too complacently. That ultimately led to this."
"The timing being right in the middle of the presidential election probably made things worse, too."
Opening the wooden case on the table, Chairman Park took out a cigarette, lit it with a flick of his lighter, and leaned back, exhaling a stream of white smoke.
"In any case, the situation has exploded. What matters now is how we get through this crisis."
His eldest son, Park Jin-hyung, glanced across at Seok-won and spoke in agreement.
"Fortunately, following Seok-won's advice, we've implemented austerity measures, reduced our debt as much as possible, and converted all loans into long-term ones. Thanks to that, we won't be taking a major hit right away."
Chairman Park nodded, holding the cigarette between his fingers.
"Yes. If it weren't for your younger brother, we would've been in serious trouble. If we had pushed ahead recklessly with building the new Gangnam store and expanding the factory in China, not knowing this would happen... Just imagining it gives me chills."
"Considering the recession and the sharp drop in sales at the Mido Department Store—which had been the group's cash cow—it's possible we could've ended up like Donghae Group, who just filed for court receivership."
"That's probably true."
Seok-won sat silently, trying to hide his embarrassment at the praise from his father and older brother.
"Thanks to Seok-won, who grew the reserves we converted into dollars, those funds will now be a significant help in managing the group moving forward."
Chairman Park Tae-hong smiled as he spoke.
"Other chairmen say their hearts sink every time they see the exchange rate spike. But me? Watching the value of our won-denominated assets swell on its own—it's like I'm full without even eating. I can't describe how reassuring it is to be holding dollars in a time like this."
"I feel the same way,"
President Park Jin-hyung replied with a chuckle.
Wearing a pleased expression, Chairman Park turned to Seok-won with a question.
"Now that we're getting bailout funds from the IMF and the exchange rate should settle down, it's probably time to start converting those dollars back to won, don't you think?"
But Seok-won shook his head firmly.
"No. It's not time yet."
Surprised by the unexpected answer, Chairman Park looked puzzled.
President Jin-hyung also furrowed his brows and asked,
"What do you mean, it's not time? Don't tell me you think the exchange rate will keep rising even after the IMF bailout was announced."
"Exactly. In fact, the real surge is just about to begin."
"Hmm. What makes you think that?"
Turning to face Chairman Park, Seok-won spoke with serious intent.
"It's simple. The rate has shot up to 1,139 won, yes, but that's still the result of the Finance Ministry and the Bank of Korea holding it down by pouring out our foreign reserves."
"That's true."
"But now that we've requested IMF assistance, we'll have no choice but to meet their demands. And I'm sure one of those demands will be the full abolition of the exchange rate band and the adoption of a floating exchange rate system, where the rate is determined freely by the market."
"!"
"Now imagine what happens when the hand that's been pressing down hard on a spring suddenly disappears."
Realizing what Seok-won meant, Chairman Park let out a low exclamation.
"With the resistance gone, the spring will recoil—and shoot way up."
"For a few days, optimism may bring a temporary sense of stability in the exchange rate and market interest rates. But if negotiations with the IMF drag on, that uncertainty will likely grow and spread."
President Jin-hyung leaned forward, his tone cautious.
"But isn't it also possible that the negotiations will wrap up quickly?"
"That's absolutely not going to happen."
President Park Jin-hyung was at a loss for words at Seok-won's firm and unequivocal response.
"Why do you think the U.S. insists on providing aid to countries in crisis only through the IMF?"
"Hmm... I'm not sure."
Seated at the head of the table, Chairman Park Tae-hong also turned to Seok-won with a curious look.
"They're using this opportunity to force countries like Korea—and other rapidly developing Asian economies—into a framework of their own making, under the polished name of the 'global standard.'"
Seeing the two men listening intently, Seok-won continued with measured seriousness.
"To do that, they'll push for the complete opening of our financial markets and start meddling in our economic policies. And no matter how desperate the situation is, do you really think the government will be able to easily accept such interference, which is essentially internal meddling?"
"Unlikely."
President Jin-hyung replied stiffly, his face tightening under the pressure.
"That's why the negotiations are bound to drag on."
Chairman Park stubbed out his half-burned cigarette in the crystal ashtray on the table and spoke again.
"If that's the case, they might even worsen the situation on purpose to pressure the Korean government into compliance."
"Exactly. Once the exchange rate band is gone, the ceiling will be wide open. Add in speculative attacks from currency traders who've been waiting for this moment, and the unchecked exchange rate could skyrocket."
Understanding the implications, Chairman Park furrowed his brow.
"If things go the way you're saying… the dollar might really hit 2,000 won."
Even President Jin-hyung, normally composed, swallowed hard, his face going pale.
"People are already panicking with the rate past 1,000... 2,000 is unthinkable."
Chairman Park let out a quiet sigh.
"The fear will push the rate through the ceiling. But once the IMF deal is finalized and the bailout money starts to come in, the market will stabilize quickly."
Even with Seok-won's reassurance, both couldn't hide their concern.
It was clear that while stabilization might come eventually, surviving the chaos until then would be nothing short of a nightmare.
"Well, we don't need immediate liquidity, so we'll wait. Seok-won, exchange the dollars when you think the timing is right."
Trusting him completely, Chairman Park gave full authority to Seok-won, and Seok-won nodded calmly, as if he had expected nothing less.
"Yes, I will."
"Still… even if we're relatively safe thanks to our preparations, I can't help but worry about what's going to happen to Korea from here on out."
Seok-won replied in a slightly subdued voice.
"We're about to go through a painful time—one unlike anything we've experienced before. But if we can endure it, our economy will come out stronger and healthier for having faced that hardship."
"I hope things turn out the way you say."
Chairman Park Tae-hong's face clouded with worry as he thought about what lay ahead.
***
The next day.
The morning sun rose as usual, but overnight, the world had changed completely.
[Government Officially Requests $20 Billion IMF Bailout]
[Possibility of Largest Bailout in History]
[Fears of a Stagflation if IMF Demands Severe Austerity]
[IMF Funding Forces Business Sector to Downsize Next Year]
Newspapers at bus and subway stops were plastered with bold headlines about the IMF bailout request, and the faces of the people reflected nothing but anxiety about the future.
All across the country, brokerage offices were flooded with investors early in the morning.
They were desperate, willing to take losses just to sell whatever stocks they held and salvage whatever money they could.
"Why aren't they opening the doors yet?!"
"Open up, hurry!"
From elderly men wearing fedoras to mothers carrying babies wrapped in blankets on their backs, men and women of all ages gathered, banging on the glass doors of the brokerage offices and causing a commotion.
"Please calm down, the business hours haven't started yet. Just wait a little bit."
Staff hurried out trying to soothe the crowd, but it was no use.
"My money is about to turn into worthless paper — that's the problem! Open the doors so I can fill out an order form!"
One loud middle-aged man shouted, and the crowd echoed his cries.
"If I can't sell my stocks and end up broke, you'll be held responsible!"
"Open up, damn it!"
"Open the doors! Quickly!"
As the crowd's angry shouts grew louder, almost as if they were about to break the doors down, the pressure on the staff became unbearable.
"W-what should we do?" one frightened employee stammered, stepping back.
Despite breaking out in cold sweat and trying to calm people, the staff had no choice but to open the brokerage doors earlier than usual.
As soon as the doors opened, the crowd surged inside like a single mass and rushed to the counters, shouting.
"Sell all the stocks in my account!"
"Hey, don't push!"
"I got here first!"
"Move aside, will you?"
The brokerage floor erupted into chaos as investors shoved and shoved, desperate to be the first to place their sell orders. Employees tried their best to maintain order, but it was futile.
As a flood of panic-driven sell orders poured in—even at the lowest possible prices—the brokerage staff were stunned, facing a situation they had never encountered before, unable to process the orders fast enough.
When the market officially opened, everyone's eyes fixed on the large electronic board on the wall. As the numbers began to move, every sector plunged to its lower limit, the board flashing deep blue in unison.
Investors panicked even more.
"No way!"
"This can't be happening."
"My money…"
The shocking sight of their money vanishing before their eyes made some deny reality, while others simply collapsed onto the floor in despair.
Increasingly frantic, investors grabbed brokerage employees, their faces twisted with anger and desperation, demanding faster sales.
"Hurry up and sell already!"
"The stock prices are dropping by the second!"
"Sell, I said!"
Overwhelmed by the shouts, brokerage employees broke out in sweat, pounding frantically on their keyboards.
"What's going on?!"
"Well… um…"
One hesitant employee finally stammered.
"Sorry, but the orders aren't getting executed…"
"What do you mean?!"
An angry middle-aged man slammed his fist down on the counter.
"Everyone's selling, but no one's buying!"
"We don't care about that! Just sell my stocks!"
But due to the widespread panic, no buyers were stepping up. No matter how many sell orders the staff entered, none were matched.
The crowd grew louder and more desperate, and less than ten minutes into trading, the market's circuit breaker triggered, halting all transactions.