After finishing his call with a Hong Kong-based dealer involved in options trading, Manager Song Jong-geun set the receiver down.
Team Leader Kim Jung-sik, who had been waiting impatiently by his side, immediately pounced with a question.
"How did it go?"
A quick glance around the room showed that it wasn't just Kim Jung-sik—every team member was staring at him with eager, expectant eyes.
"I closed all positions at 79.97 yen."
"Wow!"
"A 20% profit margin?!"
"This calls for a team dinner, doesn't it?"
The team erupted into cheers, excitedly chattering amongst themselves.
"Great job, Manager Song."
"Thank you."
Kim Jung-sik, grinning from ear to ear, patted Song Jong-geun on the shoulder.
The tense days spent anxiously monitoring the exchange rate fluctuations felt like a dream now.
After working tirelessly from dawn without a break, exhaustion had piled up, but seeing the results in their hands made every bit of effort feel worthwhile.
"Damn, Team 1 hit the jackpot."
"Congrats!"
"Well done, everyone."
Even colleagues from other teams, hearing the celebration, peeked over their partitions, clapping and offering their congratulations.
Just then, Seok-won entered the trading floor, a smile playing on his lips as he approached.
"Judging by the commotion, I assume you've wrapped up your positions?"
"Director!"
Kim Jung-sik, who had been laughing and slapping his team members on the back, quickly straightened up and bowed his head.
"O-oh, welcome, sir."
"At what price did you sell?"
"79.91 yen."
"So, about a 20% profit margin?"
At that, Song Jong-geun, quick to read the room, stepped in to provide more detail.
"To be precise, 23%. After deducting costs, we made approximately 3.4 million dollars in profit."
Seok-won, pleased with the solid return, glanced around at the celebratory Team 1 members and smiled widely.
"You've all worked hard."
"Haha, not at all, sir."
Kim Jung-sik, still trying to appear humble despite his obvious excitement, waved his hands dismissively.
"Well then…"
Seok-won reached into his inner pocket and pulled out an envelope.
The team members' eyes immediately lit up at the sight.
"You've all worked hard, so you should have a proper meal. I'm sure most of you just grabbed a quick bite earlier."
"But, Director, you already sent us lunch boxes. They were so delicious that we finished every last bite."
"Still, that doesn't count as a proper meal. Use this and have a great team dinner together."
"Oh, sir, you really didn't have to…"
Despite his words, Team Leader Kim Jung-sik kept bowing his head while eagerly accepting the envelope from Seok-won with both hands.
Feeling the thick weight of the envelope between his fingers, his grin stretched even wider.
'Damn, we're gonna feast tonight.'
In his mind, a list of dinner options flickered by.
He nearly let out a chuckle, lost in happy contemplation over what meal would truly make this victory memorable.
"You've all done a great job."
Seok-won encouraged them once more, smiling warmly as he waved lightly before turning to leave.
"Kim, prepare a report for me later."
"Yes, sir."
Since the trading session was still ongoing, Seok-won didn't linger any longer and left the trading floor.
As soon as he was gone, one of the team members sidled up to Kim Jung-sik, eyeing the envelope in his hands with awe.
"So, this is the legendary bonus from the director?"
"Wow, it's thick. Real thick."
"Team 4 always made us jealous when they got this, but now it's finally our turn!"
The others were visibly curious about how much money was inside.
"Team Leader, open it up already!"
"Why are you all so impatient?"
"But, sir, you always said you envied Team 4 when they got theirs."
"Hey! You weren't supposed to say that out loud!"
Assistant Manager Song Jong-geun, who had been trying to keep his composure in front of the team, let out a flustered shout.
But judging by the anticipation in his eyes, he was just as curious as the rest of them.
"Alright, alright, hold on."
Taking a deep breath, Kim Jung-sik opened the envelope and pulled out the stack of cash inside.
A thick bundle of crisp 10,000-won bills appeared, drawing an awed chorus of gasps from the team.
"How much is this?"
"Now I get why Team 4 always sings the director's praises."
"Alright, does anyone know a really good, expensive restaurant? Let's go all out tonight!"
"No more pork belly—let's go for top-grade Korean beef!"
"Hell yeah, now we're talking!"
Having just wrapped up a nerve-wracking bet with a satisfying win, the faces of Investment Team 1 members were filled with nothing but laughter and excitement.
***
That afternoon.
Seok-won, wearing a luxurious, well-designed tie, stood with his arms crossed, watching the television installed in one corner of his private office.
The NHK logo was displayed at the top of the screen. Technically, since Japanese pop culture had yet to be officially introduced in Korea, Japanese broadcasts were not legally viewable in the country.
However, Seok-won had installed a satellite antenna and a set-top box, allowing him to receive NHK's satellite broadcasts.
"Hm. It's about to begin."
As a stern-faced Governor Kajiwara stepped up to the podium amidst a crowd of reporters, Seok-won's eyes gleamed.
Camera flashes exploded in every direction as photographers frantically captured images of the governor.
The voices of reporters shouting in Japanese overlapped, and the chaotic energy of the scene seeped through the television screen.
Once the shutter sounds finally began to subside, Governor Kajiwara cast a troubled look at the pile of microphones in front of him.
Then, after hesitating for a moment, he forced his lips open and barely managed to utter the first words.
[To stabilize the yen amid recent heightened volatility, we have convened this emergency press conference today.]
As soon as he started speaking, the room fell silent.
[With concerns over economic downturns caused by the Kobe earthquake, stock market slumps, and other factors negatively impacting recovery, the Bank of Japan has decided to lower the current benchmark interest rate of 1.75% to support the economy through financial measures.]
The camera flashes went off again, and reporters scrambled to type on their laptops or jot down notes in their notebooks.
[The rate cut will be 0.75 percentage points, reducing the benchmark interest rate from 1.75% to a record low of 1.0%. The new rate will take effect immediately, starting today.]
A dramatic move—slashing the rate by a staggering 0.75% in one go—caused an uproar among the reporters.
[Lastly, the Bank of Japan will work closely with the government to monitor the exchange rate and overall economic conditions in Japan. If deemed necessary, we will take immediate, proactive policy actions.]
As soon as Governor Kajiwara finished speaking, reporters raised their hands in unison, bombarding him with questions.
- [Did today's yen surge in the Tokyo forex market force you to change your stance on opposing interest rate cuts?]
- [Many predict the yen will continue to strengthen beyond the 80-yen mark—what's your take on that?]
- [Did the Bank of Japan surrender to hedge funds like George Soros's attack?]
- [Please give us a comment!]
However, Governor Kajiwara remained tight-lipped, refusing to answer any of the questions. Instead, surrounded by his staff, he swiftly exited the press conference.
The screen then switched to a reporter at the scene, summarizing the governor's statements.
At the bottom of the screen, a bold caption appeared: "Bank of Japan slashes benchmark interest rate to 1.0%, an abrupt 0.75% cut!"
"A complete surrender," Seok-won muttered with a deep smile.
Just then, the ringing of a phone snapped him out of his thoughts. Turning around, he grabbed the mobile phone resting on his desk.
"Hello."
[Boss, it's me.]
The voice on the other end, though slightly hoarse—likely from staying up all night—carried an unmistakable tone of excitement. It was Landon.
[Did you see Governor Kajiwara's announcement?]
"I was just watching the press conference."
As Seok-won replied, his gaze drifted back to the television.
By now, the screen had changed to a news studio, where a political figure and a professor from the University of Tokyo were discussing the implications of the announcement with the anchor.
[Just as you predicted, the Bank of Japan couldn't hold out any longer and surrendered.]
"The moment the 80-yen mark was breached, the outcome was already decided."
[Not just foreign investors, but even domestic financial institutions and export companies in Japan were gripped by panic and rushed to buy yen. If I were the Bank of Japan, I wouldn't have had a choice either.]
"Well, it worked out for us. The longer Japan resisted, the more we could increase our profits."
[Hahaha, exactly.]
Landon let out a cheerful laugh.
[As per your instructions, we liquidated all our long yen positions before the rate cut announcement.]
"I'm already eager to hear how much we made."
[After deducting the principal and costs, we secured a profit of 1.12 billion dollars.]
Landon responded without hesitation, as if he had already completed the calculations.
"Does that include the additional investments we made later?"
[No, sir. From those, we gained another 48 million dollars.]
"So, that brings our total to 1.168 billion dollars."
[That's correct.]
"Not a bad result."
Seok-won replied, clearly pleased.
"Now, reinvest the profits—along with the principal—into a short yen position."
[Did you say short betting?]
Landon, who had been celebrating just moments ago, asked in shock.
"When something rises, the only thing left is for it to fall."
[That may be true, but even if hedge funds stop their attacks, the yen's strength doesn't seem likely to subside so easily. Isn't short betting a bit too risky?]
"They say, 'High risk, high return.'"
[…]
"Everyone believes the yen will keep strengthening. But if we bet on it dropping instead, the gains could be even greater."
[That is true, but…]
Unlike the slightly worried Landon, Seok-won maintained a confident expression.
"The U.S. government wants a strong dollar, so they won't be happy about the yen's surge. And Japan, too, must weaken the yen to prevent an economic downturn. That means a deal between the two countries is likely to happen soon."
Landon thought about it for a moment before responding, still uncertain.
[Even if a strong yen isn't beneficial, do you really think the White House and the Fed would go as far as to deliberately devalue it?]
Seok-won smirked at Landon's attempt to think through the situation logically. He preferred this—having someone who didn't blindly follow orders but instead pointed out potential risks.
"Of course, they wouldn't do it outright. But what if Japan offered to solve a problem that's been troubling the White House and the Fed in exchange for weakening the yen?"
[What do you mean?]
"For instance, if Japan agreed to purchase a large amount of U.S. Treasury bonds, it would ease America's fiscal burden. At the same time, Japan would be releasing yen to buy dollars, naturally strengthening the dollar."
Understanding dawned on Landon, and he let out an exclamation.
[That makes sense. And Japan benefits by weakening the yen, so both sides win.]
Indeed, when such mutual interests aligned between the U.S. and Japan, they had even included Germany in the mix to artificially strengthen the dollar—a strategy later referred to as the Reverse Plaza Accord.
[Then this definitely seems like a bet worth making.]
Landon's tone had shifted, now full of confidence.
"With the current strong yen sentiment, this is the perfect opportunity. Set up our position immediately."
[Understood.]
After ending the call, Seok-won set his phone down.
He then turned his gaze toward the television, where an image of the historic Bank of Japan headquarters was displayed.
A deep smile spread across his lips.