The next morning.
While I was resting at the hotel, an unexpected visitor came to see me.
It was someone I saw more frequently than anyone else in Korea, but never expected to meet in the U.S.—my grandfather.
"What brings you here, Grandpa?"
"I couldn't bear the thought of you relaxing alone in America, so I flew over."
"I'd love to rest, but my schedule's so packed I can't even catch a break. But really, what brought you all the way to the U.S.?"
"Do you think you're the only one with connections in America? I've got quite a few ties here myself. I came to meet Trump about Taewoo Construction's third Trump Tower project in Korea."
Grandpa had a long-standing relationship with Trump.
Back when Trump's real estate business was struggling the most, it was Grandpa who lent a hand.
That bond had continued to this day.
"If I'd known, I would've traveled to the U.S. with you."
"What good would that do? If something happens, at least one of us has to survive, don't you think?"
"That's a bit sad to hear. What a harsh world, where a grandfather and grandson can't even take a trip together."
"The more you have, the more you have to worry about. Anyway, I've been hearing things about the motor show from various sources."
There was a specific reason Grandpa had come to see me so early in the morning.
He had dedicated his life to the growth of Taewoo Motors, and it seemed he was curious about the public response to the electric vehicles showcased by Taewoo-KIA Motors at the show.
"The reaction wasn't bad at all. Not just the EVs—the internal combustion models also received overwhelmingly positive reviews."
"That's not quite what I heard. Some say Taewoo-KIA Motors is doing something pointless— wasting money on unnecessary ventures."
"Was that unexpected? I actually anticipated that kind of reaction."
I poured a drink for my grandfather as I spoke.
He wasn't hiding his disappointment, so I dropped my playful tone and continued seriously.
"The electric vehicle market is just beginning. No one knows better than you how hard the
Korean auto industry had to fight to survive in a market dominated by the U.S., Germany, and Japan."
"It was truly difficult. We gave it our all to finally build what Taewoo Motors is today."
"Now, it'll be other companies trying to catch up with us."
"Hmm... If the EV market grows as you say, that might be true. But from what I've heard from German and Japanese automakers, they're not investing much in EVs. Doesn't that suggest they're skeptical of the market?"
The higher up someone is, the more they tend to dislike change and uncertainty.
As long as the status quo is maintained, they can stay in power.
"They'll regret it. You'll see them pounding the ground in frustration for not investing in the EV market sooner. I'll show you that moment myself."
"You're quite confident. You do realize that if you slip up, Taewoo-KIA Motors could fall behind, right?"
"We're still making significant investments in internal combustion vehicles as well."
"There'll be critics who'll say you should've used that money for EVs instead."
"I'll let those comments go in one ear and out the other."
"Hahaha, how did a guy like you end up in our family?"
Grandfather let out a hearty laugh.
It was hard to believe this was the same person who had looked so visibly disappointed just
moments ago.
"I never expected an explosive response like with smartphones. But little by little, EVs will eat up the market share. By the time the other companies come to their senses, Taewoo Group will already be holding a large slice of the pie."
"Alright, I'll trust you. With all you've done for Taewoo Group so far, even if the EV business fails, you've earned that trust."
"I'll make sure to live up to it."
I firmly grasped my grandfather's hand as I spoke.
It was a heartwarming moment we hadn't shared in a while—until the chief secretary appeared and disrupted the mood.
"Chairman, it's time to leave for your meeting with Chairman Trump."
"Is it that time already? Vice Chairman Kim, I'll see you back in Korea. I'll be heading home
after I wrap up this meeting."
"Not staying for a few more days?"
"If both the chairman and the vice chairman are out of the country, who's going to run the
company? At the very least, I should return to Korea early."
"Then I'll leave it in your hands."
"You don't even bother to say, 'I'll go back to Korea first,' even out of politeness. You're such a wicked brat," my grandfather said with a smile.
I wanted to keep exchanging jokes, but he must have been truly pressed for time—he left the
hotel first.
Knock knock.
Not long after my grandfather left, David showed up.
"I heard Chairman came by? I missed a rare chance to greet him properly."
"You can always greet him some other time. But why are you here this early in the morning?"
"I'm not alone. Team Leader Han is with me."
As David stepped aside, Team Leader Han came into view.
Unlike the cheerful David, Han looked haggard and pale. His hair was a mess, as if it hadn't been washed in days, and his dark circles made him look like a panda.
"You should pace yourself. At this rate, you'll return to Korea in a coffin."
"I'd love to take it easy, but the situation is urgent. Take a look at these figures."
Han pulled out a laptop and showed me various indicators—data related to the U.S. real estate market, including confidential materials not accessible to outsiders.
"You managed to get your hands on these?"
"David's connections help us update the data daily. After analyzing the figures, we're seeing a sharp rise in bankruptcies caused by people defaulting on real estate loans."
"So the bubble has finally peaked."
When a real estate bubble reaches its peak, anomalies start to occur.
And in real estate, that anomaly is a spike in loan delinquencies and bankruptcies.
"As soon as property prices stopped rising, default and bankruptcy rates shot up."
"When the cost of loan interest catches up to or exceeds the rate of property appreciation, that's when the bubble bursts. That was always the rule of the game."
"But there's a bigger problem. Even though defaults and bankruptcies are rising, rating agencies are still maintaining the credibility grades for long-term real estate loan products. According to my calculations, the ratings should be lowered by at least one level—possibly by three or more."
The market was shifting, but the credit ratings remained unchanged?
Either the rating agencies are so incompetent that they fail to notice changes in the market,
or they simply have no intention of acknowledging those changes at all.
"The rating agencies and the banks are in cahoots, so naturally they can't just lower the credit ratings as they please. They're simply acting in the banks' interest, so your calculations, Team Leader Han, don't match their behavior."
"I heard many U.S. bank employees retire only to move over to rating agencies. Seems like the same old revolving door practice in both Korea and the U.S."
"That's true. You could even say that America places even more importance on personal
connections than Korea."
In the end, people and companies follow the money, and since the banks are the ones funding the rating agencies, this result was inevitable.
Team Leader Han was disheartened by this reality.
He sighed, forced a hollow smile, and shuffled through the data.
Watching quietly, David stepped forward, scratched his head, and spoke up.
"While the banks and rating agencies are turning a blind eye to the current situation, some others are not."
"Do you mean the U.S. government?"
"Not the government, but the Federal Reserve contacted us."
"You mean the Fed? Did the Fed Chair personally reach out?"
The Federal Reserve (Fed) issues the dollar, and holds authority over monetary policy and bank supervision.
Who doesn't know the power of the dollar?
Simply being the place that prints it shows how much power the Fed wields.
The Fed Chair is often called the world's economic president—second only to the U.S. President in influence.
"It wasn't the Fed Chair directly, but one of the regional Federal Reserve Banks reached out."
"The regional Fed, not the Fed Board? They still don't realize how urgent this is."
"There's been talk that since the Fed Chair changed this year, the Fed has been somewhat
unsettled."
For now, the Fed was still in a festive mood.
They were celebrating years of economic prosperity, boasting about their achievements in raising real estate prices through interest rate cuts.
"Answer the inquiry from the regional Federal Reserve Bank sincerely. Give them all the data they need. Actually, this is good for us — it means we can secure more evidence proving we've done all we can."
"So, we just hand over everything we have? I wonder if the regional Fed can even handle all that information."
The moment David said this with a teasing tone,
Team Leader Han suddenly stood up from his seat, having been quietly flipping through the data.
"Oh! Also, we received contact from the IMF. It was from 'Rajan,' an IMF economic analyst who won the Fisher Black Prize."
"That name sounds a bit unfamiliar."
"Boss! I know him. He's an economist of Indian descent, the IMF's first Asian chief economist, and is famous for openly criticizing the former Fed Chair at the Jackson Hole meeting."
The courage to openly criticize the No. 2 figure in America—
and at the Jackson Hole meeting, where central bank governors, treasury secretaries, and
economists from around the world gather.
"What did he say?"
"He claimed since 2005 that the U.S. economy was in a bubble state. He especially warned that the crisis was very likely to come from subprime mortgage loans."
We were not the only ones predicting the economic crisis.
There were entities buying mortgage insurance products, and economists like Rajan were also issuing warnings.
"I'd like to meet him. If he's been predicting this since 2005, he must have some very valuable insights."
"He was the Governor of the Reserve Bank of India but stepped down after a fallout with Prime Minister Manmohan Singh. He's currently in the U.S. Would you like me to arrange a meeting?"
"Manmohan Singh failed to recognize a talented person. If he's that capable, we definitely need to meet him. It'd be even better if we could recruit him."
"Then I'll set up an appointment right away."
A talent who predicted the interest rate cuts and the real estate bubble.
If we could bring someone like him on board, it would ease some of Team Leader Han's heavy burden.
Besides, once this crisis is over, Team Leader Han has to return to Korea, so we need someone qualified to take over the SAVE investment company.
TL/n -
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