The chaos surrounding South Korea's internal reforms has now reached the media, yet Kwan Hong remains stubbornly defiant.
Finally, the Reform Committee couldn't hold back any longer and made a concession to Guan Hong, suggesting that "the Ministry of Finance could send a representative to the financial supervisory agency. This would not affect the independence of the supervisory agency, but would also ensure that the agency does not escape the control of the Ministry of Finance."
"What does Minister Guan Hong think of this approach?"
Guan Hong snorted coldly and remained silent, which was taken as tacit agreement.
Another representative of the committee spoke again, saying, "The first major contradiction we need to resolve is whether and how the Ministry of Finance should intervene in regulatory agencies."
"Now that Minister Hong has taken the first step for us, we can stop worrying about this big issue."
"The second major obstacle to reform is that a financial supervisory agency has not yet been established, and our National Development and Reform Commission has no say in the matter. I suggest that the Ministry of Finance take the lead in giving South Korean financial institutions a good talking-to and urging them to complete their self-rectification as soon as possible."
"This will also alleviate the pressure on our Ministry of Finance and the Hong Kong Monetary Authority."
This won the approval of Finance Minister Hong, who readily agreed, saying, "Let's proceed according to your plan."
News of the settlement reached between the South Korean Reform Committee and the Ministry of Finance reached the Dragon Group.
Chen Dong said with a regretful tone, "If the Reform Committee had completed their plan a few months earlier, perhaps they would already be facing the crisis that South Korea is about to face with a completely new look."
"Unfortunately... they started too late."
Annie asked curiously, "Why do you say that?"
"South Korea's existing financial institutions are structurally unbalanced, operate inefficiently, and lack transparency in management and supervision."
Looking at the South Korean newspaper, Chen Dong continued, "They experienced an economic boom from 1990 to 1995, but they were clearly not prepared for such a high degree of market liberalization and a multiplied financial scale."
"While their financial institutions have achieved a high degree of liberalization, the relevant management and supervision systems have not been established in a timely manner."
Afang has been researching a lot about the economic development of South Korea lately, and she feels it's a real pity.
"In fact, given the size of their country, relevant economic policies and structural adjustments should be easier and more flexible. However, due to domestic monopolies and the proliferation of conglomerates, many vested interests are unwilling to relinquish power, and the South Korean government lacks the strength to challenge these large conglomerates."
"Such a large economy has been delayed like this."
Chen Dong said dismissively, "Perhaps it's because they lack a sense of the bigger picture."
"South Korea's financial structure is currently in disarray, and reforms are facing various restrictions. Externally, international speculative capital is eyeing the country covetously, while internally, various levels of institutions are engaged in infighting..."
"I wonder how far their self-destruction will go."
Lin Zhiyuan put down his newspaper and suddenly clapped his hands. "What a pity! They've lost their chance."
Annie, Wangcai, Ma Guoliang, and the others exchanged glances, and sinister smiles appeared on their faces.
The first day of the restructuring of financial regulatory agencies.
Large sell orders suddenly appeared in the South Korean currency market, with a seller suddenly dumping $10 million worth of South Korean won in physical currency.
In the following two days, the New York and Australian financial markets collapsed, and the Korean won spot exchange rate hit its daily limit down for two consecutive days.
The spot exchange rate of the Korean won fell below 970 and continued to decline.
Such a large-scale sell-off quickly alarmed Tiger Fund.
Robertson stood in front of the large screen in the trading hall, cursing, "Who on earth ruined my long-planned strategy?!"
"I swear to God, if I ever find out who this person is, I'll tear him to pieces!"
Many international investment banks have been bought off by Tiger Global Management. Tiger Global Management has been investing in South Korea's financial market for quite some time now; otherwise, so many political scandals in South Korea wouldn't have surfaced all at once.
However, this is not the first time Tiger Fund and international speculative capital have cooperated. Generally speaking, they will not act easily without orders.
Even a transaction worth a few billion Korean won can affect their entire overall business plan.
This time, the other party directly used 9 billion Korean won to dump shares, which is definitely not something an ordinary financial institution could do.
Robert was also at a loss in the face of this sudden situation, and he asked Robertson, "What should we do next?"
This attack on the Korean won was a rare move by Tiger Fund that broke away from the Soros Group. It took Tiger Fund a lot of effort to complete the entire plan independently, but unexpectedly someone else reaped the rewards first.
"Enter!" Robertson gave the order in a sullen tone.
Upon hearing the order, Robert excitedly called to the analysts behind him, "Immediately enter the market and sell off the Korean won!"
Chen Dong's 9 billion won investment, like a signal to smash a cup, attracted a large amount of international speculative capital to attack the Korean won spot market.
Soon, the exchange rate of the Korean won hit a temporary halt, falling from 970 won to 986 won to 1 US dollar.
The Central Bank of South Korea, Seoul Bank, and Jinju Bank intervened urgently to support the market.
However, the sell-off has become a trend, with the Hong Kong stock market, Southeast Asian market, and island nation market all experiencing sell-offs of the Korean won.
During Asian trading hours, even with limited floating in the South Korean currency market, there was still no way to limit its downward fluctuations.
Furthermore, due to this restrictive fluctuation rule, many retail investors and conglomerates in South Korea are speculating that the low volatility in the South Korean financial market is due to the central bank intervening in the market.
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