The following day, the South Korean stock market opened at 497.6 points.
While issuing orders for the Hong Kong Monetary Authority to do everything possible to support the economy, Guan Hong also took half an hour to speak on the national news channel:
"The Ministry of Finance of South Korea is committed to promoting financial reform in South Korea, enhancing the independence of the central bank, and establishing a third-party financial oversight agency."
"In this reform, we will salvage the imbalanced financial structure and relax restrictions on foreign ownership of South Korea's securities industry."
"...Continue to enhance the transparency of the operation and management of financial institutions, and while achieving a high degree of liberalization of the financial market, also establish a sound, efficient and transparent supervision and management system."
"South Korea's government regulatory system reform adheres to institutionalization, transparency, and regularity. At the same time, our regulatory system must be systematic, rigorous, and timely."
Because it was a pre-recorded program, Guan Hong paused several times to look at the script provided to him by the staff.
The TV station's producer was getting impatient and shouted into the walkie-talkie, "Minister Guan Hong, is this over?"
"Wait, there's one more thing..." Guan Hong clutched his manuscript, tucking it slightly downwards, then composed himself with a smile and continued:
"We resolutely resist the actions of international speculative capital attacking the South Korean currency market."
"Our Ministry of Finance will work with the Financial Supervisory Authority, as well as all patriotic enterprises, financial institutions and commercial banks in South Korea to safeguard the currency market."
"Please trust us, South Korea!"
Due to government intervention, the Korean won's exchange rate against the US dollar fell, but the decline quickly came to a halt.
However, after several days of selling pressure, Chen Dong had no more chips left.
Upon learning of this news, Guo Bingxiang immediately went to Longteng Group.
“Right now, all banks and financial institutions in South Korea are actively participating in market support in order to avoid being screened during the reforms. If they continue to dump shares, the previous amount of capital may not be enough,” Guo Bingxiang reminded Chen Dong.
Guo Bingxiang looked at Chen Dong and asked very seriously, "Is it too late to establish a new position now?"
Chen Dong never expected that Guo Bingxiang would be so serious and proactive about this collaboration between them.
He said with some surprise, "My positions are already exhausted. The other party has used up tens of billions of dollars in foreign exchange reserves. It's definitely too late to build a position now."
"What should we do then?" Guo Bingxiang asked anxiously.
“An attack on the financial market of a country or region will inevitably go through the entire process of rise-fall, prosperity-decline, rise-fall again, prosperity-decline again.” Chen Dong patiently explained: “The rise in the value of the Korean currency is just a normal law of market operation.”
“We’re not the only ones attacking the Korean won’s spot market.”
Chen Dong casually tapped the keyboard. "If we use all our strength to crash the market, aren't we just letting others pick up the pieces?"
"Besides us, who else?" Guo Bingxiang looked at Chen Dong curiously.
Chen Dong continued, "During the Asian trading session, it was indeed mainly our selling that took place."
"However, based on the data I obtained, during the North American trading session, as well as in the financial markets of Australia and island nations, I clearly felt that someone was following our lead and setting up a trap."
"Soros?" Guo Bingxiang asked instinctively.
He didn't participate in financial market operations very often; the few times he did were when dealing with Soros. Naturally, in his mind, Soros was his biggest enemy.
“Soros’s partner, Neil Robertson of Tiger Fund,” Chen Dong added cautiously. “Of course, this is just my speculation; there is no evidence yet.”
"Some time ago, he bribed many employees of the Hong Kong Monetary Authority, which shows that Tiger Fund had already laid out its plans in the South Korean market several months ago, intending to attack the South Korean market and the South Korean currency market."
"However, since we were the first to dump our shares, they had no choice but to follow suit."
Upon hearing this, Guo Bingxiang narrowed his eyes and asked incredulously, "How did you know such confidential information?"
Chen Dong turned his attention to Wangcai and Ma Guoliang, the latter of whom quickly admitted, somewhat embarrassed, "We've been eyeing Robertson's Tiger Fund for a long time."
"Hmph," Guo Bingxiang finally realized, "So it was a case of the mantis stalking the cicada, unaware of the oriole behind."
Chen Dong sighed dramatically, "Now, the Hong Kong Monetary Authority employee he bribed is also working for me."
"Huh?" Guo Bingxiang's mouth dropped open in surprise. "A spy within a spy?"
"You guys are really showing off."
Chen Dong guessed that after he dumped his Korean won, Tiger Fund's Robertson must have noticed him, otherwise the New York Stock Exchange and the Australian and island stock markets would not have simultaneously taken the opportunity to sell off Korean won.
This is because targeting the Korean won was part of their plan, which had been in preparation for a long time, but Chen Dong disrupted their plans, so they had to act ahead of schedule.
"If we take the lead, Tiger Fund will surely be happy to play second fiddle," Chen Dong concluded.
"However, now that the South Korean currency market has the support of Seoul Bank, Jinju Bank, and other financial institutions of all sizes, the number of buyers has increased, and the bulls have gained the upper hand. This is indeed not good news for us."
Before the Southeast Asian financial crisis, South Korea had experienced nearly a decade of economic boom. Its domestic financial institutions held a huge amount of foreign exchange reserves, comparable to those in Hong Kong.
Besides, South Korean conglomerates are not to be trifled with.
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