Lin Chen wasn't worried that Samsung would default on its debt; this amount of money was nothing to Samsung.
He thought for a moment and then spoke.
"President Li, I wonder if you are familiar with Bangzibao's profit model?"
Li Zhen was taken aback. He really didn't know anything about it. He wasn't in charge of banking, so how could he know about these things?
"Ahem, I don't know much about that."
"It's alright, let me explain. Simply put, Bangzibao is a kind of money market fund. Big Bang Bank collects money from people who buy the fund, invests it all together, earns returns, and then distributes a portion of the returns to the investors."
One very important point here is the rate of return.
Normally, if you go directly to a bank to buy a money market fund, the bank might only give you a maximum of 4%, while our Huasuanbao can give you 6%. This is mainly due to the difference in scale and cost.
Now, Bangzibao has given eight points!
In fact, Bangzibao should be operating at a loss based on this one product alone.
The losses aren't significant, so they're still within acceptable limits. Once a large number of users are attracted, the yield rate will likely be lowered after some time.
After listening carefully, Li Zhen thought for a moment and then spoke.
"So you mean this business is unprofitable, and we shouldn't bother competing?"
"No, no, no, that's not what I meant. Once Bangzibao has gathered a large number of users, even if it lowers the yield to 6%, it will still retain a large number of users. The first reason is that 6% is still much higher than that of banks, and it is more convenient to use Huasuan Pay. The second reason is that Huasuan Pay does not allow withdrawals."
So my solution is this: with such a high rate of return, why doesn't Samsung take advantage of it?
"Tch...do we at Samsung really need that...? Hmm?"
Just as Li Zhenxi was about to make a sarcastic remark, she suddenly paused, realizing the true intention behind Lin Chen's idea.
The real intention is to make Koreans lose so much money they'll be devastated!
For example, a business might offer a grand opening sale with 50% off everything to attract customers. You've probably seen this kind of promotion before. Usually, businesses will set a date, such as a three-day event.
We're losing money on this event, but to attract customers, we'll treat it as spending money on three days of advertising.
Normally, in these three days, the merchant can only sell a maximum of 1,000 items. If they lose 10 yuan on each item, the loss would only be 10,000 yuan, which is within an acceptable range.
Suddenly a big customer came in, looking to take advantage of the store's deals. He went on a buying spree and ended up selling 100,000 items in a single day, causing the store to lose a million dollars!
Then this business probably won't even need to stay open; it will just go bankrupt.
Lin Chen's idea was for this very purpose.
Samsung is a major customer, directly entering the market and buying hundreds of millions, or even billions, of yuan worth of money market funds, which may be more than all the money of other retail investors combined.
As a result, Big Bang Bank is estimated to be losing a small amount of money every day. No one can afford that. No matter how rich you are, you can't withstand such losses. Moreover, Big Bang Bank is not the richest bank in South Korea. It may not be able to hold on for more than a few days and will have to lower its yield.
That would ruin Big Stick Bank's "grand opening promotion," and might even give Big Stick Bank a reputation for being penniless and stingy.
This could trigger a chain reaction that severely damages Big Bang Bank.
It's uncertain whether the Bangzibao project will be able to continue at that point, because Big Bang Bank isn't run by just one person.
As Li Zhen thought about these things, a playful smile appeared on her lips.
"President Lin is indeed resourceful. It seems that Samsung will soon be able to earn back this 500 million."
"Haha, thank you for the compliment."
After receiving a satisfactory reply, Li Zhenxi hung up the phone and went to report to the head of the Li family.
The head of the Li family laughed heartily after hearing Lin Chen's suggestion.
"This young man really has no sense of martial ethics. Logically speaking, the fact that Huasuan Wealth Management will launch Bangzibao must mean that it has a partnership with Big Bang Bank, or even that our disobedient president is secretly in charge."
But this Lin Chen, without saying a word, sold Big Stick Bank. That's interesting, that's interesting.
"And have you considered this: once we deposit all this money into the Huasuan Pay account, we can't withdraw it; it all becomes Lin Chen's money."
"Ah... Patriarch, should we use Lin Chen's method?"
“Sure, we’ve spent money on this. Let’s go big and deposit 5 billion. Even though it’s virtual currency, we can still buy things. We can just spend it all. Samsung has so many businesses and we need a lot of daily necessities. Consider this money as a purchase.”
"Okay, I understand."
"Go."
Two days later, the president of Dabang Bank suddenly called Choi Dae-sung.
"Your Majesty, something terrible has happened!"
"Huh? What happened?"
"Suddenly, a big customer deposited a large sum of money in Bangzibao."
Cui Dacheng frowned upon hearing this.
"Isn't this a good thing? How is it bad? It's good that someone is saving money for you."
"No, this customer deposited five billion directly!"
"You're saying Duo Shao?! You mean Duo Shao?!"
"Fifty billion! Douyin coins!"
Choi Dae-sung did a quick mental calculation: Douyin coins are actually based on the Chinese Yuan, so 5 billion Douyin coins are worth 1 trillion Korean won!
Hiss!!!
He realized the seriousness of the situation and hurriedly asked.
"How much money does Big Stick Bank lose every day?"
"We're losing at least 100 million Douyin coins every day!"
"So much?! Then quickly lower the yield!"
"Your Majesty, if we lower the yield so quickly, users will think that our Big Bang Bank is not capable. In that case, it may not just be this one project that will be lost, but the reputation of the entire bank!"
"Then what do you suggest we do?"
"I don't know either. Such a large-scale operation, could it be that the tycoons are trying to sabotage it?"
Upon hearing this, Cui Dacheng broke out in a cold sweat. Yes, how could an ordinary person possibly come up with a trillion dollars? It must have been a chaebol that made the move.
But the chaebols couldn't possibly know his plans, so the only explanation is that they were envious and wanted a piece of the pie too!
So what do we do now?
Oh, right! Look for Lin Chen!
"Don't rush, let me think about it."
After hanging up the phone, Cui Dacheng immediately called Lin Chen.
"Mr. Lin, a tycoon has made an attempt to target me!"
"Oh? What's wrong?"
Cui Dacheng recounted the matter of the 5 billion to Lin Chen.
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