These are the root causes; Yasuo Takei is the original sin.
He expanded his market to housewives and students.
Door-to-door sales are one of their tactics, a way to entice housewives to buy. If they don't have money, they'll offer a private consumer loan with installment payments and extremely low interest rates to lure them in, eventually reaching an annualized rate of 30%. For example, borrowing 100 yuan would incur 30 yuan in interest.
There are also student groups, including university, high school, and junior high school students.
What do men do when they can't pay back their money? They resort to shady dealings, while the girls do whatever makes money the fastest.
Most of the quick money comes from socializing and acting.
So when you buy DVDs, you'll see a few terms emerging. Things like "white-collar workers" and "JD.com is hot!" Later, this trend expanded to include students.
The harms of private lending go far beyond these; it can also damage the very foundation of their nation.
This is an invisible form of harm. Some have said that the emergence of consumer loans in Japan during the economic recession of the 1980s and 90s was comparable to the exploitation of landlords like Huang Shiren in our old society.
It is even better than that.
Even before the emergence of Huaba's 1:1 cashback program, so many people were already chasing after consumer loans.
Now, millions of people have lost their minds and indulged in excessive consumption. When they run out of money, they resort to all sorts of loans, and when they can't get a loan, they turn to private consumer loans.
Xing Baohua also sent people to investigate the private sector because he wanted to do it too—to take money from other people's pockets and then lend it back to others.
His tactic was even more despicable than trying to get something for nothing. But after conducting market research, he discovered that his lending was actually the most lenient; in the world of private lending, he was a good person.
The monitoring team focused on listening to the phone calls and text messages of important figures, with "Huaba" being a key keyword.
If any important figures want to target Huaba, Xing Baohua will issue an early warning.
Therefore, he was more cautious than anyone else, and the flower bar had not spread beyond Japan. In Europe and America, only a small number of people played it, and it was far less popular than the Japanese.
The Japanese economy has become distorted.
In the Huaba merchant model, only about 80% of the funds are recovered, while the merchants' profits are locked in and doubled.
Merchants can only make a little money by raising product prices; otherwise, they'll just keep going back and forth, and many merchants still have a profit margin of less than 20%, yet they still try to increase the gross profit of their products by 50%.
Despite this distorted consumer market, consumers are still chasing after it like crazy. Their philosophy is that they are not afraid of price increases; the higher the price, the more money they will get back.
That's the variable!
Xing Baohua originally designed it as a booby trap, but who would have thought it would become a timed trap, and the worst part is you don't know when it will detonate?
After some time, Xing Baohua heard that there was a Fujimi organization in South Korea, and he copied the flower bar there.
The South Koreans have an even more elaborate system. Using Fujimi not only gives you a 1:1 return, but you can also exchange points based on the amount of money you receive, roughly 1000 South Korean won for 1 point.
These points can be redeemed for food, fruit, and various daily necessities.
Not only that, but as long as you accumulate 100 points, you will receive a Samsung Life Insurance policy.
1000 points will earn you a Samsung investment fund.
Upon seeing the message coming from the other side, Xing Baohua immediately understood the core of it.
Points, insurance, funds.
To earn points, you have to keep spending, which essentially means you're throwing away the money you spend. But the points you earn can be redeemed for small items, as well as insurance and funds.
Hehe, that's the real protagonist hidden in the shadows.
Samsung Bank and Samsung Investment – they have some real talent involved!
Do you really think redeeming insurance with points is as easy as picking cabbages?
No, they will only give you a free account opening, or even a year for free. Even if something happens to you during that year, they will still compensate you.
This is a very low probability problem.
So here's the question: will you pay the insurance premium in the second year?
Even if you pay in the second year, what about the third year?
This is a long process, and insurance premiums will only increase your financial burden.
If you insure a family, say five people, the annual cost would be enormous.
Some people even have multiple insurance policies, and they don't know where they came from.
As for funds, they first give you a guaranteed return, then ask you to deposit some money into them, and even convert your deposited money into funds.
If you check your account balance a year later and find you have a few cents left, you should be thanking your lucky stars.
Samsung Bank is really getting into this! They're using the same tricks as insurance and fund companies to scam people. Deposits are turned into dividends, and when you urgently need the money, you can't withdraw it. Even if you sue them, you can't win, since there's a written agreement with your signature on it.
A small business has spawned so many schemes; this is an upgraded version of a flower shop.
Xing Baohua was very curious. Samsung has plenty of money! Why would they resort to such a low-level tactic? Aren't they afraid of causing trouble by ripping off their own people?
South Koreans can be incredibly fierce when they get angry.
Xing Baohua quickly figured out the principle behind it; it was a win-win situation.
Besides Samsung, there must be a higher-ups behind Fujimi.
This person in power may be in office, or they may be seeking to rise to power.
It takes money to get into power, and those in power may have to fill the gaps in their pockets.
Samsung supports this new leader.
However, they couldn't openly provide financial support to this person, so they resorted to this desperate measure: raising funds from the public through a fundraising platform.
They don't care about the consequences. Whether people suffer or families are destroyed, no one forces them; it's all voluntary.
Xing Baohua felt he was ruthless enough, almost causing God to cut off his lineage, but who would have thought that the South Koreans were even more ruthless than him, showing no mercy when dealing with their own people.
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