After Black Lotus became a reborn person, he went completely crazy

Chapter 802 South Korea Financial Crisis

After the layout and efforts of Quantum Fund and Tiger Fund.

By October 23, the Hang Seng Index in Hong Kong had plummeted by 1211.47 points.

On the 28th, it fell 1621.80 points, directly falling below the 9000 point mark.

Faced with the fierce attack from the fund consortium, the Hong Kong SAR government reiterated that it will not change the current exchange rate system.

A series of measures were taken to stabilize the situation.

The Hang Seng Index rose, breaking through the 10,000-point mark again.

If Xia Ran remembered correctly, the fund consortium's final major attack on Hong Kong City would be next year, not this year.

They are just testing the waters now, so they don't pay much attention to it.

I happened to receive a call from South Korea, saying that the market there was not right and was on the verge of collapse.

Xia Ran immediately ordered to start copying their foreign exchange market, stock market and futures market, buying shorts in all of them and waiting for the crash to come.

"By the way, keep an eye on the real estate market and when it falls to a certain level, we'll try to buy in."

You can’t take over real estate from your daily life, but you can take over real estate from South Korea.

Because after a series of adjustments and efforts, their economies have actually recovered.

Then Xia Ran flew to South Korea to take charge, intending to make a good fortune here.

In fact, South Korea's decline began last year.

Many small and medium-sized enterprises have gone bankrupt due to excessive debt and broken capital chains.

When Xia Ran went there to apply for a loan at the beginning of the year, he saw that several of the top 50 steel and industrial companies in the country went bankrupt one after another.

When the financial crisis occurred in Country T, a large number of South Korean companies went bankrupt.

The government at the time also tried to save them by throwing money at them, but unfortunately their internal problems were too serious and their debt ratio was too high.

The little money the government threw in didn't even make a splash.

How high is the debt ratio? For many companies, it ranges from 300% to 500%.

There are even more bad debts and overdue debts, and there are big loopholes everywhere, which cannot be saved at all.

Moreover, the banks here never check qualifications when lending money. As long as you provide sufficient benefits, they will lend to anyone.

After Xia Ran left, the employees who stayed here actually used other connections and names to borrow several huge loans.

This is difficult to comment on.

However, Xia Ran still gave out a huge bonus to reward these hard-working employees.

To put it bluntly, the South Korean government is extremely corrupt from top to bottom.

They only care about how much money they can put in their own pockets, and they don't care at all about whose pocket the country's money goes into.

You should know that the country that suffered the most serious losses in the Asian crisis, apart from Country T, was South Korea.

In order to avoid bankruptcy, South Korea directly sold its country, accepted aid from the IMF, and signed a series of unequal treaties.

Agree to close its own banks and financial institutions and allow foreign capital to control the banks and financial institutions here.

The Banking Law and the Banking Act were specially amended for this purpose.

Almost all restrictions on foreign investment in this country have been lifted.

In the end, the entire government became a worker of European and American capital.

You should know that more than 80% of South Korea's original economic structure is controlled by foreign-funded enterprises or joint ventures.

With this operation, almost all of the shares are controlled by these European and American capitals.

Because this case was so special, her teacher specifically talked about it in detail when she was in school.

Before Xia Ran could completely set up the plan, a large amount of foreign capital had already made an agreement with him.

Or as if they received orders from above, they all ran away with the money and withdrew their investments.

They moved in an orderly and efficient manner, causing South Korean companies to be paralyzed.

Of course, this has a lot to do with Standard & Poor's downgrading South Korea's credit rating from AA- to A+ on October 24.

In other words, South Korea's international credit is like a piece of waste paper at this time, and it is difficult to borrow money to save the market.

This is also one of the main reasons why international capital has lost confidence in the South Korean economy.

Even Xiaozi took away the 130 billion short-term loans invested here, for fear that if they ran away too late, they would not be able to leave.

At the same time, Quantum Fund launched a general offensive against the South Korean financial market on November 6.

They began to sell off their stocks, bills, etc., and the South Korean financial crisis officially began.

Seeing this, the South Korean government spent 20 billion US dollars of foreign exchange reserves to rescue the market.

Unfortunately, this amount of money is too little and has no effect at all.

Xia Ran also ordered to start selling off the things he had in bits and pieces, and he had to finish selling them before he went completely bankrupt.

By the 17th, the Korean won had hit the daily limit for two consecutive days, and the government announced that it would give up rescuing the market.

The Korean won exchange rate fell to 1008.6:1 that day.

It declared that the financial crisis had completely broken out.

Because their foreign exchange reserves are less than US$90 billion, they are not even qualified to participate in foreign trade transactions, let alone rescue the market.

At this time, South Korea's foreign debt was as high as 1100 billion US dollars.

Two-thirds of them are due by the end of December. If they cannot be repaid by then, it will become a truly bankrupt country.

To make matters worse, existing foreign banks have refused to use Korean won for transactions and only accept US dollars.

This has completely blocked the South Korean government's plan to save the market by printing more won.

This means that the Korean won has completely become a piece of waste paper.

On the 18th, it fell to 1012:1. This is only the official exchange rate. In actual operation, it is much lower than this exchange rate.

By the 19th, South Korea's finance minister and his assistant resigned, declaring that the financial market was completely out of control.

The won continued to fall by 23 won to 1035:1 that day, exceeding the daily fluctuation limit of 2.25% for the won.

Xia Ran had already sold all the things he had and started to set his sights on the real estate market here.

Don't count on banks and large enterprises, after all, this financial crisis was caused by the old M government.

The large enterprises here have already been on the established menu, and it is not even Xia Ran’s company’s turn.

However, she can easily take over all the cheap properties here and put them under the name of her own company.

If you can't become the head of a big conglomerate, then work hard to become a big landlord. It's the same as collecting rent from these people every day.

There are more and more houses and factories listed by real estate agencies, all of which are sold by various enterprises and ordinary people in order to save themselves.

And the prices of these houses are dropping every day, nothing but dropping.

Xia Ran sent all his people out to keep an eye on this every day, and when the price dropped almost to the bottom, he would start buying at the bottom.

For fear of insufficient manpower, a large number of people were transferred from China and Russia to support the effort.

On November 21, the South Korean government could no longer hold on and decided to seek help from the IMF, hoping to use the other party's capabilities to stabilize the market.

Before this, they had also tried to contact other countries to borrow some money to deal with the current crisis.

Unfortunately, they all failed. The countries it asked for help either did not have enough money or were unable to help.

Either they can't afford to offend Old M, or they dare not help at all, for fear of bringing the war to their own country.

The IMF has been waiting for this moment for a long time.

The treatment "prescription" was prepared in advance before entering South Korea, just waiting for the South Korean government to fall into the trap.

Also coming was Old M’s Deputy Finance Minister.

This means that Old M agreed to this matter.