As soon as Takayuki Minamino sat down, he couldn't wait to report seriously: "Sato Hideaka, the head of the Seoul Office in South Korea, came in person and said that the Korean stock market suddenly plummeted.

According to him, the direct reason for the plunge in the South Korean stock market was the overall setback of the banking sector. As for the fuse, as far as he knew, it was because a South Korean commercial bank had serious debt problems.

This confirmed news immediately caused panic in the market, so institutions began to sell a large number of stocks related to the Korean banking industry."

"I just can't understand why a debt problem in a South Korean commercial bank will cause such a big stock market movement? Could it be that it is a large commercial bank?" Takahashi Kazuya also raised his doubts.

"At present, the information I have received shows that the Korean commercial bank with serious debt problems is not a large bank, but a small local bank in Seoul." Takayuki Mino's factual report.

"Then I don't understand even more." Kazuya Takahashi said with a look of discomfort.

"I'll explain it to you. A fire broke out at the neighbor's house not far from your house. Do you choose to stand out and watch the fun, or will you take the initiative to go to rescue?

The answer is yes, you will definitely choose the latter, that is, actively seeking rescue. Because you are afraid that the fire will burn too much to your side, which will cause your property to suffer losses.

The same is true in the banking industry. The small bank in South Korea that had serious debt problems must have asked for help all kinds of help before it was exposed.

One is to ask for help from his colleagues he had made on weekdays. Either make a loan directly from the funds, or use the high-quality assets or shares he has mastered for a commercial exchange.

The second is to conduct an overnight loan on funds in a bank that has a certain intersection with you. The interest rate naturally fluctuates to varying degrees depending on the current risk...

No matter which method is used, there is only one purpose, which is to stabilize the situation and not collapse, and survive first and then talk about future events.

In my opinion, the reason why it caused such a big panic in the Korean stock market is probably not a simple serious problem with a bank in debt caused by poor management.

If I guessed correctly, this should be a major outbreak of a chronic disease that has been around for a long time in the entire Korean banking industry.

The further deterioration of the serious debt problems of a small bank in Seoul will inevitably lead to a path of bankruptcy.

If other Korean banks in all sizes have not provided help to them, it can only prove that they are busy protecting themselves. "Masayoshi Kishimoto knows that Kazuya Takahashi's professionalism and strengths are in the law, not in the financial field.

Kazuya Takahashi suddenly realized: "I heard that, is South Korea going to have another financial crisis? They have only five years since the last Asian financial crisis that broke out in 1997."

"Do you know why World War II broke out? It is a continuation of the failure of World War I to completely resolve a series of problems. The Great Depression is just a trigger or a fuse.

This worst disaster in human history was an economic crisis that originated in the United States between 1929 and 1933 and later affected the entire capitalist world, including capitalist countries such as the United States, Britain, France, Germany and Japan.

This disaster broke the system in many countries in Central and Eastern Europe, causing German bankers to delay repayment of foreign debts in order to protect themselves, and thus endangered the British bankers who had a large investment in Germany.

Capital shortages have brought about sharp declines in exports and domestic consumption in all industrialized countries. Without a market, factories will inevitably close, and the less goods will be transported, which will inevitably harm the shipping and shipbuilding industries.

Among all countries, the consequence of the recession is massive unemployment. There are 13.7 million people in the United States, 5.6 million people in Germany, and 2.8 million people in the United Kingdom (the largest figure in 1932).

The Great Depression also had a significant impact on Latin America, causing the loss of foreign capital and commodity exports in a region that was almost completely dominated by European and American bankers and businessmen entrepreneurs.

My example is to illustrate that the root cause of the plunge in the Korean stock market is the problem left behind by the Asian financial crisis in 1997.

In the five years after the end of the Asian financial crisis, many South Korean banks were on the verge of bankruptcy due to bad debts in the company, but with the rapid rise in consumer loans, these banks turned losses into profits.

They all used a very adventurous and short-sighted method, and card issuing agencies rushed to issue cards in order to obtain short-term benefits.

You are also using credit cards, and you should understand that even if you spend money, you don’t have to pay extra interest during the interest-free days.

The bank that sends credit cards is not doing charity, nor is it a fool. Why can people use it for free for free?

That is, their goal and focus are to make huge profits from other people. Others refer to strong material resources, weak self-control, vanity, and low income...

In the future, people who can only repay the minimum amount after the credit card expires, and then repay the loan in installments, those who start installments need to withdraw cash with credit cards.

The interest, handling fees and other fees they charge on this area are no less than those of underground money houses and usury practitioners. I have to say what the difference is, one is a hypocrite, and the other is a real villain.

For formal usury and underground banks, there are many underground banks that clearly explain to the borrower how much principal and interest they need to repay when they are due, how much installment repayment will take, how long it will take, etc.

The entire Korean banking industry will issue credit cards at will without fully reviewing the credit level of customers; credit card companies hire salespeople to chase people everywhere to promote credit cards; even send them to underage students and unemployed people.

Before this, there was such a common chaos in credit cards in South Korea. At that time, I personally flew to Seoul, South Korea to inspect. Not only you, but the outside world mistakenly thought that I had seen great signs of South Korea's economic recovery, so I went on a field trip, in order to increase investment in South Korea.

In fact, I specifically look at the consumer loan market of Koreans, that is, how many credit cards they hold per person.

Credit cards are good in themselves. Just like even the best scriptures are read in the mouth of a bad monk, it is not the meaning that the scriptures originally wanted to express." Masayoshi Kishimoto talked freely.

"I basically understand what you mean. You think South Korea will cause a scene like the Great Depression because of this stock market plunge." Kazuya Takahashi said seriously.

"Even if South Korea is not as serious as the Great Depression in the future, it will make a generation of South Korea make great sacrifices for it.

The banking industry is not an ordinary industry. The field of finance is something created out of thin air outside of the entity. The so-called wealth created by finance is 3.5 times the real wealth.
Chapter completed!