Like most chaebol groups in South Korea, the ST Group also exercised control over the entire conglomerate through a complex web of circular shareholding among its affiliates, allowing the owner family to dominate the group despite holding only a small stake.
Within the ST Group, the company that served as the core holding entity—binding together numerous subsidiaries—was ST Co., Ltd.
Conversely, this also meant that if one could seize management control of ST Co., Ltd., it would be possible to swallow the entire ST Group, a massive conglomerate ranked among the top ten.
The problem, however, was that Chairman Moon Byung-kwon's family did not directly hold shares in ST Co., Ltd. Instead, they exercised indirect control through another company above it, called ST C&C.
Yet the stake that ST C&C held in ST Co., Ltd. was merely 8.6%.
Of course, Chairman Moon Byung-kwon and his brothers, along with other family members, did personally own some shares in ST Co., Ltd., but even when combined, their holdings amounted to only around 1% of the total shares—an extremely small portion.
Even taking that into account, if someone were to secure roughly 10% of the shares in ST Co., Ltd., the holding company, it would be enough to push out Chairman Moon Byung-kwon's family and seize control of the entire ST Group.
It was no wonder that Director Choi Ho-geun was so startled upon hearing this.
"It's certainly attractive since it has telecommunications and oil-refining companies that offer high growth potential and generate stable cash flow, but I have no intention of pursuing a hostile takeover of the ST Group."
"Then why are you trying to accumulate such a large stake in ST Co., Ltd.?"
Wearing a puzzled expression, Director Choi Ho-geun asked cautiously.
Leaning back against the soft sofa, Seok-won replied with a faint smile on his lips.
"The stock price is going to surge soon, so I'm investing accordingly."
"…Are you saying this is just a simple investment?"
"That's right."
No matter how he thought about it, aside from ST Telecom—which had been showing steep growth recently—Director Choi Ho-geun couldn't think of any particular favorable factor that would cause ST Co., Ltd.'s stock price to skyrocket, leaving him even more confused.
However, since it wasn't just anyone but Seok-won who had specifically singled out this stock as one that would rise, Director Choi Ho-geun chose not to dwell on it further and simply nodded.
"Understood. I'll proceed as you instructed."
"And once this round of betting is over, make sure to evenly acquire shares in shipping and shipbuilding companies."
"Yes, sir."
After China accedes to the WTO, as it transformed into the "world's factory" and became a black hole that absorbed massive amounts of raw materials, shipping companies transporting those materials and shipbuilders constructing vessels would also enter a massive boom—quite literally reaping a windfall.
'If I remember correctly, shipping and shipbuilding stocks rose more than tenfold within just a few years.'
At that time, it was the shipping and shipbuilding companies that recorded an explosive surge in stock prices—comparable to the massive boom later seen in secondary battery stocks.
'An event where money multiplies several times over just by letting it sit—there's no way I can pass that up.'
After that, for quite some time, Seok-won held an in-depth discussion with Director Choi Ho-geun about how to manage and invest the funds going forward.
***
With his neatly combed-back hair, Rodney sat at his desk in a fund office located in the heart of Wall Street, staring at the rows of monitors with a troubled expression.
[WTI: 21.84 (▲0.45)]
[S&P500: 743.99 (▲2.12)]
[Nasdaq: 970.33 (▲7.20)]
[DJI : 7811.32 (▲9.01)]
Although OPEC had defied expectations—going beyond merely withdrawing its production increase and instead announcing a bold cut of 2 million barrels per day—international oil prices showed little movement.
The New York stock market also continued its upward trend, with all three major indices rising, albeit at a slower pace.
Having now come right up to the break-even point, Rodney had reached a moment where—regardless of his promise to Klein—he needed to decide whether to maintain his position or liquidate it here.
"Hmm… Was my judgment wrong?"
Rodney muttered to himself in a low voice.
If he wanted to preserve even a little more of the returns, he shouldn't be hesitating—he needed to pick up the receiver immediately and give the order to liquidate the position.
However, the reason Rodney couldn't bring himself to act decisively was that, despite the stock market having already risen significantly from the bottom due to expectations surrounding the end of the war and the Iraq reconstruction boom, the Eldorado Fund was still maintaining its short position.
"Hmm…"
As Rodney continued to deliberate, tapping his fingertips against the desk, a hurried knock sounded—followed by CIO Klein rushing inside.
"Sir!"
"What is it? Did something happen?"
Seeing CIO Klein's flushed face, Rodney asked with a puzzled look.
"Haven't you heard about the incident that broke out in Nigeria?"
At that, Rodney frowned.
"What do you mean an incident broke out?"
Standing in front of the desk, CIO Klein steadied his breath and began to relay the news he had just received.
"The Niger Delta People's Volunteer Force, an armed militant group, has attacked a pipeline construction site near the Forcados oil export terminal in southern Nigeria. They have taken nine foreign employees of Royal Dutch Shell hostage and destroyed the facility."
"…!"
Caught completely off guard by this unexpected development, Rodney sprang to his feet.
"Is that true?!"
"Yes. It's information I received through an acquaintance at the State Department. By now, it's probably already breaking on Bloomberg as well."
Rodney turned his head and looked toward the Bloomberg terminal installed on one side of his desk.
Sure enough, with a label flashing in red text, reports of the hostage incident in Nigeria were appearing on the screen.
"My God."
As Rodney stood there in shock, CIO Klein spoke.
"They didn't just obstruct the pipeline construction and take hostages—the NDPVF leader has also publicly warned of further attacks."
"Further attacks?"
When Rodney turned his head and asked, CIO Klein answered immediately.
"Yes. He said that if oil tankers enter the Port of Forcados to load crude, they'll fire RPGs and burn them all."
"Are they completely insane?"
Just imagining what would happen if a rocket struck an oil tanker fully loaded with crude was terrifying.
The problem was that, judging from the past actions of the Niger Delta People's Volunteer Force (NDPVF), the group responsible for this incident, this was not a mere threat—they were fully capable of actually attacking oil tankers.
"The threat from the NDPVF has led Shell to completely suspend operations at the Forcados crude loading terminal, which handles 400,000 barrels per day. They have also temporarily withdrawn all technicians working at nearby offshore oil fields."
"How is the Nigerian government responding?"
"There hasn't been an official announcement yet, but according to sources at the State Department, there's a strong possibility they will respond forcefully without compromise."
"Then that means the situation could drag on for quite a while."
"It likely won't be resolved easily."
A sudden thought flashed through Rodney's mind, and he abruptly lifted his head.
"How much crude oil production is being reduced because of this incident?"
"As I mentioned earlier, if you combine the volume that was being shipped through the Forcados crude loading terminal with the output from the offshore fields that have halted operations, the supply will decrease by at least 510,000 barrels per day, and up to as much as 550,000 barrels."
Swallowing hard, CIO Klein met Rodney's gaze.
"That amounts to more than 20% of Nigeria's daily crude oil production of 2.4 million barrels."
"And if we factor in OPEC's production cuts as well, that means the total supply reduction could reach up to 2.55 million barrels per day."
"That's correct."
Even if global demand for crude oil had declined due to the worldwide economic downturn, the sudden disappearance of this level of supply was bound to have an impact on international oil prices.
As Rodney, still standing, checked the monitors, the oil prices—which had been relatively stable just moments ago—were now fluctuating sharply.
[WTI: 22.94 (11.55)]
In an instant, oil prices surged by more than a dollar, and the stock market, affected by the spike in oil prices, saw all three major indices turn downward simultaneously.
Seeing this, Rodney let out a short exclamation.
"So this is why the Eldorado Fund—no, Chairman Park—kept maintaining the short position."
"Unless he has ties to the rebels, there's no way that could be the case."
Rodney also thought it was an excessive speculation, but the timing was far too perfect to dismiss it as a mere coincidence.
However, that wasn't what mattered right now, so Rodney quickly cleared his distracting thoughts and put on a serious expression.
"If oil prices keep surging like this, it'll act as a major negative factor for the stock market, won't it?"
"It depends on how high oil prices rise because of this incident, but it's certain to deliver a significant shock."
Rodney gave a small nod.
"That's right. Because of this, even OPEC's production cut announcement—which had been brushed off as insignificant—will now fuel investor anxiety. At the very least, it'll be difficult for the upward trend to continue."
Hearing his confident assessment, CIO Klein nodded in agreement.
Unlike earlier, when he had been hesitating, Rodney now answered in a firm voice without the slightest pause.
"If oil prices spike sharply because of this incident, then the rise we've seen so far will likely turn out to be nothing more than a short-term rebound, followed by a steep drop again. So for the time being, keep our positions as they are."
"Understood."
This time, CIO Klein did not object and readily followed the instruction.
"For now, move quickly and sweep up crude oil futures first. Hurry, before the others beat us to it!"
"Yes, sir!"
After giving a brief reply, CIO Klein turned around and left the room.
Left alone, Rodney stared at the rows of monitors lined up on his desk, his eyes gleaming with intensity.
In the meantime, oil prices continued to climb steeply, with WTI nearing the $23 per barrel mark, while the three major indices were forming increasingly larger bearish candles as anxiety spread through the market.
"Although market sentiment has shifted, it's unlikely that the indices will be pushed all the way down to their previous lows just because of this."
Rodney muttered as he stroked his clean-shaven chin with one hand.
Investors would certainly feel uneasy, but it wasn't enough to trigger a full-blown panic and cause indiscriminate selling.
"That means there's still a heavy blow—something I don't yet know—that could truly shake the market. What could it possibly be?"
Rodney continued to rack his brain, trying to figure out the hidden card that the Eldorado Fund might be holding behind the scenes.
Meanwhile, driven by a surge in buying fueled by fears that the incident in Nigeria could lead to a crude oil supply shortage, the price of West Texas Intermediate (WTI) ultimately broke past $23 per barrel.