As soon as Takayuki Minamino sat down, he couldn't wait to report seriously: "The head of the Seoul office in South Korea, Hidenaka Sato, personally called and said that the South Korean stock market suddenly plummeted.

According to him, the immediate cause of the collapse of the South Korean stock market was the general setback of the banking sector. As for the trigger, as far as he knows, it was because a South Korean commercial bank had a serious debt problem.

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

"I can't understand why the debt problem of a South Korean commercial bank can trigger such a big stock market movement? Could it be that it is a large commercial bank?" said Kazuya Takahashi, who wondered.

"At the moment, I have information that the South Korean commercial bank, which has a serious debt problem, is not a big bank, but a small local bank in Seoul. Takayuki Minamino told the truth.

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

"Let me explain it to you. If there is a fire in a neighbor's house not far from your home, do you choose to stand out and watch the excitement, or will you take the initiative to go to the rescue?

The answer is yes, you will definitely choose the latter, and that is to actively go to the rescue. Because you are afraid that the fire will reach you too much, and your property will be damaged as a result.

The same is true for the banking sector. South Korea's small bank, which has serious debt problems, must have had various pleas for help before its troubles were exposed.

One is to ask for help from his colleagues who are good friends with him on weekdays. Either it is to make a loan directly from the funds, or it is to use the high-quality assets or shares in its possession to make a commercial exchange.

The second is to make an overnight loan on funds with a bank that has a certain intersection with itself. The interest rate naturally fluctuates to varying degrees according to the size of the current risk......

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

In my opinion, the reason why the Korean stock market is so panicked is probably not simply because of the serious debt problems of a bank caused by poor management.

If my guess is correct, this should be an outbreak of a long-standing problem in the entire Korean banking industry.

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

If none of the other Korean banks, large or small, have come to their aid, it will only prove that they are busy protecting themselves. "Kishimoto knows that Kazuya Takahashi's expertise and strength are in the legal field, not in the financial field.

Kazuya Takahashi suddenly realized: "Hearing you say this, is there another financial crisis in South Korea? It has only been five years since the last Asian financial crisis broke out in 1997. ”

"Do you know why the Second World War broke out? It is a continuation of the fact that the First World War did not completely solve a series of problems. The Great Depression was just a trigger or a trigger.

The worst catastrophe in human history began in the economic crisis that began in the United States between 1929 and 1933 and later spread throughout the capitalist world, including the capitalist countries of the United States, Great Britain, France, Germany and Japan.

The catastrophe bankrupted the institutions of many countries in Central and Eastern Europe, led German bankers to defer their foreign debt payments in order to protect themselves, and in turn endangered British bankers who had invested heavily in Germany.

The shortage of capital, in all industrialized countries, has led to a sharp decline in exports and domestic consumption. The absence of a market inevitably closes factories, and the less goods there are, the less goods are transported, which inevitably harms the shipping and shipbuilding industries.

In all countries, the consequence of the recession is mass unemployment. There were 13.7 million in the United States, 5.6 million in Germany, and 2.8 million in the United Kingdom (the largest figure in 1932).

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

I am giving this example to illustrate that the root cause of the collapse in the Korean stock market is a legacy of the 1997 Asian financial crisis.

In the five years since the Asian financial crisis, many South Korean banks have been on the verge of bankruptcy due to bad corporate debts, but they have turned a profit as consumer lending has risen rapidly.

They have all taken a very risky and short-sighted approach, with issuers scrambling to issue cards for short-term gains.

You are also using credit cards, and you should understand that even if you spend money for dozens of days without interest, you will not have to pay additional interest.

The bank that issues credit cards is not charity, let alone a fool, so why would it let people use it for free without interest?

That is, their goal and focus is on profiteering from others. Others refer to strong materialism, weak self-control, vanity, and low income......

In the future, there will definitely be people who can only repay the minimum amount after the credit card expires, and then repay the loan in installments, people who will make installments as soon as they come up, and people who need to withdraw cash with a credit card.

The interest and handling fees they charge on this piece are not much worse than those of underground banks and usury practitioners. I have to say that there is no difference, one is a hypocrite, and the other is a real villain.

There is no shortage of regular loan sharks and underground banks that clearly explain to the borrower at the beginning how much principal and interest need to be repaid when due, how much installment repayment is, how long it will take to repay, and so on.

The entire banking industry in South Korea arbitrarily issues credit cards without fully examining the creditworthiness of customers, and credit card companies hire salesmen to chase pedestrians around to sell credit cards, and even issue credit cards to underage students and the unemployed.

Prior to this, there was already such a common credit card chaos in South Korea. At the beginning, I personally flew to Seoul, South Korea to investigate, and not only you, but also the outside world mistakenly thought that I saw good signs of South Korea's economic recovery, so I went to the field to investigate, in order to increase investment in South Korea.

In fact, I specifically studied the consumer loan market of Koreans, that is, how many credit cards they have per capita.

Credit cards are good in themselves. It's like no matter how good a scripture is read out of the mouth of a bad monk, it is not the meaning that the scripture originally intended to express. Kishimoto said eloquently.

"I basically understand what you mean. Do you think South Korea is going to have a crash in the stock market this time, which will lead to something like the Great Depression? "Kazuya Takahashi is a serious way.

"Even if South Korea doesn't have a worse future than the Great Depression, it will cost a generation of Koreans to pay a huge sacrifice.

Banking is not an ordinary business. The realm of finance is something that has been created out of thin air outside of the entity. The so-called wealth created by finance is 3.5 times that of real wealth.

What does the banking industry rely on to sustain its operations? Does the gold that is stored in the vaults? Is it cash? NO, it all depends on the credit system. Kishimoto said loudly.