Steam rose from the hot tub, obscuring the faces of the most powerful men in Korean finance. Jin Hyuk-jae sat in the center, a towel draped around his neck. Around him sat the Executive Vice Presidents of the major commercial banks: S-Bank, K-Bank, W-Bank, H-Bank.
"The CMS open API is a security risk," Hyuk-jae said casually, pouring sake into a floating wooden tray. "We all agree on that, right? A startup handling direct withdrawals? If they get hacked, who bears the liability? You do."
"It is concerning," the VP of S-Bank nodded. "Toss is growing too fast. They don't have the reserves to cover a breach."
"Exactly," Hyuk-jae smiled. "So, for the safety of the financial ecosystem, I suggest a 'Maintenance Review'. Daegwang Bank is shutting down the CMS port for Toss starting tomorrow. Indefinitely. Just to... audit the code."
The bankers exchanged glances. They knew what this was. It wasn't an audit. It was an execution. But they also hated Toss. Toss was stealing their transfer fees. Toss was making their apps look like dinosaurs.
"If Daegwang goes first," the VP of W-Bank hesitated. "It sets a precedent. We should probably conduct similar reviews."
"Solidarity," Hyuk-jae toasted. "To the stability of the system."
They clinked glasses. The Cartel was formed.
January 20, 2015. Mirue Partners HQ.
"Failure Rate: 85%."
Lee Seung-gun looked like he hadn't slept in a week. He stared at the dashboard. "S-Bank is down. K-Bank is down. Daegwang is down. W-Bank is down. Only the tiny regional banks and the Post Office bank are still connected."
"They coordinated it," Hong Ye-eun said, throwing her phone on the couch. "I called my contact at S-Bank. He said it's a 'Technical Maintenance' issue. Bullshit. It's a blockade."
The user reviews were flooding in. “Can’t send money.” “App is broken. Deleting.” “Back to KakaoPay.”
Min-jun stood by the window, watching the snow fall on Teheran-ro. "It's the Yeouido defense mechanism," Min-jun said. "They realized they can't regulate us to death, so they are starving us."
"We have 2 months of cash left at this burn rate," Seung-gun said. "If users can't transact, we have zero revenue and zero growth. We are dead by March."
"We can't fight them all," Min-jun turned around. "They are a cartel. They move as a herd because they trust that no one will break ranks. But..."
He walked to the whiteboard. He drew four circles representing the banks.
"Bankers are greedy. They fear losing face, but they fear losing market share more."
He pointed to W-Bank.
"W-Bank. They are the oldest. Formerly government-owned. Their user base is dying literally. Average age of a depositor is 55. They have zero penetration with the 20-30 demographic."
"So?"
"So, they are desperate. The new CEO of W-Bank promised to 'Digitalize' the bank or resign. Right now, he's failing."
Min-jun looked at Seung-gun. "CEO Lee. How many users do we have?"
"1.2 Million."
This narrative has been purloined without the author's approval. Report any appearances on Amazon.
"And what is the demographic?"
"90% are under 30."
"That," Min-jun smiled, "is the leverage. We are going to play the Prisoner's Dilemma. We offer W-Bank the one thing the others won't give them."
January 25, 2015. W-Bank Headquarters, Myeongdong. CEO's Office.
Min-jun and Lee Seung-gun sat across from CEO Park of W-Bank. The CEO looked stern. "I told you, Mr. Lee. The CMS shutdown is a technical necessity. We cannot compromise security."
"We know about the meeting at the Bankers' Club," Min-jun cut in.
CEO Park froze. "I don't know what you're talking about."
"Director Jin Hyuk-jae asked for solidarity," Min-jun continued. "He wants to kill Toss to protect DG Pay. It makes sense for Daegwang. But does it make sense for you?"
Min-jun slid a single sheet of paper across the desk. [Proposal for Strategic Alliance: The Youth Pipeline]
"Toss has 1.2 million users. They are the future high-net-worth individuals of Korea. Right now, they can't link their W-Bank accounts to Toss. They are angry at W-Bank."
"They are angry at Toss," CEO Park corrected.
"No. They know it's a blockade. The internet forums are already blaming the 'Old Banks'."
Min-jun leaned forward.
"Here is the offer. You break the blockade. You open the API. Not just open it—you lower the transaction fee from 500 won to 200 won."
"Why would I do that? That's financial suicide."
"In exchange," Min-jun said, "Toss will run a 'Switch Campaign'. We will put a banner on our main screen: 'W-Bank is the Official Partner of Toss. Link your W-Bank account and get 5,000 won instantly.'"
Min-jun paused for effect.
"We will funnel 1.2 million young users directly into your bank. You will become the #1 bank for Millennials overnight. S-Bank and K-Bank will look like nursing homes while you look like the future."
CEO Park looked at the paper. He thought about his board meeting next week. He was under pressure to show digital growth. If he accepted, he would betray the cartel. Hyuk-jae would be furious. But if he refused... and K-Bank accepted?
"If I say no?" CEO Park asked.
"Then we go to K-Bank in Yeouido in exactly one hour," Min-jun checked his watch. "And by next month, K-Bank will have all the youth deposits."
It was a bluff. K-Bank was too conservative. But W-Bank didn't want to take that chance. This was the Prisoner's Dilemma. The first one to defect wins the prize. The others get nothing.
CEO Park tapped his finger on the desk. The silence stretched for a minute. A minute that felt like a lifetime for Lee Seung-gun.
"Hyuk-jae is a vindictive child," CEO Park finally muttered. "But he doesn't run my bank."
He pressed the intercom. "Secretary. Get the IT Director. Tell him to re-enable the Toss CMS port. Immediately."
February 1, 2015.
The floodgates opened. [Toss Notification: W-Bank Connection Restored!] [Promotion: Link W-Bank and get 5,000 KRW!]
The migration was massive. Thousands of users opened new W-Bank accounts just to use Toss. The W-Bank server nearly crashed from the influx of traffic.
At the other banks, the alarm bells rang. "Sir! W-Bank broke the embargo! They are stealing our customers!" "What? Get Toss on the phone! Re-enable the port! Don't let W-Bank have them all!"
The cartel shattered. One by one, the banks folded. S-Bank came back online. Then H-Bank. Finally, even Daegwang Bank had to reopen the port, or risk losing every customer under the age of 40 to their rivals.
February 15, 2015. Mirue Partners.
"We won," Ye-eun exhaled, popping a bottle of sparkling water. "The blockade is gone. We have 100% coverage again."
Min-jun sat on the sofa, exhausted. "We didn't win. We just survived the First Great Ninja War."
"You need to stop with the anime references," Ye-eun laughed. "So, what's next? Do we rest?"
"No. We made an enemy of Hyuk-jae for life. He won't try to block us anymore. He'll try to buy us."
Min-jun checked his phone. Bitcoin: $240. It was boring. Sideways movement. The accumulation phase.
He checked H-Semicon. Price: 48,000 KRW. The SK Hynix acquisition was a massive success. The stock was a juggernaut. His initial 825 shares were now worth ~40 Million KRW.
It was good money. But not "kill a Chaebol" money. He needed a new multiplier.
"Ye-eun," Min-jun said. "How is your father's health?"
"Dad? He's fine. Why?"
"There is a rumor," Min-jun said carefully. "About the Hanmi Pharmaceutical clinical trials. Phase 1 results are coming out soon."
"Hanmi? The drug company?"
"In 2015," Min-jun said, his eyes gleaming. "Bio is the new Tech."
He remembered the chart. Hanmi Science. It would go from 10,000 won to 150,000 won in a single year. A 15x bagger. The greatest rally in KOSPI history.
"Liquidity is building," Min-jun stood up. "Get the War Chest ready. We are rotating sectors."
[TRANSACTION LOG]
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Date: Feb 2015
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Action: Strategic Alliance (W-Bank).
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Result: Banking Cartel Fractured. Toss Transaction Volume restored.
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Mirue Partners: Portfolio Valuation increasing.
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Personal Strategy: Preparing for Sector Rotation (Tech -> Bio).
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Target: Hanmi Science / Hanmi Pharm.