The Overly Competent Junior Employee

“Did you really have to do that?”

A week later, at Yuseong Investment Securities headquarters.

Vice President Sim Ju-won was having a private meeting with the CEO, whose expression was more serious than usual.

The CEO, who had remained silent since returning from meeting the Chairman, calling him in now after more than a week and speaking like this clearly meant something was up.

“As I said in front of the Chairman, I cannot speak favorably about a stock I wouldn’t buy myself to someone else.”

“But it was in front of the Chairman, wasn’t it? The person who holds your fate in his hands.”

The CEO had a point.

From the CEO’s perspective, it must have been incredibly frustrating that Sim Ju-won couldn’t just say one word about it being a good stock.

However, as he had said, he was a securities professional, not a gambler. He couldn’t say the same things as those who prattle on based on unfounded rumors.

“You’re usually so good at compromise, why do you become so stubborn when it comes to stocks?”

“I’ve been in Yeouido for 25 years. It’s practically my life’s work. I take pride in my profession.”

The CEO sighed at Sim Ju-won’s words. Sim Ju-won was someone who took more pride in being a securities professional than anyone else in Yeouido.

While this led to uncompromising issues like now, it had never been a problem before. At least not until the meeting with the Chairman last time.

“Did you see M-Biogen’s announcement the day after meeting the Chairman?”

“I did.”

“Then you should have changed your mind at least then.”

“Even after the announcement, my opinion hasn’t changed. It’s just an unacceptable announcement based on their one-sided claims.”

“Vice President Sim!”

As the CEO called out loudly, Sim Ju-won took a deep breath and looked at him.

“CEO. I’m truly grateful for your care and concern.”

“There’s been an order from the Chairman to transfer you to the Management Support Division during the personnel changes in two months.”

The reason for the CEO’s concern up until now flowed from his lips.

Securities firms were divided into front, middle, and back offices.

The front office included departments like the WM Division that dealt with stock sales, bonds, asset management, IB, corporate sales, and other tasks typically associated with securities firms.

The middle office included departments like the Research Center with analysts and the Compliance Team.

Lastly, the back office consisted of departments supporting the front office, such as HR, planning teams, and other administrative and clerical functions of the company.

Being told to go to the Management Support Division was tantamount to telling Sim Ju-won, who took more pride than anyone in being a securities professional, to step back from the front lines.

“I managed to persuade the Chairman to keep you at the Vice President level instead of sending you to the Risk Management Department at the Executive Director level…”

“CEO.”

Sim Ju-won interrupted the CEO and spoke.

“I’ll vacate my position in time for the personnel season in two months.”

“Sim Ju-won!”

“You know that telling me to leave the front office is like telling me to take off my clothes, don’t you?”

“You brat, are you going to keep acting like this?”

“Sunbae, if the Chairman suddenly believes Chairman Seo Gihwan’s words and rashly invests in stocks, he’ll suffer a big loss someday. When that time comes, if he asks why the securities people didn’t stop him, please mention Sim Ju-won’s name.”

Sim Ju-won stood up, bowed to the CEO, and began to leave the CEO’s office.

“Sim Ju-won! Vice President Sim!”

The CEO sighed as he watched Sim Ju-won’s retreating back, leaving despite his calls.

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“I’m sorry.”

Meanwhile, Dokyung was talking with an elderly man who had visited his office.

“Sorry? Why are you apologizing to me, young man?”

“Because my judgment has affected your profits, Chairman…”

“Look here, PB Yoon.”

With news about M-Biogen’s new drug development flowing out, saying that FDA Phase 1 clinical trial application was imminent, the stock price had risen over 50%.

This meant that if he had taken a position when the elderly man had mentioned M-Biogen to him, he could have made a 50% profit in a short period.

“The decision was mine to make.”

The elderly man looked at Dokyung with a stern expression and spoke.

“You just told me what you thought about M-Biogen. I made the judgment based on the information I had and what you told me.”

Although the elderly man spoke as if it was no big deal, Dokyung couldn’t help but feel sorry. It’s human nature to think that if only he had entered then and exited now, he could have made a profit.

“Not just you, but seeing several experts saying to be careful made me feel a bit uneasy.”

The situation was already such that not only Dokyung but many others had warned to approach M-Biogen cautiously.

“So if you keep making that expression, I can’t help but keep thinking about it.”

“Yes, I understand.”

“Good. Now, tell me about that company, Gaon Medical, was it? That’s what I came to hear about.”

At the elderly man’s words, Dokyung smiled slightly.

He had been studying Gaon Medical, which the message had recommended as a stock to buy, for the past few days, and the company seemed quite promising.

“To put it simply, Gaon Medical is a company that makes and sells dermatology treatment devices.”

“Dermatology?”

“Yes, machines that are excellent at removing acne scars. You could say that almost all dermatology clinics in Korea use devices made by Gaon Medical.”

“Does that make money? Machines are just made and sold once, right?”

“If they’ve turned it into a platform, that’s a different story.”

The more Dokyung studied, the more attracted he became to Gaon Medical as a company. Unlike M-Biogen, it wasn’t a pharmaceutical company but a medical device company, yet the company’s business direction was excellent.

“Platform?”

“Yes. Gaon Medical produces and supplies all the treatment tools that attach to the acne scar treatment device.”

“So what’s different?”

“Didn’t I mention? Gaon Medical’s devices are used in almost all dermatology clinics. Then, since you can’t use a needle that’s been used on one patient’s face on another patient, it naturally needs to be replaced.”

The Chairman’s expression turned intrigued at Dokyung’s words.

“Can’t they attach different needles?”

“No, it only works with their own needles. Even if sophisticated replicas were made and used, if it’s discovered during monthly maintenance, it’s excluded from warranty coverage.”

“How much does one machine cost?”

“300 million won.”

“Oh my. Then if it breaks down while trying to save a bit of money, they’d have to buy a new machine.”

As the elderly man said, if excluded from warranty coverage, the loss would be so great that dermatology clinics had no choice but to use the treatment tools made by Gaon Medical.

“Last year, 50% of their sales were from device sales, and 44% from treatment tool sales.”

“Are there that many dermatology clinics in Korea? Device sales are still…”

“They’re also exporting overseas. I hear it’s gaining explosive popularity in China these days.”

This was also why Dokyung rated Gaon Medical higher than M-Biogen.

“And Gaon Medical doesn’t stop there; they continue to develop new devices.”

“Do they have to buy new tools each time?”

“No, the treatment tools are compatible with all devices made by the company.”

“Then it’s practically a monopoly.”

As the elderly man spoke as if he clearly understood, Dokyung nodded.

Gaon Medical already had devices with considerable market share, and they didn’t stop there, continuously developing new technologies.

Moreover, as the elderly man said, they had created a platform where only tools made by their company could be used when using their devices with high market share.

By making consumables also exclusively usable, they had created a structure where even if device sales were sluggish, consumables could drive sales.

“But if the stock price is already in the 30,000 won range, can it go up any further?”

“As I mentioned, it’s currently gaining explosive popularity in China. If the market expands from Korea to Asia and then worldwide, I believe this stock could rise two times, no, more than ten times.”

“Hmm… The stocks you’re confident about have always risen that much.”

The elderly man nodded as if trusting Dokyung’s insight.

“Good. I think it could take a place in the portfolio.”

“I think so too.”

“Then how about buying at a 20% ratio?”

“If we sell some stocks that have risen in price from the existing portfolio and adjust the ratios, 20% should be possible.”

“Good. You can do…”

Ding ding-

Ding ding-

Just then, warning sounds began to come continuously from Dokyung’s computer, and Dokyung bowed to the elderly man to excuse himself before heading to his desk.

As he checked why the warning sounds were ringing, Dokyung’s eyes grew wider and wider.

“What’s wrong?”

“Chairman.”

“I said, what’s wrong?”

“M-Biogen…”

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“What’s going on!”

In the Chairman’s office at Yuseong Group headquarters.

The Chairman was shouting at the chief of staff.

“A professor from a domestic university hospital has officially raised questions about the new drug announced by M-Biogen.”

“Questions?”

“Yes. As he raised objections saying the animal test results lack important research elements, it seems like all the scholars who had been keeping quiet are now chiming in one by one.”

Two days ago, a university hospital professor raised questions about M-Biogen’s new drug on his social media.

As various professors and doctors started agreeing with his opinion in the social media comments, this began to be reported in the news, and suspicion about M-Biogen spread to the market.

M-Biogen tried to explain, but the professor who initially raised the questions pointed out the flaws in their explanation, and the lack of trust in M-Biogen was being reflected in the stock price.

“M-Biogen’s stock price falls 40% in the past two days.”

“Stock that rose 50% in two weeks crashes 40% in just two days. Retail investors wail.”

“Distrust in pharmaceutical stocks resurfaces, spreads to the market.”

The distrust of M-Biogen was spreading to other pharmaceutical stocks, causing the pharmaceutical sector to be shunned by the market.

-The customer cannot be reached…

“Aargh!”

Even Seo Gihwan, the Chairman of Gwangjin Group who had confidently recommended M-Biogen to him, couldn’t be contacted.

“Have you tried contacting Gwangjin Group’s secretariat?”

“Chairman Seo Gihwan is not coming to work and is staying secluded at home, they say.”

As far as the Chairman knew, Seo Gihwan had also invested a large sum in M-Biogen.

However, his own situation was more urgent now, and he had no generosity to understand such things.

“Contact their Chairman’s office. Tell them I’m looking for him and to contact me without fail!”

“Yes, understood.”

After giving that order, the Chairman pondered for a moment to resolve the situation, then began searching his desk as if something had occurred to him.

He then found the report that Sim Ju-won had brought on one side of the desk.

[Company Analysis: M-Biogen (4942230.KS) – Yuseong Investment Securities WM Division]

The Chairman quickly began reading through the report Sim Ju-won had brought. After examining the report with a stern expression for a while, the Chairman looked at the chief of staff.

“Contact the securities firm and tell that Sim Ju-won to come here right now.”

“Yes, understood.”

“Move quickly!”

At the Chairman’s words, the chief of staff left the Chairman’s office, and the Chairman couldn’t take his eyes off the last page of the report.

[From any perspective, buying this company’s stock is not recommended.]

The last line was written as if it had predicted the current situation.