Hollywood starts with an agent

Chapter 482 The Wind Sweeps Through South Korea
Seoul, South Korea, Sheraton Walkerhill Hotel.

Aaron sat on the sofa, looked at Edgar Owen beside him and laughed, "Right now, the situation in South Korea is really bad. Aren't you afraid that those bankrupt guys will take their anger out on you?"

Edgar Irwin shook his head. "I'm here to help them!"

Aaron took a sip of champagne. "From Hanbo Steel at the beginning of the year, to Sammi Steel, Hantae Group, Shinshin Group, and Kia Motors, these conglomerates have all declared bankruptcy this year."

"The leading conglomerates like Hyundai, Daewoo, Samsung, SK, and LG are all heavily indebted and struggling to survive."

"After the Miracle on the Han River, South Korea is now a moderately developed country!"

Since the 1960s, the four presidents of South Korea—Park Chung-hee, Chun Doo-hwan, Roh Tae-woo, and Kim Young-sam—have all been staunch advocates and implementers of "debt-driven development," "trade first," and "comprehensive opening up."
This has led to South Korea's current high debt, conglomerate economy, and severe import/export trade problems!

"South Korea is too reliant on foreign investment. At the beginning of the year, Japanese capital started fleeing, leading to defaults on South Korean corporate debt."

"After that, European and American capital began to close financing channels and then withdrew their investments one after another, leaving South Korea with a serious shortage of foreign exchange reserves."

Edgar Irwin smiled. "After the Southeast Asian financial crisis, US rating agencies specifically downgraded South Korea's credit rating."

"This has further exacerbated foreign investors' concerns about the South Korean market and led to their departure. Now, with the Korean won continuing to depreciate, South Korea seems helpless!"

Aaron downed his champagne in one gulp. "South Korea is different from Southeast Asian countries like Thailand, Malaysia, and the Philippines."

"Over there, we make our money and leave. South Korea is different; they're controlled there. They have considerable strength in automobiles, steel, electronics, textiles, construction, shipbuilding, and finance."

"They are capable of sustained profitability. South Korea's economic situation will deteriorate rapidly. They don't want South Korea to go bankrupt, so they have no choice but to sign a contract with the IMF (International Monetary Fund) to sell themselves out."

Aaron stood up, walked to the window, and looked out over the Han River. "You should return home as soon as possible and, through the IMF, strive for future benefits."

"With so many institutions on Wall Street vying for a slice of this huge pie from South Korea, there's bound to be fierce competition!"

Aaron's focus is mainly on Samsung, which is now the third largest conglomerate in South Korea, after Hyundai and Daewoo.

However, Aaron is very envious of their Samsung Electronics.

That evening, Aaron and Wang Zhuxian went to the hotel's restaurant for dinner. "This place is similar to the resort hotels in Las Vegas, but the environment is much better!"

Walkerhill Resort, located on Mount Echa in northeastern Seoul, on the banks of the Han River, is Asia's first luxury resort hotel that integrates dining, leisure, entertainment, and shopping.

"Yes, I came here before when I was in Korea promoting a movie, and the casino here is the largest in Korea."

"It's specifically for receiving foreigners!"

Wang Zhuxian explained with a smile.

Aaron nodded. "There are mostly Japanese people here."

"By the way, do I need to exchange my Hong Kong dollars for US dollars now?"

Wang Zhuxian suddenly asked.

Aaron smiled. "What currencies do you have on hand right now?"

"Ah, Hong Kong dollars, New Taiwan dollars, and some US dollars, and then there's RMB, because I'm going to start a business in mainland China!"

"Go ahead and exchange it if you want. But actually, it doesn't really matter. The Hong Kong dollar won't depreciate much, but the Korean won and the Japanese yen will depreciate quite a bit." Aaron said, looking at the other person, "The Korean won will depreciate rapidly next. If you have money, you can short the Korean won in the foreign exchange market and make some money!"

Wang Zhuxian thought for a moment, but still shook her head. "These are all beyond my understanding."

"I think it's very difficult to make money from things outside of your knowledge."

Aaron took a sip of wine and shrugged slightly. "In that case, you can exchange some won after the Korean won depreciates significantly, and then wait for the won to appreciate!"

"So, do you have a lot of Korean won on hand right now?"

Aaron chuckled. "Not much, we sold them all off. But we still owe a lot to Korean banks!"

The previous exchange rate was 850 to 860, but now the Korean won has depreciated to over 900, which is definitely not enough.
Once the Korean won collapses, Aaron will be able to pay off his debts with the least amount of US dollars.

"Really? But I don't think I'll really need any Korean won. Even if I come here for tourism and shopping, I won't need much."

Wang Zhuxian asked in confusion.

Aaron shook his head. "Hey, haven't you seen the wave of bankruptcies in South Korea right now?"

"Next comes the peak, when a large number of South Korean companies will go bankrupt, and many assets will be worthless."

"If you see what's needed, you can get involved, right?"

Wang Zhuxian smiled and said, "I don't know much about Korean companies. I mainly invest in business in mainland China right now."

"However, I'll do as you say. I'll exchange some Korean won for it!"

"By the way, what is Dawn's attitude towards the South Korean film market?"

Upon hearing this, Aaron shrugged and said, "Of course we took advantage of them completely. The MPAA is currently persuading South Korea to change its film quota system!"

The South Korean film quota system, also known as the mandatory screening system, is a policy implemented by the South Korean government to protect its domestic films: it mandates that each screen in South Korean cinemas must screen domestic films for at least 146 days each year.

National television stations must also broadcast a certain percentage of domestically produced films.

This is certainly not something Hollywood is happy about. With South Korea's accession to the WTO, the US government has demanded that the quota be canceled or reduced.
There has been ongoing debate within the South Korean government regarding this system, with the Ministry of Culture insisting on its quota ratios, while the Ministry of Economy agrees with the United States' opinion.

Currently, South Korean films do not have a film rating system, and the film market is basically dominated by Hollywood and Hong Kong.

However, with South Korea's accession to the WTO, the United States has been putting constant pressure on South Korea, and South Korean filmmakers seem to have united to oppose the abolition and reduction of the quota system.

Furthermore, the Korean Film Union, in conjunction with the Ministry of Culture, is discussing the implementation of a film rating system, as such a system is an essential element for promoting the development of the film industry!
Wang Zhuxian shook her head. "The current state of Korean films is a complete mess; they have absolutely no competitiveness."

Aaron glanced at the other person. "Don't underestimate South Korea. Their Ministry of Culture is preparing to implement a film rating system."

"Furthermore, they have been advocating a culturally-driven nation-building strategy, and the government is providing support to the entertainment industry, including film, idols, and music!"

Just imagine, in just a few years, the export of Korean culture will make the entertainment industry the second largest export industry after automobiles. Aaron found it simply unbelievable.

The entertainment industry in mainland China will be flooded with Korean wave content...

(End of this chapter)