Black Corporation: Joseon

Chapter 395

With the establishment and operation of the ‘Venture Capital Fund’ decided, personnel transfers took place across Joseon’s royal treasuries.

Those with good persuasive skills or those who had performed well in the Business Evaluation Department were largely recruited to the Venture Capital Fund from regional treasuries.

The treasury officials summoned to Hanseong for education on fund operation and business practices, as well as practical adaptation training, eyed each other keenly.

“So that’s the guy who…”

“Oh? He’s here too. As expected…”

The court operated an incentive system while managing the treasury. Those with good performance received not only bonuses but also favorable personnel evaluations, giving them an advantage in promotions.

Whenever such bonuses or rewards were given, notices were posted on employee bulletin boards in treasuries across Joseon.

As a result, ambitious individuals applied for sales or the Business Evaluation Department.

And here, the cream of the crop among those applicants had gathered, all burning with a sense of competition towards each other.

Upon learning about the fund’s operational methods, the officials spoke with a half self-deprecating tone.

“Looks like we won’t be going to entertainment venues anymore.”

“Seems we’ll be gambling at a state-approved gambling den.”

“I feel ashamed that we studied the words of sages for this.”

***

Despite their words, once the work began, the fund’s employees moved swiftly.

In Naju, Jeolla Province,

“Oh my! Have you been well, Master Cha?”

“Eh? When did you return? I heard you went to Hanseong.”

Cha, a well-known wealthy man in Naju, brightened up upon seeing the treasury employee he hadn’t seen in a while.

Since opening an account at the Naju treasury, this employee had almost exclusively handled his banking affairs.

As Master Cha welcomed him, Ko Young-gu smiled broadly and responded.

“I returned from Hanseong yesterday. I have very good news.”

“Good news?”

“Well, you see…”

Having opened the conversation, Ko Young-gu began to explain about the ‘Venture Capital’ in detail.

***

“Hmm…”

When Ko Young-gu’s lengthy explanation ended, Master Cha, sitting with his arms folded, looked at Ko Young-gu with a serious expression.

“Hmm… So…”

Master Cha, speaking leisurely, continued.

“So, according to what you’re saying, you provide funds for businesses that, although they failed the business evaluation, seem to have some potential?”

“That’s correct, sir.”

“How much potential are we talking about?”

“On average, 43 percent.”

“43 percent?”

At Ko Young-gu’s answer, Master Cha’s expression soured.

“Simply put, if you invest in 10 places, only 4 will succeed?”

“Master Cha, even those who pass through the Business Evaluation Department have a success rate of 68 percent. And why else would it be called venture capital?”

“Even so, it’s almost gambling, isn’t it?”

To Master Cha’s words, Ko Young-gu nodded.

“That’s right. It is close to gambling. But where in this world isn’t there an element of gambling? Isn’t even farming a gamble? Although it rarely happens these days due to good water management, if there’s a drought or flood just once when the heavens are displeased, isn’t that year’s harvest a complete loss no matter how hard one has worked?”

“Well, that’s true…”

Nodding unconsciously at Ko Young-gu’s words, Master Cha pressed on another point.

“Then, if one puts money into this venture capital, what’s the interest rate?”

“We don’t call it an interest rate, but an investment success dividend.”

“Right, so how much is this investment success dividend?”

To Master Cha’s question, Ko Young-gu took out a small booklet from his breast pocket, flipped through it, and then opened to a certain page as he continued his explanation.

“It varies depending on how successful the invested business is, but on average, we expect a minimum of 20 percent.”

“A minimum of 20 percent?”

“Yes.”

“So if I put in 1,000 nyang of gold, I can receive at least 200 nyang of gold in a year?”

“To be precise, it’s 20 percent of the amount that actually goes into investments out of the 1,000 nyang of gold.”

“I don’t quite understand.”

As Master Cha tilted his head, Ko Young-gu explained in more detail.

“So… If you put in 1,000 nyang of gold, but only 200 nyang goes out as investment, we calculate the dividend based on the successful investments out of that 200 nyang.”

“So, out of the 1,000 nyang, 200 nyang is invested, but you don’t calculate based on all of that 200 nyang, just pay dividends on the successful investments?”

“That’s correct.”

“Why is it so complicated?”

To Master Cha’s grumbling, Ko Young-gu, still with a face full of smiles, placated him.

“Oh my! How could we carelessly use the precious money of our investors? We split it into small amounts and combine it with other people’s investments to minimize losses, that’s why.”

“Split into small amounts and combined?”

“Yes. For example, if 10 nyang of gold is needed for an investment, we split it into 1 nyang units and take 1 nyang each from ten different investment funds. This way, even if the startup fails, the loss is only 1 nyang of gold.”

“I see.”

Nodding his head, Master Cha frowned again.

“So, even if it succeeds, is that all the profit you get?”

“Unfortunately, yes. But doesn’t that also reduce the risk?”

“That’s certainly true.”

At Ko Young-gu’s words, Master Cha nodded as if entranced. Seeing this, Ko Young-gu inwardly muttered.

‘Whatever happens, the court is the one that loses the least, though.’

Although Master Cha had more or less understood Ko Young-gu’s explanation, there was still something unsatisfactory.

“It all sounds good, but… Isn’t the dividend too small?”

“Well, there are quite a few costs involved. Secondary evaluation fees, investment agency fees, audit agency fees, and so on. Quite a lot.”

“You evaluate again?”

“How could we carelessly use the precious money of those who decided to invest? We need to evaluate once more to select those with the highest probability of success.”

“I see.”

Master Cha nodded at Ko Young-gu’s explanation, but his face was not satisfied.

“Still, the dividend ratio is low…”

“There is a way to increase the ratio, but it’s quite risky.”

At Ko Young-gu’s words, Master Cha’s eyes sparkled.

“What is it?”

“You decide directly.”

“Directly?”

“Yes. You come to the fund next to the Naju treasury in person, check the businesses hoping for investment, and then choose what you think is best and decide how much to invest. You can invest the full amount the investment seeker wants, or you can invest a suitable proportion. However, there is a minimum ratio for direct investment; you must invest at least 20 percent.”

“Then how much does the ratio increase?”

“At least 40 percent. At least.”

“At least 40 percent…”

“However, in the case of direct investment, you must also bear the loss if the startup fails.”

At Ko Young-gu’s answer, Master Cha closed his mouth and began to weigh the possibilities.

After pondering for a while, Master Cha sighed and grumbled.

“Phew~. Oh my, this is really something!”

It was a momentary lapse of his usual dignity, but it was a complaint that revealed Master Cha’s true feelings.

After letting out this complaint and smacking his lips, Master Cha finally made up his mind.

“I’ll trust you and try investing once.”

“Thank you!”

“How much should I invest? Surely I don’t have to put in all my assets?”

“No, not at all. His Majesty the King said, ‘This should benefit both those who wish to start businesses and succeed, and those who wish to grow their wealth in the light. Therefore, let those who invest determine their investment amount according to the extent of their wealth.'”

“As expected, His Majesty is wise. So what are the criteria?”

“It’s based on the property tax payment records in the treasury. However, the maximum amount you can invest at once is between a minimum of 30 percent and a maximum of half of your total assets. And once you invest, you can’t make additional investments for a year.”

“What if I invested and suffered some losses? Can I immediately recover the remaining investment if I want to?”

“That’s also possible after a year.”

“So I have to just watch for a year?”

“Yes. Because it’s rare for the success or failure of a startup to be determined immediately.”

“Hmm…”

After calculating the pros and cons again at Ko Young-gu’s words, Master Cha finally gave in.

“I’ll visit tomorrow.”

“Thank you! Ah! When you come tomorrow, you must bring your treasury account ledger and seal. We need those to make the contract.”

“I’ll make sure to bring them.”

That evening, Master Cha’s wife, Lady An, sought out Master Cha.

“I heard that Ko from the treasury came by this afternoon. What was that about?”

“Ah! That…”

After listening to Master Cha’s explanation, Lady An thought for a moment and then turned to Master Cha.

“When you go to the treasury tomorrow, I’d like to go with you.”

“You too? Why?”

“Don’t I have some assets that I received as my portion? Shouldn’t we try to grow them a bit to distribute to our children?”

“Ah…”

Nodding lightly, Master Cha agreed to his wife’s request.

***

The next day, when the Cha couple visited the fund, Ko Young-gu welcomed them with a pleased face.

“Welcome!”

“Not only me, but my wife also wants to invest, so we came together.”

“Thank you! It will be a good choice!”

Ko Young-gu guided the Cha couple to a separate room in the fund and came back with another employee, carrying various types of documents.

“I’ll explain again.”

“But why is that person here with us?”

“Ah! This friend is here to make sure I explain everything accurately to you both and don’t miss anything, so you don’t misunderstand.”

“Quite cautious.”

“We can’t be careless when receiving precious investment funds, can we?”

At Ko Young-gu’s answer, the Cha couple nodded with satisfied faces.

“Indeed, it’s trustworthy since it’s a government operation!”

***

After the explanation was given once more, Ko Young-gu asked the Cha couple.

“I’ll ask again. Would you like to make a contract?”

“Yes, I will. How much is possible?”

“And you, madam?”

“I’ll make a contract.”

“Then…”

From there, everything proceeded smoothly. The maximum possible amount was determined based on the records they brought. When the Cha couple decided to invest the maximum limit, someone from the treasury came immediately to transfer the amount from the Cha couple’s accounts to the newly created account in the fund.

And as they stamped the document confirming that there were no issues with the entire process, the Cha couple let out tired sighs.

“Phew~. Is it finally over?”

“This is just the beginning. How would you like to invest? Would you like to invest directly? Or should we do it for you?”

At Ko Young-gu’s words, Master Cha pondered for a moment and asked.

“Is it possible to do half and half?”

“Yes, it is.”

“Then, let’s do that.”

“Understood. And how would you like to proceed, madam?”

“I’d like to do half and half as well.”

“Understood. Then, this way please.”

Ko Young-gu guided the Cha couple to the largest room in the fund.

“This is the situation room. As you can see, the bulletin board on that wall lists the names of businesses in Naju that need investment, and the next column shows the current investment status for each business.”

“They’re all about half full?”

“That’s the government’s support funds.”

“I see…”

“Please, have a seat here for a moment.”

After offering seats to the couple, Ko Young-gu sat across from them and continued his explanation.

“The papers on top here are, in order, the 5-day report, the 10-day report, and the monthly report. The 5-day report is updated every five days and records information about those needing investment within a 50-li radius of Naju. The 10-day report is updated every ten days and covers investments across the entire Jeolla Province, and the monthly report covers all of Joseon.”

“Is that so?”

As they listened to Ko Young-gu’s explanation, the Cha couple examined the papers. The papers contained detailed records of people starting new businesses in all sorts of fields and their chances of success.

That day, the Cha couple decided to invest in a mix of businesses starting up in Naju and those in Jeolla Province. Of course, the investment amount was not all of their investment funds, but only a portion.

“Thank you! We’ll do our best!”

“We’re counting on you.”