Thanks to my uncle, I ended up investing in MCsoft almost by accident, but Korea had not yet shown any signs of a dot-com bubble.
In order to overcome the foreign exchange crisis that had shaken the nation’s entire economic structure, the government began pouring resources into the KOSDAQ market and policies to foster venture companies centered on small and medium-sized enterprises.
Starting around April 1999, the dot-com bubble would truly ignite.
Korea’s dot-com bubble really showcased the purest form of a degenerate stock market.
At the time, the stock market was still immature, with day trading and price manipulation running rampant.
Companies like Dreamline and Goldbank left behind legendary records—PERs of 9,999—before ultimately being delisted.
Was this when Seorom Technology, the company that wrote the legend of explosive stock surges, first appeared?
If my seed money had been small, inflating it through Korea’s dot-com bubble would have made sense.
But now, I had accumulated too much capital to operate comfortably within Korea alone.
No matter how dramatic Korea’s rises might be, the absolute scale of its market simply couldn’t compare to Nasdaq.
To make money on an entirely different order of magnitude, I needed to operate primarily in the United States.
In Korea, you have to buy and sell quickly, but I’ll be in the U.S., so it won’t be easy.
And honestly, I don’t even need to invest in Korea—making money solely in America is more than enough.
While the U.S. dot-com bubble would surge sharply in 1999 and 2000, from 1995 onward, the Nasdaq Composite Index would climb nearly 400% by the time it reached its peak.
Then, when the bubble burst in 2001, investors would suffer losses totaling a staggering five trillion dollars.
My plan was to seize as much as possible from that five trillion before it vanished into thin air.
Household computer ownership in the U.S. is already quite high, and with the Telecommunications Act of 1996 in effect, the government is now investing heavily in communications infrastructure.
The U.S. government was investing over five hundred billion dollars into laying fiber-optic cables, installing new switches, and expanding wireless networks.
As a result, internet speed and usability in the United States were improving at a remarkable pace.
On top of that, the Taxpayer Relief Act passed this year lowered capital gains taxes, making it easier for people with spare cash to pour money into stocks.
With government policy aligned this way and companies making massive profits through successful IPOs, astronomical sums of money began flooding into IT firms.
I’m still steadily accumulating Qualcomm shares, and I’m methodically increasing my positions in major blue-chip tech stocks as well.
Next year, Qualcomm’s stock price would surge by 2,619%, and the major U.S. tech giants would each rise by more than 1,000%.
Some companies would rise even more than that, but their initial market caps were so small that it was difficult for me to enter meaningfully.
On the other hand, many companies would also be delisted.
So I focused on relatively stable firms that still had the potential to increase tenfold or more.
Once the interest rate cuts are announced, I’ll start borrowing in earnest and load up on dot-com stocks.
I welcomed the start of 1998 back in Korea and reviewed once again the dot-com companies I would be investing in from this year onward.
“Come to think of it, with the exchange rate hitting 2,000 won per dollar, I’ve suddenly reached one trillion won.”
As the new year began, my assets surpassed five hundred million dollars.
With Korea in the midst of a foreign exchange crisis, that translated to nearly one trillion won.
My daily life hadn’t changed much, but my assets were increasing so quickly that it didn’t feel real.
Once the dot-com bubble ended, my wealth would multiply more than tenfold.
Fifty billion dollars in personal assets would be an enormous sum, but it would still amount to just one percent of the five trillion dollars that would evaporate in the bubble’s collapse.
After tapping away at a calculator, I decided to pursue more aggressive borrowing and investing to see if I could reach two percent—one hundred billion dollars.
“I’ll be swamped with stock investments for a while. I’ve already invested in most of the major companies, and thankfully, there aren’t many new startups popping up for the time being.”
I had already completed early-stage investments in companies that would grow into major IT giants.
Aside from Allen Musk, who would sell his company next year and start a new one, there were no other startups demanding immediate early investment.
As for PayPal, I already had a relationship with Allen Musk, so securing an early stake there wouldn’t be difficult.
I was spending winter break in Korea, welcoming the new year and planning the months ahead, when I received an unexpected call.
“I thought you might not be in Korea during winter break, but you really are there.”
“Didn’t you visit Korea just last fall? You come more often than I expected.”
“I decided to do some business in Korea. I thought it was a small country, but it’s more interesting than I expected. If you have time, how about meeting briefly?”
I accepted a dinner invitation and went with my parents to a hotel perched on Namsan.
“It’s even nicer to see you here in Korea.”
“We’re glad to see you here as well, Mr. Trump.”
The person who invited my family was Donald Trump, whom we had met in New York.
Working with Taeu Group on construction projects, he had come to Korea to build a super high-rise mixed-use complex bearing his name.
“I toured a shipyard in Geoje, and it left a strong impression. The scale was incredible.”
“You visited a place even we haven’t been to.”
When Trump mentioned touring Taeu Marine Shipbuilding, I recalled how that shipyard would later change hands and go on to acquire American shipyards, helping revive the U.S. shipbuilding industry.
“Koreans are truly kind, diligent, and intelligent. I was very impressed by their remarkable development.”
Trump said he had tried various Korean dishes and found the raw fish he ate in Geoje particularly memorable.
Despite his macho, self-centered image, his stories about Korea were unexpectedly entertaining.
Over a full course of Korean cuisine at the hotel, we talked at length.
“I’m planning to build a luxury residential complex in Yongsan as well. How about buying a unit?”
“Well… I live in the U.S., so I don’t really need a house in Korea.”
“You can rent it out to businesspeople stationed in Korea. I’ll give you a unit on the royal floor with a great view.”
A businessman to the bone, Trump urged me to purchase a unit in what would become the Trump World Tower in Seoul.
Having already decided to buy multiple apartments, I quietly ran the numbers in my head.
He’s right that rental demand will be steady, but the returns are much lower than large apartment complexes slated for redevelopment.
What should I do?
Trump’s apartments were extremely expensive, making resale difficult, and even with the IMF crisis, the presale price was anything but cheap.
“James has already purchased several apartments during this visit to Korea. So unfortunately, it’ll be difficult for us to accept Mr. Trump’s generous offer.”
“Your son clearly understands the real estate cycle.
In my view, Korea—especially Seoul—is at the perfect moment for investment. I was going to offer you a 100-pyeong penthouse overlooking the Han River and Seoul at cost, but that’s a shame.”
“Ugh… all right. I’ll take it. I don’t have to put down the deposit immediately, right?”
“Nothing is finalized yet, so there’s plenty of time.
If everything goes according to plan, completion won’t be until 2003. You can pay the balance slowly until then.”
In the end, I also ended up purchasing the penthouse in Trump Tower, which would later be worth as much as ten billion won.
I’ll be coming to Korea in the future anyway.
I can stay there then.
Having secured yet another first occupant, Trump looked pleased and said he would grant me one favor in return.
“I don’t have to decide right away, do I?”
“It would be best for me if you asked now, while you’re still in high school, but it’ll be better for you to use it in the future. Just use it before you move in.”
Since Trump would continue raising his profile in the U.S. stock market and eventually run for president, building a close relationship with him mattered.
Even if it meant waiting decades, since things had turned out this way, I decided to buy the most expensive unit in the apartment complex he was building in Korea.
“Then study hard, and come visit New York during summer vacation.”
The Trump we met in Korea seemed far more normal than when we first met.
He chatted happily with my parents and showed a hint of fixation on me, insisting I visit New York in the summer.
Since my sister was planning to attend vocal school again, I said we would, and after dinner, we parted with promises to meet again in the U.S.
“I looked him up separately in Seattle, and Mr. Trump is quite a famous figure.”
“He does have a lot of eccentric behavior, but when you look at the results, he’s far from ordinary.”
“Come to think of it, there are so many famous people around Jaesung.”
Mom said it felt surreal that we had connections to the Walton family and Warren Buffett.
“Mom, the Jefferson family you’re close to is also pretty famous in the U.S.”
“That’s true, but aren’t you also close with the famous Steven Jobs?”
My parents and sister marveled at how many well-known figures surrounded me.
My sister was also close to people who would become famous, but since they hadn’t debuted yet, it was hard to argue.
After meeting Trump in Korea, the day soon came for us to return to the United States.
“It’s a shame you’re leaving already.”
“Winter break in the U.S. is short, so we don’t have much choice. But summer vacation is long, so we’ll come again.”
“Good. You seem to have settled in the U.S. now, so come back often.”
After saying goodbye to both sides of the family, we headed to Gimpo International Airport to return to America.
I asked Dad again about expanding Grandpa’s hospital, but he declined, saying it wasn’t necessary yet.
Since it wasn’t urgent, I decided to bring it up each time we visited Korea.
Expanding it two or three years later, when the economy worsened further, might actually be better.
Leaving behind Korea at the end of 1997, we boarded a domestic first-class flight at Gimpo Airport and flew back to Seattle.
Although it was a long flight across the Pacific, Seattle was closer to Korea than New York or other East Coast cities, so it wasn’t too exhausting.
“Korea was nice, but our home is the best!”
“Mom feels the same. Home is the most comfortable.”
Jaeeun and Mom had grown accustomed to our house in Seattle, and after a few weeks away, I was glad to see the garage again too.
“Did you have a good trip to Korea?”
“It was a bit cold, but it was great to be back after so long.”
“We brought gifts, so let’s have them as snacks.”
Knowing we had returned from Korea, the Jefferson Bezos family came over to visit.
We gave them seaweed and Korean snacks we’d brought back.
“How were Christmas and New Year?”
“Year-end is peak season, so it was even busier. It gets busier every year.”
“But now that you have more employees, isn’t it easier than before?”
Jefferson complained that the end of the year always left him overwhelmed.
Even as he hired more staff, the workload never seemed to lighten.
“You’re just bragging about how fast your company is growing.”
“Well, if I can’t complain to you, the major shareholder, then who can I complain to?
I want to take a vacation too.”
Despite his grumbling, Amazon.com was experiencing explosive growth, amplified further by the dot-com bubble.
His wealth was increasing by the day.
Naturally, my assets—holding a stake in Amazon.com as well—were also rising, and the company’s value would continue to climb for the foreseeable future.
Sorry, Jefferson, but once we hit the peak, I’ll have to liquidate everything.
Even though Amazon.com would survive the bubble’s collapse and grow into a global powerhouse, its stock price would lose 95% of its value.
My plan was to sell at the top—and buy back in at the bottom.