Wall Street Korean Who Created Biden Crisis: The 'Nabi Effect' [Correspondent Diary]

Virginia Governor-Elect Falls Behind Korean Rival in Political Debut
Driven to Biden Crisis Just Two Years After Entering Politics
Wealth Increases and Rapid Rise as Political Star

Governor Glenn Youngkin of Virginia is delivering his victory speech.
[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] An American who left his company due to being overshadowed by Koreans has shaken President Joe Biden's seat and emerged as a star in the political arena after two years. This is the story of Glenn Youngkin, the Governor-elect of Virginia.

Republican Youngkin comfortably won the election held on the 2nd, defying expectations of a close race by defeating Democratic candidate Terry McAuliffe.

His victory in this election, seen as a proxy battle between President Biden and former President Donald Trump, is particularly remarkable. The upset in a place where President Biden won by a 10 percentage point margin over Trump in last year's presidential election came as a shock that shook the U.S. political scene.

In a way, his election can be seen as shaped by Koreans. Youngkin's defeat in an internal power struggle at his company led to the current situation. If Youngkin had thrived at the company, he might never have run for office or stabbed President Biden in the back.

Youngkin left the private equity firm Carlyle Group, where he had worked for over 20 years, in 2020.

Lee Gyuseong Carlyle Chief Executive Officer

Foreign media reported that Youngkin lost out in a competition for promotion against current Carlyle CEO Lee Kyu-sung. When Carlyle's founders retired in 2018 and the two were promoted as co-CEOs, it was hard to predict who would be the ultimate winner. The conclusion came two years later. The winner was CEO Lee. A major foreign outlet described Youngkin as having been pushed out in a power struggle.

Performance determined their fates. CEO Lee was in charge of the private equity and credit divisions, while Youngkin oversaw real estate and infrastructure investments.

A former Carlyle insider recalled, "The two CEOs had very different personalities. CEO Lee was a classic, sharp New Yorker, but Youngkin was a cheerful person. They were like oil and water."

The insider explained, "CEO Lee took control of important businesses from day one." The sectors Lee managed were Carlyle's core and decided their destinies. As Youngkin's divisions struggled, he had no choice but to pack up.

After Youngkin left, the company's value began to soar. Under CEO Lee's leadership, Carlyle's stock price surged 116% in one year. Consequently, Youngkin's wealth also increased. Forbes reported that Youngkin's net worth rose to $470 million.

Although Youngkin left the investment industry, he gained both increased wealth and honor by winning the governorship. According to Forbes, Youngkin is the second wealthiest U.S. governor. Leaving the private equity industry marked a turning point in his life.

Youngkin won the election by recognizing that Virginia residents' main concern was education, without relying on former President Trump's influence. His precise judgment, honed in private equity, is credited for leading him to victory. There are also prospects that he may aim for a higher office.

Youngkin is not the only one from private equity and investment banking?top warriors of the capital markets?to succeed in U.S. politics. Phil Murphy, the Governor of New Jersey who made a political comeback after a close race in this election, is also a former Goldman Sachs investment banker. Governor Murphy managed Democratic funding with his financial prowess and served as U.S. Ambassador to Germany, appointed by former President Barack Obama.

On the Republican side, Senator Mitt Romney, a leader of the anti-Trump faction, has experience working at Bain Capital, a private equity firm. Romney is a heavyweight politician who was the Republican presidential nominee and ran against Barack Obama. Even former President Trump, who dominated the Republican Party, could not restrain Senator Romney.