[Opinion] The Angel's Share, The Devil's Share

Alcohol trends come and go. Wine once dominated an era. The Japanese manga "Drops of God" (Kami no Shizuku) also gained popularity in Korea as a result. Then came the Makgeolli craze. A nationwide Makgeolli brewery tour map was even released. Young people started a novel drinking method of not shaking the Makgeolli and only drinking the clear liquid on top. Now, it is the era of whiskey. Not only authentic Scottish whiskey but also Japanese whiskey have been sold out.

A certain former ministerial-level official was once a wine evangelist. It is well known that he bought large sets of "Drops of God" and frequently gifted them to acquaintances. Now, he is obsessed with whiskey. He always brings whiskey to gatherings and even carries a luxurious jigger separately. I heard an interesting story about whiskey from him. There is the "Angel’s Share" and the "Devil’s Cut."

The Angel’s Share refers to the amount of whiskey that naturally evaporates and decreases during the aging process in oak barrels (known to be 2% in the first year, 18% after 10 years, and 64% after 50 years). There is a plausible interpretation that this is offered to angels for the taste and aroma of the whiskey. The Devil’s Cut is the amount absorbed and lost in the oak wood during aging. Over time, stories have been exaggerated that some brewery employees secretly siphon off small amounts or bartenders leave a little in the jigger when pouring for customers. Compared to the Angel’s Share, this feels more tangible.

Recently, financial accidents in the banking sector have been occurring one after another. To use an analogy, this is the Devil’s Cut, but on a completely different scale from sneaking a small amount of whiskey. The amounts are literally in the billions. From 2019 to 2023, embezzlement amounts at the five major commercial banks (according to Rep. Oh Ki-hyung of the Democratic Party) were: Woori Bank 73.5 billion KRW, Hana Bank 4.5 billion KRW, NH Nonghyup Bank 3 billion KRW, Shinhan Bank 1.1 billion KRW, and Kookmin Bank 500 million KRW. Kyongnam Bank experienced an embezzlement incident of a staggering 290 billion KRW last year. The number of financial accidents including breach of trust has been decreasing: 48 cases in 2021, 40 in 2022, 34 in 2023, and 11 so far this year. However, there were six major financial accidents involving over 10 billion KRW during the same period, four of which occurred this year. This is a seriously worrying story that big thefts have increased more than petty thefts.

On the opposite side of financial accidents is win-win finance such as interest refunds for vulnerable groups. This can be likened to the Angel’s Share and should be a natural part of everyday business activities like whiskey evaporation. Only then can it lead to value-up (increase in corporate value). Last year, the four major financial holding companies each executed win-win finance worth several hundred billion KRW. This was triggered by the president’s harsh pressure on "money feasts (excessive bonuses)," "interest business (excessive interest collection)," and "public goods (need for governance improvement)." It is said they reluctantly complied.

The president and financial authorities’ pressure on win-win finance was not free from criticism as "another form of government-controlled finance." However, this cannot be an excuse for banks. Banks themselves are not free from criticism for being stingy with the Angel’s Share and generous with the Devil’s Cut.

Constant dripping wears away the stone. Being generous with the Devil’s Cut can ruin you in an instant. Not only materially but also in terms of honor and pride.