The office was bustling with people.
It was understandable, as the committee to promote the petrochemical complex was a council established by presidential decree. Any decisions made here were essentially confirmed as government policy.
Naturally, since all the stakes were decided here, a multitude of officials, entrepreneurs, and politicians based in Ulsan attended en masse.
"Alright, since the special advisor is also present, let's discuss the detailed agenda."
"Everyone is busy, so let's let only the relevant parties discuss the technical details. Let's start by discussing land acquisition and factory layout."
"Just as expected from the special advisor, you handle things decisively."
As soon as I brought up the issue of land, everyone's faces brightened. Who cares about technical issues?
"Here is the report. Currently, the progress of land acquisition is about 9%. The acquired land is as follows."
"Only 9%?"
The weary-looking official hung up a large map. The areas marked as acquired were extremely few.
"Yes, as of now. Initially, the price was 5 won per pyeong, but now, even at 600 or 700 won per pyeong, no one is willing to sell. Overnight, dozens of grave sites have sprung up, and it's a nightmare."
Grave sites? It seems compensations for grave sites were the most lucrative back then.
In any case, the land price in Incheon, which was eliminated from the petrochemical complex due to its high price of 400 won per pyeong, seemed absurd compared to Ulsan's 600 won.
Information about the industrial complex was leaking everywhere.
The people gathered here had likely mobilized all their relatives to buy thousands to tens of thousands of pyeong, hoping for land compensation.
"Oh my, the land prices have risen so much that it's causing significant difficulties in project promotion. All of that is taxpayer money…"
Chairman Wang Juyoung sighed.
Now that I think about it, Hyeonsan wouldn't have been able to buy land even if they wanted to. They must be short on operating funds due to the deficit from the highway project in Thailand.
"Chairman Wang, buying land, building factories, and selling products are all part of capitalism. It's also a skill."
"Chairman Do is right. We must focus on getting the industrial complex operational as soon as possible."
Applause erupted from all around in response to Chairman Do's words.
It was as if they thought land prices could just be covered by taxes.
"Where did Suseong bid?"
"We'd like to build the 'Dae Han Fertilizer' factory in area 8 on the map."
In response to my question, Chairman Do Byung-chul pointed to an area that had no land acquisition markings at all.
It meant they had already swept up all the land in area 8.
He must be pleased with the idea of getting land compensation.
"What is the scale of the fertilizer factory? If you inform us, Daese Shilup can coordinate the design with Bechtel from the U.S.…"
"There's no need for that. We've decided on a joint venture with Japan's Mitsui for a project worth $45 million. We plan to produce a total of 330,000 tons of fertilizer."
"With Mitsui for 330,000 tons? I managed to secure a joint venture with the U.S. company Vitro for a scale of 100,000 tons."
"According to the Ministry of Commerce and Industry, a scale of 100,000 tons is sufficient. The domestic demand is 300,000 tons, and Chungju Fertilizer and Namhae Fertilizer already produce a total of 200,000 tons, so only an additional 100,000 tons is needed."
Deputy Minister Yeom Won-chul suddenly stepped forward, flipping through his documents.
"The production volume must be at least 300,000 tons to be economically viable. By producing at a low price, we can meet domestic demand and export the surplus. Since Mitsui is handling the design and construction, the factory efficiency will be top-notch."
Export the surplus? That's nonsense.
Fertilizer is directly tied to national food sovereignty, so self-sufficiency is the principle for each country. Naturally, the number of fertilizer-importing countries is limited, making it difficult to export.
This is a typical trick of the Japanese.
They will dump the market with their abundant capital to kill off our domestic companies, and once they monopolize the market, they will hike up the prices immensely.
The talk about exporting the surplus is just an excuse.
"With the design and construction as well… then, it seems that Hyeonsan and Dorim Construction will only be providing field personnel. Haha. That makes the job easier."
"Did it sound that way? Mitsui is the company that established the Oita petrochemical complex in Japan. To build state-of-the-art facilities, we need a proven construction company."
Even though Chairman Wang was sarcastic, Chairman Do didn't care. He believed that money had no nationality.
"Let's go with Mitsui. I agree as well."
"Huh, President Woo."
"Whether it's Japan or the U.S., it's all investment. In capitalism, you shouldn't refuse profitable opportunities."
"Haha, of course, that's the way to go."
Chairman Do laughed heartily.
Enjoy the mood while you can.
"Then, let me speak as well. The Kabla factory will be in a joint venture with DuPont, the PVC with Blaw-Knox, and the power plant and utility center with Bechtel. We will need about 500,000 pyeong of land in total."
"500,000 pyeong! That means you'll need to occupy both zones 2 and 3."
"Is that so? If the committee decides, we will review the design."
Deputy Minister Yeom, acting as a secretary, organized the tasks efficiently.
Everyone's eyes were gleaming.
They thought that targeting the land in zones 2 and 3 would make them a fortune.
"Since we're on the topic, let's also decide on the companies for the remaining factories. Hasn't the Ministry of Commerce and Industry already reviewed them?"
We need to settle the land issue today.
If speculators keep coming and going, it will only be a headache.
"If the special advisor says so, alright. Based on the current bidding reviews, it seems best for Hanyeong Chemical to handle polyethylene, Cheonunsa for VCM, Dongsan Chemical for ethanol and aldehyde, Asun Chemical for alkylbenzene, Samyoung Tire for synthetic rubber, and Korea Petrochemical for polypropylene."
"Wooooow!"
Cheers erupted from all around.
All the companies that won the bids were ones I had secured loans for in the U.S. If they match the 50% joint venture ratio, the projects will proceed.
"The Ministry of Commerce and Industry will review and decide the factory placements. The winning companies should actively work on technology transfers from their joint venture partners."
Deputy Minister Yeom looked at me after finishing his speech.
It seemed he was asking for help with the factory placements.
Okay, that's a given.
A petrochemical complex is a cluster of factories that share utilities and raw materials, so they need to be grouped together, and their placement significantly affects efficiency.
"Deputy Minister, there's an oversight. The methanol plant is missing."
"Oh, that's not an oversight. The methanol plant had no bidders and was left out."
"No bidders?"
How could a methanol plant have no bidders?
Although the initial facility investment is large, it's ultimately a profitable business.
"Recently, a Japanese company developed a new method and lowered the methanol price from $70 to $40 per ton. In this situation, it's impossible to break even, so Seongjin Wood, the previous bidder, withdrew."
Methanol is used as an adhesive in plywood manufacturing, making wood companies its main customers.
The Japanese are playing tricks again.
For now, the price is $40 per ton, but if we abandon the methanol plant, they'll skyrocket the price later.
"A plant should be built when the complex is being established."
"But we can't build a plant that incurs losses as it produces."
"You can't only consider profitability for a national key industry. Then, can I take over the methanol plant?"
I was already involved with Daese Chemical, Kabla, and PVC. Now I'm taking on methanol as well.
"Will the methanol plant also be in zones 2 and 3?"
"We will review it positively."
"Applause!!!"
"Wooooow!"
This was an atmosphere of 'You build the factory, I'll speculate on the land.'
These people really needed some education.
"Since President Woo is participating, the agenda is being sorted out quickly. Let's meet again next time."
Chairman Do Byung-chul was the first to leave, and his departure signaled the end of the meeting. People gathered in small groups, chattering, and soon the meeting hall was empty.
Nine times out of ten, they all went to look at land.
With the factory owners and land determined, their interest was in how much they could buy the land for and how much they could sell it to the state.
"President Wang, let's have a talk."
"Oh, I was wondering when you'd make time."
I waved to Deputy Minister Yeom and left the office with the anxiously waiting Chairman Wang.
***
"President Woo, please save us. At this rate, Hyeonsan Construction will go bankrupt even if we successfully complete the overseas projects."
As soon as we started the conversation, Chairman Wang pleaded.
Building a highway in southern Thailand during the rainy season is a financially unviable project.
"That's why I told you to spend an additional $1 million on the project cost."
"I must
have been crazy not to listen to you, President Woo. But I did follow your advice and damaged the equipment properly, so please consider my situation."
"How much surplus equipment did you get?"
"Moved it to the U.S. military base, received about $4 million in surplus equipment. If you cover about $2.5 million of it, I think I can survive."
Chairman Wang said seriously, listing the figures.
The surplus equipment price from the U.S. military is about 20% of the original price, so it's like buying equipment worth around $12 million. That amount should include bulldozers, rollers, and possibly cranes.
"Alright. Let's purchase it immediately. Would it help if I paid in cash?"
"Gasp, in cash, not promissory notes?"
Of course. I've spent some money on ship purchases and repairs, but I still have over $50 million.
Since I have spare cash, I don't have the sadistic hobby of issuing promissory notes and watching the other party struggle to survive.
"Where is the equipment stored? How do you plan to bring it to Ulsan?"
"I've gathered it in Apgujeong-dong for now. The land there is cheap, but the equipment is a bit dirty due to the mud."
Chairman Wang gave an awkward smile.
Now I understand why Hyeonsan built apartments in Apgujeong-dong. They stored all their heavy equipment there.
They just built apartments because they had the land.
The man was someone who had money walking right to him.
"It'll be quite an effort to move it to Ulsan."
"Yes, without a highway, we have to move it to Incheon Port, then by sea to Busan Port, and finally to Ulsan."
"The transportation cost will be burdensome. Why don't you change the construction location?"
"Change the construction location?"
"I'll negotiate with the committee, so please take charge of the Union Oil Refinery complex in Incheon. The power plant and facilities there, with a scale of 150,000 barrels, will be just as profitable as Ulsan."
"Gasp, that's why the Deputy Minister's stake in the Incheon project grew to $300 million."
"Will you switch the project?"
"Of course, I will. Saving on transportation costs alone is a significant benefit."
Okay, this way, Daese Construction can handle the basic construction of the Ulsan complex.
Flattening the land in Mipo would set the game.
"Then I'll start moving the $2.5 million worth of equipment tomorrow."
"President Woo, while you're taking the equipment, can you also take the land? Without the equipment, Hyeonsan has no reason to hold onto the empty land. Thanks to you, I can breathe for now, but I could use some operational funds... I'm sorry to keep asking for favors."
"How much per pyeong?"
"I'll sell it for 250 won per pyeong. It's slightly below the market price, so you won't be at a loss."
"Well, in that case, Daese Shilup will take it. We can later build factories or dormitories for our employees."
"Thank you, President Woo."
Chairman Wang gratefully shook my hand tightly.
Is this man's luck flowing to me?
There was no reason to refuse since he was offering.
We could later build apartments for employees if needed.
*Three Weeks Later*
「(Congratulations) Ulsan Petrochemical Complex Groundbreaking Ceremony (Congratulations)」
Boom! Boom! Boom!
Wooooow!
Fireworks exploded, and the crowd of people cheered.
In time for the groundbreaking ceremony, Daese Construction also brought in a huge number of heavy equipment.
The sight of hundreds of heavy machines parading through Ulsan's streets was spectacular even to me.
Wooooow.
As the microphone turned on, TV cameras started rolling, and the cheers grew louder, the President climbed onto the podium.
He seemed excited, looking around and began his speech.
"When the skies of Ulsan are covered with the black smoke of factories and the wheels of factories roar across Ulsan's shores, we will be climbing another step towards becoming a developed country. (Omitted)... Until then, the industrial warriors must not spare their blood and sweat for this grand endeavor."
"Wooooow!"
Technicians in work clothes and local leaders in traditional hats were ecstatic with the groundbreaking ceremony speech.
Air pollution was nothing compared to hunger.
"Distinguished guests, on my command, please press the historic groundbreaking explosion button for the Ulsan petrochemical complex."
The announcer's comment, befitting Dae Han News, echoed through the megaphone.
"One, two, three, press it."
Boom! Boom! Boom!
At the command of the host, colorful fireworks exploded, and dozens of excavators simultaneously lifted their buckets.
"Long live Korea!! Long live!!"
"Long live Ulsan Industrial Complex!!"
"Long live Petrochemical!!"
"Long live the President!!"
All sorts of cheers followed, and some were moved to tears.
"The President will now unveil the master plan."
"Wooooow!"
"One, two, three, pull it!"
Swish, swish, swish.
As the President pulled the string, a large cloth was removed, revealing the master plan of the petrochemical complex.
"Wooooow!"
"Huh? What's this?"
"What's going on?"
Among the cheering citizens, some blinked in confusion.
And it was no wonder. There was a massive petrochemical complex in the Mipo area, and the only thing in the existing industrial zone was the Dae Han Fertilizer plant that Suseong had taken.
A lone plant cannot function properly in a petrochemical complex.
"What's going on... the factory site!"
"Haha, are you all surprised? I was also surprised when I got the report. Special Advisor Woo Chan-soo donated 2 million pyeong of land to the state. This will significantly reduce the construction costs of the complex."
The President laughed heartily, pleased.
"President Woo, what's the meaning of this? This is unacceptable. Return to the original plan immediately."
Chairman Do Byung-chul rushed over, growling at me. How dare he be angry?
"Return to what? The design is already finished."
"Who doesn't know? You donated the land to the state and bought up all the surrounding land, didn't you?"
That's right. Gi Duseok, the mastermind, handled it perfectly.
"What's wrong with that? You said it yourself, Chairman Do. Buying land, building factories, and selling products are all part of capitalism."
"What?"
"I followed your words faithfully. Plus, I even made a donation for the national key industry."
"Still, how can you do this? Move the factory immediately!"
Chairman Do trembled with rage.
"Why should we build an expensive factory when there's cheap land available in capitalism? Oh, are you going to donate the land you bought as well, Chairman?"
In the 21st century capitalism, if you have money, you donate.
That's how you save on taxes and manage even more significant sums of money.
"Haha, what are you doing? On a day like this, let's have a drink of makgeolli."
"Oh... oh... Your Excellency..."
"Did you come, Mr. President?"
When the most powerful person approached, the conversation couldn't continue.
This must be the Korean style of capitalism.
TL/n -
You can read up to chapter 300 at ko-fi.com/inkbound