Let's calculate the money that Sambok will bring in.
In the US, the Nike brand, including Gold Skin, generates $10 million in monthly sales and $2.8 million in net profit.
With about four months of sales, achieving $40 million in revenue, the margin of error in the calculation won't be significant.
Excluding the yarn business of Daese Chemical handed over to Daese Industries, with a catalyst profit of $300,000 per month and Vietnam military supplies yielding $2.7 million in sales and $900,000 in net profit, plus siphoning off $300,000 in wood profit monthly, and Daese Construction bringing in $2 million monthly from Vietnam—all pure profit—the surplus materials stockpiled in Vietnam are my hidden card for now.
So, in total, Sambok will bring in around $6.4 million in monthly net profit.
Even with the special situation in Vietnam, it's an annual income of $75 million. I am indeed a wealthy man.
Even if the special situation in Vietnam ends, it's still $37 million annually.
"What's the interest on the loan again? About 7% annually?"
Even if I borrow a substantial amount of money, there won't be trouble due to interest.
If Sambok can hold out for a year, the gas field will be discovered, and with that performance, we can fully venture abroad.
With a successful track record and oil-producing country status, we can get permits for the Vietnam Baekho Oilfield or Block 7... Just thinking about it makes me shiver with excitement.
To obtain exploration rights from the president, should I build a shipyard or a steel mill?
A shipyard holds more value for me, but the president would likely prefer a steel mill.
I was going to just pretend to review it, but now I have to genuinely review it.
Riiiing, riiing
I called the Ministry of Commerce and Industry first.
"This is Assistant Minister Yeom Won-chul."
"Assistant Minister, this is Woo Chansu."
For some reason, I got through directly without going through a secretary.
"Oh, what brings you to call?"
"I have something to report to the President... No, actually, it's about the steel mill project review."
"The steel mill?"
"Yes, the steel mill. I can't review it alone, so I need some existing review materials. It would be even better if you could assign an official to assist me."
"Oh, we have plenty of materials. It's a project that has been floating around like duckweed for years. Director Seok Gi-hoon's contact... Oh, he's on a business trip to Incheon Steel. I'll send him to Daese Industries."
I heard the steel mill project was proposed long before Pohang Iron and Steel, and it seems to be true.
But I didn't know Incheon Steel was involved.
"No, since I need to see the site anyway, I'll go to Incheon Steel to meet him."
"Oh, will you? Then I'll inform him. You can go tomorrow or the day after."
"Yes, thank you."
Click.
I hung up the phone and gathered my thoughts.
Having gone through plant, shipbuilding, and construction, I'd heard various things about the steel industry.
But wasn't Incheon Steel a struggling company?
I recall it struggling against Pohang Iron and Steel until Hyunsan Group acquired it and focused investments in automotive steel sheets and special steel, improving its performance...
So Incheon Steel was a part of the steel mill project?
"I should take a look. Maybe with a little tweaking, I could produce thick steel plates for ships?"
If the goal is a comprehensive steel mill, a steel mill with a blast furnace in Pohang is optimal, but if I can produce hot-rolled steel plates for ships, it could be a favorable short-term steel mill for me.
If I produce 200,000-ton oil tankers with hot-rolled thick plates first and then slowly build a large comprehensive steel mill, it wouldn't be too late.
"Secretary Gi Duseok."
"Yes, President."
Secretary Gi responded immediately.
It felt like he'd been my secretary for a long time; his adaptability was remarkable. The way he perfectly handled the factory site matter amazed me.
Even if I had done it myself, I couldn't have done better. I really picked the right person.
"Can you take me to Incheon Steel?"
"Yes, I'll take you right away."
Even just driving me allowed me to review materials and plan the business during travel time, speeding up work processing.
"Oh, are you studying English?"
"Yes, I am. There's an American missionary near my house, so I've been going to church, something I never thought I'd do."
"Hahaha."
Going to church to study English? His quick thinking is impressive.
Considering that, Daese Industries does lack talent.
If I mainly handle the steel mill or shipyard business, naturally, I'll pay less attention to petrochemicals or clothing business.
I can trust Chairman Hwang Hyesung to manage Daese Chemical exceptionally well, let Sambok handle the textile business, and put Captain Yoon and Captain Smith in charge of the shipping business, but someone still needs to occasionally oversee the East Sea gas field and petrochemical complex project...
Perhaps I should start recruiting experts in steel mills and shipyards now?
Is it right to continue recruiting workers, including skilled workers, from Jeonpo-dong?
Is it time to consider hiring executive-level talents and public recruitment?
Instead of always contemplating recruitment, it seems necessary to create a channel where talents voluntarily come to us.
***
Knock, knock.
"President, we've arrived."
"Oh, we're here."
The sound of a light knock on the car window woke me up.
Secretary Gi, who was waiting outside, opened the door as I woke up.
It was already late at night.
We might hit curfew if we're not careful.
I'll be released soon enough, but still, it'd be a hassle if we get caught.
"President, I've brought you to the best inn near Incheon Steel. I'll see you tomorrow."
"Stay here with me. Let's have a meal too."
"No, thank you. I'll handle it separately. Please rest well. I'll pick you up early tomorrow morning."
Secretary Gi guided me into the inn and quickly disappeared. He really is like the wind.
"Welcome. Are you alone?"
"Yes. Please give me a room and some late-night snacks."
"Yes, sir. I'll serve you hot soup and a bottle of soju in the room."
"Thank you."
I didn't want soju, but I'll take what's given.
"This is your room. The washroom is here. Please have a good rest."
The lady was very polite.
When I entered the room she guided me to, it was wallpapered with newspapers, and a hole was punched in the wall with a single light bulb.
It was a setup where the light bulb was shared between my room and the next. Calling it the best lodging nearby felt quite shabby.
Click.
"Hello, can you turn on the light, please?"
I hadn't even washed up or taken off my socks when the light went out.
"Oh, I'm sorry. Didn't know someone was here."
The walls were so thin that I could talk to the next room's occupant. It was almost as if the walls weren't there.
Strangely, the voice sounded familiar.
There's no way I'd know anyone here.
"Uh, could it be, President Woo?"
"Who's there?"
"Oh, it's really you. This is Yeom Won-chul."
With a rustling sound, Assistant Minister Yeom barged into my room.
"Are you staying here?"
"You left right after the call. Director Seok Gi-hoon, please introduce yourself. This is President Woo Ch
ansu from Daese Industries."
"Yes. I'm Seok Gi-hoon, Director of the Second Industrial Bureau at the Ministry of Commerce and Industry. I've heard a lot about you."
Is this a coincidence?
Anyway, seeing a high-ranking official staying here, it must really be the best inn near Incheon Steel, as Secretary Gi said.
"Oh, it looks like there's another guest. Please wait a moment; I'll bring some more snacks."
"Ah, madam, we'll be opening a bottle of ginseng liquor, so please prepare a dish of boiled pork."
"Yes, sir."
Assistant Minister Yeom proudly shook the ginseng liquor bottle.
He seems to carry all sorts of things with him.
The innkeeper, who was bringing late-night snacks, ended up serving the table.
"I was thinking of having a drink with President Woo, and tonight is perfect. This one's been aged for seven years. Please, have a glass first."
Assistant Minister Yeom filled my glass first.
With his sociable nature, he seemed more suited to being a businessman than a government official.
"Let me pour you a glass as well."
"Haha, please fill it up."
"Thank you."
We filled each other's glasses and quickly made a toast and drank.
The bitter aroma was exquisite. It was good.
"I hope I didn't disturb your sleep."
"Oh, no worries. Director Seok here prepared a lot of materials for you, President Woo. He was too nervous to sleep, so I turned off the light."
"Since it came up, I'll give you the materials now. Please read them when you have time."
Director Seok pulled out a bag from somewhere and started stacking thick reports.
"First Five-Year Economic Development Plan - Comprehensive Steel Mill."
Even the title of the top document was impressive.
So, the comprehensive steel mill construction was indeed in the first economic development plan.
"So, the comprehensive steel mill has been planned for a long time."
"Yes, that's right. It will be five years this September. Other projects have seen some success, but the steel mill project is really at a dead end, making it tough for those working on it."
Director Seok kept emptying his glass, looking frustrated.
"Director Seok, now you can relax. With President Woo joining, just focus on moving forward. He gets things done with flair."
"I've heard a lot about you. However, the steel mill project has been thwarted by the US, West Germany, and Japan, so I worry that President Woo might also face difficulty. They all want to use our country, causing progress to be interrupted multiple times. This is the third time now."
"Three times, you say?"
It's rare for a national project to be thwarted three times.
"Yes, three times. But we have to do it. Without producing steel, our country cannot escape its dependent economy. Despite challenges, we must secure blast furnaces, steelmaking, and rolling mills."
This guy seems quite capable for a government official.
He understands the importance of the steel industry and has a sense of responsibility.
"What can we do? Unavoidable circumstances. We were progressing well with West Germany when the US got involved, causing a break. Then Kennedy's assassination disrupted things further. During the Korea-Japan negotiations, a $200 million loan for a steel mill was included, but it fell through at the last minute. Ultimately, we're back to seeking loans from West Germany. It wasn't really a joke."
Indeed, it was a joke.
The involvement of the US complicated things.
It seems we couldn't ignore US pressure, and Kennedy's ambiguous politics didn't help.
The US essentially wanted Korea to choose them over West Germany or Japan if Korea insisted on steel production. Fundamentally, the US preferred Korea to remain in labor-intensive industries rather than entering heavy chemical industries like steel production.
Developed countries, even if they are allies, prefer middle-income countries to stay at that level so they can continue to benefit from them.
"Whether it's a joke or not, pushing for steel industries through Incheon Steel, Joil Steel, Union Steel, and Dongkuk Steel is detrimental. Splitting up the steel industry like this will ultimately serve as an excuse for us not securing comprehensive steel mill loans."
Director Seok Gi-hoon seems to have a good grasp of the situation.
"Still, what can we do? Everyone knows a comprehensive steel mill is best, but we lack large-scale investment and technology. The government's phased approach isn't wrong."
"Assistant Minister, what's the annual crude steel production in these phased plans?"
Curious, I asked about the production volume.
"Currently, we aim to reach an annual 100,000 tons by early next year, increasing to 300,000 tons annually by 1972."
An annual 300,000 tons?
I understand why Director Seok sighed.
This is not child's play. Combining the production of four steel mills barely reaches 300,000 tons annually?
With 300,000 tons, steel production would only pile up losses.
Even the 500,000-ton steel mills built in India and Brazil with US loans suffer losses, extracting money from the US. Combining four companies for 300,000 tons is like importing pig iron and only making steel plates.
They only intend to profit in the domestic market, not aiming for exports.
Damn it.
Are they planning to exploit the people instead of aiming for export profits?
Even Dongkuk Steel isn't involved, but Joil Steel and Union Steel clearly imply they will import pig iron from Japan.
Borrowing state-guaranteed loans to weaken the country's industrial foundation cannot be allowed.
"You mean the Ministry of Commerce and Industry agreed to this?"
"Of course. We need to produce steel. Steel is like the rice of industry."
Who says steel isn't the rice of industry?
Why did you agree to 300,000 tons, you fool?
Assistant Minister Yeom really misses the point.
I turned my attention to Director Seok Gi-hoon.
If he doesn't understand my point, I'll have to replace him first.
"We knew agreeing to just 300,000 tons was wrong, but there was no other choice. We need steel urgently."
"Urgently?"
Despite understanding my point, his tone was strange.
"Yes, President Woo. Frankly, the steel situation in our country is dire. We've been using recycled war scrap metal and importing 100,000 tons of pig iron annually from Japan. But from the second half of this year, pig iron imports are becoming difficult, and war scrap metal is completely depleted. Thinking of the skyrocketing steel prices is horrifying. We can't delay any longer."
So, we've been melting scrap metal and importing foreign pig iron to produce steel.
"Why is pig iron import becoming difficult?"
"We've been importing pig iron from Japan, but the steel industry in Northern Kyushu claims they can't export due to supply shortages."
"The Japanese government stepped in."
"The Japanese government is friendly to us. They support the construction of a comprehensive steel mill with a production capacity of one million tons annually. The issue arose with the loan during the initial phase of the Korea-Japan agreement. Many Japanese entrepreneurs want joint ventures to apologize for the colonial era."
Assistant Minister Yeom sighed, drinking the ginseng liquor.
Is he naïve or pretending to be?
"Japan isn't being friendly to us; we're just a target for their achievements. Don't be mistaken."
This explains why most of our leaders misunderstood Japan at that time.
They had no idea how significant the economic assets we provided to Japan were.