LaGuardia Airport, New York.
Seok-won, seated in the wide, plush chair of his private jet, watched through the windscreen as the Leonardo da Vinci piece he had purchased at a Sotheby's auction not long ago was unloaded from a vibration-free truck and carefully loaded onto the aircraft. Then he turned his head back.
Listening to the clink of ice, he took a sip of whiskey from a rocks glass and spoke to Landon, who was sitting across from him.
"The U.S. government's economic stimulus measures are still dragging, aren't they?"
Landon, meeting his gaze, replied with a slightly frustrated expression.
"It looks like the economic stimulus package, which has been dragging on for nearly two months as leaders from both parties negotiate over a mid-level compromise proposed by the Senate and the House, is likely to be finalized soon."
"The size of the stimulus narrowed down to about 75 billion dollars, right?"
"That's correct. Considering that the stimulus first proposed by the White House and the Republicans was on the scale of 130 billion dollars, the amount has been cut by almost half."
"At first, it seemed like both parties would work together in a bipartisan way to pass the stimulus to prevent the economy from slipping into a recession because of the 9/11 attacks. But in the end, it's turning into a political tug-of-war."
At that, Landon replied with a bitter expression.
"On top of everything else, President Bush's approval rating is soaring after the successful attack on Afghanistan. If a massive economic stimulus is carried out on top of that and an enormous amount of dollars is pumped into the economy, it'll be practically impossible for the Democrats to win the midterm elections. Of course, they'd want to cut the amount as much as they can."
"They said President Bush's approval rating went over 80%, right?"
"According to the Gallup poll released yesterday, the complete fall of Kabul, the capital of Afghanistan, pushed his approval rating even higher, to 91%."
"If the president's approval rating is that high, no wonder the Democrats are getting anxious."
Seok-won said with a bitter smile.
"They're being dragged along because they have to watch public opinion, but deep down, they probably don't want the stimulus package to pass at all."
Nodding slightly in agreement, Seok-won idly turned the rocks glass in his hand and asked,
"How is the short-selling I instructed last time going?"
"Just as you said, we're watching to see what the government does with the stimulus, and in the meantime, we're building short positions little by little in both WorldCom and Xerox."
Xerox was one of America's representative companies, so famous that its very name had become a common noun meaning photocopiers or copying.
It had even received a Royal Warrant from Queen Elizabeth II, which was proof of its unrivalled technology in copying and printing.
On top of that, it had long ago established the Xerox Palo Alto Research Center, where it developed numerous cutting-edge technologies such as the mouse and the graphical user interface, which are now essential components of modern computers.
'Even such a famous and respected company, always included on the Fortune 500 list, was no exception when it came to the accounting fraud scandal.'
Unlike Enron or WorldCom, Xerox was a company with nearly a hundred years of history, one that American investors had always considered among the most stable and solid. That was why the revelation that it had committed accounting fraud came as an even greater shock.
Landon seemed to feel the same way, shaking his head with a hollow expression.
"I never would have imagined that even Xerox was manipulating its books."
"Isn't that proof that while the dot-com bubble was inflating so massively over the past few years, corporate ethics were quietly collapsing in places no one could see?"
"That's right."
Seok-won washed his throat with a sip of whiskey and brought up a new topic.
"On top of that, I hear the economic situation in Argentina is getting even worse."
At that, Landon leaned forward and replied.
"Yes. The president came to the U.S. for a summit, but there are no signs that the economy is improving. In fact, with unemployment surpassing 18 percent and wages and pensions being sharply cut, public anger is only continuing to grow."
"Wages and the value of the currency are falling, while prices are skyrocketing. It's only natural that society would become unstable."
"The Argentine government seems to be hoping that the United States will step in and help, like it did during the Asian financial crisis."
Seok-won frowned slightly, showing a skeptical reaction.
"If this were any other time, they would have stepped in together with the IMF to stabilize South America, which is practically their own backyard. But right now, the U.S. government can barely manage its own problems, so it'll be hard to expect any support."
"I think so too."
From Argentina's perspective, the timing could not have been worse.
"The price of Argentine government bonds, which we sold in large quantities in advance on your orders, has already fallen by 30 percent. Are you planning to keep watching?"
Without the slightest hesitation, he answered immediately.
"If the situation in Argentina unfolds as expected and turns into a default crisis, the bond prices will fall even further. Let's keep the position as it is."
"Understood."
Landon had also judged that it was better to leave the position in place a little longer rather than close it out now, so he accepted the instruction without objection.
Then he naturally moved on to the next topic.
"And we've received approval from the U.S. government to relocate the neodymium permanent magnet factory facilities in Valparaiso, Indiana, to Korea."
Hearing the news he had been waiting for, Seok-won's face brightened.
"That's a relief. I was worried because the government approval was taking so long."
"They managed to stop New Materials Technology, which acquired Magnequench under the pretext of military supplies, from dismantling the entire production line and moving it to China. But with all the regulations and opposition from environmental groups, it would have been hard to keep the factory running in the U.S. anyway."
"That makes sense. You said the protests have practically brought the plant to a halt, right?"
"That's correct."
In fact, no matter how many environmental groups came and held continuous protests, if there had been the will to keep the factory running, it would have been possible to continue producing goods.
However, even though they failed to dismantle and take away the production line, they had already built an identical twin factory in Tianjin that was exactly the same as the Indiana plant. Since the Chinese company's real objective had been to steal the technology and production know-how, there was no real reason for them to keep the U.S. factory running anymore.
'In fact, if they want to get the Tianjin plant up and running quickly, it's more profitable not to produce anything in the United States at all.'
So they deliberately used the environmental groups' protests as an excuse to gradually reduce the operating rate, and recently they had stopped it completely.
In that situation, under pressure from the White House, they sold the entire Indiana plant to the Eldorado Fund for five million dollars, and it had now become Seok-won's property.
"Then there's no need to waste time. Let's build a new plant on the site we prepared in Ulsan and move all the equipment over."
"I'll take care of it."
As if he had just remembered something, Seok-won immediately added,
"Don't forget to bring the key engineers to Korea as well so production can run smoothly."
"Of course. We've already finished signing new employment contracts with all the necessary personnel, under the condition that they work in Korea for five years."
Pleased with the clean and efficient handling of things, Seok-won showed a satisfied expression.
"Make sure to provide as much support as possible so the engineers and their families can adapt well to life in Korea."
"Understood."
Ulsan, which was home to some of the largest automobile plants and industrial complexes in the world and also had a major export port nearby, was the perfect place to build a neodymium permanent magnet factory and start production.
'If Korea has a production facility that can manufacture neodymium permanent magnets in large quantities, it can become a powerful check when China tries to threaten other countries by using rare earths as a weapon in the future.'
On top of that, when the United States and China eventually clashed, it could also be used as a strong card for the Korean government, allowing it to navigate the crisis with a real voice instead of getting caught in the middle and crushed.
"What's the status of acquiring the Mountain Pass mine?"
When Seok-won asked while leaning back, Landon showed a slightly troubled expression.
"The White House is positive about it, but the California state government is taking a negative stance on keeping the mine operating."
Seok-won frowned slightly.
"Is it because of environmental pollution issues?"
"That's right. As you know, the process of mining rare earths causes serious heavy metal and radioactive contamination."
As he listened with his arms crossed, Landon continued.
"Given the location of the Mountain Pass mine, the wastewater generated during mining could seep into the groundwater and contaminate the drinking water of residents in the nearby areas of Primm and Jean in Nevada. That's why they're even more opposed to keeping the mine in operation."
"How likely do you think it is that we can persuade the California state government?"
Landon hesitated for a moment, then replied with a serious expression.
"I hate to say it, but honestly, the chances look very slim."
"Because of the residents living around the mine?"
"That's right. The opposition from local residents is already very strong, and on top of that, environmental groups are putting pressure on the governor and state legislators. Even if we forcibly acquire the mine, it doesn't look like it will be easy to keep mining rare earths."
Regardless of political leanings, environmental issues had become a major topic in American society, which made operating something as harmful as a rare earth mine even more difficult.
Seok-won rubbed his clean-shaven chin with one hand, thought it over for a long moment, then clicked his tongue and backed off.
"It's a shame, but it can't be helped. Let's give up on acquiring the Mountain Pass mine here."
"I'm sorry."
"It's not that you didn't try hard enough. There's nothing we can do about the situation."
Even though he said it was fine, Landon couldn't easily relax his expression, thinking that he had failed to carry out Seok-won's instructions.
Just then, Andrea, the private jet's stewardess, came over.
"We'll be taking off shortly."
"Ah, then I'll be getting off now. Have a safe trip to Korea."
"Take care, Landon."
Landon got to his feet, gave a polite bow, and then walked off the private jet.
As soon as he was gone, Andrea closed the door, pulled the lever, and sealed it completely. Then she came back and said,
"They could fall and break during takeoff, so I'll clear the glasses for you. And please keep your seatbelt fastened until we reach cruising altitude."
With a bright, charming smile, Andrea gave a small nod. After confirming that Seok-won had found his seatbelt and fastened the buckle, she left her seat.
Sinking into the plush chair, he waited for a moment. Then the two powerful Rolls-Royce engines mounted at the rear of the fuselage woke up with a low vibration.
Following instructions from the control tower, the private jet moved slowly, then soon entered the runway, which had been cleared completely.
Stopping at the starting line, the aircraft revved its engines up to maximum output, gathering all its strength. Then it shot down the long, straight runway like a sprinter.
And just before reaching the end point, it kicked off the ground with force and soared up into the cloudless, deep blue sky.
TL/n -
The Mountain Pass mine in California is the only large-scale rare earth mining and processing facility in the Western Hemisphere, producing over 10% of the world's rare earth supply and playing a critical role in U.S. technology and defense industries.
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Gallup, Inc., an analytics and advisory company founded by Dr. George Gallup in 1935
A Gallup Poll is a type of public opinion survey conducted by Gallup, Inc., designed to measure what people think, believe, or intend to do on political, social, or economic issues. It's one of the most recognized and influential polling methods worldwide.
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Xerox is a U.S.-based technology company best known for inventing the modern photocopier and now specializing in document management, digital printing, and workplace solutions. Founded in 1906, it operates in over 145 countries with about 16,500 employees and reported $6.22 billion in revenue in 2024
Xerox was involved in a major accounting fraud case uncovered in 2002. The U.S. Securities and Exchange Commission (SEC) charged Xerox with inflating its earnings by about $1.5 billion between 1997 and 2000 through improper accounting maneuvers. The company settled the case without admitting or denying wrongdoing, paying a $10 million fine.
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A Royal Warrant from Queen Elizabeth II was an official mark of recognition granted to companies or individuals who regularly supplied goods or services to the Royal Household. It allowed them to display the Royal Arms and the phrase "By Appointment to Her Majesty the Queen."
No, Xerox has not received a Royal Warrant from Queen Elizabeth II or the British Royal Family. Royal Warrants are typically granted to companies that supply goods or services directly to the Royal Household for at least five years, and Xerox is not listed among the official warrant holders