Chapter 376 |
During the Nishida Securities fat-finger incident, OTK Company faced significant criticism.
Profiting from a fat-finger error happens occasionally. The problem was that they profited too much.
That's not to say Nishida Securities received any sympathy. If anything, they got more flak than OTK Company, not less.
In the financial world, the one who gets fleeced is considered worse than the one doing the fleecing. There's no room for sympathy when you provided the reason to be fleeced in the first place.
When I went to consult her about countermeasures, Hyunjoo noona scoffed and said,
"Sanctioning Korean companies and halting financial transactions with Korea? That's ridiculous. The trade deficit with Japan alone is 30 trillion won a year."
In other words, Japan earns 30 trillion won annually through trade with Korea.
Ellie added an explanation. "Among Korea's trading partners, Japan accounts for the largest trade deficit."
For reference, Saudi Arabia is second. That's because we import crude oil from them.
On the other hand, Korea doesn't sell much to Japan. Japan is a unique market, so much so that it's called "Galapagos." Even TVs and home appliances from globally recognized Seosung Electronics and CL Electronics barely sell in Japan, and Eunsung Motors withdrew after failing to overcome poor sales.
Hyunjoo noona said while sipping her coffee, "Consumer goods are just the tip of the iceberg. The problem is machinery and material components."
The fundamental cause of the trade deficit with Japan lies in the structural problems of our industry. A significant portion of core materials and parts for export-mainstay industries like industrial facilities and precision machinery are Japanese-made.
Korea imports parts from Japan, makes finished products, and exports them to the US, China, and other countries. This is why we see a trade deficit with Japan and a surplus with the US and China.
"Then what was Prime Minister Okazaki talking about?"
"He's just bluffing."
The actual financial market suffered almost no impact. Everyone considered Prime Minister Okazaki's words mere bluster.
Ellie said, "That's right. They probably know that compensation is realistically impossible. They're likely just trying to boost their approval ratings by making some noise against Korea."
If they sanction trade with Korea, it's not just Korean companies that will have problems; Japanese exporting companies will also face issues.
"This is just a show to raise approval ratings."
"So, what should we do?"
To Taekgyu's question, Hyunjoo noona shook her head. "There's nothing to do. They probably don't intend to do much either. It'll quiet down after a while."
I crossed my arms and fell into thought for a moment.
Bashing Korea to boost approval ratings is practically a tradition in Japanese politics. If their ratings drop later, won't they bring it up again?
There's another problem. OTK Games and FaceIt have already entered Japan, and we have to consider the future entry of Karos and M Pizza.
"If we just let this slide, won't the same thing happen in the future? They'll probably whine about returning the 2 trillion yen at the drop of a hat," Taekgyu said.
"What if they later seize the assets of OTK Company subsidiaries operating in Japan?"
"Since OTK Company is an American company, if they have any sense, they wouldn't do that."
"Were the guys who bombed Pearl Harbor sensible?"
"..."
Now that you mention it, that's true.
"Japanese people typically act tough towards the weak and submissive towards the strong. If we show weakness, they'll just act up more later."
That's also true.
Having finished my thoughts, I carefully said, "If Japan wants to make an enemy of me, how about we give them what they want?"
Seeing my expression, Hyunjoo noona asked, "What are you planning to do?"
***
After a while, OTK Company held a press conference. As expected, a crowd of domestic and foreign media gathered.
There, I calmly stated my position.
"The Japanese government bears significant responsibility for this incident, due to collusive ties between politics and business that funneled pension fund management to Nishida Securities, and for operating an outdated financial system. For the Japanese Prime Minister to repeatedly demand compensation and an apology for a matter already ruled by the Japanese Supreme Court as not requiring compensation is an act that denies Japan is a nation ruled by law."
My words caused a stir throughout the conference hall.
A moment later, a reporter shouted, "Didn't the Korean government say it would seize assets if Japanese companies didn't compensate for the forced labor ruling? Is that also a wrongful act?"
I said nonchalantly, "That's because the Korean Supreme Court ruled that way. I am not paying compensation based on the Japanese Supreme Court's ruling, so Japanese companies should rightly compensate according to the Korean Supreme Court's judgment. Resisting compensation is the wrongful act here."
I held up my hand to stop further questions. Then, looking straight into the cameras, I said,
"During the Sino-Japanese War, Japan counterfeited and distributed 4 billion yuan of Chinese currency everywhere to destroy the Chinese economy. This caused extreme starvation among the Chinese people. Furthermore, just before its defeat, Japan not only transferred 4.7 billion yen remaining in the Bank of Joseon to its Tokyo branch, emptying the vaults, but also recklessly printed billions of yen in currency, causing inflation and devastating the Korean economy. Has Japan ever apologized or compensated for harming the financial systems of other countries like this? Before demanding an apology and compensation from me, the Japanese government should first bow its head in apology for the numerous financial crimes committed in Korea and China and offer compensation. Then, I will consider it. That is all."
***
The Ministry of Foreign Affairs was dumbfounded by Kang Jinhoo's announcement.
Korea, then and now, is surrounded by the interests of great powers. Therefore, maintaining balance through diplomacy was directly linked to national survival.
However, it was no exaggeration to say that recent Korean diplomacy was being conducted by Kang Jinhoo.
He went to the US and caused a ruckus about 'The Big One' coming, nearly straining the US-Korea alliance, but then 'The Big One' actually came, turning it into an unparalleled blood alliance.
Even now, searches show that most Americans pick Korea as the friendliest country.
Touching Zhou Auto over technology leak issues led to a cooling of relations with China and trade retaliation, and profiting immensely from the Nishida Securities fat-finger error worsened relations with Japan.
In this situation, he arbitrarily visited Russia and invested in a traveling wave reactor project, stirring up negative public opinion about the current government's energy policy.
When businesspeople cooperate with or invest in foreign companies, it is standard practice to consult closely with the government, considering the potential diplomatic repercussions. But Kang Jinhoo did none of that. He always decided and announced things arbitrarily.
Of course, if he had consulted beforehand, the government would have taken credit for anything positive and prevented anything potentially harmful...
Unlike relations with China, which entered a thawing mode after Kang Jinhoo's visit, relations with Japan were continuously deteriorating.
This wasn't solely Kang Jinhoo's fault; it was a problem compounded by Japan's early general election and the seizure of Japanese companies' assets in Korea following the forced labor compensation ruling.
Regarding Prime Minister Okazaki's official statement, the general reaction was that what was bound to happen had happened. Knowing the background of the statement, the Korean government issued no particular response, and the Ministry of Foreign Affairs intended to manage the situation behind the scenes and resolve it through negotiations.
But Kang Jinhoo stepped in and completely overturned the chessboard.
Those gathered at the Ministry of Foreign Affairs building were the elite of the elite, having passed the diplomatic candidate examination. And the Ministry of Foreign Affairs was renowned for its power among government ministries.
But now, they were overwhelmed trying to clean up Kang Jinhoo's mess. Phones were ringing off the hook from all directions, and staff were sweating, answering calls and explaining countermeasures.
Foreign Minister Kim Sungchul watched Kang Jinhoo on TV with an expression like he was about to cry.
"...Why are you doing this to us?"
***
[Kang Jinhoo Reiterates No Apology or Compensation!]
[Blames Nishida Securities Fat-Finger Error on Japanese Political-Business Collusion!]
[Demands Apology and Compensation for Japan's Financial Crimes During East Asian Invasion]
[Liberty Korea Party Expresses Grave Concern Over Kang Jinhoo's Remarks]
[What Will Be the Japanese Government's Response?]
-LOL, Kang Jinhoo was quiet for a while, but he's at it again.
-But did that really happen?
-Those bastards weren't satisfied with exploiting us through colonial rule; they took a dump on their way out too.
-Gotta admit, those Japanese are meticulous~
-Because Japan pulled that crap, inflation occurred and completely wrecked the Korean financial system.
-Why don't they teach this stuff in textbooks?
Chinese media also reported Kang Jinhoo's remarks as major news, and Chinese public opinion seethed.
-Countless people suffered due to Japan's invasion of the mainland!
-Korea is a brother who fought alongside China, but Japan is our enemy!
-Let's not use Japanese products.
-Japan should apologize and compensate, even now!
-Let's reclaim the Diaoyu Islands, even by force!
After Kang Jinhoo's announcement, the Japanese archipelago was in an uproar.
Prime Minister Okazaki and the LDP were flustered. They had intended to make some noise and then let it pass, but Kang Jinhoo reacted and escalated the situation.
They thought OTK Company would avoid comment or rebuttal since they weren't in the right, but he confronted them head-on! Moreover, he brought up Japan's financial crimes during the past East Asian invasion, a fact even most Japanese people were unaware of.
Kato Nakamura, President of the Japan Innovation Party, shouted in anger, "How little must he think of Japan to say such things? Is this the 'Strong Japan' Prime Minister Okazaki spoke of? If we don't respond forcefully this time, I will move for a vote of no confidence in the cabinet!"
With attacks coming from both inside and out, there was no other way.
Prime Minister Okazaki appeared before reporters. "On behalf of the Japanese people, I cannot contain my anger at Kang Jinhoo's outrageous remarks! I consider this a provocation against all of Japan! I will never let this slide and will definitely hold Korea accountable. While strongly protesting to the Korean government and OTK Company, we will implement retaliatory measures such as trade and financial sanctions against Korean companies until an official apology is made."
***
After the press conference, I spoke with President Vysotsky of Russia.
He spoke in a hearty voice, and the interpreter immediately relayed his words. "[You really gave Japan a good one. Watching the press conference was quite satisfying. But will you really be alright?]"
I threw in a pointed joke. "Surely Japan wouldn't start a war just because I said this? But a few days ago, a Japanese Lower House member made some outrageous remarks in the Kuril Islands."
President Vysotsky said in an angry voice, "[You mean that bullshit?]"
A Japanese Lower House member, during a visit to the Kuril Islands, shouted that they should reclaim the Northern Four Islands even if it meant war with Russia.
Japanese politicians had made similar outrageous remarks about Dokdo countless times, but Japan's response was entirely different.
The said lawmaker immediately bowed his head and apologized, claiming he had babbled while drunk, and the Diet, regardless of party lines, condemned him and moved to expel him from his position.
Even a toothless tiger is still a tiger.
Even if Japan is far ahead economically, Russia is still a superpower in military and energy fields. It's different from Korea, which they consider a pushover.
However, the remarks had already spread worldwide, and the Russian government was considering a response. They probably wouldn't want to escalate things when Japan was already taking measures, but...
"If you could help just a little, Mr. President, I can make it so Japan won't even dare to mention the Kuril Islands for a while."
President Vysotsky showed interest in my words. "[How so?]"
"Well. If you trust me with it, I'll try to perform like General Zhukov."
Georgy Zhukov was a renowned Soviet general who defeated the Japanese Kwantung Army at the Battle of Khalkhin Gol, crushing Japan's will to invade the Soviet Union.
Even now, his equestrian statue stands in Moscow's Red Square.
I explained my plan, and President Vysotsky burst out laughing.
"[Hahaha! That sounds fun. Go ahead and do as you wish.]"