Chapter 402 |
Attending a business leaders' gathering for the first time in a while, I shook hands and exchanged greetings with executives I knew.
“Saemangeum is truly something I never imagined.”
“Since you've stepped forward, CEO Kang, our expectations are high.”
“Our company would like to join as well.”
Chairman Chae Wontae of SSK Group greeted me and said.
“Thanks to you, CEO Kang Jin-hoo, we were able to get through that last incident safely. Thank you.”
I smiled. “It’s thanks to everyone working together.”
Here, "that last incident" refers to Japan's export restriction measures.
Fortunately, Japan voluntarily withdrew the restrictive measures, but if the situation had prolonged, the electronics industry, including semiconductors and displays, would have suffered greatly.
In the process of devising countermeasures at the time, companies in overlapping sectors agreed to jointly develop essential materials and core technologies.
In the case of specialized materials, not general-purpose ones, Japanese companies have superior technology, and sales channels are limited. Even if companies invest time and money in development, securing price competitiveness and sales channels is not easy.
Large corporations might be able to manage, but Small and Medium-sized Enterprises (SMEs) have no choice but to be reluctant to invest.
Therefore, Seosung Electronics and SSK Hynix agreed to support development costs for SMEs developing core materials and equipment, and to prioritize purchasing them upon completion.
“Going through that, I also realized many things. We can't stop trading with Japan, but our over-reliance was a problem. We plan to continue reducing our dependence on Japan through ongoing technological development.”
“A wise decision.”
Again, sales channels for specialized materials and equipment are limited.
As Korean companies shifted some of their supply chains to Europe and reduced imports, Japanese companies, unable to find suitable alternative sales channels, were flustered. Moreover, as other foreign companies realized Japan could impose export sanctions at any time depending on the political situation, they too gradually reduced their order volumes.
What was intended to strike Korea boomeranged back. This is probably why Japan has the proverb, "If you curse another, dig two graves."
Well, Japan is Japan. Even if we got through it safely this time, as the world's third-largest economy, we shouldn't be complacent in the future.
“As you may have heard from Chairman Im Jinyong, we plan to create a semiconductor cluster linking prime contractors and subcontractors, large corporations and SMEs, and we are currently looking for a site.”
Seosung Electronics has used its enormous profits to boost memory semiconductor production volume and technological capabilities, and has made large-scale investments in non-memory semiconductors, which were considered relatively weak.
SSK is also expanding its factories and research labs. Chairman Chae Wontae announced plans to invest 100 trillion won in the future.
Technology tends to standardize upwards over time. Both companies are pursuing a strategy of building an insurmountable wall through preemptive investment that latecomers cannot catch up to.
“We need to hurry with the cluster construction, but finding a site in the metropolitan area that can accommodate the factories and research labs of dozens of companies is not easy. Regulations and taxes are also an issue. That's why we are considering Saemangeum as an alternative.”
“If you invest in Saemangeum, the government will welcome it.”
He nodded at my words. “One concern is securing personnel.”
Not to mention researchers, but workers in semiconductor factories are highly educated, skilled personnel. Recruiting a large number of them in a provincial area is not easy.
“The biggest problem is the poor accessibility to Seoul. In terms of location, isn't it even farther than Sejong City?”
This is pointed out as Saemangeum's biggest weakness. If Saemangeum had been in Gyeonggi Province, development would have been completed long ago.
The new cities developed so far have been satellite cities of Seoul. Pangyo, considered the most successful, is characterized by its proximity to Gangnam. If Gangnam hadn't been within a 30-minute distance, could Pangyo really have been so successful?
That's how much Korea depends on Seoul.
“Even if it's far, it's not as far as Silicon Valley to LA. If we can create a livable city, it doesn't necessarily need to be close to Seoul.”
Chairman Chae Wontae burst into hearty laughter.
“Haha! You're right. Come to think of it, Sydney and Melbourne are 1,000 kilometers apart, but people living in Melbourne don't complain that Sydney is far.”
The head of the Saemangeum Development and Investment Agency (SDIA) and SDIA staff also attended for investment promotion. I had met and greeted Director Nam Punghun a few days ago when we signed an MOU.
He grasped my hand tightly and said, “We've held countless investment briefings and forums, but this is the first time companies have shown this much interest.”
Until just a short while ago, many people didn't know where Saemangeum was or what the SDIA did.
However, right after the announcement, the news reported on it intensively every day, and Saemangeum immediately hit number one on real-time search rankings. It's still fluctuating in the top ranks.
The SDIA was flooded with calls, and its website reportedly crashed several times due to high traffic. The SDIA, which had little presence among government administrative organizations, has now rapidly emerged as one of the most important.
If development accelerates, the organization's status will rise even further. Perhaps that's why Director Nam Punghun was all smiles.
“Companies that used to hesitate even when we chased them and begged them to invest are now proactively inquiring about investment. It's all thanks to you, CEO Kang Jin-hoo.”
“Not at all. Were there any complaints?”
“Of course, there were. Environmental destruction, falling housing prices, tax waste, 'develop our neighborhood instead,' and so on – lots of talk from all over. But besides the complaints, speculators from all over the country are calling and pestering us to sell land. No matter how many times we say we don't sell to individuals, they don't listen.”
“……”
Should I say this is typical of a "real estate republic"?
***
The hall doors were closed, and the meeting began in earnest. As it was a closed-door meeting, reporters' access was blocked.
Executives from large corporations and SMEs packed the seats. There were more attendees than expected, leading to a shortage of chairs, and hotel staff brought in temporary ones.
Representing the SDIA, a man in a suit stepped onto the podium.
“Good morning. I am Park Jungsoo, a manager in charge of investment attraction and cooperation at the SDIA. I am pleased to be giving this presentation here today.”
He brought up a PowerPoint presentation and, in a slightly trembling voice, explained Saemangeum's location, transportation, logistics, development plans, and various investment incentives.
Corporate tax reduction, registration tax exemption, customs duty exemption, inexpensive land, installment payments for land purchases, investment subsidies, and so on.
Those attending this meeting would likely already know most of this information. However, the executives listened intently, and some jotted down notes in their notebooks.
After the presentation, Manager Park Jungsoo said, “If you have any questions, please ask.”
It's a characteristic of Koreans to be good listeners but hesitant to ask questions. While everyone was glancing around, the president of a mid-sized company raised his hand high.
“Our company is currently considering investment, and we heard almost the same things when we met with other local governments. So, what is Saemangeum's unique differentiating factor?”
Manager Park Jungsoo answered confidently, “Unlike development projects led by various cities and provinces, Saemangeum is directly supervised by the central government. Furthermore, all development takes place solely on state-owned land, without involving local government or privately owned land, and administrative procedures are handled one-stop by the SDIA. This type of development is unique to Saemangeum in the entire country.”
It's always difficult to get things started. Once one person began asking questions, about ten others raised their hands.
“I understand that not even half of the reclamation is complete yet. When will it be finished?”
“The international cooperation zone where companies will be located is almost fully developed. Many companies are already operating there. We will prioritize completing the surrounding infrastructure construction first.”
“For companies like ours with a lot of exports and imports, logistics is the top priority when choosing a factory location. However, the nearby Gunsan Port is small, and it's difficult for large ships to dock. The limited number of shipping routes from foreign countries is also a problem.”
“We are currently constructing an artificial island to create Saemangeum Port. Until the construction is complete, we plan to strengthen connectivity with nearby ports to minimize inconvenience.”
“I've seen the plan for Saemangeum International Airport. How many flights to major foreign cities do you think can be secured?”
“First, we will establish domestic routes connecting to Incheon Airport, which can be considered a hub, to enable transfers. After theme parks and integrated resorts are built, we believe we can increase direct flights. Regarding flights, we are in discussions with various LCCs (Low-Cost Carriers), including national carriers.”
Questions continued as everyone seemed to have many curiosities, and Manager Park Jungsoo did his best to explain within the scope of his knowledge. His passionate demeanor was good to see.
After he finished his presentation and stepped down, I took the podium. Since the explanation was already thoroughly given, further elaboration was unnecessary. The people gathered here would have already done sufficient research.
Korea already has many special economic zones, and many local governments have announced new city plans: Smart City, Robot City, Global City, Design City, Eight City, and so on.
Among them, not even one or two out of ten have proceeded properly, and those that have, upon closer inspection, are just filled with apartments, with a frenzy focused solely on sales.
What is needed now is the conviction that Saemangeum will be properly developed.
To someone recommending a good investment opportunity, you must ask this question: If it's such a good investment, why aren't you doing it yourself?
If Saemangeum is truly a good place, it's right for me to go first.
“OTK Company and its affiliates will invest 300 trillion won to establish an electric vehicle complex, a battery complex, research labs, and video studios. OTK Company will move its headquarters to Saemangeum within the next five years, and I too will relocate there.”
***
[Ruling and Opposition Parties Agree to Hold Economic Hearing]
[Liberty Korea Party Pledges to Thoroughly Review Supplementary Budget to Prevent Wasting Taxpayer Money!]
[CEO Kang Jin-hoo Must Directly Address Allegations of Preferential Treatment in Saemangeum Development]
[CEO Kang Jin-hoo Announces Intention to Attend Hearing!]
The New Politics Party accepted the Liberty Korea Party's demand and agreed to hold an economic hearing. The Blue House (Presidential Office) also agreed to send Deputy Prime Minister for Economy Jeong Gisu and Blue House Chief of Staff for Policy Lee Eunggwan.
From the Blue House's perspective, it was a significant decision, but neither the media nor the opposition party showed much interest in this, focusing solely on Kang Jin-hoo's attendance.
It was no exaggeration to say that Kang Jin-hoo was the core of this hearing.
The whole world was watching this economic hearing. The future of Saemangeum development would be decided by its outcome.
-Do these guys have any learning ability or not? They still haven't come to their senses after getting beaten so badly last time?
-Let them be. Looks like they haven't been beaten enough yet.
-Isn't Kang Jin-hoo in a tight spot this time?
-If the Liberty Korea Party opposes, the new city and everything else is a goner. So this time, Kang Jin-hoo has no choice but to bow his head and beg them to go easy on him.
-Are they throwing a tantrum because they know that?
-LOL, really? The Liberty Korea Party always had a plausible plan... until they got beaten by Kang Jin-hoo.
-Anyway, Yeon-kazaki (a derogatory nickname for a politician) just can't stand to see Korea do well T_T
-Japan must be happy. To have such patriots ^^ (sarcastic)
Kang Jin-hoo had attended a National Assembly hearing before. While other chaebol chairmen all bowed their heads, he, in turn, insulted the lawmakers who were on the offensive and then calmly rose from his seat.
This was a first in the history of hearings, and a video of the incident, subtitled in various languages, was so popular it surpassed 100 million views on A-Tube (YouTube equivalent).
To avoid repeating the mistakes of the last hearing, Liberty Korea Party leader Yeon Nakyeong gathered the lawmakers and meticulously planned their strategy.
Last time, they had forcibly dragged out Kang Jin-hoo, who had nothing to lose, but this time was different. If the political sphere put the brakes on, it could affect the Saemangeum development plan in any number of ways. Therefore, Kang Jin-hoo would try his best to persuade the opposing lawmakers.
Of course, they had no intention of listening meekly.
The Liberty Korea Party lawmakers recalled what they had suffered at Kang Jin-hoo's hands. Former President Park Si-hyeong was imprisoned, they lost the presidential election and power was handed over, the party was embroiled in internal conflict, and they became a laughingstock to the public.
“This time, let's definitively show them the power of our Liberty Korea Party!”
Party leader Yeon Nakyeong and the Liberty Korea Party lawmakers steeled their resolve for certain victory.