Chapter 407 |
Kang Jin-hoo's statement was, in fact, a threat.
A threat brandishing an astronomical sum of money as its weapon!
What if Kang Jin-hoo really did halt the Saemangeum development and invest that money overseas? Naturally, global corporations and international capital would follow him abroad.
The political sphere would be flooded with immense criticism, and the backlash would be fierce.
The leader of the New Politics Party spoke first.
"The New Politics Party approves of the Saemangeum development."
The other minor parties followed suit.
"There's no reason to oppose a company's decision to invest."
"Our party supports it as well."
Representative Yeon Nakyeong felt a cold sweat run down her forehead.
"I, I..."
This wasn't a situation she could just muddle through.
If a development plan worth hundreds of trillions of won were canceled, someone would have to take responsibility. If things went wrong, wouldn't the very existence of her party be at stake?
No, even if that didn't happen, her own political career would certainly be over.
She forced out the words that wouldn't come.
"O-Our party is, in principle, in favor of it."
A strong sense of humiliation washed over her. What would the people think, seeing her like this?
Her legs felt weak, and she wanted to collapse into her seat, but Kang Jin-hoo didn't let her off the hook that easily.
"'In principle,' you say... Then can I trust that the Liberty Korea Party will cooperate with the supplementary budget and the processing of related bills?"
Overwhelmed by his momentum, Representative Yeon Nakyeong nodded her head before she knew it.
"O-Of course."
Only then did Kang Jin-hoo smile.
"Then I will take that as your approval. As I just said, I will mobilize all of my capabilities to turn Saemangeum into a city that will lead South Korea's future in finance and high-tech industries. I look forward to your continued cooperation."
***
The fallout from the hearing was immense.
In a poll conducted immediately after the hearing, 83 percent of respondents approved of the Saemangeum development, and 67 percent answered that it was right for Kang Jin-hoo to take the lead.
Concerns about falling housing prices and office vacancies in the Seoul metropolitan area remained, but other regions showed overwhelming support. This was also true for Daegu and the Gyeongsang province, which could be called the Liberty Korea Party's home turf.
The market economy and free competition are the foundation of conservative ideology. Therefore, opposing corporate investment didn't align with the party's platform or conservative logic.
Except for those who opposed anything the leftist administration and Kang Jin-hoo did, the majority of conservatives also supported this development.
Companies decided to proceed with their investments in Saemangeum as planned, and news articles poured out.
[OTK Research Institute to Build Large-Scale Facility for Fostering Basic Science!]
[Disneyland and Universal Studios Theme Parks Confirmed for Construction on Saemangeum Site]
[Ceylon Hotel Announces Plans for Integrated Resort in Saemangeum]
[Seosung Hospital, Eunsung Hospital Apply for Saemangeum General Hospital Construction Site]
[Bio-Tech Companies, in Cooperation with Medical Community, to Pursue Nation's Largest Healthcare Cluster]
[Seosung Group Announces Plans to Build Second Headquarters!]
Criticism was heaped upon the Liberty Korea Party.
The Parents' Federation and real estate speculators, who had been occupying Gwanghwamun Square in protest, condemned both Kang Jin-hoo and Yeon Nakyeong.
"Representative Yeon Nakyeong, resign along with Kang Jin-hoo!"
"Absolutely no to the Saemangeum development!"
"Protect the property of innocent multiple-home owners and landowners!"
"Tear down the seawall and bring back the Saemangeum tidal flats!"
The internet was flooded with mocking comments.
- So why the hell did they even hold this hearing?
- LOL, did they do it just to get humiliated?
- Seriously, the New Politics Party should give an award to Yeon-kazaki. Half of the New Politics Party's and the President's approval ratings are thanks to her.
- Was this Lady Nakyeong's big picture to give Kang Jin-hoo development momentum?
- Disappointed in you, Yeon-kazaki! Aren't you ashamed to call yourself a subject of the Japanese Empire?
- You traitor! To think you'd betray Japan!
- Oi oi! We Japanese believed in you! But you knelt before the ningen Kang Jin-hoo. So disappointing.
- We don't know yet. Yeon-kazaki might have knelt to gain momentum.
- Yeon Nakyeong will be back!
- Next hearing: The Return of the Local Japs~
***
Even though I had safely navigated the hearing, it wasn't over. In fact, you could say it was just the beginning.
The supplementary budget passed through the National Assembly after a painful process, and the work of dividing administrative districts to make Saemangeum its own city began.
The establishment of the Saemangeum Development Corporation also proceeded smoothly. As previously discussed, it would be composed of a 51 percent stake from the Saemangeum Development Agency and a 49 percent stake from OTK Company.
The initial capital was 5 trillion won.
Since the Saemangeum Development Agency lacked that kind of money, OTK Company agreed to lend them the investment funds to speed up the establishment. From now on, OTK Company would not only be responsible for any losses from the development but would also receive 49 percent of the profits.
There was a mountain of things to do.
We had to proceed with infrastructure projects like the airport, port, roads, and railways. The areas that hadn't been reclaimed needed to be filled in as quickly as possible, while buildings and factories had to be constructed on the already reclaimed land. On top of that, we had to create artificial islands, a freshwater lake, and waterfront parks.
Still, not having to worry about appraisals, land compensation, or resident opposition was a huge advantage. There were also fewer regulations, and it was decided that environmental and traffic impact assessments would be minimized.
At a meeting with Prime Minister Ryu Jeong-hoon, Deputy Prime Minister of Economy Jeong Ki-soo, and Saemangeum Development Agency Director Nam Pung-hyeon, I spread out the urban design plans I had received from Archit.
"Given its nature as reclaimed land, it's difficult to build a subway system. So, I'm thinking of installing trams throughout the city and operating all public transportation with autonomous electric vehicles. We're also in discussions with American construction startups to shorten the construction period."
The Saemangeum development is a project that will generate enormous losses in the short term but enormous profits in the long term.
In truth, the land sold to corporations doesn't bring in much money, as it doesn't even cover the development costs. That revenue has to be reinvested into the surrounding infrastructure anyway.
The biggest profits will come from the sale of residential and commercial facilities.
"We will develop all residential facilities under the leadership of the Saemangeum Development Corporation."
Public development and private development each have their pros and cons.
In public development, the corporation builds and sells the apartments directly. In private development, the land is sold to a construction company, which then handles the design, construction, and sales.
From the construction company's perspective, they get land on the cheap, build apartments, and rake in massive profits. This has been a recurring issue with every new city development.
There are many reasons for choosing private development, such as faster progress and risk management, but the biggest reason is collusion between politics and business.
In short, it's a way to funnel development profits to large corporations. In the process, politicians and bureaucrats receive bribes and entertainment, or they move to high-paying positions as outside directors or advisors at subsidiaries after retirement.
Society as a whole suffers for the benefit of a few individuals.
As long as I hold the keys to this development, I have no intention of letting that happen.
Saemangeum is the land of the South Korean government. In other words, it is the property of the people. It is only right that all profits from the development go to the people.
Even if we give land to corporations as an incentive, there's no need to do the same for construction companies. They have plenty of other work to do anyway.
Director Nam Pung-hyeon spoke up.
"If we proceed with public development, we have to bear the risk of unsold units."
"It's going to be a 100 percent sell-out anyway."
Since there are no land compensation costs, we can offer them at a much lower price. Potential residents and speculators alike are already eyeing Saemangeum.
Given the current atmosphere, shouldn't we be more worried about the application process overheating than about unsold units?
"Financing the construction is also a problem."
With private development, you just sell the land to a construction company and get the money. But with public development, you have to handle the sales yourself, so the money doesn't come in until the units are sold and the residents move in.
I offered a simple solution.
"Let's create a public fund. We'll offer an interest rate 1% higher than the bank's, and give bonus points during the housing application process to those who invested a certain amount or more in the fund. And OTK Company will guarantee it."
***
Saemangeum, once the largest land reclamation project since the founding of Korea, had now become the largest urban development project in the nation's history.
Construction company stock prices soared, and small and medium-sized local construction firms that had been struggling let out cheers of joy.
Of all industries, construction has the largest trickle-down effect.
When a major construction company wins a bid, it subcontracts to a mid-sized firm, which in turn subcontracts to a smaller one. Employment increases dramatically, from experienced professionals to day laborers, reducing unemployment and circulating money downward.
Construction companies immediately rushed to Saemangeum to start their sales efforts. Even if a foreign company built a factory, the construction would naturally be handled by a local firm.
Theme parks, integrated resorts, commercial facilities, schools, hospitals, shopping malls, cultural centers, stadiums, and apartments.
The talk among construction companies was that they had secured a decade's worth of work. The chaebol groups that owned construction companies were all smiles.
However, not everyone was smiling.
GH Group was in a state of shock. Because they had just sold their construction arm for a pittance.
If they had known OTK Company was going to develop Saemangeum, they would have held on no matter what. Or they would have sold it for a much higher price.
Word on the street was that if they had delayed the sale by just one week, they could have gotten at least a trillion won more.
The management of GH Construction was devastated. But what was the use of regretting it after the ship had sailed?
***
The TV news chattered on endlessly about the Saemangeum development.
Seon-ah watched Kang Jin-hoo's face on the screen and shivered slightly.
On top of the business failure, the controversy over the cheap sale had led to a flood of criticism from shareholders. Even within GH Group, there were calls to fire the entire GH Construction management team. This included her father-in-law, Go Jin-gwang, and her husband, Go Jun-hyung.
Even if they were kicked out of the group, it wouldn't affect their livelihood. They already had more wealth than most people could accumulate in a lifetime.
But that was all. A chaebol without management rights was just another one of the many rich people in the world.
'I thought I had grasped the happiness I wanted...'
How did it come to this?
The man who was once her boyfriend had become the richest person in the world. The moments she had spent with him now felt like a dream.
Seon-ah unconsciously bit her lip.
'Jin-hoo. Don't tell me... you're doing all this because of me?'
"...is what your ex-girlfriend might be misunderstanding right now, don't you think?"
I was so dumbfounded by Taek-gyu's words that I was at a loss. For the record, we were having dinner at a Chinese restaurant near the office.
After a moment, I snapped back to reality and shouted.
"We're in the middle of an expensive meal, what kind of nonsense is this!?"
"It just popped into my head."
"Cough!"
For a second, I almost spat out the tea I was drinking.
"Why are you suddenly thinking about my ex-girlfriend? Why?"
Taek-gyu blinked and protested.
"What, I can't even think about it?"
"..."
Then just think it. Don't say it out loud.
Just as I was about to go back to eating as if nothing had happened, Ellie, who was sitting next to me, put down her chopsticks and said.
"Hmm, now that you mention it, that could really be the case."
Yuri, who was also eating with us, agreed.
"Yeah, the timing is a bit suspicious. The Saemangeum development news came out right after GH Construction was sold. It looks like he deliberately timed the announcement for that moment."
"GH Group's ranking in the business world fell to 35th after they sold their construction arm. If they had just held on with all the group's might, they might have seized the opportunity."
"Exactly. To be honest, I also thought it was a bit random when you said you were pursuing the Saemangeum development. From Seon-ah's perspective, it's a completely understandable misunderstanding, don't you think?"
"..."
Why has the topic suddenly shifted this way? This is all Oh Taek-gyu's fault.
Ellie looked at me and asked.
"What will you do if she's really misunderstanding?"
"W-Well..."
Of course, GH Construction wasn't even on my radar when I was pushing the development plan.
"Well... whether she misunderstands or not is her business. Is there really any need to worry about it?"
Taek-gyu crossed his arms and nodded.
"True. There's a more important problem to worry about right now."
"What's that?"
"Whether to pour the sauce on the sweet and sour pork or not. Should we be 'pour-eaters' or 'dip-eaters'?"
"...Just shut up and eat."