Chapter 408 |
Once the Saemangeum development plan was confirmed, the companies that had been waiting and watching were now in a frenzy, all clamoring to get in.
The Saemangeum International Forum was swarmed with business leaders and investors. Requests poured in for investment briefings to be held overseas as well.
"Since Kang Jin-hoo has invested, won't Saemangeum become the next Silicon Valley or Pudong?"
"Putting aside making a profit from business operations, just buying the land itself would be incredibly profitable."
"If not now, we might not get another chance."
To purchase land, companies were required to build factories and buildings and make a concrete investment. If they failed to conduct business activities or did not fulfill the specified period, they would have to return the land to the state.
Vying to secure the best plots of land first, companies rushed to submit their investment proposals to the Saemangeum Development Corporation. Global hotel chains like Hilton, Ritz-Carlton, and Marriott also began constructing hotels, anticipating the future increase in tourists and business demand.
Investments from OTK Company's affiliates also followed.
First, CarOS decided to build an electric vehicle factory along with a massive circuit for driving tests. The facility would be on par with those capable of hosting F1 races, with plans to attract domestic and international motorsports events in the future.
The youth, who had been suffering from a job shortage, welcomed the news of more jobs with open arms.
- Wow! The land is so cheap they're building all sorts of things.
- I heard they're also building a convention center with the largest total floor area in the country. We might have to go to Saemangeum for events from now on.
- LOL, Faceit is entering the Korean market. What will they make in the factory, and what kind of videos will they shoot in the studio? Am I the only one who's curious?
- I want to work at Faceit.
- The Saemangeum development is changing the very geography of South Korea. Seriously, at this point, don't we need to redraw the map of Korea?
- I'm sorry for badmouthing you for not investing in Korea all this time~
- I had no idea our big bro was painting such a big picture. From now on, I'll trust only you.
- What would Korea do without Kang Jin-hoo T_T
- So, what stocks should I be buying now?
***
Forecasts emerged that the economic effects of the Saemangeum development would raise South Korea's growth rate by two percent.
As always, institutional and foreign investors get the information first. Domestic and international securities firms, including Golden Gate, began buying up large quantities of shares in companies expected to benefit.
As stock prices soared, the KOSPI and KOSDAQ broke their previous highs. Foreign capital flooded in, causing the value of the won to rise along with them.
Whereas before, the gains were concentrated in specific sectors like semiconductors, batteries, and automobiles, a rally now unfolded in which all sectors rose together—including tourism, construction, machinery, biotech, and securities—driven by expectations of a construction boom and a boost in domestic demand.
Stock investors were all smiles.
While stocks and the won showed strength, real estate, which had been soaring, began to fall. Seoul's housing prices, which hadn't budged no matter what the government did, finally started to drop.
Multiple-home owners, who had been watching with doubt, flooded the market with properties for sale, and the asking prices for Gangnam reconstruction apartments fell by hundreds of millions of won. But there were almost no inquiries from potential buyers.
The speculators had all cleared out, and the prevailing mood among those without homes was to wait for the future housing supply in Saemangeum rather than stretching to buy a house now.
Real estate is a problem when it rises, but it also causes great damage to the economy when it falls.
As expected, real estate doomsayers seized the opportunity, fanning unnecessary fears by bringing up the examples of Japan's real estate bubble and the global financial crisis. Indeed, in both cases, a crash in real estate prices led to insolvency in the banking sector.
Fortunately, Korea had implemented real estate loan regulations like LTV, DTI, and DSR so well that there was almost no chance of financial institutions being endangered.
For single-home owners who live in their properties, it doesn't matter much whether the price goes up or down. Though it probably still stings a little.
This was also the case for Public Relations Team Leader Jung Gi-hong, who had bought his newlywed home in Cheongdam earlier this year.
Taek-gyu patted Team Leader Jung Gi-hong's shoulder affectionately.
"You must be having a hard time with the housing prices dropping these days, right?"
"Ah, no, sir. It's alright, Vice President."
"What do you mean, alright? At times like this, you should go online and curse out Kang Jin-hoo, the main culprit behind the drop in housing prices, to your heart's content. It'll make you feel a bit better. Of course, that won't make the falling prices go back up."
"...Yes, sir."
For some reason, Team Leader Jung Gi-hong's expression grew even darker.
Since I wasn't entirely without responsibility, I too offered a word of comfort.
"How much more do you think it will fall?"
"You don't need to worry too much. Even if there are concerns about population outflow in the short term, in the long term, as the economy improves, Seoul will also see benefits."
Of course, in that process, it would be difficult for multiple-home owners who had over-leveraged to avoid bankruptcy. And even if not bankruptcy, there would be more than a few people who lost money.
It was unfortunate, but what could you do if you lost money on your own investment?
"Then why is the Liberty Korea Party making such a fuss, saying the government needs to come up with countermeasures?"
"That's one of the strange things about real estate."
No one takes responsibility if you lose money on stocks or crypto. But strangely, if you go broke investing in real estate, there are always calls for the government to step in and bail you out.
In fact, during the financial crisis, when there was a glut of unsold properties, the government poured in tax money to buy them up and implemented various other measures.
Profits can be privatized, while losses can be socialized. With a system like this, how could Koreans not love real estate?
Commercial real estate also fell sharply as office vacancies were expected to increase. Our headquarters building and the Golden Gate building were no exception. Investment firms quickly began reassessing their asset values.
***
A whirlwind of related meetings followed.
There were, of course, business leaders, but also requests for meetings from heads of local governments, like governors and mayors. Many of them were affiliated with the Liberty Korea Party.
What did party affiliation matter when it came to reviving the local economy?
On the map spread out on my desk, hundreds of models were placed. This was just what had been confirmed for construction so far.
It looked like a diorama.
Taek-gyu crossed his arms and said.
"Hmm, I guess a city doesn't just spring up the moment you decide to invest."
"What, you think this is SimCity?"
The Saemangeum development was a long-term project that would take at least several years. Since I couldn't be tied down to it forever, I passed most of the work on to Sang-yeop.
"It's chaotic for us, but the Saemangeum Development Agency must be in an uproar right now. Their employees probably aren't even able to go home."
"It should get better once the Saemangeum Development Corporation is established and they hire more people. Just hang in there until then."
I headed to the Ceylon Hotel in Namsan.
My mother came down to the restaurant with President Im Soo-mi.
"I told you to come by more often, even if you're busy."
"That's why I'm here now."
We sat down and had our meal.
I looked at President Im Soo-mi and asked.
"You look very tired."
My mother answered for her.
"Because of you going on about developing Saemangeum, Ms. Im has been swamped lately."
President Im Soo-mi smiled and said.
"The Saemangeum development is a great opportunity not just for the travel industry, but also for the duty-free and hotel businesses."
Globally, travel demand is increasing sharply every year. Among these, the growth of Chinese tourists is frightening.
It's gotten to the point where Chinese tourists are called by the proper noun "Youke."
The countries that stand to benefit the most from the increase in Youke are Korea and Japan. The reason, of course, is their proximity to China.
Travel is usually concentrated on short-haul routes. That's why Koreans also go to Japan so often.
President Im Soo-mi nodded.
"Unlike Japan, which has a well-developed regional culture, Korea's tourism resources are concentrated in Seoul, the metropolitan area, and Jeju Island. But if an integrated resort, foreign-only casino, theme parks, and leisure facilities are built in Saemangeum, we'll be able to attract tourists from all over the world, including Youke."
Perhaps for that reason, Ceylon Hotel's stock price surged by more than 50 percent as soon as the Saemangeum development was confirmed. This was the largest increase among all Seosung Group stocks.
"I heard you also applied for a retirement community site this time."
"Yes. I'm thinking of creating the nation's largest retirement community combined with the surrounding leisure facilities."
Experts once predicted that when the baby boomers retired, they would sell their houses, leave Seoul, and move down to their hometowns with clean air and good water. However, this prediction turned out to be completely wrong.
Even after retirement, the baby boomers remained in Seoul. When you think about it, it's natural. They've already lived in Seoul longer than in their hometowns, and it's not easy to give up the convenience of city life.
Furthermore, Seoul is where the medical and cultural facilities that the elderly need are concentrated, and actual survey results have shown that the average lifespan of elderly people living in Seoul is longer.
"If there were a place that guaranteed the same quality of life as Seoul, there would be no reason for retirees to insist on staying in Seoul. In Saemangeum, they can enjoy golf and leisure, and spend their retirement comfortably while receiving medical services provided by Seosung Hospital. Plus, since the largest theme park in Korea is being built there, it will be a great place for their children and grandchildren to visit often."
I was inwardly impressed.
I had only proposed an integrated resort, but she was already thinking about a retirement community. There are always opportunities to make money if you look for them.
My mother spoke in a nagging tone.
"Making money is good, but look around you once in a while. Take good care of the people around you, go out and have some fun. It's not good to only be obsessed with money."
"I know."
"Are you eating your meals properly?"
"Of course."
"Don't just say that."
"...Yes."
***
I looked at the Saemangeum blueprint sent by ArcIT.
The AI-generated rendering showed a beautiful city where a theme park, buildings, a lake and park, the sea, and an artificial island were all in harmony.
Ellie looked at the picture, unable to hide her admiration.
"Is Saemangeum really going to change like this?"
"That's what they say."
"It's amazing. When I went there last time, the reclamation wasn't finished, and it was just a dusty expanse of dirt."
"If you pour enough money into it, you can turn a desolate desert into a glamorous city."
Conversely, if money flows out, a glamorous city can become a desolate desert. That, I suppose, is the power of capital.
Ellie looked at me and asked.
"Are we going to move to Saemangeum later?"
"I suppose so."
"Where are you going to build your house?"
"I'm thinking of building it on an artificial island."
The Saemangeum development plan also included an artificial island.
In Dubai's case, they created Palm Jumeirah and other islands in the Persian Gulf and sold them as vacation homes to the world's super-rich and Hollywood stars.
Reporters and paparazzi already frequently showed up near my house. If I build a house on an artificial island, I'll be able to perfectly protect my privacy.
The plan was to attract world-class financial firms and investment companies to the Saemangeum International Financial District. Golden Gate had also applied for a plot of land to move in.
However, it hadn't been decided yet whether to move the headquarters or just open a branch.
So, where would Ellie end up working?
I looked at Ellie. As always, she was wearing a white blouse and a black pantsuit, her brown hair tied back in a ponytail.
She wore light makeup and her only accessories were the thin chain necklace, earrings, and watch I had given her, but she was so attractive it was hard to look away.
Ellie's eyes widened as she asked.
"Why are you looking at me like that?"
"Your hair has grown a lot."
When I first met her, she had a short haircut that exposed the nape of her neck.
Ellie smiled brightly.
"Which suits me better, then or now?"
"You're beautiful both ways."
Back then, she had a boyish charm, whereas now, she exuded a feminine one. Thanks to her, I learned that a woman's aura can change dramatically just with the length of her hair.
Ellie continued to stare at me intently. It seemed she was waiting for me to speak first.
I opened my mouth cautiously.
"Um... I don't know when it will be, but when I move, will you come with me?"
Ellie looked surprised for a moment. Then she burst out laughing.
"Pfft! Were you thinking of leaving me behind?"
"No, well, it's not like that..."
As my mother said, money is money, but the most important thing is the people around me, right?
I pulled Ellie into a hug and said.
"When it's time to pack, you'll be the first thing I pack up and take with me."