Chapter 430 |
When the voluntary report was effectively refused, the Blue House and the ruling party did not hide their displeasure.
In any case, unless the data is handed over, the government cannot arbitrarily look into the assets and transaction records of a foreign corporation.
That's why they continue to track remittance records from within the country and the foreign corporation's sales, profits, and cash flow to uncover offshore tax evasion.
There was a company that was in more of an uproar over this matter than we were: the Rite Group.
The Rite Group is a company founded in Japan by Chairman Jin Kyung-ho, a Korean-Japanese. Based on its success in Japan, it entered the Korean market in the late 1960s and has now grown to be the 5th largest conglomerate in Korea.
The problem is that while the sales of Rite Japan have stagnated since then, the sales of Rite Korea have exploded. The sales of the two corporations were reversed long ago, with 90 percent of the revenue generated by Rite Korea. However, because the governance structure where Rite Japan controls Rite Korea remains in place, controversy has continued to arise.
As public opinion worsened, Vice Chairman Jin Dong-min, who is in charge of Rite Korea, promised to list Rite Hotel and proceed with separating it from the Japanese headquarters.
As I was leaving the company, reporters who had been waiting at the entrance followed me.
"We heard that you refused to voluntarily report your offshore assets."
"Other companies are paying their taxes properly. Do you think it's fair to have a corporation in a tax haven?"
"What do you think about the president's statement that corporations must fulfill their social responsibilities?"
"Do you have any plans to list on the Korean stock market?"
"Please say a word to the public."
I stopped walking and said.
"I'll handle my own affairs. I have no intention of complying just because someone tells me to do this or that about something that isn't even mandated by law."
***
Everyone knows that OTK Company is in a tax haven.
But now that the government has stepped up to investigate offshore tax evasion, the controversy has flared up anew.
With the Saemangeum development underway under OTK Company's lead, and considering my relationship with the United States, the Blue House and the ruling party seemed to be refraining from further comment. However, the media kept chattering about various things.
I thought to myself as I watched the news.
What do I look like in the eyes of the public?
A successful businessman? An investor with foresight? Or a cold-blooded person who only cares about money?
My mind is cluttered with various thoughts. Ellie, who came home late from work, saw me and said.
"What's wrong? You don't look well, Jinhoo."
"It's nothing."
"It's not nothing."
Ellie plopped down next to me.
"Come on, tell me."
"I just find myself wondering if I'm doing the right thing."
Many self-made people set life plans from their childhood and carried them out step by step. Warren Buffett did, and Masayoshi Son did.
But I just made money when there was an opportunity to make money, and somehow, I ended up here.
I didn't have any particular sense of purpose, nor did I have a sense of mission.
Even I didn't know that OTK Company would grow this much.
So much has changed in just five years. Autonomous electric cars have now become a part of daily life. Pornography has opened up a new market by combining virtual reality and real dolls. A VRMMORPG enjoyed by over 100 million people is in production for online games. A traveling-wave reactor is under construction in Russia. A new city is being built in Saemangeum, which was once a barren wasteland.
All of these things were unimaginable just five years ago. So what will happen in the next five years?
I sometimes see the future, but I can't quite picture what it will look like. And the same goes for myself.
Hearing my story, Ellie smiled.
"Do you know something?"
"What?"
"You're a much better person than you think you are, Jinhoo."
I chuckled.
"Isn't it just you who sees me that way?"
Ellie asked playfully.
"Should I make you feel better?"
"How?"
"Like this."
Ellie climbed onto my lap, wrapped her arms around me, and kissed me.
"How is it? Feeling better?"
"Isn't this cheating?"
While we were engrossed in a kiss, Taek-gyu's voice came from behind.
"Uh, um. I'm just asking to be sure, but you're not in the middle of it right now, are you?"
"Yeah. We're not."
It was a position that could be misunderstood if seen from behind the sofa.
"I'm heading out, so you can continue what you were doing."
"Where are you going?"
"Ha-young said she's stuck on her story and wants to get some fresh air."
He's still a nerd busy with his love life.
After Taek-gyu left, Ellie said.
"Let's go get some fresh air too."
"Where to?"
"The Han River."
"Now?"
"When you're feeling down, looking at a river or the sea makes you feel better, doesn't it?"
Led by Ellie's hand, I got in the car and headed to the Han River.
Perhaps because the weather had warmed up, there were quite a few people despite the late hour. When we got out of the car, people recognized us immediately.
"Hey, isn't that Kang Jin-hoo?"
"Wow! It really is."
"Looks like he came with his girlfriend."
"They look good together."
We walked along the riverbank, arm in arm, without paying attention to the stares around us. It definitely felt good to be outside.
We stopped under a bridge and looked at the river. The lights from the bridge reflected on the water, and in the distance, the lights of Namsan Tower were visible.
"It's so nice that Seoul has the Han River."
Ellie loves water, perhaps because she always grew up with a view of the sea.
I held her hand tightly and said.
"Let's go to Hong Kong next time."
***
As Hyun-joo noona's wedding date approached, the attention of global investors focused on Korea.
The government made various preparations to welcome the investors. They even sent working-level officials down to Jeju Island for the express purpose of attracting investment.
In the midst of this, shocking news was delivered.
It was the visit of Crown Prince Sulaiman bin Salman of Saudi Arabia to Korea. The entire nation was turned upside down by the news of the crown prince's arrival.
The Saudi side stated that the purpose of the visit was to attend the completion ceremony of a complex facility for K-Oil, a subsidiary of Aramco.
- Why is the crown prince coming?
- Could he be here to meet Kang Jin-hoo?
- Wow! A meeting between the world's top investor and the oil prince?
- Is Crown Prince Sulaiman that big of a deal? How does he compare to Mansour?
- It's not even a comparison. Aramco's market cap is being talked about at $2 trillion right now. Crown Prince Sulaiman is basically the sole shareholder and CEO.
- Whoa~ Then isn't he worth twice as much as Kang Jin-hoo?
- The $2 trillion is just Saudi wishful thinking. In reality, it's probably around $1 to $1.5 trillion.
- Even that is insane, and besides Aramco, there are many other state-owned enterprises. All of that belongs to the king.
- Since it's a monarchy, you have to add the value of government-owned land and the right to collect taxes.
- Then wouldn't it be closer to $5 trillion?
- I'm so jealous ㅜㅜ
***
What is the world's largest company?
Npple? Gooble? MS? AMZ? CarOS? Or OTK Company?
Surprisingly, the world's largest company is unlisted and located in the Middle East. It is the Saudi Arabian state-owned enterprise, Aramco.
Well-developed democracies like the Netherlands, Norway, and the state of Alaska use the money earned from oil sales for investment and welfare through social consensus.
However, in monarchies, the ruling class monopolizes the proceeds from oil sales.
The same is true for Saudi Arabia. The very name Saudi Arabia means "the Arabian kingdom of the House of Saud." Therefore, all oil rights belong to the royal family.
Aramco's revenue last year was $355 billion, and its operating profit was a staggering $111 billion. Its market capitalization is estimated to be between a minimum of $1 trillion and $2 trillion.
Currently, one of the things the financial world is paying the most attention to is the issue of Aramco's IPO.
Saudi Arabia plans to list about 10 percent of Aramco's shares to raise investment funds. Even 10 percent is roughly $150 billion.
In terms of IPO size, it is truly the largest in the world.
While Npple or AMZ are now worth over $1 trillion, their market caps at the time of their IPOs were less than one-hundredth of that.
Also, if a company valued at $10 billion goes public, the actual portion offered to the public is typically 20 to 50 percent. However, in Aramco's case, since it's a partial listing, 100 percent of that portion will be offered.
As there is no single stock exchange that can handle an IPO of this size at once, the plan is to list it on five or six different exchanges.
Saudi Arabia has a close relationship with JP Morgan by default, but it has also continuously done business with Golden Gate.
In particular, regarding the New York Stock Exchange listing for Aramco, negotiations are underway with Golden Gate. If selected as the lead underwriter, Golden Gate stands to earn enormous commission income, so they are also doing their best.
Taek-gyu asked.
"Is he that important of a person?"
"The current king has stepped back from the political front line due to his advanced age, so he's effectively the king."
It's not a constitutional monarchy; it's an absolute monarchy. Naturally, the power held by the king is immense. Moreover, Saudi Arabia is a well-known oil-rich country.
Its per capita national income exceeds $50,000 from oil sales. However, the situation has not been great recently. The reason is the falling price of oil.
Saudi Arabia's economy is practically at the mercy of international oil prices, and the decline in oil prices has put the national finances in the red.
Sulaiman was not the crown prince from the beginning.
The House of Saud practices fraternal succession. According to tradition, his cousin Muhammad should have been the next king, but Sulaiman pushed him aside and seized power.
After ascending to the position of crown prince, he advocated for reform and the eradication of corruption, imprisoning royals and businessmen.
The number was in the thousands.
"Wait, why are there so many royals?"
"Arab royalty can have up to four wives. So do you think they'd have just one or two wives and children?"
In fact, the first king had 22 wives.
"Aha! Did he lock them up in prison?"
"He locked them up in a hotel."
The place of detention was the world-class Ritz-Carlton hotel. For a time, the Ritz-Carlton in Riyadh was called the most luxurious prison in the world.
As a condition for release, Crown Prince Sulaiman forced them to surrender their assets, from as little as half to as much as 70 percent.
It is known that more than $200 billion has been recovered for the state treasury so far.
At this point, the scale of the royals' corruption is simply dumbfounding. In addition, some had to give up their company shares and management rights.
There was immense dissatisfaction, but Sulaiman had already seized power as crown prince and had public opinion on his side, so everyone kept their mouths shut.
Prime Minister Ryu Jeong-hoon went to the airport to greet Crown Prince Sulaiman, and the Blue House held a welcome banquet followed by a summit.
President Heo Chang-min and Crown Prince Sulaiman exchanged pleasant greetings. President Heo requested to strengthen economic cooperation with Saudi Arabia, and Crown Prince Sulaiman gladly responded.
They agreed to strengthen cooperation not only in the existing fields of construction and energy but also in future areas such as advanced industries, IT, telecommunications, and automobiles.
The two leaders attended the completion ceremony of K-Oil's refinery and petrochemical complex together, showcasing the friendship between the two countries.
The top five conglomerates also stepped up. In the absence of its chairman, Seosung Electronics President Kwon Nak-yeon attended on behalf of the Seosung Group to discuss future investments.
Crown Prince Sulaiman, as if opening a bag of money, signed MOUs worth $10 billion with Korean companies.
***
The Golden Gate branch office was on high alert.
They had received a call that Crown Prince Sulaiman would be visiting after finishing the summit. At their request, Henry, I, Taek-gyu, and Ellie also joined.
A moment later, a car arrived at the main gate.
A man in traditional Saudi Arabian attire got out of a Rolls-Royce Phantom. Due to the beard covering his face, he looked to be in his 40s or 50s, but his actual age was in his mid-30s.
He had distinct features and a rather handsome face. His appearance likely played a part in his popularity with the public.
A crown prince of a monarchy...
Meeting someone like this in person, I was once again reminded of how wide the world is.
Crown Prince Sulaiman took my hand and expressed his joy.
"It is a pleasure to meet you, CEO Kang Jin-hoo. I have wanted to meet you for a long time."