Chapter 431 |
Our meeting with Saudi Arabian Crown Prince Sulaiman bin Salman was known to the whole world.
The ostensible reason was to congratulate the heir of Golden Gate and the head of the Korean branch on their marriage. However, with various issues at stake, such as the Aramco IPO, sovereign wealth fund investments, and the construction of traveling wave reactors, everyone was on edge, wondering what would be discussed.
Taekgyu shook hands with Crown Prince Sulaiman and said,
“When I get gas, I only use K-Oil. Because it’s good oil.”
“…”
What the hell does that have to do with anything?
No matter which gas station you go to, the crude oil is imported from Saudi Arabia and refined anyway.
Crown Prince Sulaiman burst out laughing.
“Haha, thank you. I look forward to your continued patronage.”
“Assalamu alaikum.”
Crown Prince Sulaiman also replied with a smile.
“Walaikum assalam.”
Taekgyu muttered as if moved.
“I’ve always wanted to say that once.”
I patted him on the shoulder.
“Well done.”
When else would you get to do something like this? People should live doing what they want to do.
Crown Prince Sulaiman looked at Hyun-joo noona and Henry and said,
“I sincerely congratulate you on your marriage. I hope you will continue to maintain a good relationship as you do now.”
“Thank you for your congratulations, Your Highness.”
None of us could speak Arabic, and we didn't know much about Islamic etiquette, but it wasn't a problem.
Crown Prince Sulaiman went to high school in Switzerland and university in the United States. As such, he was fluent in English. In fact, it is said that he had a private tutor during his school days to become familiar with Arabic.
Opponents criticize him for this, saying that he is only an Arab in appearance, but an American on the inside.
“I have prepared a small gift for the two of you.”
Taekgyu said in a small voice,
“What is it? Don’t tell me he’s going to give us something like a lifetime free gas pass?”
“…”
Wouldn’t it be useless once we switch to electric cars anyway?
At a gesture from Crown Prince Sulaiman, two attendants carefully brought in a large rectangular board wrapped in cloth.
When Crown Prince Sulaiman removed the cloth, what was revealed was a painting of a woman sitting on a bed reading a book to children.
Hyun-joo noona and Henry looked surprised.
Ellie, who didn't know much, explained to me in a small voice.
“It’s Maximilien.”
Taekgyu asked,
“Is that the name of the woman in the painting?”
“No. The person who painted it. He’s a French impressionist painter. I think it’s a work that was on the Sotheby’s auction last year.”
Taekgyu quickly nodded his head.
“Ah, I see. I thought I’d seen it somewhere, and it was a work by Maximilien.”
“…”
Just don't say anything.
From what I hear, he’s not comparable to top-tier painters like Renoir, Manet, or Degas, but he’s still quite well-known in the Impressionist world.
Crown Prince Sulaiman is also a big player in the art market. At one time, he bought up all the paintings that came up for auction at Christie's and Sotheby's.
The collected collections are currently on public display for free at the royal family's art museum in Riyadh.
At the time, the winning bid for this painting was $5.6 million. It may not be a big deal for the Crown Prince, whose personal fortune is in the tens of billions of dollars and the royal family's fortune is in the trillions of dollars, but it is an enormous amount to give as a wedding gift.
But there is no such thing as a free lunch in the world.
A gift of this magnitude will have to be paid for in some way someday.
“I personally chose a painting that I thought would go well in your new home. It’s a small token, but I hope you will accept it.”
After he said this much, it would be rude to refuse.
Henry bowed his head and said,
“We will accept it with gratitude.”
***
While we were all having tea, Crown Prince Sulaiman suggested,
“I would like to take this opportunity to tour OTK Company as well. If it’s not too much trouble, could I ask for a guide?”
“Of course.”
I left the main gate of Golden Gate with Crown Prince Sulaiman and moved to the building next door. As we moved a short distance, bodyguards surrounded us, and domestic and foreign reporters waiting outside continuously clicked their shutters.
“I have always been personally interested in OTK Company and CEO Kang Jin-hoo. I would like to hear a lot of advice on investment.”
“If there is anything I can do to help, I will gladly do so.”
We walked while having a friendly conversation. I wonder what the news will say about this.
In the lobby, Taekgyu and the employees who had moved ahead to avoid the reporters were waiting.
I introduced the employees one by one.
“This is Park Sang-yeop, CEO of K Company.”
“It’s a pleasure to meet you, Your Highness. It is an honor to meet you.”
Crown Prince Sulaiman shook hands with each of the employees and exchanged greetings. He even took pictures with them.
Sang-yeop sunbae said to me in a small voice,
“I never thought I would meet the Crown Prince of Saudi Arabia in my life.”
“Me neither.”
“The government doesn't seem to be very happy about it.”
In a situation where they are already trying to keep capital power in check, they wouldn't want my reputation to grow even more.
Of course, that's none of my business.
After giving him a sufficient tour of the company, I escorted him to the CEO's office.
Crown Prince Sulaiman sat down and asked me,
“CEO Kang Jin-hoo, what do you think about the future of oil?”
Oil is the foundation of human civilization.
To put it extremely, even if food exports are cut off, we can survive for a few months, but if the oil supply is cut off for just one month, countries like Korea and Japan, which cannot be self-sufficient in energy, will have their national systems paralyzed.
There was a time when a few countries controlled this oil supply. They openly controlled the supply and sales volume, which brought the shock of two oil shocks to the world.
But that's all in the past.
The United States has enthusiastically extracted oil and gas from shale formations, transforming itself from the world's largest oil importer to an exporter.
Now, the market has changed from a monopoly supply to a multi-party supply, and from a monopoly market to a normal market. In addition, the spread of electric vehicles has greatly reduced the value of oil as a fuel.
The demand for oil will not disappear, as it is used not only as a fuel but also as a raw material for various chemical products.
But apart from that…
I said frankly,
“A decrease in demand and a drop in price are unavoidable realities.”
Crown Prince Sulaiman nodded his head.
“Saudi Arabia has relied too much of its economy on oil.”
“Technology continues to develop, but oil decreases as you pump it out. It will be difficult for now, but I think we need to gradually change that structure.”
Another problem with an economy that relies on resources is that the structure is difficult to sustain forever.
Saudi Arabia has abundant oil reserves, and it is believed that it will be possible to mine for more than 100 years.
However, as time goes by, the difficulty of mining will increase, which will lead to an increase in costs. And that will reduce profits.
Crown Prince Sulaiman gave a faint smile.
“When I was young, the image that came to mind when I thought of Korea was construction. Korean workers built many buildings in Middle Eastern countries under the hot sun. But now, decades later, Korea’s top exports have become semiconductors and batteries. But our country’s top export is still oil, just as it was in the past. This situation cannot continue for hundreds of years. I believe that now, while oil exports are still being maintained, is the last chance for Saudi Arabia. If we miss this opportunity, Saudi Arabia may also walk the path of ruin like Venezuela.”
Venezuela, once a South American oil-rich country, collapsed along with the fall in oil prices. This also sounded a warning to other countries.
After taking power, Crown Prince Sulaiman declared that he would break away from an oil-dependent economy and is not sparing any investment to grow high-tech and finance. The listing of Aramco is also to raise funds for investment.
Among them are electric vehicles, batteries, and TWR. It is also participating in the TWR project led by Rosatom and plans to invest $2 billion to build two nuclear power plants.
However, reform is not achieved with money alone.
In order to change the economic structure, the social system must also be changed accordingly. That is why he also rushed to make major social reforms, such as expanding women's driving and suffrage.
However, reform is followed by pains.
Islamic fundamentalists and conservatives strongly opposed Crown Prince Sulaiman, saying that he was destroying the foundation of the country and trying to divide Islam.
“I know that your relationship with the Korean government has been strained recently.”
I gave a noncommittal answer.
“Is that so? There are good times and bad times.”
Don't tell me that attending the K-Oil complex completion ceremony or the wedding congratulations were just excuses, and he really came to see me?
Crown Prince Sulaiman said bluntly,
“Do you have any thoughts of coming to Saudi Arabia?”
At those words, Taekgyu showed great interest. There is only one reason why he is so interested.
And that is…
Taekgyu asked slyly,
“Is it true that you can have up to four wives in Saudi Arabia?”
Don’t ask such things.
Crown Prince Sulaiman smiled and nodded his head.
“Of course. But you must treat all four wives fairly and without favoritism. Favoritism creates discord among the wives.”
“Hmm, I see.”
What is this guy thinking about so seriously?
As Saudi Arabia is a wealthy country in the Middle East, obtaining citizenship is not an easy task. However, due to the nature of a monarchy, a single word from the Crown Prince would solve everything.
“Saudi Arabia needs people with a vision for the future.”
“Are you saying that’s us?”
“As Crown Prince, I promise to give you the best treatment.”
A great king can change a country. So what can a great investor do?
Saudi Arabia, like the Dutch and Norwegian sovereign wealth funds, operates a sovereign wealth fund using oil sales proceeds. It is also investing heavily in the Insight Fund operated by Chairman Son Masayoshi of Softbank.
The biggest principle of a sovereign wealth fund operated by an oil-rich country is to invest in assets with little correlation to oil prices, so the main investment targets are high-tech industries and financial companies such as IT, automobiles, batteries, AI, semiconductors, and services.
The larger the investment, the greater the absolute amount of profit even with a 0.1 percent return. In addition, sovereign wealth funds are not operated for one or two years and then redeemed, but are operated for at least several decades.
Even a very small difference in the rate of return will grow to more than tens of percent later due to the compound effect over time.
What would happen if I went to Saudi Arabia?
I would probably be treated on par with royalty. If he officially becomes king, couldn't we enjoy wealth and honor together?
But that's only when everything is going well.
If the president in Korea attacks me with laws and institutions, in Saudi Arabia, the king can do the same thing at will.
Couldn't he detain me at the Ritz-Carlton Hotel and threaten me to give up my assets and shares, just as he did with other royal family members and businessmen later?
“Thank you for your offer. But I have no intention of leaving Korea yet.”
He nodded his head as if he had expected this answer.
“I understand. I am satisfied that I have learned a lot just by meeting and talking with you today.”
“The same goes for me.”
Crown Prince Sulaiman stood up and took my hand.
“I think it was worth coming to Korea. Please be sure to visit Saudi Arabia later. Our doors will always be open.”