112 : Your side
“I’ll be back, please take care of me here.”
Telex flew in one after another.
Chairman Longbottom delivered the news that Barclays Bank, the organizer of the syndicated loan, was positive about the project.
He said that if the Korean government gave an unlimited guarantee for the loan, Barclays Bank would be in the final negotiations.
The Blue House must have been informed of this fact, and it sent a telex to report back to Korea quickly.
“Look at the Blue House and do well. I won’t ask you to come soon, so please contact me. There is also a telex here.”
“I get it. I’ll be sure to contact you if you’re dead or alive.”
“Send the kabla person too. Taking care of both is a bit too much for me.”
“Don’t worry. We will also set up a branch in the Middle East at this time.”
As the start-up money arrived, the order for Kabla came along with it.
It was a military payment of 1 million dollars. It wasn’t as large a military supply as Vietnam, but once the tasting was over, additional orders would come in at once.
I left with Sambok and the staff seeing me off.
There might be some issues with the size of the shipyard, but since the Ministry of Commerce and Industry brought up the shipyard before me, it won’t be too difficult to convince them.
***
Two days later, Gimpo Airport,
“Oh, Mr. Woo. welcome.”
“No, Vice Minister Yeom. Did you come to meet me here? I will go to the Blue House.”
Vice Minister Yeom Won-cheol was standing in front of the arrival hall.
“Oh, don’t even talk. When President Wu wasn’t there, the cabinet meeting was completely turned upside down. The UK, West Germany, France, and many other places asked for shipyard data, so I couldn’t keep my eyes open.”
Originally, a syndicated loan is when several banks form a sub-ministerial group to lend money. Of course, there are business reviews in many places.
“Didn’t the Ministry of Commerce and Industry proceed with the shipbuilding industry as a key national task? You can give me that material.”
“Ah, there is a huge difference between the existing data and the data requested by foreign banks in terms of scale. I wish I could tell you something in advance, we’re kids too…”
“It wasn’t what I meant either. The Ministry of Commerce and Industry asked us to actively review shipyards, and as we toured foreign shipyards to find out their competitiveness, the scale gradually grew.”
Would it have been accepted if he had said from the beginning that he would build a 700,000-ton dock? I would have drawn the line saying no.
It’s better to do things like this and convince them that it’s profitable with a business plan.
It’s something you have to go through at least once.
“So it came out like this. Please kiss our Ministry of Commerce and Industry before entering the Blue House.”
As expected, Vice Minister Yeom is on my side.
It was clear that he was trying to help.
“I guess so.”
“Let’s go. The Minister of Commerce and Industry is also waiting in the car.”
Did you come to the minister? It’s pretty active.
In fact, Minister of Commerce and Industry Na Jeong-ryeom was originally a nobleman with excellent work ability as well as political sense, enough to serve as the chief of staff for the longest period in history.
In his eyes, now seemed like a golden opportunity to start the shipbuilding industry.
Click.
“welcome. Boss Wu.”
“Nice to meet you. I am the minister.”
I climbed into the official car that was waiting. With me in the middle of the back seat, the Minister and Vice Minister of Commerce and Industry sat on either side.
“You did a great job in Europe. When we moved, there was no reaction from the market at all, but when President Woo left, investors rushed in.”
It was thanks to his personal connections with Smith.
“You’re welcome. Rather, I heard that it was difficult to respond to business feasibility reviews here and there.”
“As a foreign bank, of course we have to respond. However, the hardest part is inside. It is crazy to see people who know nothing about the shipbuilding industry.”
It seems that the quality of internal politics was quite difficult to the extent that Minister Na Jeong-ryeom, who is quite decent, said this.
“Honestly, the only people who understand the shipbuilding business are definitely President Woo and our Ministry of Commerce and Industry. The opportunity has come, but I have to shake off those who hold my ankle.”
“Oh, yes, no.”
Vice Minister Yeom and Minister Na were beaten to death.
These Commerce and Industry tech bureaucrats deserve credit.
The reason Korea’s manufacturing industry grew at an average of 15% in the 1970s was thanks to the Ministry of Commerce and Industry.
“Anyway, guess the numbers first. Is the dock you are considering really 500,000 tons?”
“Let’s make it 700,000 tons.”
“7… 700,000 tons?”
To be honest, I wish the dock was bigger, but I barely suppressed my greed because of the air.
A large dock is convenient for arranging various equipment, and productivity is excellent because it is possible to move blocks that have been waiting in advance while taking out a completed ship, so that work can be continued.
“Yes, don’t be afraid. Japan says they are building a dock with a capacity of 1 million tons.”
“Oh, is that so? It is also difficult to keep up with world trends. Then, is it the scale of 5 ships of 250,000 tons per year?”
“You calculate it as 7 ships of 260,000 tons. It’s more realistic, and it’s profitable.”
Every time I spoke, Minister Na’s mouth fell open. This is also greatly reduced.
If you see the ships being sold, it’s obvious that the president will step up and make a fuss about expanding the shipyard.
“Ah… I see. So what do you think of the annual sales plan and net profit?”
“I put it here. I wish I had given you a business plan ahead of time.”
Sambok and I presented a business plan that had been revised several times. There must be no doubt that it was the most conservative calculation of the clumsy Sambok.
“Ugh! $230 million in sales and $30 million in net profit?”
“I have to do that to not fail.”
Calculating the annual loan interest of $ 4 million, a net profit of only 13% was expected.
Due to the nature of the shipbuilding industry, which is sensitive to the economy, it is wise to set up an operating plan with a net profit of around 13%.
And in the case of me, Incheon Steel provides steel plates, so the money left over there is separate.
If the ship sells well, Incheon Steel’s net profit rate will skyrocket.
“Whew, that’s why the Bank of England has asked our government to guarantee 20 million dollars. I understand now.”
That’s right. Barclays Bank spilled money too.
It must have been a trial to try, but it worked out well for me.
“Didn’t you say that the shipyard is one of the four key tasks? Then, since the government budget is also allocated, I would like you to support about 20 million dollars.”
Depending on the situation, the government subsidy can be paid off slowly or induce a debt-to-equity swap. Business will be insanely good, so there is no problem at all.
“That is, the opposition party as well as the government and ruling party are attacking. What kind of trend is that it is not a state-owned enterprise and receives preferential support one after another?”
“Did I get preferential treatment? Did you go all the way to the Pacific Ocean to prevent national bankruptcy and borrowed a loan, or donated a factory site to build a petrochemical complex? Oh, didn’t I solve the vice minister for the steel mill?”
“Ah, of course you will feel unfair. Even the press, who used to praise it for being different when entering and exiting the toilet, saying that it was a deputy minister’s childish group, is talking about preferential treatment. what a privilege! Fucked babies. We have to build a shipyard!”
Vice Minister Yeom Won-cheol, who had suffered as a vice-minister’s childcare team, was particularly excited and put his fist into the front seat.
“Recent public opinion is bound to be bad. Didn’t Mercury recently smuggle a lot of saccharin and phones under the pretext of importing materials? It’s only natural that society as a whole looks down on entrepreneurs.”
what? Couldn’t even cover it quietly from inside Mercury?
What are you going to do?
“No, that is real corruption. I have never received any preferential treatment. To be honest, the general trend didn’t even cut taxes, and didn’t Incheon Steel, which was full of insolvency, normalize?”
It was embarrassing to talk about my achievements with my own mouth, but it was the truth.
“We still know. So, didn’t you come all the way to meet me to help President Woo? I will go to the Blue House and give my strength.”
“The minister is right. That’s what we came for.”
“Deputy Minister Yeom memorize the numbers, come on.”
“Yes, Minister.”
Vice Minister Yeom and Minister Na started memorizing numbers while looking at my business plan.
***
Blue house.
“Welcome, Mr. Wu.”
“Hello, Chief Secretary. Deputy Prime Minister.”
Bae Hak-ryeol, Minister of Economic Planning Board and Deputy Prime Minister, as well as Chief of Staff stood at the entrance.
“You came after visiting the Ministry of Commerce and Industry. The secretary’s office was on standby at the Seongsu-dong factory.”
“Because I made a prior appointment with the Ministry of Commerce and Industry.”
“Come on, eat inside. Your Excellency has called an emergency meeting today.”
“Urgent meeting… Okay.”
what? Did you call an emergency meeting just because I was coming?
Why are you burdening me?
“Today’s meeting was also attended by the Presidential Economic Advisory Faculty. You will have to deal with it.”
The chief of staff threatened him under the guise of false advice.
It sounds like you don’t want government support for nothing.
When working, there are cases in which non-professionals go beyond their authority.
The current secretary did just that.
After all, the Blue House Secretariat is nothing more than a place to collect and organize national strategies to assist the president, coordinate the work of each ministry, and report comprehensively.
The working-level department is the most expert on each project, but what if the secretariat tries to take the initiative just because it is next to the president? We need to focus on inter-departmental coordination.
‘This guy, when are you going to Japan? The sooner the better.’
If Minister of Commerce and Industry Na Jung-ryeom became chief of staff, things would be much easier.
Tboob. Tboob.
“Your Excellency, you are coming in.”
Pair, pair, pair, pair.
When you attend a cabinet meeting, you have to sit down, stand up, and clap your hands until the president walks over and sits down.
“Everybody sit down.”
“Yes.”
“Yes, Imja. Did your trip to the Middle East go well?”
Normally, in a Cabinet meeting, the agenda would be put on the agenda, but not today.
This meeting was a venue for negotiations between the Ministry of Commerce and Industry, the Secretariat, and the Economic Planning Board, with the President as the referee.
It was exactly the same from the seating arrangement.
“Yes, it went well. The construction of the Jordan waterway has begun, and when the total project cost is decided, the US BR company will formalize the consortium project.”
“Yes, yes. Well done. So, how much money did you make?”
“You can know the accuracy only when the total project cost comes out, but as of now, we received 30 million dollars as a start-up cost, and if we subtract materials and expenses from it, I think there will be a short-term net profit of about 12 million dollars.”
“haha! 12 million dollars! Reflect it in the national treasury right away.”
“Yes, I understand. However, due to the introduction of equipment, you may have to withdraw immediately.”
This is the money you need to spend on building a shipyard.
If you put it in, it will come out soon.
“The owner earns well, but spends too much. Shouldn’t the national treasury be filled with dollars to develop farming and fishing villages and build highways? We must also consider the development of the country. Tzu-tsuk.”
The president was a little annoyed.
No, why is it my fault that foreign exchange reserves are low?
In the meantime, don’t I fill up the most?
“I will work harder and earn more.”
Today is the day to bow down a little.
Anyway, I had to get 20 million dollars.
Barclays Bank will come in only when the Korean government provides a payment guarantee.
“Okay, now fight. Because President Woo came here, all the parties involved were gathered. Don’t keep saying this and that while posting reports to me.”
“I’ll start with the secretary’s office. As is the opinion of the economic advisory faculty here, the shipbuilding industry is a declining industry even in developed countries. In other words, the secretary’s position is that investing in machinery and electronics is much more effective than shipbuilding.”
“The chief secretary is right. Taiwan, a neighboring country, is also investing heavily in machinery and electronics rather than shipbuilding. At this rate, we won’t even be able to catch up with Taiwan.”
As if he had practiced his presentation, as soon as the chief of staff had finished speaking, one of the advisory professors stood up and added his words.
No, who doesn’t know that machines and electronics are important?
Doesn’t Joseon matter? That’s a spec industry in Europe, a spec industry for us?
“Look at this. Now, we are a developing country where we can’t even eat rice to our heart’s content. What kind of industry is there in such a country? Do you even know why the shipbuilding industry is called a declining industry in the West?”
“… rather than the shipbuilding industry, we want to spend money on machinery and electronics first. That is more important.”
“If it’s that important, you go ahead and get a loan and do business. Why are you interfering with the work just before the sacraments? Do you know why German, Swedish, Norwegian, and British shipbuilders are falling out one after another? It’s all because Japan is sweeping the market by hitting 40% of the ship price. Because Japan wants to continue sucking honey alone, it is keeping us in check by mentioning the declining industry. If we block it well this time, our country will never be able to enter the market!”
At this time, professors all obtained their research data through Japan, so there were many cases in which they followed Japanese logic without even knowing it. If you read such papers, you will fall into the subtle trap dug by the Japanese side.
Should we focus on the machinery and electronics industry?
If I can do it, I want to do it right now!
We are in a situation where we can’t make a CNC right now.
Machinery and electronics are industries that succeed only when large-scale investments are made in the market and many small and medium-sized parts makers build technology.
Time and money than shipbuilding! It is an industry that requires much, long, and much investment in technical manpower.
“Even if President Woo is right, it is impossible to have a large shipyard in Korea. Korea has never built even a 10,000-ton ship and has no technical manpower, so the shipbuilding industry has no chance of success.”
“What country is that logic based on? What the hell are you talking about technical personnel! Daesae Shipbuilding made a 200,000-ton bulk carrier in a 35,000-ton dock. Their skills and passion are already world-class. All we lack is a large shipyard! Now that the Suez Canal is blocked! Customers are overflowing now! We need to build a shipyard! Absolutely!”
I growled angrily.
If I pretended to be a nobleman just because I had entered the Blue House, it really seemed like the shipyard would blow up.
“I agree with Mr. Wu. Petrochemicals, steelmaking, shipbuilding, and shipping are industries that are advantageous to developing countries like ours, and have a great ripple effect across the industry. In particular, now that the Suez Canal is blocked, it is the right time to start a business.”
Minister of Commerce and Industry Na Jeong-ryeom stepped in.
The chief of staff was about to say something more, but stopped.
“I think President Wu is right. In the secretarial office, find another way to start the machinery and electronics industry. Do not interfere with Joseon.”
“Yes, Your Excellency.”
Even the president helped, and the chief of staff had no choice but to bow his head.
“Your Excellency, the EPB does not oppose the shipbuilding industry itself. However, the strategy of obtaining British loans is completely wrong. An Israeli shipping company, Panmaritime, and Norwegian Aker Shipbuilding Coalition have proposed a 50-50 joint venture.”
Instead, this time, Deputy Prime Minister Bae Hak-ryeol stood up.
He seemed elated, as if he had led the collaboration himself.
“her? joint venture? That is very good news.”
The president was also enticed by the deputy prime minister’s words.
what? Who has been requesting a joint venture?
