RR 39
[039] Luck Also Comes in Flocks? 1.
The fact that Chairman Jin personally rushed to the headquarters to convene a meeting indicated an extremely urgent situation.
Lee Hak-jae, along with the presidents and executives of Sunyang Electronics and Sunyang Trading, and even the Osaka branch manager from Japan, were already waiting in the conference room after taking the first flight.
The large conference room door burst open, and Chairman Jin appeared. Everyone stood up abruptly, but Chairman Jin waved his hand.
“Just sit. Do you have the presence of mind to be polite?”
As Chairman Jin slumped into the seat of honor, the Osaka branch manager spoke.
“There was a major fire. The resin plant at the Ehime factory exploded… Production is impossible.”
“The local investigation team departed on the first flight today. The Ministry of Commerce, Industry and Energy also departs tomorrow.”
The president of Sunyang Electronics followed with his report.
“We currently have four months’ worth of inventory. If production doesn’t resume after four months, our production line will also…”
“Normal operation of the Ehime factory won’t be possible until next year.”
The Osaka branch manager said, observing Chairman Jin’s expression.
“Sumitomo announced an emergency switch of production items at their other two factories. Supply and demand issues will probably be resolved.”
“Probably? Will be?”
Veins popped out on Chairman Jin’s forehead.
“The guy right next to Sumitomo is just guessing? What are you doing?!”
The Osaka branch manager quickly bowed his head.
Right now, guesses were all he had. He didn’t have the confidence to take responsibility if he spoke confidently and was wrong.
This year’s sales target was 10 trillion won, operating profit 1.5 trillion won, and the world’s No. 1 in memory semiconductors.
The only person who could take responsibility for these terrifying numbers was Chairman Jin.
“The factory must never stop! Hey! Son Hoon-jae!”
“Yes, Chairman.”
“Secure supplies from America.”
Son Hoon-jae, the president of Sunyang Trading, had to utter the difficult words with cold sweat running down his face.
“America’s Dow Chemical already has an exclusive contract with Intel. Securing supplies is impossible.”
“I heard domestic companies also produce epoxy packaging. Can’t we secure all their supplies as a last resort to prevent the production line from stopping?”
Director Lee Hak-jae asked the president of Sunyang Electronics, but only received a negative answer.
“Domestic products can only be used for 1-megabyte or less. The quality isn’t good enough for our main 4-megabyte products.”
Everyone kept repeating that it was impossible or difficult, but Chairman Jin did not explode in anger. He knew well that epoxy resin was Sumitomo’s exclusive market, so pressing them wouldn’t yield any solutions.
Sumitomo was one of Japan’s three major chaebol groups, along with Mitsubishi and Mitsui, who survived even after the dissolution of the zaibatsu. Although its public recognition was the lowest, it had many unexpected companies under its wing.
Its core business was chemicals, and it had expanded into finance, including electricity, trading, and insurance. It was also so large that it controlled the Asahi Group, famous for newspapers and beer, as a quasi-affiliate.
Although Japan was beginning to falter with the collapse of the bubble economy, the Japanese economy in the 90s was incomparable to Korea’s.
The combined total sales of Korea’s aviation, shipbuilding, electric, electronics, and automotive industries were equivalent to only Mitsubishi’s sales in Japan.
Epoxy resin, a material used for molding to encase chips during semiconductor assembly, accounted for less than 1% of the total raw material cost of semiconductors. However, the problem was that it was an indispensable material.
Sumitomo’s share of the global epoxy market was only about 1%, but its advanced epoxy resin used in semiconductors accounted for 60% of the world’s supply.
Furthermore, domestic semiconductor production factories had a staggering 95% reliance on Sumitomo Chemical.
The multi-trillion-won Korean semiconductor industry was being held hostage by Sumitomo, which accounted for only about 20 billion won of the total volume.
“In the end, we can only survive if Sumitomo quickly changes its production line. All we can do is pray with folded hands…”
They made more of a fuss than a fire in a pancake house, but Chairman Jin and other key figures of Sunyang could do nothing but wait for Sumitomo’s countermeasure announcement.
.
.
A Blast from the Past, and a Presidential Decree
As soon as I saw the newspaper article, memories I had completely forgotten came flooding back.
The content of the training I received after joining Sunyang Group, specifically the history of Sunyang Electronics’ development.
The cell phone I was holding now, model name SY-700.
Sunyang Electronics’ second cell phone and the first truly portable one weighing around 100g. The explosion accident at Sumitomo Chemical, briefly mentioned when explaining the release of this cell phone in 1993.
It might seem like a minor detail, but it kept nagging at me.
Because of the word ‘monopoly’.
Why else would even the government be worried, stating, “The vulnerability of our semiconductor industry, with its excessive dependence on foreign countries for semiconductor equipment and key materials, has been exposed”?
The most tempting word for business people: monopoly.
Moreover, it was a monopoly with the power to control semiconductors, the “rice of the electronics industry.” If I could only grasp the power of this monopoly in my hands, it would greatly influence the future direction of Sunyang Electronics…
The target was too big.
Wasn’t Sumitomo Group a giant that was incomparable to Sunyang?
I had some money, but there was no way to do anything with that money. However, for some unknown reason, the lingering attachment did not disappear.
For almost a month, while I kept up with newspaper articles and broadcasts, observing the situation, an event far more powerful than the epoxy factory explosion occurred.
This time, it wasn’t far abroad but right here in Korea, and a massive explosion occurred at the Blue House.
August 12th, 7 PM.
All TV broadcasts interrupted their regular programming and began live broadcasting the President’s emergency address.
“At this moment, with a solemn heart, in accordance with Article 76, Paragraph 1 of the Constitution, I hereby announce the ‘Emergency Financial and Economic Presidential Decree on Financial Real-Name Transactions and Confidentiality.'”
A unique Gyeongsang-do dialect accent carried an unusual power, and his expression showed determination.
Immediately after his inauguration, he purged the military faction known as ‘Hanahoe’, and in June, he dropped a bomb by publicly disclosing the assets of public officials, forcing high-ranking officials who had accumulated wealth through illicit means to resign.
Now, he was declaring his intention to bring out even the black money hidden under borrowed names.
Damn it, was the real-name financial system announced this year?
I knew it was an achievement of the Kim Young-sam administration, but I couldn’t remember that it was this year.
If I had remembered, I could have discreetly informed Chairman Jin and received even more affection… What a shame.
I slowly started to worry if my grandfather had collapsed from the shock.
.
.
The Aftermath of the Financial Real-Name System
Lee Hak-jae, who was listening to the President’s address in his car, shouted at the driver.
“Turn the car towards the Chairman’s house quickly, hurry!”
As the driver, who didn’t hesitate to make an illegal U-turn, sped up, Lee Hak-jae pulled out his notebook from his pocket.
Names and amounts were meticulously written. All were nominee accounts.
Perhaps this notebook would be completely useless.
The financial real-name system was also part of the President’s election promise, but he never imagined it would be implemented in such a way, barely half a year after his inauguration.
At a dinner party, Chairman Jin had personally asked the Deputy Prime Minister of Economy.
“His Excellency’s will is clear. The financial real-name system will definitely be implemented. But not this year. If banks and the stock market fluctuate, wouldn’t the administration have a hard time coping? This year will pass just preparing thoroughly.”
It was a plausible answer, so they didn’t rush. They were just discreetly transferring money overseas as a precautionary measure.
Thinking of Chairman Jin’s thunderous anger, his sighs were endless.
As he opened the study door, Chairman Jin’s shouts were already echoing loudly.
“Prime Minister Hwang! You stab me in the back like this? Whose favor do you think you’re sitting in that position because of?!”
Chairman Jin, who spotted Lee Hak-jae, gestured with his finger, pointing to a chair, then roughly slammed down the receiver.
“These bastards all denied knowing anything. Useless fools.”
“Did you talk to the Senior Secretary for Economic Affairs?”
“Just now. He resigned and left the Blue House.”
“What?”
“He said he only found out by watching the broadcast too. Honestly, it’s unbelievable.”
For the President to push through economic policies without even the Senior Secretary for Economic Affairs knowing.
At this level, it wasn’t a lie for the Prime Minister to say he didn’t know.
Chairman Jin put on his glasses, looked at Lee Hak-jae, and asked.
“How much? All of it?”
“Excluding small change, it’s 600 billion won.”
“Is that all?”
“No. A significant amount has already been moved overseas.”
As a look of relief appeared on Chairman Jin’s face, Lee Hak-jae continued his report.
“300 billion won is with trustworthy people, so you can rest assured…”
“Find it tomorrow immediately. Their minds will change with time. That’s enough money for three generations to live lavishly. No one can find it unless it’s the owner themselves. There’s no one trustworthy in front of money.”
“Yes. Then I will withdraw all of it in cash and store it in the warehouse. And then launder it as quickly as possible and transfer it overseas.”
At least half was salvaged.
“200 billion won is in anonymous accounts and nominee accounts, but anonymous accounts are for people who don’t even exist…”
“Nominee accounts?”
“There are deceased account holders and missing persons. And a significant amount was made under the names of Sunyang employees.”
“Can’t you find the ones under employee names?”
“It’s possible.”
Sunyang employees wouldn’t be a problem. If he collected all their IDs and threw them at the bank, they would prepare the cash themselves.
If any employee caught on, he would simply call them in and threaten them once, and that would be the end of it. They wouldn’t dare to make a sound under the authority of the Chairman’s Chief of Staff.
“And it’s a blessing that 100 billion won was entrusted to Oh Se-hyun.”
“Oh Se-hyun? Ah, the guy who manages Do-jun’s money?”
“Yes. I’ll meet him tomorrow and secure it in dollars.”
Since most of it was recoverable, Chairman Jin felt much lighter.
“Then how much will be difficult to find?”
“As I mentioned, these are accounts where the account holder doesn’t exist at all. It will be at least five or six hundred billion won.”
If worse came to worst, it was money that would sleep forever in bank vaults.
“I will meet with the bank presidents and devise a plan.”
Lee Hak-jae spoke cautiously, but Chairman Jin shook his head.
“No. There’s no need to spread rumors needlessly. Other group chairmen will surely step forward first. Let’s wait and see.”
Chairman Jin sensed an unusual atmosphere. Perhaps he might have to give up on that money.
.
.
The next day, the stock market plummeted, and banks were in chaos due to people rushing to withdraw their deposits. Cash was severely scarce, and the price of gold skyrocketed.
Lee Hak-jae mobilized the secretarial staff to secure cash from commercial banks before opening hours, and only then could he breathe.
Then he rushed to Yeouido and met Oh Se-hyun. Oh Se-hyun also looked frantic due to the stock market crash.
“Everyone’s in a war zone, it seems.”
“We’re doing better. We’re checking if there are any good spoils of war.”
Oh Se-hyun, who greeted him with a smile, already knew the reason for Lee Hak-jae’s appearance.
“Our damage is significant. We’re both busy, so let’s get straight to the point. We’d like to retrieve the money we invested in America.”
“Of course. Your investment performance was good, so you’ll recover some of your losses.”
Oh Se-hyun typed on his computer and printed out the investment status at a glance.
“I’ll process it today. I’ll send it to the linked accounts. There were over 40 of them, right? The deposit accounts?”
“Ah, those accounts cannot be used. Please send it to these.”
Oh Se-hyun frowned as he looked at the dozen or so accounts Lee Hak-jae handed him.
“Director Lee.”
“Yes.”
“Are you unaware of the financial real-name system?”
“Isn’t that why we’re doing this? You know what kind of money this 100 billion won is, don’t you?”
“I know very well, but there are 40 investors. We cannot avoid the financial real-name system either. This money must be returned to those people. We cannot give money to the wrong person.”
“That’s why I brought the American accounts, isn’t it? Let’s handle that money in America.”
Oh Se-hyun’s eyes widened, and he even cleared his throat.
“I’ll go to jail. If I’m caught by federal law, I won’t get out of prison for a hundred years.”
Lee Hak-jae’s hair stood on end.
The 40 accounts were anonymous. The account holders did not even exist.
Oh Se-hyun’s mind raced.
Perhaps that 100 billion won, with no apparent owner, would forever lie dormant in Miracle’s hands.
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