Pri Minister Ryu Jeong-hoon seed lost in deep thought.
After a while, he spoke.
“How do you intend to develop Saemangeum?”
“There are largely two reasons why Saemangeum's developnt has been sluggish. First, the governnt failed to pursue a consistent policy, and second, capital wasn't properly invested. As you know, at this rate, proper developnt won't even have begun in ten years.”
“Are you saying OTK Company can shorten that period if it steps in?”
I nodded.
“Yes. But to do so, there are a few conditions.”
“Would you care to state them?”
I said, sipping my coffee.
“Firstly, I'd like the Saemangeum area, currently divided into Gunsan City, Buan County, and Gimje City, to be rged into a single city.”
“You an Saemangeum, as a separate entity?”
“Yes.”
Actually, there was similar talk before. The plan then was to combine Gunsan City, Gimje City, and Buan County in Jeonbuk, along with Seocheon County in Chungnam, to create a tropolitan city. There was no compelling reason for it, and it wasn't very realistic, so it remained just talk and eventually fell through.
“If it goes according to plan, Saemangeum will be the size of a tropolitan city with a population of one million. It's inefficient for different local governnts to manage separate parts of that area. Therefore, it would be best to reorganize the administrative districts before developnt begins.”
“Reorganizing administrative districts is not a simple matter.”
Local governnts will resist, as they'd see it as losing land. Furthermore, if Saemangeum's population increases, electoral districts would also need to be redrawn. This is a highly sensitive issue in political circles.
“Resolving that is the governnt's role, isn't it? Fortunately, Saemangeum is in the Honam region, right?”
Saemangeum is in the Honam region. Honam is a stronghold for the New Politics Party, and most local governnt heads and council mbers there belong to that party.
“The Saemangeum developnt will greatly benefit the surrounding areas. Once construction is in full swing, local small and dium-sized construction companies and workers will welco it.”
It's about transforming land that's currently just a dust bowl into a high-tech city of hundreds of thousands. Since the surrounding local governnts stand to benefit the most, it should be possible to persuade them.
“What's the second condition?”
“Second, I would like OTK Company to take the lead in the Saemangeum developnt.”
Pri Minister Ryu Jeong-hoon frowned.
“Are you asking us to hand over developnt rights to a private company?”
“That would be ideal, but I suppose that would be difficult, wouldn't it?”
Saemangeum developnt has so far proceeded as a national project. It's realistically impossible for a private company to take it over. The opposition party and the public would object, and accusations of preferential treatnt would surely arise.
“Besides, OTK Company isn't even a Korean company, is it?”
I chuckled.
“We are indeed a foreign company. So, I propose we proceed with public developnt as originally planned, but with OTK Company participating.”
“In what way?”
“I understand there are plans to establish a dedicated public corporation for Saemangeum developnt.”
The governnt is also aware that developnt has been sluggish. Consequently, several options were discussed to expedite the project: direct state intervention, entrusting the task to other existing public corporations, or establishing an entirely new, dedicated public corporation. Direct state involvent hadn't yielded significant results, and assigning it to bodies like the Korea Land & Housing Corporation or the Korea Rural Community Corporation was problematic, as their existing duties would prevent them from fully dedicating themselves to Saemangeum. Therefore, establishing a dedicated public corporation erged as the most realistic alternative. The plan is to create a Saemangeum Developnt Corporation to rapidly advance land reclamation, attract investnt, and manage related projects.
“Establish the Saemangeum Developnt Corporation, and I would like OTK Company to acquire a 49 percent stake in it.”
A public corporation is one established with governnt funding. Typically, the governnt holds a majority stake, and the corporation undertakes public roles like developing social infrastructure. However, it resembles a private company in structure and can even be traded on the market. Korea Electric Power Corporation (KEPCO) is a pri example.
“Establishing a new public corporation—with legal andnts, staff recruitnt, and so on—will take at least a year before it's operational. If OTK Company can get started in the interim, progress could be much faster.”
“Is there a third condition?”
“I'd like to buy so land.”
Pri Minister Ryu Jeong-hoon frowned.
“Are you saying you want to secure pri land before developnt begins?”
Buying land cheaply before developing it to raise its value is a common tactic for companies.
“Isn't there plenty of land to go around anyway?”
Saemangeum's total area, including the freshwater lake, is 400 square kiloters. Ironically, the vastness of the site is one reason developnt has been continuously delayed. How much capital would be required to develop such an enormous area?
“I understand the problem is that even when you try to sell the land, no companies are buying.”
Of course, it’s not just about selling land; various conditions are attached, like constructing buildings and factories, conducting business operations, and creating jobs. Even so, it's dirt cheap.
I said, as if it were obvious.
“This is an investnt in a high-risk venture. It's only natural to reap the profits if it succeeds. You can think of it as a kind of stock option.”
A stock option is when a company grants shares to its executives in addition to their salary. If the company grows, the stock price increases, yielding substantial profits. Conversely, if the company fails, the stock becos worthless, which motivates them to work hard.
“If the developnt is successful, the land's value will skyrocket hundreds, even thousands of tis its current worth. Conversely, if it fails, it will remain nothing but a dust bowl. Since profits can only be realized upon success, wouldn't that serve as strong motivation to work hard?”
Pri Minister Ryu Jeong-hoon couldn't refute my words.
“If you agree to these conditions, I will transform Saemangeum into Korea's largest high-tech industrial city.”
It could solve the problems facing the Korean economy in one fell swoop and, additionally, boost the administration's approval ratings. If it succeeds, there's no reason to oppose it.
Pri Minister Ryu Jeong-hoon looked at and asked.
“Why do you want to develop Saemangeum?”
Well, it was obviously because I'd seen the future, but...
“Because it will make money, of course.”
A company wants to do sothing that makes money. What more reason is needed?
“Do you believe the developnt will succeed?”
“I am an investor.”
That single statent should have been a sufficient answer. After all, investors never put money into ventures they expect to fail.
Pri Minister Ryu Jeong-hoon nodded slowly, his expression heavy.
“I will carefully review the proposal you've made.”
***
Park Jeong-soo, Head of the Investnt Attraction and Cooperation Division at the Saemangeum Developnt and Investnt Agency.
His job was to attract corporate investnt to Saemangeum. He traveled all over the country by KTX, eting with investnt managers from various companies to persuade them to invest in Saemangeum.
CJH Company, a mid-sized enterprise producing raw materials for costics, was considering establishing a factory and a research institute.
During his eting with their investnt manager, Park Jeong-soo enthusiastically outlined the advantages of Saemangeum.
The governnt had designated Saemangeum as a special economic zone and was actively encouraging businesses to set up there. The incentives offered were nothing short of groundbreaking.
If companies relocated factories or headquarters from large cities, they received a five-year deferral on corporate tax. Moving factories from the overcrowded Seoul tropolitan area or investing above a certain threshold brought corporate and inco tax reductions. There were also benefits like local tax breaks, general tax exemptions, waivers on consumption and value-added taxes, and customs duty exemptions. Investnt subsidies were offered, along with a one-stop service for processing all necessary paperwork.
“We can offer land for buildings and factories at unimaginably low prices. As you probably know, it's below the actual developnt cost.”
The investnt manager nodded.
“Indeed, at this price, it's practically free.”
“We also offer a reduction in land acquisition tax, and the purchase price can be paid in installnts over several decades.”
Compared to building a factory in the Seoul tropolitan area, these terms were indeed fantastic.
“We will review it favorably.”
“Please, I'm really counting on it.”
After leaving CJH Company's headquarters, he started calling other companies that had shown interest in Saemangeum.
“Daejeon? Of course. I should certainly co to you. If I leave now, I can be there by around 4 PM. I'll head out imdiately.”
Another appointnt was secured, and he boarded the KTX once more.
A few days later.
He received a call from the investnt manager at CJH Company.
“Hello, Manager. Today's our eting day, isn't it? I'll head up to Seoul to see you later.”
The manager on the other end sounded apologetic.
“[I'm very sorry, Mr. Park. It looks like our eting today will be difficult. The executive board has tentatively decided to build the factory in the Seoul tropolitan area. I'm truly sorry.]”
Park Jeong-soo forced a cheerful tone.
“Not at all, Manager. I know you put a lot of effort into this. Even if it didn't work out this ti, I hope we can connect on sothing positive in the future.”
“[Thank you for your understanding.]”
After the call ended, he heaved a long sigh.
Out of a hundred companies he consulted with, maybe one, if any, would actually lead to a contract. It wasn't the first or second ti a deal had fallen through right at the brink of signing.
But today, for so reason, he felt particularly drained.
He headed to the employee cafeteria for lunch with his colleagues.
“Struck out all week.”
“Do we really deserve to get paid for this?”
“Ah! What happened with CJH Company?”
Park Jeong-soo shook his head.
“It's a bust.”
“Figured as much. They seed like they were just testing the waters from the start. By the way, CJH Company, AGK Company, PL Company... why do all these company nas sound so similar?”
After OTK Company gained fa, it beca trendy in Korea to form company nas by adding 'Company' to English initials. So businesses even rebranded. CJH Company, for instance, was originally 'Cham Joheun Hwajangpum' (Very Good Costics).
“It's ridiculous to ask companies to move in after slashing the infrastructure budget.”
“If the construction had just proceeded as scheduled, hundreds more companies would have moved in by now.”
Companies were reluctant to move to Saemangeum because it still lacked necessary infrastructure. But building infrastructure costs money. The governnt's budget allocation for the year was less than half of what was needed. Consequently, progress on roads, not to ntion the airport, port, and railway, had all stalled.
The governnt's stance wasn't entirely incomprehensible. No matter how much money they poured into it, companies weren't interested in moving in. With businesses reluctant to invest, all plans were at a standstill. It was probably more politically advantageous to spend that money on populist asures like welfare or job support to boost approval ratings.
“The CEO I t last ti said that unless soone like Kang Jin-hoo invested, Saemangeum would struggle.”
“Pfft! Would Kang Jin-hoo be crazy enough to invest in such a barren wasteland?”
“Hehe, true that. There must be tons of countries begging him to invest.”
This was a common joke among the employees—that the only way to save Saemangeum was for Kang Jin-hoo to step in.
Park Jeong-soo gave a wry smile.
'Not a chance,' he thought. Kang Jin-hoo was a world-renowned investor. Why would soone who operated on a global stage bother with Saemangeum?
In truth, before working for the Saemangeum Developnt and Investnt Agency, he hadn't known much about Saemangeum. But after years of visiting companies and tirelessly promoting the area, he'd unknowingly developed an affection for it.
A promotional video for Saemangeum was playing on the cafeteria TV.
The Saemangeum depicted in the video was a beautiful landscape of towering skyscrapers, artificial islands, the parks, green parks, and lakes, all harmoniously blended.
He muttered to himself, almost unconsciously, “I wish I could see it really beco like that before I die.”
Suddenly, the screen changed, and a news broadcast began. The words "BREAKING NEWS" flashed in the corner, and the President appeared.
Everyone stopped eating and turned their heads towards the TV.
An announcent by President Heo Chang-min at an economic policy eting was being broadcast.
“To stabilize real estate prices in the capital region and promote balanced national developnt, the governnt will embark on the full-scale developnt of a new Saemangeum city. To this end, we plan to establish the Saemangeum Developnt Corporation and collaborate with OTK Company.”
Following this, OTK Company issued a statent.
“OTK Company will take the lead, in cooperation with the governnt, in creating the new Saemangeum city. In the future, Saemangeum will be reborn as a beautiful, world-class high-tech city, integrating finance, electric vehicles, advanced industries, aerospace, biotechnology, research institutes, resorts, and the parks.”
Everyone looked on in disbelief.
'Is this real? Not so kind of prank?'
At that mont, the silence was shattered by the clamor of ringing phones.
Park Jeong-soo, who had been staring blankly at the news, realized the ringing was coming from his own pocket. He quickly fished out his phone and answered.
The caller was none other than the investnt manager from CJH Company.
“Hello, Manager. To what do I owe the...”
Before he could finish, the manager interjected urgently.
“[Is there any chance we could et right now?]”
“R-Right now?”
“[If you could co to Seoul... no, actually, I'll head to the Saemangeum Agency imdiately. I'd like to revisit our discussion about that investnt proposal.]”
“Pardon? So suddenly?”
This was only the beginning. Phones started ringing all around. Not just his lunch companions, but other employees as well.
Everyone stopped eating, scrambling to answer their phones.
“Send the contract? Right now?”
“The terms we proposed back then? Yes, they're still valid.”
“You're on your way here now? Ah! Hold on, I have another call coming in. I'll call you back.”
“What? You want to build a factory in Saemangeum right away?”
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