Attending a business leaders' gathering for the first ti in a while, I shook hands and exchanged greetings with executives I knew.
“Saemangeum is truly sothing I never imagined.”
“Since you've stepped forward, CEO Kang, our expectations are high.”
“Our company would like to join as well.”
Chairman Chae Wontae of SSK Group greeted and said.
“Thanks to you, CEO Kang Jin-hoo, we were able to get through that last incident safely. Thank you.”
I smiled. “It’s thanks to everyone working together.”
Here, "that last incident" refers to Japan's export restriction asures.
Fortunately, Japan voluntarily withdrew the restrictive asures, but if the situation had prolonged, the electronics industry, including semiconductors and displays, would have suffered greatly.
Because of that incident, companies keenly felt the need to diversify their suppliers and localize core technologies.
In the process of devising counterasures at the ti, companies in overlapping sectors agreed to jointly develop essential materials and core technologies.
In the case of specialized materials, not general-purpose ones, Japanese companies have superior technology, and sales channels are limited. Even if companies invest ti and money in developnt, securing price competitiveness and sales channels is not easy.
Large corporations might be able to manage, but Small and dium-sized Enterprises (Ss) have no choice but to be reluctant to invest.
Therefore, Seosung Electronics and SSK Hynix agreed to support developnt costs for Ss developing core materials and equipnt, and to prioritize purchasing them upon completion.
“Going through that, I also realized many things. We can't stop trading with Japan, but our over-reliance was a problem. We plan to continue reducing our dependence on Japan through ongoing technological developnt.”
“A wise decision.”
Again, sales channels for specialized materials and equipnt are limited.
As Korean companies shifted so of their supply chains to Europe and reduced imports, Japanese companies, unable to find suitable alternative sales channels, were flustered. Moreover, as other foreign companies realized Japan could impose export sanctions at any ti depending on the political situation, they too gradually reduced their order volus.
What was intended to strike Korea booranged back. This is probably why Japan has the proverb, "If you curse another, dig two graves."
Well, Japan is Japan. Even if we got through it safely this ti, as the world's third-largest economy, we shouldn't be complacent in the future.
“As you may have heard from Chairman Im Jinyong, we plan to create a semiconductor cluster linking pri contractors and subcontractors, large corporations and Ss, and we are currently looking for a site.”
Seosung Electronics has used its enormous profits to boost mory semiconductor production volu and technological capabilities, and has made large-scale investnts in non-mory semiconductors, which were considered relatively weak.
SSK is also expanding its factories and research labs. Chairman Chae Wontae announced plans to invest 100 trillion won in the future.
Technology tends to standardize upwards over ti. Both companies are pursuing a strategy of building an insurmountable wall through preemptive investnt that latecors cannot catch up to.
“We need to hurry with the cluster construction, but finding a site in the tropolitan area that can accommodate the factories and research labs of dozens of companies is not easy. Regulations and taxes are also an issue. That's why we are considering Saemangeum as an alternative.”
“If you invest in Saemangeum, the governnt will welco it.”
He nodded at my words. “One concern is securing personnel.”
Not to ntion researchers, but workers in semiconductor factories are highly educated, skilled personnel. Recruiting a large number of them in a provincial area is not easy.
“The biggest problem is the poor accessibility to Seoul. In terms of location, isn't it even farther than Sejong City?”
This is pointed out as Saemangeum's biggest weakness. If Saemangeum had been in Gyeonggi Province, developnt would have been completed long ago.
The new cities developed so far have been satellite cities of Seoul. Pangyo, considered the most successful, is characterized by its proximity to Gangnam. If Gangnam hadn't been within a 30-minute distance, could Pangyo really have been so successful?
That's how much Korea depends on Seoul.
“Even if it's far, it's not as far as Silicon Valley to LA. If we can create a livable city, it doesn't necessarily need to be close to Seoul.”
Chairman Chae Wontae burst into hearty laughter.
“Haha! You're right. Co to think of it, Sydney and lbourne are 1,000 kiloters apart, but people living in lbourne don't complain that Sydney is far.”
The head of the Saemangeum Developnt and Investnt Agency (SDIA) and SDIA staff also attended for investnt promotion. I had t and greeted Director Nam Punghun a few days ago when we signed an MOU.
He grasped my hand tightly and said, “We've held countless investnt briefings and forums, but this is the first ti companies have shown this much interest.”
Until just a short while ago, many people didn't know where Saemangeum was or what the SDIA did.
However, right after the announcent, the news reported on it intensively every day, and Saemangeum imdiately hit number one on real-ti search rankings. It's still fluctuating in the top ranks.
The SDIA was flooded with calls, and its website reportedly crashed several tis due to high traffic. The SDIA, which had little presence among governnt administrative organizations, has now rapidly erged as one of the most important.
If developnt accelerates, the organization's status will rise even further. Perhaps that's why Director Nam Punghun was all smiles.
“Companies that used to hesitate even when we chased them and begged them to invest are now proactively inquiring about investnt. It's all thanks to you, CEO Kang Jin-hoo.”
“Not at all. Were there any complaints?”
“Of course, there were. Environntal destruction, falling housing prices, tax waste, 'develop our neighborhood instead,' and so on – lots of talk from all over. But besides the complaints, speculators from all over the country are calling and pestering us to sell land. No matter how many tis we say we don't sell to individuals, they don't listen.”
“……”
Should I say this is typical of a "real estate republic"?
***
The hall doors were closed, and the eting began in earnest. As it was a closed-door eting, reporters' access was blocked.
Executives from large corporations and Ss packed the seats. There were more attendees than expected, leading to a shortage of chairs, and hotel staff brought in temporary ones.
Representing the SDIA, a man in a suit stepped onto the podium.
“Good morning. I am Park Jungsoo, a manager in charge of investnt attraction and cooperation at the SDIA. I am pleased to be giving this presentation here today.”
He brought up a PowerPoint presentation and, in a slightly trembling voice, explained Saemangeum's location, transportation, logistics, developnt plans, and various investnt incentives.
Corporate tax reduction, registration tax exemption, customs duty exemption, inexpensive land, installnt paynts for land purchases, investnt subsidies, and so on.
Those attending this eting would likely already know most of this information. However, the executives listened intently, and so jotted down notes in their notebooks.
After the presentation, Manager Park Jungsoo said, “If you have any questions, please ask.”
It's a characteristic of Koreans to be good listeners but hesitant to ask questions. While everyone was glancing around, the president of a mid-sized company raised his hand high.
“Our company is currently considering investnt, and we heard almost the sa things when we t with other local governnts. So, what is Saemangeum's unique differentiating factor?”
Manager Park Jungsoo answered confidently, “Unlike developnt projects led by various cities and provinces, Saemangeum is directly supervised by the central governnt. Furthermore, all developnt takes place solely on state-owned land, without involving local governnt or privately owned land, and administrative procedures are handled one-stop by the SDIA. This type of developnt is unique to Saemangeum in the entire country.”
It's always difficult to get things started. Once one person began asking questions, about ten others raised their hands.
“I understand that not even half of the reclamation is complete yet. When will it be finished?”
“The international cooperation zone where companies will be located is almost fully developed. Many companies are already operating there. We will prioritize completing the surrounding infrastructure construction first.”
“For companies like ours with a lot of exports and imports, logistics is the top priority when choosing a factory location. However, the nearby Gunsan Port is small, and it's difficult for large ships to dock. The limited number of shipping routes from foreign countries is also a problem.”
“We are currently constructing an artificial island to create Saemangeum Port. Until the construction is complete, we plan to strengthen connectivity with nearby ports to minimize inconvenience.”
“I've seen the plan for Saemangeum International Airport. How many flights to major foreign cities do you think can be secured?”
“First, we will establish dostic routes connecting to Incheon Airport, which can be considered a hub, to enable transfers. After the parks and integrated resorts are built, we believe we can increase direct flights. Regarding flights, we are in discussions with various LCCs (Low-Cost Carriers), including national carriers.”
Questions continued as everyone seed to have many curiosities, and Manager Park Jungsoo did his best to explain within the scope of his knowledge. His passionate deanor was good to see.
After he finished his presentation and stepped down, I took the podium. Since the explanation was already thoroughly given, further elaboration was unnecessary. The people gathered here would have already done sufficient research.
Korea already has many special economic zones, and many local governnts have announced new city plans: Smart City, Robot City, Global City, Design City, Eight City, and so on.
Among them, not even one or two out of ten have proceeded properly, and those that have, upon closer inspection, are just filled with apartnts, with a frenzy focused solely on sales.
What is needed now is the conviction that Saemangeum will be properly developed.
To soone recomnding a good investnt opportunity, you must ask this question: If it's such a good investnt, why aren't you doing it yourself?
If Saemangeum is truly a good place, it's right for to go first.
“OTK Company and its affiliates will invest 300 trillion won to establish an electric vehicle complex, a battery complex, research labs, and video studios. OTK Company will move its headquarters to Saemangeum within the next five years, and I too will relocate there.”
***
[Ruling and Opposition Parties Agree to Hold Economic Hearing]
[Liberty Korea Party Pledges to Thoroughly Review Supplentary Budget to Prevent Wasting Taxpayer Money!]
[CEO Kang Jin-hoo Must Directly Address Allegations of Preferential Treatnt in Saemangeum Developnt]
[CEO Kang Jin-hoo Announces Intention to Attend Hearing!]
The New Politics Party accepted the Liberty Korea Party's demand and agreed to hold an economic hearing. The Blue House (Presidential Office) also agreed to send Deputy Pri Minister for Economy Jeong Gisu and Blue House Chief of Staff for Policy Lee Eunggwan.
From the Blue House's perspective, it was a significant decision, but neither the dia nor the opposition party showed much interest in this, focusing solely on Kang Jin-hoo's attendance.
It was no exaggeration to say that Kang Jin-hoo was the core of this hearing.
The whole world was watching this economic hearing. The future of Saemangeum developnt would be decided by its outco.
-Do these guys have any learning ability or not? They still haven't co to their senses after getting beaten so badly last ti?
-Let them be. Looks like they haven't been beaten enough yet.
-Isn't Kang Jin-hoo in a tight spot this ti?
-If the Liberty Korea Party opposes, the new city and everything else is a goner. So this ti, Kang Jin-hoo has no choice but to bow his head and beg them to go easy on him.
-Are they throwing a tantrum because they know that?
-LOL, really? The Liberty Korea Party always had a plausible plan... until they got beaten by Kang Jin-hoo.
-Anyway, Yeon-kazaki (a derogatory nickna for a politician) just can't stand to see Korea do well T_T
-Japan must be happy. To have such patriots ^^ (sarcastic)
Kang Jin-hoo had attended a National Assembly hearing before. While other chaebol chairn all bowed their heads, he, in turn, insulted the lawmakers who were on the offensive and then calmly rose from his seat.
This was a first in the history of hearings, and a video of the incident, subtitled in various languages, was so popular it surpassed 100 million views on A-Tube (YouTube equivalent).
To avoid repeating the mistakes of the last hearing, Liberty Korea Party leader Yeon Nakyeong gathered the lawmakers and ticulously planned their strategy.
Last ti, they had forcibly dragged out Kang Jin-hoo, who had nothing to lose, but this ti was different. If the political sphere put the brakes on, it could affect the Saemangeum developnt plan in any number of ways. Therefore, Kang Jin-hoo would try his best to persuade the opposing lawmakers.
Of course, they had no intention of listening ekly.
The Liberty Korea Party lawmakers recalled what they had suffered at Kang Jin-hoo's hands. Forr President Park Si-hyeong was imprisoned, they lost the presidential election and power was handed over, the party was embroiled in internal conflict, and they beca a laughingstock to the public.
“This ti, let's definitively show them the power of our Liberty Korea Party!”
Party leader Yeon Nakyeong and the Liberty Korea Party lawmakers steeled their resolve for certain victory.
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