＜ Chapter 42. Raseon-Chongjin Heavy Industry Zone ＞
Chapter 42. Raseon-Chongjin Heavy Industry Zone
In order not to make eye contact with Jeong-hwan, who was sure that all the party executives would have hardened blue at the words of pouring homemade hot oil rather than cold water into the banquet house, each of them quickly lowered their gazes to the ground.
Among them (mainly the generals of the People’s Army, who rushed to the scene saying that the day to train without worrying about oil any longer had begun) had the expression, ‘What is inflation?’, but they also knew that the atmosphere at the venue had grown cold.
And among them, Jang Seong-taek was the first to ‘settled the situation’.
“Comrades, I understand your concerns, but what kind of water are you pouring on the general secretary at a place like this? I’ll listen to the report later, so for now… … .”
“Go on, why did you make that decision?”
“… … Adventure, girae, what are you hesitating about? Keep going.”
When Jeonghwan listened with a calm expression on his face, Jang Seong-taek, the leader of the party’s organization and guidance department, had no choice but to listen without saying anything.
When Jang Seong-taek, comrade Jang Seong-taek, who was the first sky-like comrade in the organization and leadership, was about to die, the young bureaucrats, who were frightened, hesitated for a moment when the general secretary of the sky outside the sky gave an unexpected permission, but then they closed their eyes tightly and continued the conversation.
‘Oh, I don’t know. Die once or die twice?’
“A sudden influx of dollars doesn’t seem like a bad thing at first, but that’s just the story of advanced countries that have already secured an industrial base. In our republic, only heavy industry for the military industry has developed abnormally in the industrial structure of our republic, but the light industry that produces consumer goods, which is the basis of the people’s food, clothing, and clothing, that is, clothes, shoes, and food, is still far behind.”
“… … Hmm, so?”
“Besides, the level of heavy industry means that even mined crude oil cannot be used or sold overseas by refining it with the Republic’s own technology… … The munitions industry that produces tanks and artillery might be a little… … In such a situation, even if oil comes out, it can be seen that oil is not our oil as long as it does not borrow the hands of South Shipbuilding companies such as Hyundai Heavy Industries.”
There is something called the resource curse.
It refers to a jinx that neglects the development of other industries by overreliance on natural resources such as oil, natural gas, and rare earths, which are the blessings of nature, and distorts the economy, leading the country to hell.
This is usually the case in Saudi Arabia, Kuwait, the United Arab Emirates, and some countries in South America, which are run by backward tyranny or dictatorships. These countries sell oil to temporarily quell public dissatisfaction and secure the future of the regime. In fact, the fate of the country is at stake in the international oil price.
In addition, if an alternative energy source is discovered or the resource is depleted, the country will be in a state of disrepair. In this age, it is still a long story, but Junghwan was well aware of one case when the whole country fell into a slump like that in 2019, when he lived. .
‘And if you add a leader who is full of lust for power, but who has no medicine to prepare for the future, the country becomes gloomy. It is the greatest luck of the Republic in a sense that the rich Kim, who fits perfectly with that condition, has never thought of digging for oil.’
“Right now, the large-scale inflow of dollars from the outside through reform and opening-up has already raised prices, so there is little dissatisfaction among the people. If the central bank of the DPRK introduced some convertible notes and barely restrained the people’s livelihood, if the proceeds from the sale of oil flow into the republic’s market on a large scale, the exchange rate will fall irreversibly.”
“Currently, most of the companies in the Republic are labor-intensive industries that compete with labor costs.
“Yeah, that’s right! In addition, if you look at the feasibility evaluation report submitted by the Korea National Oil Corporation to the Ministry of Finance and Accounting, even though it is difficult to clearly measure due to technological limitations, even if you add up the estimated reserves of all the oil fields in the republic, such as the Myeongcheon oil field and the Seohan Bay, Donghan Bay, Onseong, and Donghae oil fields under development, countries such as Venezuela and Kuwait There is a consensus that it is hard to go crazy with people… … .”
It was difficult to open the first time, but once the words came out, they did not stop and kept leaking out.
Young bureaucrats presenting the country’s economic prospects based on the knowledge they have learned and current figures, and a general secretary of similar age who listens silently.
The other executives gathered in the banquet hall looked at this strange, yet unimaginable sight until just a few years ago, and they were mesmerized.
And that was also the effect Jeonghwan intended.
‘Wow, now there will be fewer one-man shows.’
Being aware of other people’s eyes, Jeonghwan let out a sigh that meant that he had an hour in his mind.
Human innovation is the most difficult and takes the longest for any organization, any system, or any other.
In the meantime, the economic bureaucrats who occupied the Workers’ Party of Korea and the Cabinet were largely divided into two categories.
They are so immersed in the socialist-style planned economic system that they can’t even figure out exactly where North Korea is now and which way to go in the future.
Even if it’s not, the kind who have knowledge of the capitalist market economy system, but either cannot speak directly because of bosinism, or use that knowledge for their own self-interest.
Either way, they were the kind of people who were not good enough to destroy a country if they delegated important powers, especially during the period of reform and opening that will determine the fate of the country.
Isn’t Russia experiencing this in real time right now?
However, seeing the economic bureaucrats who went to study abroad today and made proper judgments and conclusions, I was fortunate to be able to conclude that he could represent the economic policies that Jung Hwan himself had led almost as if he was a one-man show to some extent.
“Okay, then let me ask you the most important thing.”
When Jeonghwan quietly raised his hand and stopped them, they shut their mouths for a moment.
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Not only them, but all men, women and children in the banquet hall swallowed dry saliva like undergraduates faced with a question that would determine the professor’s grades.“Then what are the future plans? If oil cannot be the only solution for the economy of the republic, what do you think the comrades should do right now so that the people of the republic do not have to worry about food, clothing, and food in the next 10 or 20 years?”
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Now that the theory has been presented, it was said to come up with a solution.To Jung-hwan’s question, young British-educated officials looked at each other’s faces for a moment, and then came up with an answer as if they were singing in one voice.
“First of all, we recommend that you stabilize the exchange rate by implementing a fixed exchange rate system for several years. In addition, protection trade policies should be implemented at the party level so that the seeds of the republic’s industry do not die until it has adequate quality and price competitiveness… … .”
He hesitated, then continued.
“… … The dollars earned from crude oil should be invested in the heavy industry promotion policy to foster the chemical and heavy machinery industries in the long term. Heavy industry is a high-risk equipment industry for ordinary people to jump into, but if heavy industry is neglected, it is impossible for light industry to grow beyond a certain level.”
As soon as he finished speaking, another official came out.
“… … The light industry, from cement, clothing, preserved food, and ornaments, has already been showing results thanks to the participation of ordinary people in the field. So, privatize enterprises that are still state-owned in Heungnam and Nampo, and the state removes regulations and induces foreign investment. The best policy is to naturally leave it to the principles of the market as much as possible.”
“Hmm… … .”
Once again there was silence in the banquet hall.
All the party officials and the bureaucrats of the Confucian school who gave out the ‘Answer Sheet’ were also waiting anxiously for the scorer, Jeong Hwan, to score.
At the end of a silence that seemed like a few seconds or years, General Secretary Kim Jeong-hwan mumbled a word that was much lower than the bizarre speech at Sunan International Airport, but that would still be remembered by the population.
Most of the people present could not understand it, but Kim Jung-hwan, no, Lee Jung-hwan was the word that came out of his mouth without realizing it.
“Okay, pass!”
* * *
As pointed out by the bureaucrats of the small group at the banquet hall, the light industry sector, which had already been left to market autonomy, was producing significant results in a short period of time, as evidenced that the wave of reform and opening was already reaching the private sector.
Already, among the people, there were people who quickly recognized the situation of the construction industry rising day by day without realizing that it was sky high, and turned a factory that produced people’s clothes into a work glove factory for construction workers and built it, and there were people who became wealthy.
However, the status of heavy industry was still so backward that the Heungnam Steel Mill, which produces steel called ‘Juche Iron’, was the largest heavy industry facility in the Republic.
Of course, Junghwan was already preparing for this.
“There is a place I have seen. How about here?”
“This place… … .”
At the time of the first meeting of the newly established ‘Five-Year Heavy Industry Promotion Committee’ under the Ministry of Finance and Accounting, which was chaired by Jeong Hwan himself, the point he pointed to on the map of the Republic was not far from the Myeongcheon oil field in question.
Jeonghwan drew a straight line with a red pen on the long stretch along the east coast.
“From Raseon to Chongjin to Myeongcheon and Gilju, this place will become the backbone of the Republic of Korea’s heavy and chemical industry, not even nearly all industries.”
In fact, it was an area that Jeong-hwan had planned in his mind for a long time, such as using the military base to build the site and preferentially repair the railroad.
First of all, petrochemicals must be grown, so of course, it must be close to Myongcheon. It is right next to the East Coast, so it is easy to obtain industrial water. Furthermore, it is also a place where import and export is easy as it is close to the border with China and Russia.
It would be right next to the city of Kimchaek, where the Kimchaek Engineering University is located, where the best engineering talents in North Korea are located, or in South Korea where the Pohang Institute of Technology is located.
Of course, it was not only the location that Jeong Hwan and the Heavy Industry Promotion Committee under the Politburo brought from the history of Korea’s heavy industry development.
“I’m going to copy all of this. Machinery Industry Promotion Act, Electronics Industry Promotion Act, Petrochemical Industry Promotion Act, Shipbuilding Industry Promotion Basic Plan… … There are many. Let’s try and fix what the South Korean comrades did to suit the situation of the Republic. Of course, we do not have to rub our hands and feet with the United States to bring in foreign capital or thirst for international oil prices, so it is a much more favorable condition.”
The policy resources for fostering the heavy industry complex, which earned the name ‘Raseon-Cheongjin Heavy Industry Zone’, were also brought from Korea, which had walked this path earlier.
These policies, which Jeonghwan learned almost memorably at the Korea Development Institute, were not implemented because he did not know until now or lacked the capital to invest.
It was due to the lack of competent human resources and economic bureaucrats to directly lead and guide this plan, and now that problem has been resolved.
In fact, not only in terms of policy and capital, but also in terms of experience, there was the presence of Chung Mun-young, the chairman of the Modern Group, who witnessed the whole process vividly from the side and corrected any other or disappointing parts, so it was ahead of Korea in terms of human resources.
And the manager who will lead these most important heavy industry companies in the private sector has already been nominated by Jeong Hwan.
“How about you try it yourself?”
“… … Yes? Comrade general secretary?”
“What is it that makes you look so surprised? So who did you think you were going to nominate?”
“Am I really?”
“Think of changing your affiliation and leaving your party. Even in South Korea, a talented iron and steel company named Park Tae-joon, the manager of Pohang Steel, was also originally a military officer. It would be inappropriate to entrust only ordinary people to an important industry that would also produce tank gun shells for the People’s Army of the Republic in the future.”
‘If this happens, it is actually a revolving door greeting, but a manager who can trust and entrust the national key industry is not coming out soon… … .’
It was a young British student who spoke bravely at a banquet hall that Jeong Hwan was selected as the manager of ‘Myeongcheon Energy’, the first company to be built in the Raseon-Cheongjin Heavy Industry Complex.
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Now that the direction of investment has been decided, and capital and resources have been raised, there must be a manager who will draw the next generation of the national key industry, looking ahead, not just short-term profits, but 5 or 10 years from now.The candidate, too, was decided by Jung-hwan from among those studying abroad in a comfortable way.
The decision, which seems hastily at first glance, caught the eyes of the most powerful people from the last banquet as an opportunity, so I would rather go out of the party comfortably and work than I would get caught up in useless checks or power struggles that would come in from around the party, including executives within the party. In addition to the reason to focus on Ena, there was one more intention.
‘Don’t put it in a coffin for nothing and install it as the only way to survive privatization… … I hope for a boost, but it’s a law that is futile. Anyway, privatization-loving Mrs. Thatcher, they are friends who drank water in England in the midst of it.’
The current communist-controlled economy system now follows market economic principles and shows what kind of divisions will result if privatization is done wrongly, too well for the present-day Russia, Yegor Gaidar, and Yeltsin to show them better.
At this point in time when state-led economic growth is required for at least the next 10 years, Jeong Hwan thought that it was his main job as a supreme leader to properly balance the transition from a planned economy to a market economy.
Introduction of a competitive system based on market principles and rationalization of management.
That is the story of Britain, which has built up its industrial capabilities since the Industrial Revolution, and the situation was completely different in the Democratic People’s Republic of Korea, which is just starting to promote its industry.
There are things that can be left to market principles and things that can’t be left to market principles, but as Jeong-hwan, I expect that young ‘people’s technocrats’ will realize this as they accumulate bureaucracy and experience and develop an economic policy model suitable for the republic in the future. it was only
If the system implementation cannot be balanced due to the lack of leadership, corrupt opportunists and the emerging communist aristocrats who obtained information on privatization in advance may monopolize all wealth in Pyongyang like today.
‘If the elites fail to act as the elite and the leader fails to act as the leader, it is only a matter of time before the country will collapse. At least the country won’t collapse as long as the leadership is alert, and that doesn’t change whether it’s a democracy or a one-party dictatorship.’
If you look at it, the IMF, which will happen in Korea in a few years, is one of the main reasons for the corruption and irresponsibility of the public and private economic elites.
Come to think of it, this year was also the year in which the famous US presidential election in which the famous ‘the problem is the economy’ will come out, and the Korean presidential election in which Park Yi-sam and Yoo Min-jung will face each other are scheduled at the same time .