118 : Beginning of the New Year 1968
Blue house.
“Hahaha, come on. He flew all the way to Switzerland and got the contract. Is it true?”
The President repeatedly tapped my shoulder with both hands.
“Yes, I was able to close the contract because Barclays Bank actively bridged it.”
“Is the owner of the ship Livanos, the Greek shipping magnate? He said he was a famous playboy, so he became a benefactor to you.”
“Somehow, it happened that way.”
“Chief Woo, recently a Swiss shipping company also chartered (borrowed) 15 large ships to Livanos. There is a possibility that more ship contracts will come in in the future.”
Minister of Commerce and Industry Na Jeong-ryeom, who was also present, informed us of the information. It seems that Nara is also gathering information about shipyards.
I don’t know why he is supporting the Economic Planning Board while he cares about the shipbuilding industry enough to collect this information.
It doesn’t seem to have anything to do with political funds.
“It looks like the EPB is curious. Shall I tell you?”
“Yes?… no. No need to…”
“Hahaha, you’re working hard too. At first, there was a clear look of bewilderment, but then he engaged Mercury and spurred the business.”
“You mean Mercury runs a shipbuilding business?”
“It seems that Suseongdo is finally trying to do heavy industry like heavy industry. It is said that the owner gave the residents a place to move to and bought the land, just like the Pohang Iron and Steel Company did. The price of land on Geoje Island may not be a big deal, but Suseong’s behavior has changed from before!”
It definitely felt like Mercury’s decision-maker had changed.
It seemed like the original history, but it was different.
In the original history, Suseong tried to build a large shipyard in Tongyeong, South Gyeongsang Province, but gave up due to an oil shock, and started heavy industry by taking over Jukdo Shipyard, which was a medium-sized shipyard being built in Geoje Island.
This time we are entering a rather early period.
Mercury has its own potential, as long as it receives orders for ships before the oil shock erupts.
“Thanks to this, the owner hates it, but Japanese funds came in on very good terms. I mean, the loan came in at 60 million dollars at an extremely low interest rate of only 5% per year.”
5% per annum is a very low interest rate at this time.
As for the Japanese shipbuilding industry, it seems that Korea was anxious about starting its own shipyard.
“If there is a collaboration with Mercury, it will be Ishikawa Heavy Industries.”
“Oh, how did you know? It seems to be a pretty great technical collaboration. I was very stimulated by the technical collaboration between Imja and the UK. At the beginning of next year, a groundbreaking ceremony will be held going back and forth between Ulsan and Geoje Island. ha ha ha.”
“We wish Mercury good luck.”Read at noblemtl
Japan’s strategy toward Korea is always domination and use. Of course, it must be an ulterior motive to create a subcontractor in Korea, aiming for management rights.
However, Suseong also seemed to do well against Japan because it was a sincere family in defending management rights.
This is a good thing for the country as a whole.
“Sir, if the tide breaks through and Mercury joins, Korea will have the ability to build more than 10 300,000-ton ships per year. If we maintain this pace of development, even exporting 1 billion dollars a year is not a dream. Government support should continue.”
Minister of Commerce and Industry Na Jeong-ryeom emphasized government support.
“Okay, let’s have a friendly competition. Whether it’s Daesei or Mercury, we’re going to fund expansion for those who make a lot of money.”
“… Yes. All right.”
He would have said the same thing to Mercury.
This is how companies compete with each other.
State support isn’t particularly necessary for my strategy, but there’s nothing wrong with getting it.
“Let’s talk about the shipyard, owner! You know that we decided to dispatch a logistical labor support group to Vietnam, right?”
“Yes, I know.”
It was a diplomatic harvest from the United States in Canberra, Australia.
“Let the owner select and send 5 construction companies.”
“……”
What is it? Why are construction companies sent to Vietnam?
You want me to pick and send a competitor with my hand?
“Why are you not talking? It’s a business that the state dispatched and obtained, but the owner can’t continue to monopolize it. They keep saying preferential treatment and whatnot, so send another construction company at this time. Isn’t there going to be plenty of work anyway?”
“In the end, I don’t think there is any reason for Korean companies to cut their own weight when the goal is to earn foreign currency. Wouldn’t it be better for me to earn dollars to fill the national treasury and mobilize domestic construction companies for projects such as highways and Soyanggang Dam?”
Vietnam is a fire and water for me.
Although the scale has decreased a bit recently, it is too salty to pay for various military supplies, dispose of surplus supplies, and steal logs. In addition, logistical transport around Quy Nhon alone brings in revenues of up to $9 million annually.
It is natural to start a new project to grow a company, but that is only possible when the existing funding line is maintained steadily.
“How did you know we were going to build a highway?”
“These days, newspaper editorials are all related to highways, so I was just guessing rather than how much the construction period had been decided. And since the press is so against it, I think the government has already made a decision.”
“Hahaha, even if you’re smart, you’re too fast.”
“Given the current pace of industrial development, I thought the President would make a decision to start construction.”
“You mean you agree?”
“Yes, highways are the arteries of the country. However, I think there will be no problem with public opinion if the construction begins while revealing the plan for the entire highway that will be expanded to Gangwon-do and Namhae as well as Yeong-Honam.”
Expressways in other underdeveloped countries are riddled with poor construction and bribery, but in most cases they are mana-han roads.
I didn’t want to interfere politically, but now was the best time to build a highway.
If President Park does not build the Gyeongbu Expressway now, when she is in the prime of her power, it will not be easy to attempt such a great event.
To be honest, highways were essential for me to build a heavy industry belt along the south coast as well.
Moreover, large-scale US capital flows into the Ulsan Petrochemical Complex and Pohang Steelworks, and Japanese funds through Korea-Japan negotiations come in as a bonus, so compared to the history, the country’s barn is quite decent.
If the vision of balanced national development is communicated to the public, public opinion will somehow become favorable.
In the current economic climate, the government has plenty of room to oil the political world.
“Yes, yes. That’s good advice. Anyway, if you can afford the equipment for the Pohang Steelworks civil engineering, take over some sections of the highway.”
“… Mr. President, all of our construction personnel have been put into the construction of the Jordan Canal. Hopefully, the trend will focus on earning dollars. I am afraid that if overseas construction goes wrong, it will cause a great burden to the country.”
It is best to avoid projects led by the president under the pretext of overseas construction.
To be honest, it is difficult to make a profit in the national policy task of this era unless the expedient of tax evasion and tax reduction is used.
In the original station, the Gyeongbu Expressway was completed at a level of 40 billion won, and after that, an additional construction cost of nearly 90 billion won was spent for repair work.
In a way, it would have been a natural way for a construction company to make a profit, but I didn’t want to make our employees experience the way of working like a double-triple soldering process.
If you do that in overseas construction, you will be pushed back by foreign companies.
I want to develop veteran employees who will compete equally with top foreign construction companies in the Middle East boom in the future.
It’s not just about money, I want to create a culture where people work properly and get paid accordingly.
Of course, I also make money.
“Well, that’s not wrong either.”
“It’s unfortunate, but Daesei Construction seems to have to be sidelined this time. Shouldn’t there be any setbacks in the Ulsan Industrial Complex and the Pohang Iron and Steel Works?”Read at noblemtl
Just in time, Minister of Commerce and Industry Na Jeong-ryeom sided with me.
“Yes, if you leave it to the highway, there may be another preferential treatment.”
“thank you. Instead, when the civil engineering work of Pohang Iron and Steel is roughly organized, we will lend the equipment to Hyeonsan Construction or Daelim Construction.”
“Okay, meeting the owner always makes me yield. Then, the trend is gone on the highway, and only 3 construction companies are sent to Vietnam. Got it?”
“Yes, I understand.”
It seemed like what would happen if there were three construction companies.
If you send them to Da Nang, Cam Ranh, and Mekong River respectively, Quy Nhon can be solidified as my territory.
“And sooner or later we will discuss the design of the Soyanggang Dam. Please add your thoughts as well.”
“Yes, I understand.”
There’s a lot of other things to do, but I can do as little as add design concepts.
Bona Mana, Japanese construction companies and Hyeonsan Construction will insist on their own methods, and I will only support Hyeonsan.
There must be many twists and turns, but in the original history, did not Chairman Wang of Hyeonsan do a perfect construction in terms of price and quality?
“Go, see you next time at the shipyard groundbreaking ceremony. I hope the groundbreaking ceremony will be held the week before Chinese New Year. Let’s have a drink to celebrate the New Year.”
“Yes, I understand.”
The date of the groundbreaking ceremony has also been roughly set.
**
“Phew, that’s hard.”
I left the Blue House and headed for Seongsu-dong.
It was a house prepared with Sambok.
At first, it was chartered, but I quickly made money and bought it.
Seeing the house with the lights off made me feel empty.
I should go to Jordan, but I keep putting it off because I’m in a hurry here.
According to Sambok’s work report, which came by telex, it is now a situation where a bomb has to be set off in the valley.
“Are you coming now, Mr. Wu?”
Someone was waiting for me in front of my house.
“Hmm?”
It was Boston consultant Bill Bain.
“I hope to see you again. Forgive me for being late.”
“You don’t have to be sorry. It is already too late.”
“Don’t you want to hear the results of the request? It is my policy to finish a request once I receive it anyway.”
“No, at this feedback rate, I am already eliminated by my standards. Consulting does nothing. You’re the one who said it’s free, so there’s nothing wrong with it.”
“This case is a bit unusual. No matter how you retire, shouldn’t you take over the takeover? I don’t think the boss wants someone who isn’t so responsible as his secretary.”
What are you talking about?
Did you resign to come to me?
“Are you saying you want to be my secretary yourself?”
“Yes, I was the only one who had the answer as I tried to meet your demanding requirements.”
I don’t know whether to call it great confidence or recklessness.
“Why did you support Dae-se… No, is there any reason for me to elect you?”
“I fell in love with the organization called Daese. Considering the amount of money flowing thus far, it is miraculous that there has been no corruption so far.”
“Should I elect you because you fell in love with my company?”
“It is an organization where employees passionately follow a leader with skills and vision, so if a talented helper like me joins, it is worth looking at even a world-class company. Not because it’s where my company will be, but from a very objective point of view.”
To be able to say such a strange thing so seriously… This is also a skill.
“You must be eligible for the interview. Then, what do you think will be the first thing you will do if you become a secretary?”
“First, we have to organize the organization. From next year, we should call it a mainstream group and reorganize it clearly in the form of the head office leading affiliates.”
I pinpointed the answer I was looking for.
“That won’t be as easy as it sounds.”
“Of course, I agree that there aren’t a few good people inside. They would not be reluctant to recruit executives from outside. However, it is necessary to separate the departments even with the rank of manager. When things are going well, there will be no problem, but if a recession strikes, a series of funding crunch may occur.”
It was something I was afraid of.
This is why the organization needs to be overhauled before an oil shock.
When the overall Korean industry goes through a period of upheaval due to the oil shock, I also have to close my less profitable business. The money should be used to start a new business or strengthen the rest of the affiliates.
“like. Once the interview was successful, I got a passing grade. Last question. What do you think your annual salary is? Your answer will determine your acceptance.”
I crossed my arms and went into salary negotiations.
“I would like to own 0.3% of the stake whenever an affiliate of Daese Group goes public. The annual salary is symbolically $1.”
I asked for stock options as I thought.
“No one knows when the mainstream group will go public. Are you saying that you will work without pay until then?”
“Meals are provided at the factory, so I don’t think there will be any problems with eating and living.”
“Oh, is it?”
“That’s why it’s late to come after organizing all the assets you don’t have.”
Hey, I’m talking about completely risking my life.
Our company seemed to be a very blue chip stock.
“You deserve to be rich. Passed. Instead, stock options are 0.1%.”
“… Boss, isn’t that too small?”
“The trend will be ten times greater than you thought, so you will be grateful later.”
“Ah… With this vision, I would be satisfied with 0.1%. I’ll do my best. president.”
I got a secretary
If you’re from Boston Consulting, you’ll build an organization that approaches a 21st-century conglomerate.
***
Read at noblemtl
January 1, 1968
＜Dear citizens. A hopeful new year dawned. First of all, I sincerely wish that all the people’s families will be blessed with happiness again this year. Looking back, the past year was a historic year when the Republic of Korea’s main focus was realized as desired. Soldiers from Powell demonstrated their bravery all over the world, including the Pohang Iron and Steel Works…＞
On TV, the president was announcing his New Year’s address.
Most of the national policy tasks went well as intended, and if things went on as they were, middle-income countries were not far off.
It was like the 1960s when passers-by stopped on their way and listened to the President’s New Year’s address, clenching their fists in the hope that their lives would improve.
In a way, it was natural for him to make such a resolution, as his and his neighbors’ lives had improved markedly in the past few years.
The Republic of Korea and the trend also welcomed the year 1968.
It will be a turbulent year in all fields.