Investor That Can See The Future

Chapter 400

Prime Minister Ryu Jeong-hoon seemed to be in deep thought.

After a while, he opened his mouth.

“How do you plan to develop Saemangeum?”

“There are two main reasons for the sluggish development of Saemangeum. The first is that the government has failed to pursue a consistent policy, and the second is that capital has not been properly invested. As you know, even after 10 years, we will not be able to start proper development at this rate.”

“Are you saying that if the OTK Company steps forward, the period can be shortened?”

I nodded.

“Yes. There are, however, a few conditions for that to happen.”

“Would you like to tell me?”

I said while drinking coffee.

“First, I hope that the Saemangeum district, which is divided into Gunsan-si, Buan-gun, and Gimje-si, will be merged into a city.”

“Are you talking about taking apart Saemangeum?”

“Yes.”

In fact, something similar has been said before. At this time, the plan was to combine Gunsan-si, Gimje-si, Buan-gun in Jeollabuk-do, and Seocheon-gun in Chungnam to make it a metropolitan city. There was no reason to do that, and there was not much realism in it, so it was just talked about, and it just failed.

“If all goes according to plan, Saemangeum will be about the size of a metropolitan city with a population of 1 million. It is inefficient to manage the area separately by each local vehicle. So, it would be a good idea to divide up the administrative divisions before starting development.”

“Reorganization of administrative districts is not a simple matter.”

Local governments will protest because it means that the land is being taken away, and if the population of Saemangeum increases in the future, the electoral districts should also be reorganized.

This is a very sensitive matter in politics.

“It is the government’s job to solve that. Fortunately, Saemangeum is not Honam, is it?”

Saemangeum is located in the Honam region. Honam is the garden of the New Politics Party, and most local government heads and local council members belong to the New Politics Party.

“The Saemangeum development will be of great help to the surrounding area. When construction starts in earnest, local small and medium-sized construction companies and workers will welcome it.”

It is to turn the dusty land into a high-tech city with a population of hundreds of thousands. It will be enough to convince the surrounding local governments that they will benefit the most.

“What is the second?”

“I want OTK Company to take the lead in the development of Saemangeum.”

Prime Minister Ryu Jeong-hoon furrowed his eyebrows.

“You mean handing over development rights to a private company?”

“It would be nice, but it would be difficult, wouldn’t it?”

Saemangeum development has been carried out as a national project so far. It is practically impossible for a private company to take over this. Opposition parties and the public will oppose it, and there will be a controversy over preferential treatment.

“Even OTK Company is not a Korean company, is it?”

I laughed bitterly.

“We are a foreign company. So, as the original plan, we will proceed with public development, but I would like OTK Company to work together.”

“How do you mean?”

“I understand there are plans to establish a dedicated public enterprise for the development of Saemangeum.”

The government is also aware of the slow development. Therefore, several measures were discussed to accelerate the business promotion.

The state takes the initiative, entrusting work to other existing public corporations, and creating a dedicated public corporation altogether.

Even though the state has stepped in, no results have been achieved, and it is difficult to focus solely on Saemangeum development as there are already existing tasks to be entrusted to the Korea Land and Housing Corporation or the Rural Community Corporation.

Therefore, the establishment of a dedicated public company was considered as the most realistic alternative. The Saemangeum Development Corporation plans to create a landfill site, attract investment, and carry out related projects at a speedy pace.

“I want Saemangeum Development Corporation to be established and OTK Company to take over 49% of the stake in a public company.”

A public corporation is a corporation established by the government. Usually, the government holds most of the shares and performs public roles such as building social overhead capital. However, it has a form similar to that of a general company and is traded in the market. Korea Electric Power Corporation is an example.

“If a public corporation is newly established, it will take a year until the launch of a new public corporation, including the revision of the law and the selection of employees. In the meantime, if the OTK Company moves first, it will be able to proceed faster.”

“Is there a third one?”

“I would like to buy some land.”

Prime Minister Ryu Jeong-hoon furrowed his eyebrows.

“Are you going to preempt the empty land before proceeding with development?”

Buying land for development at a low price and then proceeding with development to raise land prices is a common method used by companies.

“Isn’t the land left over anyway?”

The total area of ​​Saemangeum is 400 square kilometers including freshwater lakes.

The reason development continued to be delayed is because, on the contrary, the site is too large. How much capital would be needed to develop all those lots?

“I understand that it is a problem because there are no companies to buy the land even if they try to sell it.”

Of course, it is not just selling the land, but there are various conditions attached to it, such as building buildings and factories on the land, business activities and job creation. Even considering that, it is a cheap price.

I said it like it was natural.

“Investing in high-risk businesses. It’s only natural to make a profit when you succeed. You can think of it as a kind of stock option.”

Stock options are stock options in which a company pays its managers along with their salaries. When the company grows, the stock price rises to make a big profit, and when the company goes bankrupt, the stock becomes a piece of paper, so it is a motivation to work hard.

“If the development is successful, the value of the land will soar hundreds or thousands of times from what it is now. Conversely, if development fails, it will only continue to blow dust in the future. Wouldn’t that be the motivation to work hard enough to make a profit only by being successful?”

Prime Minister Ryu Jeong-hoon could not deny my words.

“If these conditions are met, we will make Saemangeum the largest high-tech industrial city in Korea.”

The problems facing the Korean economy can be solved at once, and in addition to that, it can also raise the government’s approval rating. As long as you succeed, there is no reason to object.

Prime Minister Ryu Jeong-hoon looked at me and asked.

“Why do you want to develop Saemangeum?”

Of course it’s because I saw foreknowledge… … .

“Because of course it’s money.”

If a company wants to make money, what more reasons do you need?

“Do you think the development will succeed?”

“I am an investor.”

This one word would have been enough. Investors never put their money into something they think is going to fail.

Prime Minister Ryu Jeong-hoon nodded his head with a heavy expression.

“We will carefully consider your proposal.”

* * *

Park Jung-soo, head of the investment promotion and cooperation division at the Saemangeum Development Administration.

His job was to attract companies to invest in Saemangeum. He traveled across the country on the KTX to meet investment managers at companies and persuade them to invest in Saemangeum.

CJH Company, a mid-sized company that produces raw materials for cosmetics, was considering establishing a factory and research institute.

Manager Park Jung-soo diligently explained the merits of Saemangeum at the meeting with the investment manager.

The government designated Saemangeum as a special economic cooperation zone and encouraged companies to move in. The benefits were truly extraordinary.

If a factory or head office is relocated from a large city, corporate tax is deferred for 5 years, and corporate tax and income tax are exempted if a factory is relocated or invested more than a certain amount in an overcrowding control area in the metropolitan area.

It also provides benefits such as local tax reduction, tax reduction, individual consumption tax and value-added tax exemption, and customs exemption, and provides a one-stop service for processing various documents along with investment subsidies.

“We will give you the building and factory site at an unimaginably low price. As you can see, it is an amount that does not even reach the construction cost.”

The investment manager nodded.

“Certainly, this is almost free.”

“It is possible to reduce the land acquisition tax and pay the purchase amount in installments over several decades.”

Compared to building a factory in the metropolitan area, these are really fantastic conditions.

“We will review it positively.”

“I beg you, please.”

After leaving the CJH Company headquarters, he called other companies that showed interest in Saemangeum.

“Daejeon? of course. Of course, I’ll have to look for it. If you leave now, you’ll be there around 4 o’clock. I will leave right away.”

Another appointment was made, and he boarded the KTX again.

a few days later.

I received a call from the investment manager of CJH Company.

“Hello, Chief. Is it your meeting day today? See you later in Seoul.”

The other party said as if sorry.

[Sorry, Manager. I think today’s meeting will be difficult. At the executive meeting, a tentative decision was made to build a factory in the metropolitan area. I’m really sorry.]

Manager Park Jung-soo said cheerfully.

“no. I know all the hard work the manager has put in. Even if it’s not this time, I hope to have a good relationship in the future.”

[Thanks for your understanding.]

After the call ended, he let out a long sigh.

If there were 100 companies offering investment advice, I wondered whether one of them would lead to an actual contract. It’s not the first time he’s had things go wrong right before his contract.

But today, somehow, I felt like I was losing strength.

He headed to the cafeteria for lunch with his colleagues.

“I’ve been playing ball all week.”

“Can we really get paid like this?”

“Ah! What happened to CJH Company?”

Manager Park Jung-soo shook his head.

“I’m out.”

“I thought it would. It seemed like it was just watching from the beginning. By the way, CJH Company, AGK Company, PL Company, etc. What companies have the same names?”

After OTK Company became famous, it became popular in Korea to create company names by adding “company” to their English initials. Some companies have even changed their names. CJH Company was originally a ‘very good cosmetic’.

“It doesn’t make sense to cut the infrastructure budget and ask companies to come in.”

“If only the real construction went as planned, hundreds more companies would have come by now.”

The reason companies are reluctant to move to Saemangeum is because they do not have the necessary infrastructure yet.

However, you need money to build the infrastructure. The budget set by the government this year was less than half of the required amount. As a result, not only roads, but also airports, ports, and railway construction were all sluggish.

The government’s position is not understandable.

No matter how much budget is put in, companies don’t even think about coming in, and companies are reluctant to invest.

Rather, it would be more advantageous to use the money for favoritism policies such as welfare and employment support to raise the government’s approval rating.

“The last time we met, the boss was like that. I don’t know if Kang Jin-hoo invests, otherwise Saemangeum will be difficult.”

“Pooh! Do you think Kang Jin-hoo is going to go into such an empty field because he’s crazy?”

“Keek, it’s not. There must not be one or two countries that beg you to come.”

This was a common joke among employees. In order to save Saemangeum, Kang Jin-hoo has no choice but to step in.

Manager Park Jung-soo smiled bitterly.

‘I can’t.’(Read more @ wuxiax.com)

Jinhoo Kang is a global investor. He plays around the world, so what would he do to invest in Saemangeum?

In fact, he didn’t even know what Saemangeum was until he worked at the Saemangeum Development Agency. However, after years of visiting companies and promoting them to keep their mouths dry, my love for Saemangeum started to develop.

A promotional video for Saemangeum was played on the TV hanging in the restaurant.

The Saemangeum in the video was a beautiful sight with high-rise buildings lined up, artificial islands, theme parks, parks, and lakes.

he mumbled unknowingly

“I really want to see something like that before I die.”

Then, suddenly, the screen changed, and the news came out. On one side of the screen, the words ‘Breaking News’ floated, and the figure of the president appeared.

Everyone turned their heads to the TV without eating.

President Huh Chang-min made a presentation at the Economic Measures Meeting.

“The government will start full-scale Saemangeum new town development for stabilization of real estate prices in the metropolitan area and balanced national development. To this end, we will establish Saemangeum Development Corporation and cooperate with OTK Company.”

OTK Company then released a statement.

“OTK Company will take the lead in creating a new city in Saemangeum in cooperation with the government. Saemangeum will be reborn as a beautiful, world-class, high-tech city where finance, electric vehicles, high-tech industries, aerospace industries, bio industries, research institutes, resorts, and theme parks are harmonized.”

Everyone looked in disbelief.

‘Is this real? Who’s not kidding?’

At that moment, the silence was broken and a loud bell began to ring.

Manager Park Jung-soo, who had been standing idly watching the news, realized that the sound was ringing from his pocket, and quickly took out his cell phone from his pocket and pressed the call button.

The person who called was none other than the head of the investment team at CJH Company.

“Hello, Chief. what brings you here… … .”

Before the words could even be finished, the other party spoke urgently.

[Could we meet now?]

“Gee, are you talking now?”

[If you come to Seoul… … No, I will go to the Saemangeum Development Administration right away. I would like to talk again about the investment case I talked about last time.]

“Yes? Suddenly?”

This was just the beginning. Cell phones rang everywhere. The same was true of the co-workers, as well as the other employees, who were eating together.

Everyone was busy answering the phone without eating.

“Do you want me to send you the contract? Right?”

“What was the proposal then? Yes. It is still valid.”

“Are you coming this way? Ah! Wait. There’s another phone call. We will contact you again later.”

“Yes? Are you going to build a factory in Saemangeum right now?”