Investor That Can See The Future

Chapter 401

The Korean government announced that it would work with OTK Company to develop a new Saemangeum new town.

Nam Poong-hyeon, the head of the Saemangeum Development Agency, and Kang Jin-hoo, the CEO, signed an MOU on the establishment of the Saemangeum Development Corporation and shook hands.

After the announcement, the attention of the world turned to Saemangeum.

“Saemangeum? I think I heard it, where are you?”

“Is that the place where the world’s largest reclamation project took place?”

“Are you going to develop it into a new city?”

“Are you going to create a city like Pudong in China or Silicon Valley in America?”

Unlike IBs, PEFs, and pension funds, which actively invest in real estate in major cities around the world, Jinhoo Kang, the world’s richest man, showed little interest in real estate investment. But this time, they suddenly decided to develop a new town on reclaimed land where there is nothing.

Global companies and investors opened a map of Korea and paid attention to Saemangeum.

“Who owns this land?”

“They are all owned by the Korean government.”

“Can’t you buy some land?”

“Currently, it is sold only to companies for industrial use. In order to purchase, companies must directly come to Saemangeum, build buildings and factories, and conduct business activities.”

“Review your investment plan right now.”

Domestic and foreign companies who had been hesitant to invest in the meantime, started investing right away, and Saemangeum Development Administration employees screamed happily over the phone calls for investment inquiries.

OTK Company employees, including Park Sang-yeop and Jung Ki-hong, traveled to the United States in the meantime to contact related companies.

Park Sang-yeop met with Leslie Basel, president of Disney Park, Experience and Products. A subsidiary of The Walt Disney Company, it is a company that deals with Disney theme parks, products, and contents.

“Saemangeum is an ideal location to attract Asian tourists as it is adjacent to China and Japan. It is also a city that will become the center of East Asia in the future, where finance and high-tech industries coexist. Korea has a huge domestic market with a population of 50 million and a national income of more than $30,000, so if Disneyland enters the country, it will be successful enough. Above all, CEO Kang Jin-hoo is very interested in the project and is directly promoting it.”

The government even prepared a site for a theme park in Saemangeum and begged related companies to invest in it. This is because the economic effect, including the influx of tourists, is large when a theme park is built.

Disneyland also received several offers, and at the time refused to build Shanghai Disneyland as an excuse, but… … .

President Basel nodded immediately.

“Thank you for the great suggestion. It is already being reviewed positively by representatives. I hope that Disney will continue to cooperate with OTK Company in various fields in the future.”

* * *

If you add up the new city development plans that each country is going to do, there are more than hundreds. Saemangeum was just one of them, but now the situation has changed.

Jinhoo Kang declared that he would make Saemangeum an international financial city and Korea’s Silicon Valley.

The plans announced were surprising. First, OTK Company was planning to relocate the headquarters, relocate the OTK research center, create the world’s largest battery production and research complex, establish the TWR research center, establish a venture cluster, Korea’s largest convention center, and video production studio.

According to the announcement, all kinds of tourism and leisure facilities such as Disneyland, Universal Studios, and resorts are coming to Saemangeum, and in fact, the companies said that they are considering investment.

If the development proceeds as planned, it is predicted that at least 200,000 people will be evacuated from Seoul alone within 10 years.

This put a brake on the rise in house prices in the metropolitan area, which was not caught even if the government tried to catch it.

Everyone thought that there was no substitute for Seoul and the metropolitan area until now and in the future. So everyone was trying to buy an apartment in the metropolitan area somehow.

But now things have changed. Speculative demand has disappeared, and buyers who were trying to pursue purchases all at once turned to wait-and-see attitude, fearing that they will not be able to afford a house for the rest of their lives.

-Aren’t you supposed to buy a house in Saemangeum, not Seoul?

– Wow! Disneyland and Universal Studios are also coming.

-Our company is also considering establishing a factory in Saemangeum.

– ㅋㅋ Since Kang Jin-hoo is doing it, now all companies are considering investing in Saemangeum. I’m really tired!

-This is the OTK effect, this is the impact, this is the fact.

-Ajae Gag No Jam ㅡㅡ;

-It is absolutely impossible to replace Seoul and the metropolitan area only when Saemangeum is developed. If you beat the companies, there will be only weekend couples like Sejong City.

-lets think. Local people want to go to Seoul to enjoy the cultural life, but as Kang Jin-hu said, Seoul people will go to Saemangeum to enjoy the cultural life. In that case, there is no reason to insist on living in Seoul.

-We will have to watch the situation, but living in Seoul right now is crazy. listen to me bro

-Haha, aren’t all speculators enemies?

Multi-family homeowners who bought several apartments with a lot of debt rushed to sell their houses, but the deal didn’t happen.

It is the same with the land speculators who had their feet caught on fire.

In general, when a new city development plan is announced… … No, even before the development plan was announced, speculators tend to flock there.

Speculators bought a lot of land on the planned site for the 3rd new city early and built a lot of unauthorized buildings. Again, when the Ministry of Land, Transport and Maritime Affairs announced the 3rd new city plan, speculators cheered inside and held a protest against it.

“Withdraw the 3rd new town development!”

“The expropriation of land is an infringement of property rights!”

“Gosh! I built everything to live in a country house with the wealth I had accumulated throughout my life. Destroy my house and build an apartment!”

“I can’t give you my land, you bastards!”

Of course, I wasn’t really against it, it was just to receive a large amount of land compensation, even a penny.

However, the development of the 3rd new town has really come to be withdrawn!

If demand in the metropolitan area can be dispersed through the development of Saemangeum, there is no need to insist on the 3rd new city. Although no official cancellation announcement has been made yet, negotiations for the land purchase have been halted.

The startled speculators screamed.

“If a new city is developed in Saemangeum, we will all die!”

“Development should be done in the metropolitan area, what does Saemangeum mean?”

“This is a waste of tax!”

“It’s a privilege in the Honam region for the election votes!”

“It is a political and economic collusion between the government and OTK company!”

“No matter what, we must stop it!”

Multi-homeowners and speculators immediately flocked to the OTK Company headquarters. Local speculators have chartered tour buses as a group.

They unfolded the banners and clasped their headbands and shouted loudly.

“Proceed as planned for metropolitan development!”

“Go ahead! Go ahead!”

“After Gangjin-hoo, immediately withdraw the Saemangeum new town development!”

“Withdraw! Withdraw!”

“Stop destroying the Saemangeum environment!”

“Stop! Stop!”

“Protect home prices for the common people!”

“Protect! Protect!”

* * *

The front of OTK Company’s headquarters has long been a popular spot for protests.

Now that I’m doing it, even speculators are coming and protesting. Surprisingly, the numbers are quite large. There are hundreds of people gathered today, and the number is increasing.

Taek-gyu looked down at him and asked.

“Didn’t they protest to stop the 3rd new city plan before?”

I shook my head.

“I guess that wasn’t the truth.”

“Hmm, is it Tsundere?”

“It’s similar.”

“But why are there so many real estate speculators in this small country?”

Is it because it’s narrower?

In fact, there is no clear standard for investment and speculation, but many people think that investing is good and speculation is bad. However, although the term ‘real estate speculation’ is used, the term ‘stock speculation’ is not used.

This is because real estate has unique characteristics as an investment target.

In general, the people who buy other commodities, whether they rise or fall, profit and lose. From the perspective of the people who didn’t buy it, it is impossible to know whether the operation owner is going out of business or whether the Bantcoin is 30 million won.

But in real estate, both when it soars and when it plummets, those who didn’t buy it suffer the most. This is because housing costs rise accordingly when skyrocketing, and jeonse money or deposits become dangerous when plummets.

“Those people are a problem too, but the problem was that the country tolerated it.”

In Korea, it is very easy to make money with real estate.

For example, suppose there is a person who makes 500 million won by living in a 1 billion-won jeonse, and a person who lives in a 1 billion-won house and the house price rises by 500 million won every year.

Which of the two do people want to be?

Of course, the latter is far more advantageous. To earn 500 million, you have to work that much. However, while the house price rises by 500 million won, the landlord does no work.

More important is the tax.

Nearly 50 percent of income tax is levied on an annual salary of 500 million won. However, real estate does not pay transfer tax until sold. Even if sold, the transfer tax is significantly lower than income tax.

Therefore, it is natural that people prefer unearned income over earned income.

If you have a chance to make money right in front of you, wouldn’t it be weird not to do it?

It is the government that drove multi-homeowners into speculators, but made it possible to purchase ten or twenty houses by borrowing 80 percent each, register as a rental business, and aim for profit.

Capitalism is driven by human selfishness. The government’s job is to regulate that selfishness with laws and taxes so that it doesn’t harm society as a whole.

After the Heo Chang-min government took office, house prices in Seoul and the metropolitan area soared by tens of percent. Among the employees, the joys and sorrows of those who have a home in Seoul and those who do not have it completely mixed.

Real estate has a shock to the economy when it goes up, but it has a bigger impact when it goes down. Already, there are words like multi-family bankruptcy, bank insolvency, and damage to jeonse tenants.

Opposition parties and some media have blamed this on me, and speculators are shouting at the falling house and land prices.

“I told you to state your position earlier, what are you going to do?”

“Is it really necessary?”

At my words, Taek-gyu wiggled his fingers.

“then no. You come all the way here to protest, of course you have to give an answer. I can’t. I will do it for you.”

After writing something on Taek-gyu’s note, he called the building security guard.

“Please pass it on to those who are protesting that this is the position of the OTK Company.”

“Okay.”

After a while, a commotion broke out among the protesters who received the note.

Some shouted in anger.

“Come out immediately after the earthquake!”

“Are you kidding me now?”

“Get on your knees and apologize!”

I looked at Taek-gyu in surprise.

“What did you write?”(Read more @ wuxiax.com)

Taehyung shrugged his shoulders.

“It’s just subtitles that appear every day on stock broadcasts.”

“what is that?”

“Investments can lose principal depending on market conditions. The final responsibility rests with the investor himself, and the company does not take any responsibility for the investment results.”

“… … .”

* * *

Politicians were in the midst of a fierce confrontation over the supplementary budget proposed by the current government.

The ruling New Politics Party held that the supplementary budget should be implemented to revitalize the economy of the working class, but the opposition party opposed it, saying it was a generous budget for next year’s general election and blocking policy failure with taxes.

In fact, it is correct to point out that the supplementary budget is generous. They say the government spends money, but there is no one who will hate it. Therefore, there has never been a time when the supplementary budget has not been passed, and it is highly likely that it will be passed this time as well.

Opposition lawmakers as well as ruling party lawmakers devised detailed strategies on how to lead the supplementary budget review to an advantage. If you are already using a generous budget, shouldn’t you bring as much budget to the constituency as possible?

But in this situation, the government suddenly announced the Saemangeum new town development plan!

The Liberal National Party felt like it had been hit hard in the back of the head.

Until just before, the development of Saemangeum was a far cry. At least in the current government, no one expected tangible results.

However, the situation changed when Kang Jin-hoo stepped in. If he has the capital and influence he has, he will be able to create a new city in an empty field.

Even though he has not yet signed an official contract, talk of an international financial city and Korea’s Silicon Valley is already coming out.

What if this becomes a reality?

There will be positive effects in many ways, such as relieving excessive concentration in the metropolitan area, achieving balanced national development, revitalizing the construction industry, economic growth, employment increase, and increase in foreign direct investment.

However, for politicians, more important than whether they benefit the country and the people is whether they help their own re-election and the party.

The Blue House and the ruling party managed their facial expressions in anticipation of an increase in approval ratings.

Although Saemangeum is located in Honam, the garden of the progressive camp, the first development was carried out by the Democratic Liberal Party, the predecessor of the Liberal National Party. As the matter was agreed upon by the ruling and opposition parties, it could continue to be promoted as a national project even during the change of government.

The Liberal People’s Party also does not oppose the development of Saemangeum itself, but it should be led by the Liberal People’s Party, and the current government and the New Politics Party will not help the approval rating at all.

The government requested an additional budget for the development of Saemangeum from the National Assembly.

The supplementary budget is a whopping 17 trillion won!

It’s the largest extra budget ever. This is an increase of 10 trillion won compared to the previous supplementary budget. 80% of the budget was for the construction of roads, railways, ports, and airports as well as the Saemangeum landfill project.

Other development plans in the existing supplementary budget were either pushed back or thrown out. The opposition parties immediately protested against the extra-large supplementary budget.

The Liberty Korea Party threatened to not cooperate with the supplementary budget and the normalization of the National Assembly without an economic hearing, arguing that Deputy Prime Minister Jeong Ki-soo, Deputy Prime Minister of the Republic of Korea Eung-gwan Lee, and Jin-hoo Kang, must be present.

CEO Na-Kyung Yeon said.

“The government is deceiving the people as if all problems could be solved with just an additional budget. Wouldn’t it be the first time to convince the people that there has been no error in economic policy so far and why an additional budget is needed? An additional budget without an economic hearing is absolutely unacceptable. In addition, according to the Saemangeum development plan announced by the government, it takes the form of public development, but the development initiative is effectively held by Kang Jin-hoo. This is an obvious preference for OTK Company! Our Liberal National Party will thoroughly investigate this on behalf of the people!”