Investor That Can See The Future

Chapter 406

National Assembly Broadcasting broadcasted the economic hearings live.

The ratings were not very high until Deputy Prime Minister Jeong Ki-soo of Economy and Eung-gwan Lee of Policy Department appeared. Most of the time, how many people watch it on the news at night or in real time?

However, as soon as Kang Jin-hoo appeared, the viewership ratings of the National Assembly Broadcasting began to soar. The airwaves also broadcast related content, and Internet media outlets continued to send out the remarks as breaking news.

Parents’ union pitching tents in Gwanghwamun Square, office workers taking a break, and people waiting for the train in the waiting room at Seoul Station all couldn’t take their eyes off the TV.

The internet reaction was also hot.

– Haha, I’m a complaint solver for the district.

– See the National Party lawmakers change their attitude ^^

-Ah! John Jam 🥺🥺!

-If only Kang Jin-hoo comes out, it will be a National Assembly broadcasting variety hahaha

– Viewer rating rice cake award, Gazua!

-But why are you holding this hearing? If Korea’s high-tech industry develops, won’t everyone benefit?

– You said you are investing like this in other countries. After going to the government and the National Assembly, they pushed me hard.

– This is Hell Joseon.

– Our machete senator has fallen into a coma again ㅜㅜ

-Who’s the next hitter?

-When is Yeon Kazaki coming out? I want to see Yeon Kazaki and Kang Jin-hoo get together.

– Maekukno VS patriot haha

– I keep saying that I’m a peasant, but I’m a true patriot, Assemblyman Yeon Na-kyung!

– I agree with the above. She is right to say ‘Japanese patriots VS Korean patriots’.

* * *

The hearing was temporarily suspended due to the commotion.

I was warned to pay attention to her remarks and sat down. Next, Rep. Choi Young-jun of the Liberal People’s Party launched an offensive.

“The supplementary budget that the government has applied for now includes the construction of Saemangeum International Airport. However, according to the report here, Saemangeum International Airport appears to have poor business viability. The government proceeds with construction without conducting a preliminary feasibility study, which is an act of overturning the principle. What kind of people will understand this?”

Surprisingly, this is a correct comment.

There is nothing like SOC to temporarily boost growth. That is why the central government and local governments love civil engineering so much.

There is no problem if SOC is absolutely necessary. However, if a road or facility with few users is made with it, the construction cost goes into the construction cost, and the maintenance cost goes into the maintenance cost.

Since this is not a common occurrence, a preliminary feasibility study must be conducted before SOC in order to conduct only essential projects, but the government exempted it from this.

Even now, there are many opinions that building an airport in Saemangeum is a waste of taxes. But things have changed since I left.

“Disneyland, Universal Studios, and integrated resorts have already been confirmed. If companies and factories are added here, Saemangeum International Airport will become the second busiest airport after Incheon Airport, Gimpo Airport, and Jeju Airport.”

Rep. Choi Young-jun asked as if questioning.

“How do you believe that? The other SOCs also had a rosy outlook at first. But what happened when it was actually built? Preliminary feasibility study must be conducted immediately! Muan Airport alone is incurring a deficit of over 10 billion won annually. But what if Saemangeum International Airport was built here? If there is a deficit of tens of billions of won per year, it must be covered again with taxes like the blood of the people. Who will be responsible for this?”

I said it was simple.

“OTK Company will take responsibility.”

Rep. Choi Young-jun was taken aback by my words.

“What, what?”

“I told you that OTK Company is responsible.”

“Oh no, how are you going to take responsibility?”

“If there is a deficit at Saemangeum International Airport by implementing the minimum operating income guarantee, OTK Company will pay the amount of the deficit.”

“… … .”

Not only Rep. Choi Young-jun, but everyone in the hearing hall had a look of absurdity.

Minimum Revenue Guarantee.

Originally, MRG is a system implemented by the government to compensate for the loss of private capital when SOC is implemented as a privately funded project. But, on the other hand, I was proposing that private capital would do MRG for government projects.

I said like a wedge.

“The same applies to Saemangeum Port. In this way, there will never be any additional blood tax for the people. Then there will be no problem, will it?”

“Oh, no, so… … .”

Rep. Choi Young-jun couldn’t find anything to refute, so he raised his voice and said,

“Hey, I’ll keep an eye on you!”

I nodded.

“Yes. Keep watching.”

“… … .”

* * *

Rep. Lee Jeong-hye looked at me with a frown on her face.

If it’s a relationship with me, it’s a relationship, but it was someone I didn’t want to see face to face. Perhaps this is also the case with Lee Jeong-hye.

She is still uncomfortable just seeing her face.

“The pace of development needs to be adjusted to prevent environmental destruction, land crisis development, and excessive allocation of the SOC budget to specific regions.”

“Are you saying that speed control is fast?”

Rep. Lee Jeong-hye was annoyed.

“You have to take it slow!”

I questioned that.

“Even if you start construction right away, it will take three years for companies to move into the first phase, and it will take five years for the population to start moving in earnest. If we were to adjust the pace, would companies be willing to invest?”

“Then you’re going to push forward without considering the adverse effects it will have on the metropolitan area?”

“What adverse effects will the Saemangeum development have on the metropolitan area?”

Rep. Lee Jeong-hye raised her voice.

“People and businesses can get out,” she said.

“Didn’t you not criticize the government until just last month that we need to take measures to resolve the concentration in the metropolitan area and develop local areas? But now, why are you saying something completely different?”

“Ah, no, that… … .”

“Then, do you mean to completely abandon the development of Saemangeum in consideration of the adverse effects it will have on the metropolitan area?”

“You can’t talk like that. To be clear, I am not against the development of Saemangeum itself. However, other areas should not be affected. So I’m talking about speed control theory.”

I’m talking round and round, but what I want to say in the end is simple.

So in a nutshell… … .

“Are you referring to the falling house prices in Seoul?”

Rep. Lee Jeong-hye did not deny my words.

“For those who own a house, that house is all their wealth, all their wealth!”

That’s right.

In other countries, the proportion of real estate in household assets does not exceed 60 percent, while in Korea, it exceeds 80 percent.

If the total household assets are 500 million won, of which there are more than 400 million houses, and less than 100 million won in cash and stocks. Since most household assets are sold in real estate, the entire nation is bound to be sensitive to real estate prices.

After all, who’s going to like it when the price of your house goes down?

There is something called externality. It means that the activities of an economic entity generate benefits or costs to a third party.

Among various commodities, real estate has a particularly large externality.

“What do you think is the most serious problem in Korea right now?”

Rep. Lee Jeong-hye was bewildered at my question.

“Yes?”

“It’s the fertility rate. Currently, the fertility rate in Korea is less than one. It is a natural phenomenon that the fertility rate declines in developed countries, but even considering that, Korea is at a serious level. Rapid aging and population decline are already a reality, and if the current trend continues, Korea’s productive population will be reduced by less than half in 50 years from the current 37.5 million to 18 million.”

Rep. Lee Jeong-hye shouted.

“No, we’re talking about house prices now, so why are we talking about that?”

“I’m telling you because we’re talking about house prices. It is noteworthy that the fertility rate is two if we look at statistics only for married couples. In other words, if you marry, you will have two children. But young people these days don’t get married. Why?”

What is the reason? The sudden increase in singles and singles?

Well, there may not be a reason for that, but the biggest reason is… … .

“Because there is no money. A house is one of the biggest expenses in a wedding. You have to have a house to live in to get married, you have to get married to have children, but you don’t get married because you can’t find a house, and you don’t have children because you can’t get married. In fact, the fertility rate is low in regions with low self-occupancy rates, and regions with high self-occupancy rates such as new cities have high fertility rates.

No matter how the older generations say, ‘We started with single-room rent, anyway’, it is impossible to recover the fertility rate unless the housing price problem is resolved.

“The government has invested tens of trillions of won to raise the fertility rate that has been falling over the years, but it has not seen much effect. In order to have and raise children, jobs and housing should be stable, not temporary support. Saemangeum New Town can solve both of these issues at once by providing quality jobs and housing space.”

I thought saying this would be persuasive, but Rep. Lee Jeong-hye raised her voice even more.

“Anyway, what will you do for the people who own houses in the metropolitan area?”

I shrugged.

“How do I do that? After all, multi-family homeowners who have bought dozens of houses in Seoul, or those who have purchased land for a planned development site in advance, will not listen to what I say.”

I can’t even ask for the house price to fall.

I said suddenly, as if remembering something.

“Ah! Come to think of it, Assemblyman Lee Jeong-hye also sleeps in multiple houses, right?”

Rep. Lee Jeong-hye was surprised.

“Oh no, why are you talking about that here? This is where I ask my questions! Only answer the questions asked by the representative.”

I pretended not to hear it and continued.

“In her own and her husband’s names, 11 houses in Seocho-gu, two in Gangnam-gu, and one in Songpa-gu and Gwangjin-gu. You have a total of 15 houses, are you not doing this because you are afraid that house prices will fall?”

Rep. Lee Jeong-hye stared at her while poking her to see if she was stabbed.

“Shut up! Shut up!

* * *

After several inquiries from lawmakers, Rep. Na-kyung Yeon finally appeared.

Rep. Lee Jeong-hye, who was once a candidate for the presidency, was also pushed out of her party power due to her presidential defeat and the weakening of her pro-Park ties within the party. At this time, she received the support of Bi-Pak, and the person who seized the power was Rep. Na Kyung.

When she became the leader of the Liberal National Party, she performed various activities, which greatly boosted her approval rating in the ruling party. That’s why her ruling party supporters say they want her to continue to lead the Liberal National Party.

Rep. Na-kyung Yeon said while looking at her data.

“You have requested to purchase Saemangeum land.”

“That’s right.”

“For what purpose do you want to buy it?”

“It is for business purposes. This is the site where the OTK Company headquarters, subsidiaries, factories, and research centers will be located.”

The office site I am buying will be the center of Saemangeum if the development is completed successfully. If you think of Seoul, is it in the middle of Gangnam?

Rep. Yeon Na-kyung shone like a hawk that preyed on her prey.

“Are you going to speculate on the land prior to development?”(Read more @ wuxiax.com)

“It’s not about speculation, it’s about necessity.”

“The entire Saemangeum land was created with the tax of the people. But what is it, if not speculation, to take it at a low price that doesn’t even cost the composition?”

It was already expected that such an opinion would come out.

“Building a business in a wasteland is like creating an oasis in the desert. When an oasis is created, a village can be created around it. When businesses enter the land sold at a low price and the area is revitalized, the value of the remaining land will jump hundreds of times from what it is now. This is a huge benefit to the country.”

It is a common method for new town development to attract companies by first giving them land at a low price, and then giving them away or selling commercial facilities at a high price. If they received the full price from the beginning, which company would want to enter?

“The land of Saemangeum is limited. If OTK Company takes a lot of land, doesn’t it mean that other companies will not be able to enter as much?”

I said absurdly.

“Now that the land is left, they say they will install solar panels on 10% of the total area.”

As the occupancy of Hado companies was sluggish, the government recently announced a plan to turn it into a solar power complex in Saemangeum. It is a project that invests a whopping 570 billion won in the government budget and 10 trillion won in private capital.

For reference, solar power generation per area is very low. The amount of electricity that can be produced in this way is less than one TWR. It is an idea that can be done because there is enough land and money.

Fortunately, this plan was canceled when I joined hands with the Saemangeum Development Administration.

Rep. Na-kyung Yeon persistently questioned.

“Anyway, aren’t you taking huge profits from the Saemangeum created by OTK Company with national taxes? It’s true that we started development because of development profits, isn’t it?”

The reason I want to develop Saemangeum new town is because I saw foreknowledge. Otherwise, I wouldn’t have done such a troublesome thing.

Apart from that, it is also true that it is money. If the development proceeds as planned, the profit that OTK Company will receive reaches tens of trillions of won.

But if I say this as it is, it will bite to the end, right?

So when… … .

“Because of patriotism.”

Perhaps it was an unexpected answer, Assemblyman Yeon Na-kyung was bewildered.

“Yes?”

“I said it was out of patriotism. It is an extremely pure heart that loves the country.”

Rep. Yeon Na-kyung shouted absurdly.

“No, since when did you have patriotism!? It’s all about making money. Who knows!?”

That’s it.

I wonder when I started being so patriotic. But a person does not always have to be truthful.

“You are misunderstood. I intend to develop Saemangeum for the sake of the country and its people, only with the heart of patriotism and love.”

Rep. Yeon Na-kyung continued to shout.

“lie! What a blatant lie!”

Does it matter?

I continued speaking without changing my expression.

“Why is it a lie that Koreans love Korea? This is natural. That’s why I didn’t even go to the commemoration ceremony for the establishment of the Self-Defense Forces. How about taking this opportunity to show your patriotism as well?”

Rep. Yeon Na-kyung opened her eyes.

“What, what!?”