Free Web NovelThe moment I entered, everyone’s gaze turned toward me.
“Seeing the two of you sitting face to face like this puts me in a great mood.”
At my greeting, deep smiles spread across both of their faces.
“President Kim. What brings you here?”
“May I sit down first?”
President Yoon Changho looked at Jang Songthaek, and Jang answered with a nod.
“Of course. Please, have a seat. President Kim is welcome anytime.”
President Yoon Changho and Chairman Song Chanwoo were seated together, so I naturally took the seat opposite them, beside Jang Songthaek.
“Hah. You sure like sitting next to the Chairman.”
Yoon Changho grumbled lightly, and Jang Songthaek laughed with ease.
“If not at a time like this, when would President Kim ever sit beside me? I ask for your generous understanding, Mr. President.”
With that as a starting point, a few light jokes were exchanged to loosen the mood. I went along for a bit, then quickly shifted the topic.
“I hear the official talks begin tomorrow······. The reason you met separately like this today—is it because of the Kaesong Industrial Complex?”
It was Yoon Changho who answered my question. He nodded and spoke.
“Yes. That’s why we’re here. Once the five-party talks scheduled for a few days from now conclude, we’ll need to announce the construction of the Kaesong Industrial Complex at the same time, won’t we? We need to coordinate the details, so I arranged this meeting with Chairman Song and the Chairman of the National Defense Commission.”
“I see. Then have you reached a conclusion?”
Yoon Changho shrugged.
“What conclusion is there to reach? It’s already decided that Daehyeon Group will build the Kaesong Industrial Complex, so there weren’t any major disagreements. Chairman Song says he’s confident it can be completed within a year.”
“If it’s Daehyeon Group, that should be possible. Right, Chairman Song?”
I looked at Song Chanwoo as I asked, and he hesitated before answering.
“A year should be enough. But······.”
Seeing Song Chanwoo glance toward Yoon Changho for reassurance made me chuckle.
For a conglomerate chairman, he’s surprisingly timid.
“I know what you’re about to say. You want to say that South Korean personnel need to be able to stay in Kaesong, right? To carry out construction around the clock, day and night.”
Perhaps because I said what he had been about to say himself, Song Chanwoo’s expression brightened.
“Yes. We’ll need to keep construction going 24 hours a day without rest to finish on schedule. Otherwise, no matter how capable Daehyeon is, completing the project within a year would be difficult.”
This was already anticipated, so it wasn’t a variable. I nodded and turned my gaze to Yoon Changho.
“Would that be possible? Allowing South Korean workers to build accommodations in Kaesong and stay there.”
“Hmm······.”
Yoon Changho swallowed uneasily and rubbed his chin. To give him time to think, I asked Jang Songthaek as well.
“And North Korea? Would it be acceptable to stay there during the construction period?”
“Of course. Our Republic intends to grant Daehyeon Group whatever it wants. If laws must be changed, we’ll change them. If manpower is needed, we’ll even mobilize soldiers.”
At Jang Songthaek’s firm answer, Chairman Song Chanwoo’s face brightened even more.
In large-scale projects like this, the biggest issue was always labor costs.
If North Korean labor could be used, construction expenses could be drastically reduced.
“Good. Then as long as the South Korean government permits it, we can finish the construction within a year as desired.”
With Jang Songthaek giving such a definitive answer, Yoon Changho couldn’t very well keep hesitating.
He let out a small sigh and spoke heavily.
“Very well. If the Chairman says so, I can’t refuse. I’ll make it possible even if it means enacting a special law. For economic cooperation to proceed smoothly, people need to be able to cross the border freely, don’t they?”
For the development of Nampo City as well, South Koreans needed to be able to stay in North Korea for extended periods.
But at present, that was impossible.
As Yoon Changho said, a special law would have to be enacted so that long-term stays could be approved for inter-Korean economic cooperation projects.
“That’s absolutely right. Only when long-term stays are possible can we call it true inter-Korean cooperation, wouldn’t you agree? Our Republic has no concerns on that front, so we hope the South will make it possible as well.”
As I listened to their exchange, I naturally joined in.
“This makes the upcoming general election even more important. Mr. President, can you win?”
At my question, Yoon Changho laughed loudly.
“Haven’t you seen the polls lately? At this rate, it’ll be a landslide—an absolute landslide. Even those who opposed us have kept their mouths shut after the Chairman’s expression of regret today. Once again, thank you, Chairman. It’s already an honor that you came to Seoul, but to present us with such a gift as well.”
It seemed he had spent half the day closely tracking shifts in public opinion.
Naturally. No one would be more sensitive to the direction of public sentiment than the President.
“You sound very confident. But as you know, elections rarely go exactly as expected.”
“You’re right. But even if we lose /N_o_v_e_l_i_g_h_t/ a significant number of seats to the Progressive Party, there won’t be any problem passing the special law. Aren’t they the ones most sincere about improving relations with the North? They won’t oppose this bill. So we can proceed.”
Once the legal issues were resolved, this wouldn’t be particularly difficult.
Now the only thing left was the construction cost of the Kaesong Industrial Complex and the cost of building the expressway connecting South Korea to Kaesong.
“Chairman Song, what construction cost has Daehyeon Group estimated?”
Instead of answering me directly, Song Chanwoo asked a question of his own—addressed not to me, but to Jang Songthaek.
“First, we need confirmation from the Chairman. As per the previous contract, is it correct that one million pyeong will be leased for 3.3 million dollars?”
“Yes. I recall that we agreed to lease one million pyeong for 3.3 million dollars, and an additional 16 million dollars for ancillary costs such as removing above-ground obstacles.”
Song Chanwoo nodded slightly, as if to confirm that was correct.
Seeing that, Jang Songthaek smiled gently and spoke.
“Very well. We can proceed as is. This is not a contract with Daehyeon Group, but a long-term land lease agreement between the South Korean government and our Republic.”
After receiving Jang Songthaek’s confirmation, Song Chanwoo turned to Yoon Changho this time.
“And the South Korean government will continue to provide guarantees for the construction costs as well? Once we break ground, we can’t afford to stop.”
Yoon Changho nodded firmly.
“Yes. The South Korean government intends to provide payment guarantees. In the end, once tenant companies are selected and the units are sold, all of that money will be recovered anyway. Providing guarantees is not an issue for our government. Even if problems arise midway, the South Korean government will take responsibility.”
Chairman Song Chanwoo let out a sigh of relief.
For him, when it came to projects involving the North, minimizing risk was paramount.
“And the cost of building the expressway connecting the South to Kaesong will be borne by the South Korean government?”
“Yes. We’ll consult with the Ministry of Construction and Transportation and then determine the construction costs. If loans are needed, through the Korea Development Bank······.”
Having the Korea Development Bank provide loans carried too much risk.
The illegal loans and illicit transfers to North Korea involving Daehyeon Group, which had sunk below the surface, could resurface again.
I cut Yoon Changho off and spoke.
“Mr. President.”
Yoon Changho stopped and looked at me with a puzzled expression.
“Having the Korea Development Bank provide another loan could bring Daehyeon Group’s illegal loan controversy back to the surface.”
“Hmmm······.”
Yoon Changho swallowed and pondered for a moment, then asked Song Chanwoo.
“Can Daehyeon Group proceed with the construction without loans?”
“······It would be difficult, Mr. President. As for the road construction, it wouldn’t be a major issue if the state pays the construction costs, but······. For the buildings in the Kaesong Industrial Complex, we would have to build them first and then sell them afterward, which would consume an enormous amount of capital.”
Troubled expressions appeared on both Yoon Changho’s and Song Chanwoo’s faces.
Furrowing his brow, Yoon Changho turned toward me.
“President Kim, did you hear that? Daehyeon Group’s finances are tight. Do you have a solution?”
“Yes. We’ve received firm confirmation that Taesan Financial will handle all funding for the Kaesong Industrial Complex project through PF loans.”
“PF loans?”
Yoon Changho repeated the term, apparently hearing it for the first time.
“When banks or financial institutions lend money, borrowing is usually based on the overall creditworthiness of a company. Typically, loans are secured with buildings or stocks as collateral. But in the case of the Kaesong Industrial Complex, we can’t saddle Daehyeon Group with additional risk. They’ve already suffered a major loss once.” fɾeeweɓnѳveɭ.com
“That’s true. We were just talking about that. What the North Korean government intends to do about the damage Daehyeon Group suffered.”
“That’s something we can discuss separately later. Right now, the priority is securing the funds for the Kaesong Industrial Complex project. There’s no loan more suitable than project financing.”
Project financing is a financial technique in which loans are extended based on the projected income of a specific project, such as construction or large-scale ventures.
It sounds simple, but in reality it involves reviewing the business plan, calculating cash flow, assessing risks, and valuing the project itself—never an easy loan to secure.
But if Taesan Financial, and I, were involved, it wouldn’t be particularly difficult.
“How is it different from regular loans? In the end, it’s still a loan, isn’t it?”
“It’s different. Instead of taking collateral from Daehyeon Group, the loan would be secured by the projected profits generated by the Kaesong Industrial Complex project itself. It’s not yet widely adopted in Korea, but in Japan, most real estate development projects rely on PF loans.”
I went on for quite some time explaining the advantages of PF loans. After listening to the complex explanation, Yoon Changho pressed his brow.
“It’s complicated. But I understand that it’s a loan that doesn’t force Daehyeon Group to take on major risk.”
“Yes. That’s correct. Korea will likely shift most real estate development to PF loans in the near future as well. In a project like this, where the government provides payment guarantees, PF loans can be arranged even more easily. This approach is better than loans through the Korea Development Bank.”
After rubbing his brow for a while, President Yoon Changho asked Song Chanwoo.
“What do you think, Chairman Song?”
“We believe the PF loan structure would be better as well. It minimizes risk to our group.”
“I see. Then you and President Kim should coordinate on that matter. The government will provide the payment guarantees.”
“Thank you, Mr. President.”
After that, we spent quite some time discussing the Kaesong Industrial Complex.
Once the funding plan was finalized, everything moved swiftly.
“Chairman Song Chanwoo, you may excuse yourself now and enjoy the banquet. I still have more to discuss with these two.”
I wrapped up the conversation and sent Chairman Song Chanwoo out.
Perhaps relieved to be leaving such a burdensome setting, Song Chanwoo let out a sigh of relief and offered his farewells.
“I have something to say to both of you.”
As soon as I confirmed that he had left and the door had closed, I immediately brought up the topic of Japan.
“On my way here, I ran into the Japanese Ambassador, Toshiyaki. They requested that Japan also be allowed to attend the five-party talks being held in a few days. He asked me to persuade the two of you.”
“Japan’s participation? We’ve already notified them that it’s impossible. And they came to you asking for persuasion? Those people truly have no sense of propriety.”
Yoon Changho frowned, and even Jang Songthaek knitted his brow.
“Japanese domestic politics must be in rough shape. Otherwise, why would Prime Minister Koizumi step in personally?”
Yoon Changho asked, startled.
“You spoke directly with the Japanese Prime Minister?”
“Yes. He asked me to persuade you, personally. He said that if there was anything I wanted in return, I should name it. He claimed they would grant anything they could.”
“That man, usually so heavy-footed—he must really be desperate. Saying he’ll grant anything without knowing what will be demanded. Honestly······.”
“How about taking this opportunity to extract what we can from Japan? It might be worth allowing them to attend after securing one concession each for both South and North Korea. What do you two think?”
Instead of answering, both men fell into deep thought. The first to speak was Jang Songthaek.
“Our Republic has little to gain from Japan. Even if we demand an apology for historical issues, they won’t comply.”
I nodded.
“Yes. That would be difficult. There’s nothing worse for Japanese domestic politics than that.”
“In that case, I oppose it.”
Yoon Changho also agreed with Jang Songthaek.
“I feel the same way, President Kim. The losses from letting Japan attend far outweigh any gains. Isn’t this an opportunity to further increase Korea’s weight on the international stage? There’s no reason to dilute that by bringing Japan into the five-party talks.”
Both men firmly stated their opposition.
