Chapter 117
Chapter 117
Translation: Godtl
"So, are there any properties available?"
"Yes. In fact, there's an overflow of them. There are so many storage facilities, after all."
"What about the prices?"
"With talks of a production cut agreement between Russia and Saudi Arabia happening soon, the prices of each storage facility are dropping as well. Once the production cut agreement is in place, crude oil prices will rise, so they'll likely use up everything in storage anyway."
News was spreading that if the production cut agreement happens soon, things would wrap up smoothly.
Because of this, crude oil prices were already trending upward, while storage facility prices were dropping in contrast.
"But Director, did Chairman Jeong really order us to buy up the storage facilities right away?"
"Yes. He said to purchase every single one that comes on the market."
"But if the production cut agreement happens, the storage facilities will become useless, won't they?"
Even the executives were puzzled.
Since the shipping industry was flush with cash right now, buying up storage facilities wasn't exactly a problem.
But no matter how much money they had, carelessly spending it wasn't the right move.
"Still, if it's Chairman Jeong giving such orders—someone who isn't just anyone—there must be a reason, don't you think?"
"Maybe he plans to use the storage facilities for something other than storing oil?"
"Right. If not, there's only one other reason to buy them."
"And what's that?"
"That the production cut agreement suddenly falls through and crude oil prices crash."
Kim Du-yeong and the executives fell silent for a moment.
Then, one by one, they began to chuckle.
"Come on, that's impossible."
"Russia and Saudi Arabia abandoning the production cuts? That's like shooting themselves in the head—it's nonsense."
Frankly, it was more believable to say the sun would rise from the west tomorrow than to suggest they wouldn't go through with the production cuts. In the middle of COVID hardships, that would be like asking to all die together.
"So that scenario is absolutely impossible, meaning he must be planning to use the storage facilities for something else, right?"
"Yes. That must be it. Did he mention exactly what he'd use them for?"
"Hmm. He just said to buy up any storage facilities that come on the market. As always, I didn't pry and just agreed. You know our company's motto."
Don't question Jeong Jin-ho's orders.
As COVID swept across the world, the shipping industry collapsed, and as a result, Gwangun was smoothly reclaiming the company.
But as if displeased with Gwangun sitting back and growing fat, a disruptor had appeared.
The problem was, this disruptor wasn't just any lightweight.
"Levant Link seems to have quite substantial assets. Especially since they've been rapidly expanding by absorbing a flood of oil money from the Middle East."
In other words, it meant to abandon self-interest.
Just follow orders, and the money will flow in on its own.
"Buy up all the storage facilities on the market. We're already acquiring shipping companies at bargain prices anyway, so money's not an issue, right? Don't hold back—spend it. This is also Chairman Jeong's directive."
"Yes, Director."
Storage facilities are flooding the market, from our country to all over the world. I have no idea what he plans to do with them all, but...
Setting aside my curiosity, I just have to do as I'm told.
"Ah, what about those Middle Eastern shipping companies?"
"I was just about to report on that. A few shipping companies in Europe that have listed properties are currently in negotiations with Middle Eastern parties."
Kim Du-yeong frowned.
Levant Link was a shipping company that originated in the Middle East.
The name "Levant" itself refers to the eastern Mediterranean region, and their goal was to revive that area, which had been the center of East-West trade since ancient times.
"Beirut in Lebanon, serving as the gateway to the region, is key. It's a strategic point connecting the Mediterranean and the Middle East, and they plan to leverage that geographical advantage to build a logistics hub linking Europe, Africa, and Asia."
"But Beirut's port has been listed for sale?"
"Yes. With shipping completely collapsing due to COVID, the companies that originally held business rights there all pulled out, and now Levant Link is trying to take them over."
Like all ports, port operations involve government intervention.
Beirut Port was also a core business for Lebanon, maximizing profits through partial privatization.
But as shipping companies collapsed one after another, port operations began to struggle, and eventually, even the established companies withdrew, putting their business rights up for sale.
"So Levant is trying to take over that place?"
"Correct. The problem is that if we let this slide, the snowball effect will be enormous. As I mentioned earlier, the geographical advantages are so significant that if they expand their influence on a large scale, they'll first dominate the Middle Eastern region, and from then on, they'll extend their influence to our side as well."
Kwangmun Shipping had one clear goal.
To build a shipping enterprise so formidable that no one could dare challenge it.
But whether they were aware of Kwangmun's ambitions or simply saw an opportunity to capitalize on the remaining oil reserves and bulldoze their way into the shipping industry—
A powerful rival was emerging in the Middle East, rapidly expanding its influence.
"So if we lose that port to them, we can't guarantee our future, is that it?"
"Exactly. What's worse, they have oil money on their side. They can procure oil cheaper than anyone else. Wasn't the reason our shipping business initially grew because we quickly purchased oil before prices skyrocketed, reducing our operating costs?"
Levant plans to use a similar strategy—cutting operating costs to maintain competitive pricing.
Even if they take losses now, as long as they have oil money backing them, they'll eventually outlast the competition.
Who's to say we won't get ripped apart by the EU again like last time?
To prevent such a catastrophe, the company must become even more resilient.
So, what must be done?
We must completely dominate the global shipping market to the point where the entire maritime system cannot function without us.
"Then we must secure that business license by any means necessary."
"Correct. The Lebanese government seems to have caught wind of the situation and is setting a high price from the start. But even if we have to pay a premium, we cannot afford to lose to Levant."
In other words, if we fail to secure the Port of Beirut, we will inevitably live to regret it.
Under normal circumstances, we'd determine the acquisition amount ourselves, but—
"Sigh, this isn't something I should decide alone."
When the future of shipping is at stake, shouldn't we consult the ultimate decision-maker?
＊＊＊
The Organization of the Petroleum Exporting Countries, or OPEC.
Its role is to stabilize oil prices and regulate production collectively to balance the interests of its member nations.
In a positive light, it's about stabilization—but from a slightly twisted perspective, it's outright collusion.
Aren't all countries supposed to prohibit corporate collusion?
In any case, this production cut agreement was essentially a negotiation between OPEC and Russia.
After all, Saudi Arabia—OPEC's leader—and Russia, the most influential non-OPEC member after the U.S., were the ones deciding the final oil output.
"This production cut agreement was essential. Not just OPEC, but Russia and other nations were also struggling. To put it bluntly, if we didn't cut production quickly, we'd drown in the flood of oil."
That's why everyone expected the production cuts to proceed as swiftly as possible.
"But... it seems the unthinkable has happened."
Even the reporting employee's voice trembled faintly.
"Saudi Arabia and Russia have effectively withdrawn from the agreement, and Saudi Arabia has announced it will increase production instead."
Saudi Arabia and Russia—both have shot themselves in the head.
"What the hell? Have they both lost their minds? Why would they—"
"They must be out of their damn minds."
The shocking news left the employees stunned.
What made it even more chaotic was Saudi Arabia's announcement to boost production.
"Chairman, the world seems to be spiraling out of control these days. First, a pandemic like COVID-19 sweeps the globe, and now Saudi Arabia is talking about increasing production in this situation. It feels like the world is drifting further and further from my understanding."
I felt the same way.
This situation arose precisely because of futures and storage.
We purchased oil through futures contracts, but as the expiration dates approached, the oil remained unsold, trapped in storage.
"But why did it come to this?"
"Russia apparently refused deep production cuts because they wanted to counter the U.S. They believed that if Russia and OPEC proceeded with cuts, the U.S. would ultimately benefit."
"And that's when Saudi Arabia lost it?"
"Correct. When Russia turned uncooperative, the Saudi government flew into a rage. They decided to ramp up production, declaring they'd wipe out both Russia and the U.S. in one fell swoop."
In other words, they chose to increase production not through rational decision-making, but an emotional one.
With this turn of events, the future was painfully obvious.
The problem was that leasing storage tanks was expensive, and if storage space ran out, traders would have to offload their crude oil quickly—even at a loss.
That was precisely why prices were plummeting like crazy. And yet, if no buyers appeared, just as Vice President Seo had said, prices could even dip into negative territory.
This was exactly what my intuition had reacted to.
"With the news spreading, crude oil prices have already dropped to $10. Looking at the current trend, it seems they'll fall even further."
"If it drops below $10... In the worst-case scenario, it could even go negative."
Negative crude oil prices?
That meant if I bought oil, the seller would actually pay me.
"Many are skeptical whether such an extreme situation would really happen, but given the current downward trend, it's not impossible."
"Did the shipping side secure the storage tanks?"
"We did receive a report last time that they were preparing to purchase storage tanks in bulk, but whether they've acquired all of them yet... I'll check right now."
But there was no need.
Because my vibrating phone lit up with Chairman Kim Du-yeong's name.
"Yes, Chairman."
Seems our Chairman Kim isn't cut out to be a nobleman after all.
＊＊＊
"Wow. How the hell did you figure this one out? I was genuinely shocked when I heard the news. I mean, who could've guessed those lunatics would actually break the production cut agreement?"
Honestly, when I saw it through my intuition last time, I had a vague suspicion—Would they really break the agreement?
But I never in my wildest dreams imagined they'd not only break it but also ramp up production.
Like Vice President Seo said, the world really has gone mad lately. It's like we're living in a world that's strayed far from common sense.
"Pfft. Does it make any sense for the National Pension Service to inject 700 trillion won?"
"That's true too. Ah, what about the storage tanks?"
"Hmm. Don't worry about that. We bought up all the storage tanks before the agreement fell apart. Took a pretty big financial hit, but do you know how much their value has risen since the agreement collapsed? Already 50%. It's insane, I tell you."
Right now, the oil market was pure chaos.
"So. When should we buy the oil? It's already under $10."
"Hold off for now. It'll likely drop even further from here."
"Drop further from here? How much further?"
"Into negative territory."
"What?! Negative? Wait. So if we buy oil, they'll pay us? There's never been a case where oil prices dropped into negative territory before!"
Common sense said this made no sense.
Because oil prices had never plummeted into negative territory before. But the current data was suggesting exactly that, and above all, my intuition had shown me this scenario first.
"When people start begging, 'Please take the oil, we'll even pay you,' that's when you slowly start buying. Enough to fill our storage tanks. We'll need plenty anyway, right? Especially for our future shipping business."
"W-well, that's true, but... really, all the way to negative...?"
Given his decades of experience in this field, it seemed he was struggling to adapt to this unprecedented phenomenon.
Everyone was only selling oil, no one was buying. Yet futures contracts were nearing expiration, storage costs were rising...
"But is that why you came all the way here?"
"Hm? Ah, no. Actually, there's something urgent we need to discuss."
Through Chairman Kim, I got a rough idea of the situation.
Currently, Gwangun had entered a bidding war for the Beirut Port in Lebanon, and there were concerns that if their competitor, Levant, secured the project, there would be no stopping their growth.
For us, dreaming of becoming a fully integrated shipping group, Levant was an extremely threatening competitor.
"So even if we have to bleed for it, we need to secure that port project by any means necessary."
"Roughly how much is the bid?"
"15 trillion won. The problem is, the price is expected to rise even further."
A port project worth a staggering 15 trillion won.
That was far beyond what I had anticipated.
Yet both our competitor and Gwangun were willing to bear this cost—proof of just how crucial Beirut Port's strategic position was.
I froze in my seat.
"Director Jeong, are you okay? You've gone completely pale. What's wrong?"
What on earth was that just now?
It felt like something overwhelmingly powerful—something far beyond my control—had struck me.
The intense sense of rejection was so strong it turned my stomach. I quickly flipped to the next page.
I couldn't tell exactly what was happening there, but given how strongly I was reacting, it might be better to abandon this venture.
...?
As I examined the report Director Kim Du-yeong had brought, my hand hovered over the section about Beirut Port.
!?
But as I turned the page, my intuition flared up again at the sight of the bid amount for the port rights.
'Why do I feel such strong rejection toward Beirut Port, yet when it comes to the bid amount...??'
Does this mean we shouldn't operate there, but we should still bid?
Then, a deafening roar shook my eardrums, and for a moment, I—
I quietly wrote down the bid amount beside me.
But the numbers kept rising without stopping.
By the time the price had climbed to an almost unbelievable level—
"Are you saying they'd take it even at such an outrageous price?"
"That's right. It's highly likely. Their goal is to acquire this place and completely dominate the Middle Eastern market."
My hand stilled.
I glanced sideways at Director Kim, who had been waiting quietly for me to finish reviewing.
The amount was so absurd I hardly knew what to say.
"Director. About this bid amount..."
"Ah, yes?"
"What if we bid 30 trillion won?"
"Wh-what!? 30 trillion won!?"
My intuition stopped at 30 trillion.
Does that mean it's the right price?
Are they really telling us to acquire this place?
But that terrifying, overwhelming feeling from earlier...
＊＊＊
Director Kim stared at me with disbelieving eyes for a long moment before regaining his composure.
"30 trillion won... That's impossible. That's not just taking a loss—that's bleeding out."
"What about the other side?"
"Since this isn't a sealed bid but an open auction, if we bid 30 trillion, they'll know immediately. And then..."
Director Kim Du-yeong rolled his eyes thoughtfully.
"They'll probably raise the price even further."
"Did Director Jeong make the final decision?"
After finishing the meeting with Jeong Jin-ho, Kim Du-yeong hurried back to the company.
The executives had been waiting for him anxiously.
"Yes. I got the price."
"How much...?"
"30 trillion won."
"!?"
The executives were too stunned to speak.
30 trillion won!?
Even if we bid 30 trillion, the other side would grudgingly accept it.
No matter how strategically important that location is, do we really have to invest 30 trillion won?
"B-but... spending that much money would—"
The executives floundered, at a complete loss.
Watching their reactions, Kim Du-yeong burst out laughing.
"Everyone, calm down. Do you really think Director Jeong seriously expects us to bid 30 trillion won?"
"Huh?"
"He didn't say it outright, but in my opinion, Director Jeong has given up on Beirut. If he really planned to bid for it, he would've told us to approach it strategically from the start instead of naming such a high figure."
At that, the executives quickly turned the idea over in their heads.
And they reached one conclusion.
It must have been Jeong Jin-ho's calculation that the other side would accept.
After all, they have oil money backing them solidly. Of course, even for them, 30 trillion won would be an enormous burden.
"If we have no choice but to hand it over, we can't just let them take it without a fight. Before they spread their wings and crush us, shouldn't we make our escape?"
That's right, Beirut.
You can have it all.
While you're busy digesting that exorbitant cost, we'll be widening the gap.
"But Director Jeong backed down more easily than I expected."
"Even after naming 30 trillion won?"
"Yes. Normally, if he thought it was necessary, he'd move heaven and earth to get it. Maybe he's planning something else..."
"Don't tell me Director Jeong is...?"
"Exactly. If we can't have it, we might as well make them suffer for it. If we bid 30 trillion, those bastards won't accept it—what are they going to do?"
"!?"
We need Beirut Port too, but the other side is even more desperate.
Something else?
What else could there be?
Kim Du-yeong couldn't think of anything plausible.
But one thing nagged at him.
'That look in his eyes earlier...'
The strange glint in Jeong Jin-ho's eyes as he examined the report.
For some reason, that gaze kept circling in his mind.
<Episode 117> End