The New Town Frenzy
The giant killer—Bundang and Ilsan, newly designated as new towns, were overheating. People poured into the new towns, creating traffic jams reminiscent of holiday seasons. Had the information leaked? Land speculation was already running rampant.
After the new town announcement, newspapers and television never lacked stories about Bundang and Ilsan. Just as highways had filled with cars during the Chuseok holiday, causing massive congestion, the roads leading to Bundang and Ilsan were now packed with people, a scene broadcast on television. The media's horse-race-style coverage made it seem as though buying even a single pyeong of land in Bundang would turn anyone into a millionaire. Naturally, those with loose ears ignored warnings that it was already too late and rushed toward Bundang and Ilsan.
Of course, buying a single pyeong of land wouldn't make anyone rich. Yet land prices in Bundang rose by the day. "Land near the Tancheon River has seen asking prices climb to 20,000 won per pyeong. Even plots farther from the river but within the announced new town zone have risen more than threefold," reported Hwang Jae-hong over the phone.
The voice coming through the receiver was half-drowned in static—the copper-wire line and the phone's poor quality didn't help—but the excitement in his tone painted his expression clearly. It was understandable. Hwang Jae-hong's former profession had been that of a speculative real estate broker, the kind who sold land far from roads or mountain plots unlikely to see zoning changes at inflated prices. Even in that line of work, he had never witnessed land values multiply several times over in such a short period.
And the scale wasn't small. ID Investment had deployed a full 4.5 billion won to acquire land. Of the 5.55 million pyeong designated as the new town in Bundang, ID Investment now held 700,000 pyeong. Even among the soaring prices across all of Bundang, the parcels ID Investment had purchased commanded the highest values. Hwang Jae-hong had thought the prices high even before the announcement. Now, with values several times higher, everything felt abnormal.
"Really? It's only been a few days since the announcement, and prices have jumped that much? That's incredibly fast."
Yoo Jae-won responded with measured enthusiasm to the excited Hwang Jae-hong.
"The locations you selected, sir, must be exceptionally well-positioned. The Tancheon may carry dirty water now, but once properly cleaned and maintained, it will be an ideal environment for apartments and commercial facilities. It's clearly abnormal, but even someone with my experience in land transactions has never encountered anything like this new town announcement. I keep reminding myself that my sense of 'expensive' is still based on the old greenbelt standards. Once the greenbelt is lifted and buildings and apartments rise, the potential for further appreciation is limitless."
"Dozens of people have approached me today alone. Some were sent by construction companies, others were big players from Seoul."
Hwang Jae-hong felt genuine admiration for Yoo Jae-won. Following his orders, ID Investment had poured its entire 4.5 billion won capital into Bundang. With that kind of money moving, it was reasonable to assume the boss had received tips from high places, just as Chae Mu-seong had claimed. But so what? The real estate market was rife with all manner of schemes. Especially when a new town designation sent land prices skyrocketing, strange things happened constantly. In such a den of intrigue, nothing was more reassuring than having powerful backing. And securing that backing was itself a skill.
Hwang Jae-hong knew well how precious money earned through blood and sweat was. Yet the world didn't value it any higher for that reason. Conversely, even if money came easily and drew criticism, the world didn't undervalue it either. The world made no distinction—neither type of money was worth a single won more or less. Therefore, when opportunity came, one should seize it without hesitation and earn as much as possible. That was Hwang Jae-hong's philosophy. Yoo Jae-won embodied that thinking perfectly, which was why respect flowed naturally from him.
"Are these people with actual purchasing power?"
"Yes, they're no small-timers. There were executives from major chaebol construction firms whose names you'd recognize, and cash-rich financiers from Myeongdong who deal with large corporations. However, the Land Development Corporation hasn't made contact yet. I'll respond according to your instructions."
Instructions. He was asking whether to sell now or hold longer.
"We'll observe until winter. Once you've finished distributing your business cards in Bundang, return to Seoul."
"Ah? Ah! So we're holding. Understood."
Hwang Jae-hong's reply carried a hint of surprise, his voice slightly dazed. From his perspective, the land price surge in the new town had exploded like a bubble at first but seemed likely to cool significantly by winter or next year. Moreover, the government would increasingly pressure prices downward over time. But Yoo Jae-won, through the archives stored in his Memory Palace, knew exactly how the new town money feast would conclude. Until November, prime land prices would rise to 100,000 won per pyeong. Land that had been worth 5,000 to 10,000 won per pyeong before the announcement would nearly multiply ten to fifteen times. Yoo Jae-won's 4.5 billion won would become 45 billion—perhaps even 50 billion—by November. A tenfold increase in such a short time sounded absurd, yet in this moment it made perfect sense. By around June of next year, government compensation for new town development would total a staggering 3.5 trillion won, with Bundang accounting for roughly 1 trillion. There was no need to sell to major construction firms or wealthy speculators. The cleanest approach was to wait and sell at the official price to the Land Development Corporation.
"When you return, ask Chief of Staff Choi Kang-wook to secure an office for ID Investment. Once the office is ready, we'll recruit additional staff."
"Pardon? Staff, sir?"
"Yes. Good land in Korea isn't limited to Bundang. New towns will continue to emerge, and even Seoul, despite being saturated, has many areas slated for redevelopment. Hwang Jae-hong Manager, you can't handle all of it alone. Moreover, our investment products aren't limited to land—we also have securities and futures. Furthermore, the cultural industry is an excellent investment destination. Discuss recruitment with Chief of Staff Choi Kang-wook as well."
Yoo Jae-won revealed a glimpse of ID Investment's vision. A company that only played with land had no reason to use the word "Investment." Since they planned to invest in financial products as well as cultural goods like films, music, and games, the grand term "Investment" had been attached.
"Ah, yes! Understood. I'll return to Seoul as quickly as possible to carry out your orders."
"Good. Don't speed just because you're in a hurry. You're a valuable asset to our company. Report back once you're prepared. And your performance in Bundang was flawless. You can look forward to next month's performance bonus."
"Yes! Thank you for your consideration!"
Hwang Jae-hong was moved once again. It was a trivial remark, but no one had ever looked out for him like this except his late parents. Even Chae Mu-seong's group had treated him as a mere errand boy, not a person. That was why he had been grateful to them. Their dog-like treatment had made him desperate to escape, which in turn led him to meet a good boss. Though young, Yoo Jae-won's words and breadth of thought were those of an adult—perhaps even more so because of his youth, making him all the more promising once he came of age. Hwang Jae-hong didn't know that Yoo Jae-won's mental age exceeded sixty, but it was fortunate for Yoo Jae-won that he remained unaware.
A few days later.
"How strange."
Yoo Jae-won muttered as he read the morning newspaper that had been delivered. The new town story, which had seemed poised to set all of Korea ablaze with land speculation fever, had vanished in an instant. Instead of the new town headlines that had dominated the front pages for days, the news now featured Reverend Moon Ik-hwan's unauthorized visit to North Korea.
The visit issue had begun around March, but in mid-May it suddenly erupted into a major incident. Detailed reports revealed that behind Reverend Moon were prominent opposition politicians, and that North Korean operatives active in Japan had provided financial support for the practical aspects of the visit, according to an announcement by the Agency for National Security Planning. When it emerged that North Korean operatives' money had flowed to the opposition, chaos ensued. The new town story disappeared cleanly. The individual identified as an operative denied being a spy, while prominent opposition figures accused of colluding with spies declared it an artificial public security incident and announced a struggle against the government. The public security regime that had begun earlier this year was reaching its peak.
The irony was that this issue shift actually benefited Yoo Jae-won. Stories about political heavyweights and conglomerates having prior knowledge of the new town plans and securing prime land for massive capital gains had been about to surface. But the media's increasingly sharp criticism was instantly redirected toward the public security situation and dissipated. The media's criticism hadn't been entirely unfounded either. During the acquisition process through Hwang Jae-hong, a significant portion of the land had already changed hands from original owners to people from Seoul.
With the public security situation erupting around Reverend Moon and protests erupting at universities nationwide in response, media attention on the new town faded. Yet land prices in Bundang continued their high-altitude march, and inquiries flooded in for ID Investment, which held prime parcels. Pressure even came from factions attempting to forcibly extract land. But neither Yoo Jae-won nor Hwang Jae-hong, acting on his instructions, wavered in the slightest. If pressure had escalated to actual force, they had been prepared to appeal to Chairman Wang or even the President, but no such thing occurred.
Hwang Jae-hong had completely withdrawn from Bundang and secured a two-story commercial building in Gangnam as an office. Since Gangnam hadn't yet taken off, they could have purchased the building outright if they pushed, but for now they leased it. A respectable signboard was installed on the first floor, office furniture and supplies for around twenty employees were prepared, and telephones and fax machines were installed. With everything in readiness, they were now moving to recruit talent.
Yet reports soon arrived that recruitment wasn't going smoothly. Yoo Jae-won, a man from the twenty-first century where finding a good job was difficult, couldn't immediately grasp the report that the opposite—recruitment—wasn't easy. But Hwang Jae-hong, who seemed willing to do anything for Yoo Jae-won, would never submit a sloppy report. In those days, university students chose their companies. When graduation season arrived, companies visited schools with application forms to recruit new employees. At prestigious universities like Seoul National, small and medium-sized enterprises couldn't even show their faces. Major conglomerates like Ilsung and Mirae would hold recruitment briefings with application forms in hand. Despite political turmoil, the economy was experiencing explosive growth, and there was always a shortage of people. It was an era when companies made desperate efforts to secure good talent in advance.
Since ID Investment was a newborn company with no name recognition, they had no choice but to lure people with exceptional salaries and welfare policies. Thanks to the Bundang affair, however, they had gained considerable recognition in the real estate industry. As a result, scouting a few experienced professionals was proceeding far more smoothly than recruiting fresh graduates.
While ID Investment surged forward, ID Technology didn't remain idle either. Though everyone was overwhelmed maintaining the expanded organization, key projects continued steadily. The Yeoju office was busy fulfilling orders from major corporations. In addition to the bulk order placed earlier this year under the name of Mirae Group's chairman, additional orders had come in from mid-sized computer companies including Sambo. It had become an essential title that had to be included in any complete computer product, just like MS-DOS.