Chapter 214
Chapter 214
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Translator: crow
Chapter Title: Currency Unification
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1958 was the year of independence for South Asia and Africa.
At this time, the colonial empires like Britain and France, still reeling from the aftermath of colonial wars, released the remaining colonial nations from the empire's shackles even earlier than the planned deadline of 1960.
Of course, there was no such thing as a clean wrap-up.
As a result, countries across South Asia and Africa plunged into extreme chaos the moment they gained independence.
"Our path forward is the Marxism-Leninism that cries out against imperialism!"
"What nonsense! Korean-style democracy is the answer—it's something even developing countries can easily follow!"
"Who's the world's strongest nation? America. If you want to ride the American wave, it's liberalism all the way!"
"You're going to have a civil war anyway. Might as well go full militarism meta and conscript child soldiers too."
"Can't we just stick with traditional tribal politics?"
"Cut the crap—taste the coup that His Excellency Lee Seong-jun showed us! Yushin is perfect for your level."
It was utter pandemonium amid the wreckage of the old colonial empires.
Into this chaotic battlefield jumped America and the Soviet Union.
"Join the socialist brotherhood today, and Moscow's aid goes up! Come to Comintern and get your subsidies!"
"Subscribe to free democracy, and Washington's support and aid will be sweet as honey. No regrets—choose America!"
America and the Soviets, strained by their arms race, poured money into this mess anyway.
It was a contest of wills—they couldn't afford to lose ground in the power struggle.
'They still have money to burn on that? It's astonishing.'
Watching America's and the Soviets' reckless spending, I actually grew worried.
The more they exhausted themselves like this, wouldn't the post-Cold War era arrive even sooner?
But I couldn't very well pressure them to stop spending on the US and Soviets.
'In the end, all I can do is solidify our foundations.'
Even if the post-Cold War atmosphere arrived, I had to strengthen our internals so America and the West couldn't easily topple Korea.
That was my job.
'To do that, I need to grow the domestic market first—maybe stimulate consumption?'
Korea had developed an export-driven economic structure up to now.
Switching to a domestic-focused one overnight was realistically impossible.
But to stand against the West, bulking up our domestic market was essential.
After much deliberation, the solution I arrived at was regional currency unification.
'I'll accelerate the plan and fully integrate Korea, China, and Japan into one economic bloc.'
We already functioned as an integrated market, but Korea, China, and Japan still used separate currencies.
If I unified them into one currency here, my economic dominance over Nanjing and Japan would skyrocket beyond current levels.
As long as I could control the risks, there was no reason not to.
I summoned Finance Minister Kim Hyun-cheol and laid out the concept.
"Pardon? Currency unification, you say?"
"That's right."
I emphasized that combining China's and Japan's economic power with ours would easily surpass half of America's economic might.
Factoring in future growth potential, it would be even more.
For the Republic of Korea to compete with America, currency unification was essential.
"The Allied Japanese Union and Nanjing won't agree easily."
"If we offer ironclad security and economic support as the price, they won't refuse."
I told him I'd put on the table an enhanced nuclear umbrella + ODA (development aid) + policy support + a permanent mutual defense pact for China and Japan.
Protection and massive aid on a whole new level.
It wasn't bait that China and Japan could easily ignore.
"Is currency unification really worth that much benefit to us?"
The finance minister tilted his head at the idea.
I revealed my true aim to him.
"It won't mean much now, but once the Bretton Woods system collapses under its deficits, the effects will show."
"If the dollar falls... Ah."
The finance minister caught on to my real intent.
When the fixed exchange rate era ends—where all currencies are pegged to the dollar—and countries take full responsibility for their own rates in a floating exchange regime...
Currency values will inevitably tie to how well you earn money, i.e., your balance of payments.
Earn a lot, and your currency appreciates; earn little, and it depreciates.
When that time comes, how much would the Korean currency appreciate, given our massive balance of payments surplus right now?
A stronger currency would make exports tougher than they are now.
But if I tied China and Japan—who export far less—into the same currency, I could offset that burden.
'If it were Marx, he'd say the original Germans couldn't have sucked that much honey! Exporting with the unified Euro devalued their currency for massive gains.'
Like German Chancellor Merkel, I planned to suck the honey too.
"If that's the vision, we should start preparing now."
"First, let's test the waters."
I sent Kim Hyun-cheol to the East Asian Economic Community Finance Ministers' Meeting and awaited results.
A few days later, Kim Hyun-cheol returned with some progress.
"The Japanese Union side showed a positive reaction."
"I expected as much from them."
Japan was bone-dry on cash right now.
The reason was simple.
Korea had taken most of the industrial sectors that original Japan should have dominated, while Nanjing had muscled into low-wage labor sectors.
As a result, Japan was scraping by on subcontracts from Korea and tourism.
Turn down Korea's development aid in this situation?
Easier said than done.
They needed money for shipyards or whatever else.
"And Chen Gongbo's side?"
"They didn't outright refuse. But they weren't enthusiastic either."
The terms Korea offered were generous, but handing over currency sovereignty wasn't a light decision.
China wasn't in as dire straits as Japan—why would they nod eagerly?
"Negotiate slowly with Chen Gongbo over time. Take a year if needed. We'll need several years to prepare unification anyway."
I said that, but I had no intention of sitting idle.
The right way to handle these things was to wrap them up fast.
The moment I sent off Kim Hyun-cheol, I called in KCIA Director Kang Soo-cheol.
"You summoned me, Your Excellency?"
"I have a job for you."
I ordered him to dig up dirt on the Chen Gongbo regime's key figures.
If words don't work, make them move by force—what choice is there?
"Whatever it takes—bring me material that could make them jump into the Yangtze if I say die."
"Understood."
While waiting for the background check on the Chen Gongbo regime, I directed Bank of Korea officials to devise countermeasures for the side effects of 'regional currency unification.'
Soon after, the KCIA brought dirt on the Chen Gongbo regime's power players.
"Concubines? Even with the government? Does that count as leverage in China?"
"Nominally, China pushes Korean-style democracy too. The state strictly bans concubinage."
"Hmm."
From the looks of it, the Chen Gongbo regime's bigwigs weren't just dabbling in concubinage.
These guys had ten, twenty young women each.
'Can they even handle that?'
I was scared of the night with just one young wife—these guys had no fear.
"The government's stance might be one thing, but the public perception might differ."
"That's why we have more material prepared."
The next page revealed bribes.
When it came to China, you couldn't skip cronyism and bribes.
"This looks like insider info—how'd you get it?"
"From bugs."
It showed here how a great power's intel agency, when serious, makes digging up dirt on a politician child's play.
In that short time, the KCIA had gathered quite a haul.
This was enough to bend the Chen Gongbo power players to our will.
Of course, blatantly using leverage was amateur hour.
"Bribe the ones we dug up on appropriately, and get them to push pro-unification talk."
If they don't listen, leak the dirt as a lesson.
I figured the Chen Gongbo regime wouldn't hold out long.
The currency unification plan soon gained momentum.
"Your Excellency, Chen Gongbo says they'll agree to our proposal."
"Good work."
Whatever swam beneath the surface, on the water's face, we wrapped things up nicely with China verbally.
That's all that mattered—what good was dredging up the dirty underbelly?
The currency unification plan, preparation period included, was set for execution in five years.
The East Asian common currency—tentatively EA—would begin issuance in 1961 and fully replace all market currencies by 1963.
The site for the EA Central Bank, which would exclusively issue this currency, was set for Pyongyang.
Not because of Korea's national strength—it was simply the geographic center of Korea, China, and Japan.
"With this, the Republic has laid the foundation to leap into an economic bloc surpassing the Second World."
We didn't make a big fuss about it.
No bluster about economic effects in the hundreds or thousands of trillions.
But the people knew.
"The Republic, the Republic is rising! Toward the world's top spot!"
Unlike their excitement, I viewed the situation coolly.
Korea had merely finished preparing to stand as America's rival.
'We've only just lined up at the starting line.'
Become the world's second-largest economic bloc?
That meant nothing.
The dollar as the anchor currency.
The dominance of the English language.
The Anglo-Saxon brothers left by the British Empire.
The ideology of liberalism that America represents.
America wasn't just a single nation—it was the incumbent power representing this world.
To challenge that, second-largest economic bloc wasn't enough.
We needed to casually surpass the economic power and influence original Communist China had reached.
'At least ten more years.'
I sketched a blueprint for the Republic's next sprint, envisioning a future I might not live to see, and reviewed it once more.