Chapter 141
Chapter 141
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Translator: Vine
Chapter: 141
Chapter Title: A Self-Destructive Move
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“...With what?”
“That’s why I’ve called you all here, to discuss that very matter.”
The President offered a brief reply to Director Yang Tae-yong before turning his gaze directly to me.
It was as if he were ceding the floor to me.
Having confirmed that our thoughts were aligned, I had no reason to hesitate and immediately began.
“If you’re asking me for methods, frankly, I could list countless options. The real question is whether the government has the will to execute them.”
“Speak, then, on the assumption that we do.”
The President’s tone was resolute.
Taking a breath, I addressed the gazes once again fixed on me.
“Then the first thing we can do is also block exports of materials that Japan desperately needs. For example, the special-purpose alloy materials Jaewoo has developed, or the carbon-based materials that have already far surpassed Toray and taken root in Japanese industry, would be devastating.”
“Japan is already world-class when it comes to carbon-based materials. Would banning their export really have an impact?”
The President expressed his doubt.
“Of course, it’s true that Japan is a leader in carbon-based materials. But for the past three years, they’ve been applying the materials we developed across various industries to produce better products. If we were to block that, many sectors, including the auto industry, would face considerable difficulty.”
“...”
“It’s not easy to ask an industry that has seen the clear benefits of our carbon-based materials in the export market to revert to using inferior products from the past. In any case, I used carbon-based materials as an example for now, but we have more than enough materials that would put Japan in a difficult position. Polycarbonates with more than double the durability of existing ones, or other petrochemical-based products, could also be among them.”
“Hmm...”
The President nodded.
As I was silently about to lift my teacup, another rather plausible idea suddenly came to mind.
“This would also be quite effective in provoking Japanese industry and shaking up their cabinet right away.”
“...”
At my words, everyone turned to look at me again.
“Claiming damages.”
“...”
Director Yang Tae-yong tilted his head at my statement.
Unlike him, the eyes of the President and the two corporate leaders lit up in an instant.
The President aside, it made me think that entrepreneurs are indeed quick on the uptake in these matters.
“Most of our companies currently suffering from the Japanese government's export suspension have likely already paid a portion of the product costs to Japanese firms.”
“That would be the case. A deposit is essential in any transaction.”
Director Yang Tae-yong replied as if it were obvious.
“But since we haven’t received the goods on time, we should naturally file a claim for breach of contract. Not just for the breach itself, but also for future damages resulting from production delays.”
“...”
“If that happens, the Japanese companies will likely incur significant losses and will pressure their government.”
“But in this case, they’re faulting our illegal third-party exports. They have plenty of room to absolve themselves by citing international law.”
Director Yang countered my argument.
Well, of course, they would come out that way.
But that doesn't justify the Japanese government's actions.
“Even so, the Japanese government has ignored proper sequence and procedure. Simply put, they blocked exports first and then announced the sanctions. What fault lies with the other companies that have been harmed as a result? It's not as if Jaewoo, Hyunwoo, or Samjung made illegal exports, so why should we have to suffer?”
In truth, that aspect of Japan's actions was highly likely to generate international opinion that they had gone too far.
Even the United States, when sanctioning a target company, would announce the sanctions first and then take action.
Besides, incidents of sanctioned goods being brought into North Korea were not a new phenomenon.
There was no way for an act of picking a fight with an entire country—one that fulfills its duties to the international community like ours—out of the blue to be recognized as legitimate.
“Hmm...”
Director Yang Tae-yong’s expression began to brighten.
He must have been imagining what would happen if our companies were to actually file for damages.
Sure enough, his expression completely changed as he spoke.
“That would really put the Japanese companies in a bind. They might have to pay compensation that could amount to trillions of won.”
“Probably. But it can’t end there. If we’re going to start this, we need to pull it out by the roots. So they can never try this nonsense again.”
“Pull it out by the roots?”
Director Yang and the two corporate leaders spoke in unison, staring at me.
Frankly, what I was about to say was a heavy proposition to come from my own mouth.
I glanced at the President, and he continued with a look of understanding.
“I’ll take it from here.”
After that brief opening, the President turned his gaze to Lee Young-hoon.
Startled by the sudden attention, Lee Young-hoon wore a blank expression.
“This is a matter that requires Chairman Lee’s complete agreement. Therefore, please consider it carefully before making a decision.”
Chairman Lee Young-hoon gulped, swallowing dryly, as if he had guessed what was coming next.
Honestly, anyone who couldn't figure out what was about to be said in this situation would be a fool.
As expected, he spoke up before the President could say another word.
“Are you perhaps asking us to halt semiconductor exports to Japanese companies?”
“That’s correct. Especially focusing on the 45-nanometer process chips now being supplied to the electronics industry.”
A strangled gasp escaped his lips.
I understood.
To be honest, in my anger, I had initially wanted to make the same demand, but when I considered the damage Samjung would incur, I had hesitated, thinking it was too much to ask.
But now, the nation itself was stepping in.
As long as the issue of compensation for losses was resolved, there shouldn't be a problem.
“My goodness! Halt semiconductor exports?”
Director Yang Tae-yong, who had been listening, asked again with wide eyes.
He wasn't the only one; Chairman Jung Tae-min was just as shocked.
For a while, the office was filled with silence. It was the President who spoke again.
“If that happens, the blow to Japan will be far greater than ours. We at least have alternatives, though they might cost a bit of money. They have none.”
“You’re right about that, Mr. President.”
I immediately agreed with the President.
People’s eyes turned back to me, but I paid them no mind and continued.
“Of course, we must keep in mind that in that case, we too could face international criticism. Japan won’t be the only one affected. The United States, in particular, is likely to exert pressure, so we need to have a plan to overcome that before we make a move.”
“I’m aware of that.”
The President readily agreed.
It seemed he had a countermeasure for that part.
Thinking there was no reason to hesitate, I spoke again.
“Looking at the reality of it, Japan has truly shot itself in the foot. They overlooked the fact that, so far, no one besides Samjung has succeeded in mass-producing 45-nanometer process technology. In this situation, if we halt exports, Japan will have to manufacture and sell products with outdated 180-nanometer or 90-nanometer-based semiconductors.”
“...”
“The problem is that even that won’t be easy. Japan’s semiconductor industry is already on a path of decline, so it’s doubtful whether they can even secure a stable supply of 90-nanometer chips. If that’s the case, will Japanese products remain competitive?”
“While Japan would suffer a massive blow if the 45-nanometer supply is cut off, our losses would be just as significant.”
“I admit that. Samjung would also take a hit of several trillion won in sales. However, considering the public support Samjung would gain from it, it might not be such a loss after all.”
Lee Young-hoon would have fully understood the implication of my last words.
The public perception of him had once hit rock bottom due to an illegal succession process.
This was his chance to turn that around.
Even so, asking him to bear the full extent of the losses would be unreasonable, so it would only be right to provide compensation.
I immediately spoke to the President.
“If Samjung goes that far, the government will offer appropriate compensation, won't it?”
“Of course. While I can't give you a definitive answer on what the standard for that compensation will be right now, the government will do its best to cover Samjung’s losses.”
At the President’s answer, Chairman Lee Young-hoon swallowed dryly again.
To drive the point home, I added one more thing.
“On a side note, the demand for various semiconductors needed for the KFX, thousands of upcoming missiles, and the radars for Aegis destroyers and Yi Sun-sin-class ships will soon surge. A rough calculation puts the value at several trillion won. If we were to award all of that exclusively to Samjung in the future, wouldn't that offer some consolation?”
“...”
Despite this, Chairman Lee Young-hoon couldn't bring himself to give a clear answer.
Honestly, for Samjung, that would only compensate for a single year of losses.
But that was a thought born from not understanding the flow of the situation.
“The point to remember is that this is the key to ending this situation as quickly as possible. To put it bluntly, if Japan can't get a supply of semiconductors for just six months, their entire industrial sector will fall into a panic. The Japanese government won't have the strength to withstand that.”
“...”
*******
[This morning, our companies collectively filed a lawsuit in court against Japanese firms and the government, seeking damages. The government has also formally filed a complaint against Japan with the World Trade Organization...]
A few days later, following my suggestion, our companies took collective legal action.
However, Japan’s reaction remained cold.
Their attitude, as if daring us to try, felt like I was reliving the world before my return.
[This morning, the government has completely banned the export of materials produced by the Jaewoo Group to Japan.]
[The government has uncovered evidence that certain Japanese organizations have aided North Korea and has launched an investigation. If this proves to be true, they will not be able to avoid condemnation from the international community...]
But the response to the subsequent measures was slightly different.
The news of a complete ban on material exports, a critical blow to their industry, sent the Japanese industrial world into an uproar. And when our government even brought up the fact of Japan's aid to North Korea, their cabinet, which had remained silent until now, began to react with fury.
[We have never provided aid to North Korea...]
‘Such blatant lies are an art form in themselves.’
The Japanese government’s denial was pathetic to watch.
But how long could that last?
Soon, the government would likely submit the concrete evidence provided by Mossad to the international community.
“By the way, it seems they’re saving the semiconductor export ban as a final card.”
“Probably. It’s a move with such huge repercussions for both sides that it’s difficult to play unless dialogue becomes completely impossible.”
CEO Kim Young-gi, who was watching the news with me, responded to my musing.
In front of him, a mountain of documents was piled high.
I didn't understand why he insisted on doing that in my office when he had his own.
“Did someone take over your office?”
“Of course not.”
“Then why do you always work in my office?”
“Ah, well. There are always one or two things to report, and it’s a hassle to come up every time.”
Feeling bewildered, I shot him a narrow-eyed glare.
He let out an awkward laugh and then, as if remembering something, his expression changed to one of realization.
“Oh, right. Dr. Kim Hee-won from the research institute called yesterday. He said he couldn't get through to you directly. He wanted me to tell you that he received the data you sent.”
That was probably because I had my phone turned off all day yesterday.
I had also instructed my secretarial office not to connect any calls unless it was urgent, as they were focused on catching up with backlogged work.
Just as I was about to nod absently, he asked tentatively.
“If you don’t mind me asking, what kind of data did you send?”
“Ah, that was data for developing controllers and servo motors.”
“Controllers?”
A controller refers to the control unit of a machine tool.
It's a field where Japan's Fanuc holds an absolute market share.
Since developing a proper machine tool is only possible once that is developed, I had already handed over the technology for iTROL, which Hyunwoo had developed before my return, to the research institute from my data chip, and had also ordered the development of servo motors.
“Why those... Don't tell me, are you planning to enter the industrial machinery and robotics fields?”
“The three major groups came to an agreement at the Blue House. We’ve decided to jointly invest over the next ten years to support our country's small and medium-sized enterprises in all fields that were under Japanese influence.”
“But this isn't just support; it’s an attempt at direct development, isn't it?”
“That's right. For other things, it might be different, but developing a controller is something that has its limits with the strength of small and medium-sized enterprises alone. So, we're planning to develop that part ourselves.”
I replied with a nonchalant expression.
His expression remained dazed.
Putting down the pen I was holding, I looked him straight in the eye.
“In a way, this is an opportunity to fundamentally change the constitution of our industry. So we have to do it when the chance arises.”
“But is it possible? Japan is decades ahead in that field.”
Of course, it wouldn't be easy.
But what he was overlooking was that I already had something that could catch up to Japan, at least when it came to controllers.
Once that becomes a reality, there’s a high chance we’ll surpass Fanuc’s level within two years.
[Anti-Japanese sentiment among the public is boiling over. Boycotts of Japanese products have begun in all sectors of society...]
The news was still playing on the TV I had left on.
It was about the boycotts happening all over the country, just like before my return.
No matter how many times I experience it, I find our people truly remarkable.
In this small country, they can be so divided by region, yet when there's an external conflict, they band together tightly.
It's like a mentality of not being able to stand seeing your family get beaten up by an outsider, no matter how much you might dislike them.
“Let’s go. We’ll be late.”
Smiling, I finished signing the documents and immediately stood up.
It would take quite a while to get to our destination, Jinhae.
Still, it was a relief we had the helicopter, but... damn it, what relief?
I was already worried I might throw up again.
“I’m all ready.”
CEO Kim immediately grabbed his suit and stood up.
On the way up to the rooftop in the elevator, he spoke in an excited voice.
“Aren't you excited, Chairman? It's the day the Sejong the Great and the KFX will prove their performance in front of the entire nation.”
“We’ll see.”
Though I said that, I was just as nervous.
Putting everything else aside, it was because after today, the KFX would officially enter mass production.
What was unexpected was the government’s request to also conduct a public firepower demonstration of the supersonic anti-ship missile and the Aegis destroyer today, which wasn't originally planned. This carried a strong message for Japan.
In short, it was something like this.
Watch closely.
And don't even dream of any military provocations... that kind of thing.
Indeed, since all of today’s events would be broadcast on TV, it would serve as a major warning to Japan.
‘No, not just a warning. It might just scare the hell out of them.’
*Brrr!*
Just as I was about to board the helicopter, the sound of a vibrating phone came from somewhere.
It definitely wasn't mine.
I glanced at CEO Kim, and I saw him tilt his head and press the call button.
“What?”
CEO Kim looked at me with a surprised expression.
After a brief reply, he hung up and immediately shot a question at me.
“Have you by any chance spoken with President Putin recently?”
“No. But why are you suddenly bringing up the big bear himself?”
“A Russian strategic bomber just violated Japanese airspace. Apparently, Japan is in an uproar right now.”
“...”
******
[A short while ago, a Russian strategic bomber violated Japanese airspace. Japan has lodged a strong protest, but Russia has so far remained unresponsive.]
On the way to Jinhae, the news that came on made a wide grin spread across my face.
This was perfect timing.
For me—no, for us—it was like watching the neighborhood tough guy beat up someone you wanted to punch but were holding back from. Thanks to him, the simmering frustration inside me felt somewhat relieved.
“There’s no other country as sensitive to airspace violations as Japan.”
CEO Kim Young-gi said, as if he felt a sense of satisfaction.
He seemed to be thinking the same thing as me.
Smiling, I said to him.
“Ever since World War II, Japan has been unusually sensitive about anything passing through its skies. A Russian strategic bomber, in particular, is more of a nightmare to them than we might think.”
“That’s why I asked you, Chairman. The timing was so perfect, I wondered if you might have requested it.”
“Of course not.”
I had never even considered making such a request.
Even if I had, it wasn't the kind of favor one could easily grant.
To put it bluntly, this was a matter that could create tension with another country. It didn't make sense for him to do something like this simply because of our acquaintance.
“Then Russia must have its own objective. What could be the reason?”
CEO Kim couldn't shake off his curiosity.
I was the same.
As I was considering countless possibilities, the Kuril Islands, a recent point of growing conflict with Japan, suddenly flashed through my mind.
*Pfft.*
“Putin, that sly old bear.”
“......”