Chapter 7
Chapter 7
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Translator: Vine
Chapter: 7
Chapter Title: Turning the Tables
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[This is the U.S. Army Armament Acquisition Planning Division.]
Commander Hummer had predicted it would take at least a week, but the call came in just three days.
[I’m Lieutenant General Michael, the head of the division. Is it possible to speak with Mr. Jin?]
What was surprising was that the person in charge had called himself.
For him to personally handle matters that could have been dealt with by his staff, he must have been quite shocked.
[This is Mr. Jin speaking.]
[A pleasure. After reviewing the test report, we have a few questions. Would it be possible to request additional testing?]
As expected, the U.S. military's weapon acquisition system was no pushover.
No matter how solid the data, they wouldn't rush until they had seen it with their own eyes.
Further testing wasn't really a problem, but the unnecessary time it would consume was a waste.
[Rather than that, how about I send you a sample so you can test it directly against an Abrams?]
It must have been a tempting offer.
If it could penetrate an Abrams tank, caked in depleted uranium armor, then tests against any other armor would be meaningless.
Unsurprisingly, the offer was immediately accepted, and a short while later, I received a call from an extremely anxious Michael.
[My God! How on earth did you create such a monster?]
[It seems the results were satisfactory?]
[The entire Army is in an uproar right now. Thanks to you, no further verification is necessary.]
[That’s a relief. So, what was the decision on its operational suitability?]
[It was naturally deemed suitable. So, tell me, what’s your annual production capacity?]
[We can supply approximately 100,000 rounds.]
[Oh, that’s a bit short. It's a shame, but for now, let’s proceed with a production line contract for that amount. Someone from the USFK Command will visit you tomorrow with the paperwork.]
A production line contract was, in short, their way of staking a claim.
They didn't want to leave any room for another buyer to jump in.
Since a preliminary contract with the U.S. Army was essential for shaking up our own military, this was welcome news to me.
“One hundred thousand rounds a year? And they want to be supplied for five years?”
Chairman Jin’s jaw dropped when he heard the news.
One hundred thousand rounds meant sales of 200 billion won.
It was a single-item contract that would bring in a stable flow of nearly 1 trillion won over five years. It would have been stranger if he hadn't been excited.
“So, when will the main contract be signed?”
“Lieutenant General Michael is visiting in person this coming Monday. But since we’ve already signed the line contract, the purchase order is just a formality.”
Chairman Jin stood up, clenching his fists tightly.
If not for his sense of decorum, it looked as though he would have embraced me on the spot.
“Tsk.”
But did something bad happen? His expression suddenly hardened as he stared at me.
“What’s wrong?”
“The Joint Chiefs of Staff is the problem.”
I understood immediately what he meant.
When a high-ranking general from the U.S. Department of Defense was visiting South Korea, there was no way our military wouldn't know about it.
By now, they must have a rough idea of what was going on.
“Did you receive a call from the JCS?”
“They called yesterday.”
“What did they say?”
“They were subtly pressuring me, saying there shouldn't be any problems with the supply for our military. It seems they’ve already figured out the volume the U.S. military is ordering.”
They moved fast.
They must be worried that their supply order would be pushed back by the massive U.S. military order.
However, our military hadn't even received presidential approval yet.
It was only natural that the U.S. military, as the first contractor, would get priority.
“So what did you tell them?”
“I was vague, but it seems they’re determined to get their supply first.”
A scoff escaped me.
They were so busy lining their own pockets that they abandoned a supplier, and now they want to receive their goods first?
Sorry, but I have no intention of complying, and even if we were to supply them, I have no intention of being satisfied with a mere 7,000 rounds a year.
“As I said before, I’ll handle them myself.”
“What are you going to do? You can’t just break the contract with the U.S. military. We should just be honest with the JCS and make them give up.”
“What are you talking about? I’m planning to get the military’s order restored to its original volume. Didn’t I promise you that before?”
“You’re going to get an even larger order in this situation? How do you plan to handle that when the production line is already at its limit?”
“It’s possible if we convert the existing production lines for conventional shells. It’ll just cost some money, that’s all. But you don’t need to worry about the cost.”
“…”
Chairman Jin looked like he didn't understand.
As I continued to explain, his eyes widened.
“You… what on earth…”
***
After that, the real work began.
-Reporter Kim? This is Jin Hyun-seung, the head of the development team at Jaewoo Thales.
The first thing I did was leak the news of the export to the media.
As expected, upon hearing the news, the press scrambled to publish articles.
[Jaewoo Thales’s newly developed armor-piercing round will be exported to the U.S. Army. This is the largest single weapons export deal and is expected to be a great help in overcoming the foreign exchange crisis.]
The initial tone of the articles was, of course, to praise Jaewoo Thales.
But what I wanted was for the other side of the story to be exposed.
The problems with the current situation, which I had secretly leaked, began to emerge in follow-up reports, gradually provoking the JCS.
[According to a source, the armor-piercing rounds ordered by our army this year amount to only 7,000 annually. The JCS has remained silent on why the order, which was originally close to 100,000 rounds, was reduced so drastically…]
As I predicted, the media was now focused on the military's inadequate order volume.
The feeding frenzy had begun.
The media, always fond of controversy, began to stir things up like fish in water.
[The U.S. Army's order is reportedly one hundred thousand rounds per year. This exceeds Jaewoo Thales’s production capacity, and due to the first-come, first-served contract terms, it has become highly likely that our military will be unable to secure even its reduced supply in the future.]
[Good evening, everyone. It has been revealed by a military official that the armor-piercing round recently developed by Jaewoo Thales is capable of neutralizing all existing tanks. If we fail to secure this, our military may have to forgo more than 20 years of advancement in armored warfare capabilities.]
[Some are pointing out that this situation is entirely due to the JCS's complacent response. Some media outlets are cautiously speculating whether this incident is related to internal corruption.]
The situation was unfolding exactly as I intended.
The focus had shifted from a simple supply shortage to potential corruption within the JCS.
At this point, they wouldn't be able to hold out much longer.
The reaction was immediate.
About a week after the follow-up articles began to appear, news came that the top brass from the JCS and the Army had suddenly shown up at the group's headquarters.
“Welcome.”
When I arrived at the chairman's office after being summoned, no fewer than four high-ranking generals were occupying the space.
All of them wore grave expressions.
They looked as if they’d been thoroughly chewed out.
“Good afternoon. I’m Jin Hyun-seung, head of the development team at Jaewoo Thales.”
“I know who you are. What the hell do you think you’re doing?”
The one who spoke to me so informally was Han Dong-hoon, the Chairman of the Joint Chiefs of Staff.
A man who had nowhere higher to climb, except for a cabinet position as Minister.
“What do you mean, sir?”
But what could I do?
It was a historical fact that you would never become the Minister.
It was a fact I recalled belatedly, but the first JCS Chairman in this country's history to be dismissed for corruption was none other than Han Dong-hoon.
“Are you pretending you don’t understand? Don’t you know the entire military is in an uproar because of this sudden export deal with the U.S.?”
“Is it something to be criticized for? At a time like this, when we’ve earned a massive amount of foreign currency, I would think we deserve praise.”
“Th-that’s…”
“At the end of the day, a defense company is a for-profit entity. Did you really think we would be satisfied with a deal that doesn’t even cover our development costs?”
“Who said you had to take a loss? Why did you have to export at this particular time… Ugh, never mind. We have a special order from the President to immediately restore the original order quantity. So there shouldn't be any more problems, right?”
He said it as if he were doing me a great favor.
As I twisted my lips into a smirk, the JCS Chairman frowned.
“What, is there another problem?”
“I’m sorry, but you’re aware that we’ve already signed a preliminary contract with the U.S. Army, aren’t you?”
“You haven’t signed the final contract yet. Do you think we would have come here without checking that?”
“Of course, but the production line contract is already finalized. Are you not aware that, legally, a line contract has the same effect as a preliminary contract?”
“Then what the hell are we supposed to do…”
The JCS Chairman, who was about to raise his voice, swallowed his words.
He must have finally realized that the tables had turned.
What was peculiar was the Army Lieutenant General standing beside him; for some reason, the way he looked at me was different from the others.
What was it? A look of interest?
No, it was closer to an expression of satisfaction.
“Look here, Team Leader Jin Hyun-seung. You need to consider our situation as well. The President himself has gotten involved because of the media. How can you refuse us now?”
The JCS Chairman's attitude had changed in an instant.
I wanted to ignore him, but with the President involved, I had to back down a step.
“This is a difficult situation.”
“Come on, do us a favor. At this rate, several perfectly good generals are going to lose their heads. Isn’t there some way?”
“There is a way, but I’m worried whether the military can accept it.”
“What is it? I’ll provide as much support as I can within my power.”
“As you know, the problem is the lack of production lines. Expanding the factory isn't feasible right now given the conditions. The only remaining option is to convert the production lines for high-explosive shells.”
“Then just do it. We have millions of those unguided shells in reserve anyway, so a year or two without supply won’t be an issue.”
“The problem is that the cost of converting the lines is substantial. To recoup that cost, we’d need to produce a certain additional quantity each year, and that volume is close to a minimum of 20,000 rounds per year.”
“…”
The JCS Chairman looked troubled.
The military's original planned order was 100,000 rounds.
Being asked to take an additional 20,000 rounds each year on top of that would be no small burden.
“For how long would we have to take that extra amount?”
“A minimum of three years. That’s what it would take to cover the losses.”
“…”
From the look of it, he was burning up inside.
The volume had increased by a whopping 60 percent from the original plan, so why wouldn't he be?
But that was just how things were.
He tried to line his own pockets at someone else’s expense, so he had to pay the price.
To meet that demand, they would probably have to pull funds from next year's large-scale force enhancement project, which would ultimately have a significant impact on the kickbacks that old man was expecting.
“Damn it…”
It was a sign of acceptance.
Well, in this situation, he had no other choice.
The JCS Chairman stood up from his seat, looked me straight in the eye, and spoke.
“Fine, we’ll do it. We’ll announce to the media that we’ve reached an amicable agreement with the company, so don’t go changing your tune later.”
“Of course.”
The expression on the JCS Chairman's face as he turned away with a glare was almost pitiful.
The other generals who followed him out looked the same.
But suddenly, one of them turned back and walked straight toward me.
“I’m Kim Tae-ik, Commander of the 7th Mobile Corps.”
I wondered who it was, and it turned out to be the man who had been looking at me with interest all this time.
But if he was the commander of the 7th Mobile Corps, was he the one with connections to Chairman Jin?
No wonder he kept exchanging glances with the Chairman earlier. Now I understood why.
“I’ve heard a lot about you.”
“I’ve heard quite a bit about you myself. Though it seems most of it was just baseless rumors.”
“…”
“It’s nothing much, but could I ask you one thing?”
“Go ahead.”
“Why are you going to such lengths?”
“What do you mean?”
“I mean, why go to such lengths to make our military expand its inventory of armor-piercing rounds? Since the export to the U.S. military has been secured, Jaewoo Thales has nothing to lose.”
“Even so, isn’t it human nature to want to sell more products if possible?”
“Is that all there is to it?”
“Well, if I had to add another reason, it’s that I couldn’t just let others have all the fun. Honestly, General, I know what kind of answer you’re looking for. But it would be a mistake to overlook the fact that I am a businessman.”
Lieutenant General Kim Tae-ik just stared at me silently.
Feeling that someone with his kind of gaze might be reasonable, I added one more unplanned comment.
“A half-hearted sense of patriotism can no longer protect this country. In other words, we need to have military power that matches our will, and for that to happen, the military needs to change as well.”
“…You’re a bold one.”
He let out a dry laugh.
It seemed he had no intention of scolding me for being presumptuous. He patted my shoulder again and said.
“I’ll buy you a meal sometime when you’re free. Thanks to you, it’s like a weight I’ve been carrying for ten years has finally been lifted.”
“…”
He turned and left without waiting for a reply.
I glanced over at Chairman Jin, who had a wide smile plastered on his face.
“I’ll have to get the production lines adjusted starting tomorrow. I’ll submit the proposal for approval, so please process the payment.”
Chairman Jin nodded as if it were a matter of course.
Just as I was about to hurry off to work, he spoke cautiously.
“Aren’t you worried about falling out with the military?”
“I’ve only fallen out with the JCS Chairman, not the entire military.”
“…”
“Isn’t that the truth? The JCS Chairman may represent the military, but he isn’t the military itself. Besides, he’ll be a civilian soon enough. Is there any reason to worry about someone like that?”
“How do you know if he’ll become a civilian or the Minister? And there are factions in the military. Haven’t you considered that his faction might try to hold us in check in the future?”
“Well, I doubt there will be any faction willing to stick with someone who is about to be dishonorably discharged.”
“What’s that supposed to mean? Dishonorably?”
Chairman Jin tilted his head in confusion.
“In any case, you don’t need to worry about his faction. And if we need a faction, wouldn’t it be better to align with one that includes people like Lieutenant General Kim Tae-ik? I’m saying this because it seems you’ve already placed your bet on that side, Father.”
“Haha, well now…”
It didn't sound like a laugh of denial.
But was his reason for calling me back not just to question me about that?
He waved his hand dismissively and casually handed me a document.
“What’s this?”
“It’s the royalty agreement for providing the technology you wanted before. If you sign it, you’ll be paid 4 percent of the sales revenue from the armor-piercing rounds.”
Four percent of sales revenue was an enormous rate.
Considering that a defense company's operating profit margin is at most 17 percent.
The reason he set such a high rate must have been because he considered the armor-piercing round a special munition.
Then again, giving away 4 percent from an operating profit of 30 percent wouldn't be much of a loss.
“And at the group’s executive meeting tomorrow, I’m going to nominate you for the position of Director of Policy for Thales, so be aware.”
For someone delivering good news, he was terrible at managing his expression.
The way he fidgeted, as if afraid to meet my eyes.
I could tell he was feeling awkward, but it was an attitude that didn't suit him.
“You won’t regret it.”
“You’d better not. I made this decision while shouldering the burden of promoting you just a few months after your return. Oh, and sign the contract yourself. I’ll give you the power of attorney.”
He maintained a nonchalant attitude to the end.
But just as I was about to leave the room, I heard his voice, more animated than ever, as he spoke to someone on the phone.
“Chairman Lee? Haha, has the news already reached you? I was thinking we should have a meal together soon. My second son? Of course, he’ll have to come along.”
Who was that?
Someone who could make Chairman Jin grovel like that.