The Price of Future Prosperity
"You wish to acquire resources?"
"Yes. Rather than currency, we prefer resources. Things like oil, natural gas, and timber."
Gorbachev’s expression filled with confusion. "Are you saying you want to receive resources from the people when you sell your goods? That sounds like an incredibly cumbersome process..."
Kang Seok-ho shook his head. "No. For basic sales, we will naturally accept Soviet currency. However, we would like the Soviet government to convert the currency we earn into resources on a monthly basis."
To Gorbachev, this was an incredibly attractive proposal. The reason was simple: the Soviet Union was currently suffering from a severe shortage of currency. It was one of the biggest problems of the planned economy. Gorbachev had released an astronomical amount of money into the market, hoping to see it circulate during his tenure. The result was nothing but inflation, which shattered the Soviet economy. Since Gorbachev had not yet implemented full currency circulation, it was true that the Soviet Union was starved for liquid cash. That was why Gorbachev found Kang Seok-ho’s proposal so intriguing.
"Then, how do you intend to handle taxes?"
"We will deduct the tax amount from the resources we are to receive, or pay it in Korean currency. If possible, we would like to pay in US dollars, but I hope you understand that our current position makes that difficult."
True to his status as the chairman of a major group, Kang Seok-ho was expressing his opinions confidently, even in front of Gorbachev. Of course, to be precise, these weren't his own opinions, but Yoon-gi’s. "Of course, I must not show that I am checking Yoon-gi’s reaction," Kang thought. The moment he did, the other party would realize who the 'real boss' in the room was. At the very least, Kang Seok-ho had the ability to distinguish which actions were dangerous for him to take.
"Hmm... it’s not a bad idea. Then, how do you plan to transport these resources?"
"If you grant us permission, I would like to establish a shipping company in Vladivostok."
"Do you intend to move the resources to Korea through that shipping company?"
"Yes. Furthermore, we intend to transport the supplies that need to be brought in from Korea."
"That is certainly a necessary undertaking."
At the sign that he was being considered positively, Kang Seok-ho let out a sigh of relief internally. Outwardly, however, he maintained his composure and observed Gorbachev’s complexion.
"Let’s see... final payment in resources, and the establishment of a separate shipping company in Vladivostok for logistics. Is that correct?"
"Yes, that is correct."
"How do you plan to set the prices for the resources?"
"We would like to set a monthly settlement date and base it on the international market price on that day."
Gorbachev felt a slight spark of greed at Kang Seok-ho’s perfectly reasonable suggestion. "Shouldn't it be a bit higher than the international market price?"
"From our current position, that is extremely difficult to do. The influence of the United States is still strong in South Korea."
"Hmm..."
In the end, Gorbachev let go of his greed. Being able to pay for goods with resources was a huge benefit for the Soviet Union to begin with. After all, the Soviet Union was in a situation where it would literally starve to death if it didn't export its natural resources. But lately, due to the US-Soviet trade dispute, the price of natural resources had plummeted, and sales volume had dropped sharply. Eastern Europe, which was in the same communist bloc, had low purchasing power, and other countries, including Western Europe, which had high purchasing power, were buying resources from the US or its allies. In such a situation, being able to pay with resources? There was absolutely no reason for Gorbachev to refuse.
"I understand. Then, what industry would you like to enter?"
The most important agenda. Even if one passed the preliminaries, there was no way to proceed if one didn't pass the finals. However, Yoon-gi had already prepared an agenda that Gorbachev would have no choice but to fully agree with.
"Yes, we would like to invest in the food industry."
"The food industry?"
At Kang Seok-ho’s words, Gorbachev’s face brightened.
"Yes. Considering the current situation in the Soviet Union, we thought this was the industry most likely to receive approval."
Currently, only foreign investment in Soviet state-owned industries was open. To directly operate a business rather than just invest, it had to be an industry that the Soviet Union would welcome with open arms.
'It’s true that the food shortage is severe these days...' Gorbachev was considering it, even if his face had brightened. 'There is neither a reason nor a justification to refuse.'
In communism, the Soviet Union’s operating method was simple: local regions sent harvests to the federal government, and the federal government sent more things back to the regions than the harvest itself. The Soviet Union had maintained itself in exactly this way. Naturally, this method could not be sustained for a long time, and the Soviet Union became weaker as time passed. A country could not develop if it gave away more than it produced.
"It is certainly an attractive proposal. Truly attractive."
Kang Seok-ho did not answer Gorbachev’s words and waited quietly for the next one.
"But tell me. It’s almost too attractive. Why are you making such a proposal? Honestly, with this kind of effort, wouldn't it be much more profitable to invest elsewhere instead of the Soviet Union?"
A sharp point. In reality, investment should not end with simply putting in capital to gain profit. If the effort is the same, one should jump into a place where one can create more profit. That is what investment is. But looking at YK’s proposal now, it required a lot of effort, yet the profit gained was almost non-existent. No, considering the profit one could get by investing elsewhere, it could even be called a loss.
"That is because we are not looking at our trade with the Soviet Union in the short term."
"Not looking at it in the short term?"
Kang Seok-ho nodded. "Yes. First, we will enter the Soviet Union with food-related industries, and then, with the General Secretary’s additional permission, we would like to gradually expand the direction of our business. If we are doing business well in accordance with the General Secretary’s intentions, I believe you will naturally provide us with rewards commensurate with that."
He was being openly honest, but there was no way to criticize that. Therefore, Gorbachev could not bring himself to attack Kang Seok-ho more strongly.
"If I do not grant permission for anything other than the food industry, what do you intend to do?"
"That will not happen." Kang Seok-ho continued with a smile. "Because we will do our best to ensure that such a thing does not happen."
Gorbachev was taken aback by the immense confidence. 'Well... it doesn't matter since there is no loss on our side, right?'
In the end, Gorbachev made up his mind, reaching the approval stage. "I understand. Then, you will transport the finished products through Vladivostok and sell them in various regions?"
Kang Seok-ho shook his head. "No. We hope to produce the goods directly within the Soviet Union."
"Ho-ho...?"
Gorbachev’s eyes shone. He felt that there was an attractive proposal in the works.
"If production is done in Korea, the price will inevitably rise. Therefore, we intend to use Soviet labor. Of course, we intend to pay appropriate costs for that."
"Then you will have to build a factory as well?"
"Yes, we will have to build a factory."
Building a factory and hiring manpower there. This was a very welcome thing for the government. Kang Seok-ho’s words continued.
"We will have to conduct market research, but the wages of the workers will be determined according to the price of the finished product. We will pay this to the government, so please re-distribute the wages that fit the Soviet reality, General Secretary."
Gorbachev became increasingly drawn into the proposal, which was a strategy thoroughly tailored to the Soviet Union.
"Then, in which region do you plan to build the factory?"
"If possible, I would like to build it in Ukraine."
For a moment, Gorbachev returned to his senses. "Yes? You clearly said you would set up a shipping company in Vladivostok..."
"Yes. The shipping company itself will be in Vladivostok. We cannot send most of our domestic employees to a place that is too far away. Once we build a factory in the Soviet Union, there won't be much logistics movement through Vladivostok anyway. Most of the goods will be decided by local purchases or purchases from neighboring countries. We judged that Ukraine, which is close to Europe, is suitable for that."
"I see..."
Since it was a perfectly reasonable statement, Gorbachev was immediately convinced.
"General Secretary, what do you think? Of our request?"
At Kang Seok-ho’s final question, Gorbachev smiled and nodded.
"Although I cannot give you a definitive answer right here, I will make special efforts to ensure that it is passed positively at the Politburo meeting."
Finally, Gorbachev’s permission was granted. It was a promise from Gorbachev, who had implemented quite radical reforms in the Soviet Union. As such, there was no chance that this promise would be broken.
"Ah, I’m just asking out of curiosity, but why is the person named Choi Yoon-gi next to you not saying anything?"
At Gorbachev’s question, Yoon-gi answered with a bright smile. "Ah, I am basically a figurehead president. We share the name, but President Kang Seok-ho will do most of the work."
His innocent smile was enough to reveal his status as a minor, and thanks to that, Gorbachev no longer questioned Yoon-gi’s presence.
"Then, I look forward to working with you."
Gorbachev’s words. This was a promise that he didn't need to worry about the Politburo meeting, and Kang Seok-ho grabbed the hand Gorbachev extended.
***
Putin visited the KGB headquarters for the first time in a long while. It had already been several months since he had thrown his resignation letter on the director’s desk and left. Because of that, his colleagues expressed their delight at Putin’s sudden appearance.
"Whoa, are you returning?"
"Yeah. I knew you’d eventually have to come back."
However, Putin had not come to return to the KGB. He had only come to resolve his own curiosity that had arisen recently.
'No matter how I think about it, he doesn't seem like an ordinary person.'
Putin was the person who would eventually sit on the throne of Russia, regardless of the reason. The fact that he had become the President of Russia, pushing aside countless others, meant he had the luck and the intuition for it. That was why Putin had felt something the moment he first saw Yoon-gi. A feeling that he was absolutely not an ordinary person.
'There must be files organized somewhere...'
Finding the files on Yoon-gi was not difficult. Although Putin didn't know much because he had worked as a 'liaison' in a 'region other than the US,' the KGB had already investigated Yoon-gi’s background.
'My god, was he this big of a deal?'
The grandson-in-law of the former US four-star general Guster, the owner of a massive US oil field, the nominal owner of the powerful Korean group YK, and so on. The resume was so impressive that it was hard to believe he was a minor. Furthermore, the recent conversation with Gorbachev. 'As expected... he wasn't an ordinary person.'
Putin was about to leave the KGB headquarters because his curiosity had been satisfied. His loyalty to the communist bloc had long since disappeared. Even if he knew something about Yoon-gi, he didn't really want to tell the KGB. To begin with, he knew almost nothing anyway.
"Did you get the urge to come back?"
At the familiar voice of the director, Putin turned his head in the archives.
"Ah, no. I just stopped by for a moment."
The KGB director, with a very good-natured impression, didn't look like a spy to anyone. In fact, it was a natural thing. If one had a sharp impression, one would be suspected before anyone else.
"The KGB headquarters isn't a place you just stroll into. You must have come because you were curious about something?"
"...I came because I was curious about the person who met the General Secretary."
"Ah, President Kang Seok-ho and Choi Yoon-gi? Seeing that you’re curious about this, it seems you still have some loyalty left toward the Federation."
Putin thought about how to refute it, but just stopped. It was more comfortable to just leave it alone, no matter what the other person thought.
"They are truly fascinating people. To jump into a business that won't even make money. If you look at it, it must be a long-term perspective..."
"..."
Since it was content he had already finished reading in the archives, Putin didn't bother to answer.
"Ah, and this is news that just came in. They requested that they want to build a factory in Chernobyl, Ukraine."
For a moment, the three letters 'S-P-Y' popped into Putin’s head.