Capitalism and the Chaebol (1)
“What is that?”
If one were to speak more politically about the Soviet Union becoming capitalist, it would mean the end of the Cold War—the icy standoff between the United States and the Soviet Union. In reality, the two nations, who were in a state where even an actual war wouldn't have been surprising, were pouring astronomical sums of money into their defense budgets. It was a natural fact that if the Cold War ended, the justification for pouring money into defense would vanish.
Consequently, a significant portion of those employed in the military and intelligence agencies would inevitably lose their jobs. Even in original history, after the Soviet Union collapsed, a large number of Soviets who had worked in the KGB and the military flowed into organizations like the mafia, which became a long-term headache. Gorbachev, having anticipated this, found Yoon-gi’s words quite intriguing.
“Could you grant me permission to establish a PMC?”
“A PMC? I see...”
A PMC, or Private Military Company, refers to a type of subcontracting firm that handles tasks difficult for a regular military to perform directly.
“This is a corporate secret, but I intend to expand into Africa in the near future. However, the security situation in Africa is truly beyond imagination. To prepare for that, the establishment of a PMC is necessary.”
“You are expanding into Africa?”
Yoon-gi nodded.
“Because my goal is to build a system that connects South Korea, the Soviet Union, and Africa.”
For a moment, Gorbachev was startled and asked back.
“Wait a moment. A system connecting South Korea, the Soviet Union, and Africa?”
“Yes.”
Even though it was a highly shocking statement, Yoon-gi’s tone remained calm.
“Hold on, could you explain more clearly what you mean by that?”
In a way, this was a major secret of YK—no, of Yoon-gi himself. Yet, Yoon-gi was revealing his secrets to Gorbachev without holding anything back. Because it was a necessary step. And the moment Gorbachev proposed joining forces with Soviet industry, Yoon-gi and Gorbachev were already in the same boat.
“General Secretary.”
“Yes, please speak.”
“Is the Earth a resource with limits, or is it not?”
It was a question that pierced through the heart of economics. Ever since Yoon-gi had studied economics, he had always been lost in one question.
[The Earth is ultimately a limited resource, so why do economists always claim that development can continue indefinitely?]
And then, Yoon-gi realized. [Ah, humans are selfish, so economists are selfish too.]
Just because words come out of one's mouth doesn't mean they are the truth. Therefore, Yoon-gi did not let himself be swayed by useless economic theories and instead envisioned a single world.
“Hmm... that is a difficult question.”
To the pondering Gorbachev, Yoon-gi provided a very simple example.
“Was the Soviet Union a limited resource?”
“Ah...!”
Gorbachev let out an exclamation as if he understood, and Yoon-gi continued his explanation.
“The Soviet Union collected the nation’s production in one place and then distributed goods to each region—often more than what that region had produced. As a result, what happened? There were inevitably regions that received less distribution compared to their production.”
“That is... true. That is why I am trying to abandon communism.”
Yoon-gi nodded.
“Exactly. The fact that the Soviet Union was a limited resource means the Earth is also a limited resource. In the end, we are competing over ‘who can possess the limited resources of the Earth more efficiently.’”
“That is... certainly correct.”
“That is why I have clearly chosen my allies. Those allies are South Korea, the Soviet Union, and Africa.”
“Does the United States not enter into your allies?”
To Gorbachev, who wore a slightly puzzled expression, Yoon-gi nodded.
“The U.S. military is not an ally, but a friendly force. I cannot do anything about the power of the asset holders, including Jewish capital, which is already firmly entrenched within the United States. At least, for now.”
“That is a pleasant thing to hear, though it would be a truly big problem if the U.S. President heard it.”
Yoon-gi also smiled at Gorbachev, who was wearing a bright smile mixed with a bitter one.
“I have decided to be in the same boat as you, General Secretary. Don’t you already feel the same way?”
“That is true. Of course, under the condition that YK continues to do as it has been doing.”
Gorbachev’s smile contained a confident joke.
“You don’t need to worry about that. Anyway, I intend to expand into Africa, and to survive in an Africa where security is hopeless thanks to Britain and France, individual military power is essential. Soviet soldiers and intelligence agents would be a tremendous help in that regard.”
“That is certainly true. The Soviet Union would see a reduction in the burden of the unemployed, and YK would reduce the risks of its African expansion.”
After saying this, Gorbachev, who had been nodding, spoke to Yoon-gi.
“However, I have one question. Who are you trying to oppose by binding our Soviet Union, South Korea, and Africa together? If it is a competition to obtain limited resources, you must have assumed a competitor. Since you said the U.S. is a friendly force, it wouldn’t be them...”
“The U.S. will also become an ally someday. I am keeping them as a friendly force for now because I lack the power.”
“You intend to make even the United States an ally... Could it be Europe?”
Yoon-gi shook his head.
“No, it is China.”
“Pardon? China? No, what...? China hasn’t even entered the ranks of developed nations yet. You dream of binding the Soviet Union, Korea, Africa, and the U.S. together to keep such a China in check? Isn’t that too excessive a preparation?”
Gorbachev, who had been listening to Yoon-gi’s words with great interest, looked at him with a dumbfounded expression, as if the idea were absurd. However, Yoon-gi shook his head with a serious expression.
“1.5 billion.”
“Yes?”
“China’s population will soar to 1.5 billion. And the world population will increase to roughly 8 billion.”
“What does that have to do with what you are saying now...?”
“General Secretary, what do you think is the one advantage of ‘real-world communism’?”
It was a question that seemed to suddenly shift the topic, but Gorbachev opened his mouth cautiously.
“Mobilization power...?”
“No. The greatest advantage of real-world communism is that there are no Chaebols.”
“Ah, that is true.”
To Gorbachev, who was nodding, Yoon-gi brought up a ‘systemically terrifying story.’
“If you had accepted other companies without conditions, not just YK, what would have happened?”
“...Countless Chaebols would have been born.”
“Then, how would those Chaebols be born?”
“That is...”
For a moment, Gorbachev was speechless.
“People say that if you open up along with reform, the economy will improve. But where on earth does the claim that the economy will improve originate from?”
It was a very profound story, but Yoon-gi was explaining it as simply as possible. Having experienced his days as a laborer, he knew well that there was nothing more painful than listening to things one could not understand.
“Come to think of it... No, wait. What was I trying to do?”
Gorbachev fell into considerable confusion. He had tried to open the Soviet Union to foreign countries to save its economy. But the moment the Soviet Union was opened to foreign countries, countless Chaebols would be born. Where on earth would these Chaebols get their money? Gorbachev had already realized the answer, but the moment he acknowledged it, he would be admitting the failure of his own policy, which was why he was in such turmoil. Thus, Yoon-gi spoke in his stead.
“New goods will certainly come in. Color televisions will come in, cars will come in, and various food franchises will come in. The Soviet Union’s overall economic power will rise, and its outward appearance will look very good.”
Yoon-gi’s words continued.
“However, the money earned through that process will all go to a minority. And as time passes, that system will become even more solidified. Those who hold power will never try to let go of it. Except for the ‘minority.’”
That minority was none other than Gorbachev. In original history, Gorbachev had stepped down after the collapse of the Soviet Union. The pension that the retired Gorbachev received was a mere ‘few dozen cents.’ It meant it was less than a dollar. If Gorbachev had been selfish, would he have set his own pension after retirement like that? Gorbachev had genuinely believed that opening the Soviet Union would bring about an improvement in the lives of the people. It was just that his belief had not come to fruition.
“Ah... I understand now. That is correct. The United States is the world’s greatest superpower, but compared to our Soviet Union, the wealth gap is overwhelmingly larger. I only looked at the outward appearance of the United States and thought that capitalism and openness would be helpful to the people...”
Gorbachev, who slumped into his seat and clutched his head, had a look of genuine ‘despair’ on his face.
“How... how on earth should I do this? If I stay still, the Soviet Union will wither away due to the contradictions of the system. But if I open it up, even if a few people become Chaebols and are happy, the absolute majority of the people will have to live feeling a sense of deprivation. I... what on earth am I...”
No matter what choice he made, it would be difficult to receive a good evaluation in history. A figure like Gorbachev—such a person valued honor more than material greed. And that was the same for Yoon-gi.
“Are you in despair?”
“How could I not be in despair? I don’t know what choice to make... If I move forward, it is ruin; if I don’t move forward, it is ruin. What on earth am I...”
Gorbachev continued to dig his own cave. Thus, Yoon-gi thought it was time to provide some light.
“You don’t have to be so frustrated. Do you think I would have plunged you into despair without a solution?”
For a moment, Gorbachev lifted his face sharply.
“A solution? A solution, you say? You have such a thing?”
It was an era where the world’s scholars said that either capitalism or communism was the best. Gorbachev was also someone who heard countless reports from them. He couldn’t help but lift his head at Yoon-gi’s words that he would offer a solution he had never heard from them.
“First of all, it is not communism. I will tell you clearly: capitalism is absolutely necessary. Because communism does not grant autonomy to humans.”
A look of slight disappointment appeared on Gorbachev’s face.
“Didn’t you just say that if we introduce capitalism, Chaebols will be born?”
“That is correct. Capitalism inevitably brings about Chaebols. With current capitalism, that is. Therefore, we need a different approach. It is also something that only the Soviet Union can do at this point in time.”
“What on earth is that?”
“First, after recognizing private property, we need to thoroughly adhere to the principle of zero tolerance regarding tax evasion.”