[The Capitalist Leash]
Gulp.
For a fleeting moment, the sound of Reagan swallowing his saliva in the Oval Office was incredibly loud and distinct. Physically, of course, a swallow couldn't possibly be that audible. But Yoon-gi and Guster could both clearly hear the bobbing of Reagan’s Adam’s apple, and they could see it happening in real-time. It was, after all, exactly what they had been aiming for.
"Um... well... would giving me 10 percent of the net profit be considered a bribe?"
To be honest, Reagan truly hadn't imagined that Yoon-gi would make such a proposal. There were two reasons Reagan had called Yoon-gi in today. One was to secure a supply of AIDS medication for the United States, and the other was to propose relocating YK Pharmaceuticals to American soil. AIDS was a far greater source of terror in the U.S. and Europe than it was in the Soviet Union. With top stars and politicians appearing in the news daily, announcing they had contracted the disease, the level of public fear was immense. That was why Reagan wanted YK Pharmaceuticals brought over; they had developed a treatment for that most difficult of diseases—one that, while not a total cure, could significantly improve symptoms. The future value of YK Pharmaceuticals was clearly beyond imagination.
Yet, Yoon-gi had tossed a piece of meat to Reagan instead. A massive, glistening, fatty slab of meat. The moment he took a bite, he would be leashed, but there was likely no one in the world who could refuse such a morsel.
"That is correct. In Korea, providing money to a politician without a specific quid pro quo is not considered a bribe. However, it is easy to invite misunderstandings from those around you. Given the situation in Korea, I am asking because I am unsure how it is regulated here in the United States, a politically advanced nation."
"Hmm... what is the reason you intend to give me 10 percent of the net profit?"
Reagan, being a seasoned politician, checked to see if the meat was poisoned. But Yoon-gi was fully immersed in his performance as a 'pure, innocent minor.'
"Because I am grateful."
"Grateful?"
"Yes."
Yoon-gi nodded and continued. "Thanks to you, Mr. President, I have been able to do the work I want to do in the Soviet Union. To be frank, the fact that I can engage in such free activities even in a small country like Korea is entirely due to your consideration. That is why I wish to give you 10 percent of the net profit. In return—though it feels improper to call it a quid pro quo—there is a favor I would like to ask of you."
"Ah, is that so? What is it?"
When Yoon-gi said he had a favor to ask, Reagan actually felt relieved. Meat given without reason was suspicious, but if there was a reason attached, it was much easier to decide whether or not to take a bite.
"I want to become the greatest chaebol in the Soviet Union, if nothing else. There are already so many brilliant people in the United States that it is difficult for me to be number one here. Since that is the case, I would like to be number one in the Soviet Union, and I want to obtain your permission for that in advance."
It sounded like a simple request, but in reality, it was a subtly complex issue. Being number one in the Soviet Union required the condition that there be no restrictions on his business activities there, and furthermore, that the entry of new American companies into the Soviet Union be blocked to some extent in the future.
'Hmm... the Soviet Union is, frankly, not an attractive market. In that sense, if I can secure 10 percent of the net profit from the AIDS medication in exchange for guaranteeing his activities in the Soviet Union... it would be foolish to refuse.'
Reagan reached a conclusion quickly. No matter how he looked at it, there was no reason to refuse. There were no American companies currently operating in the Soviet Union. Of course, there were certainly American companies that wanted to enter. But since Yoon-gi was actively purchasing American food products, the more YK grew in the Soviet Union, the more American 'agricultural and livestock' exports to the Soviet Union would inevitably increase. Moreover, there was no reason to favor other companies over Yoon-gi, who was sending such strong signals of affection his way.
"Guster, what do you think?"
Reagan still asked for Guster's opinion as a final check. Of course, Guster was also a man on Yoon-gi's side, but Reagan judged that hearing his thoughts wouldn't be a bad idea.
"Personally, I sometimes think it might be better for the Soviet Union to exist just as it is now."
"Hmm, you think so too?"
Reagan had many brilliant advisors. And not long ago, they had presented him with a strategy: 'Proactive Cold War.' The Republican Party, to which Reagan belonged, was a group that benefited immensely from 'Cold War superiority.' Just recently, Reagan's approval ratings had soared after a photo of Gorbachev bowing his head appeared in the newspapers. What if they kept the Cold War going on the surface while having already tamed the Soviet Union? If they ended the Cold War entirely, they would have to craft a new political strategy, but if they maintained a subtle, ongoing Cold War, there would be no need to struggle with new strategies. Of course, now that Gorbachev had bowed, a Cold War like the one before was impossible, but what if Reagan stepped in to give the Soviet Union a stinging slap every time it showed suspicious movement? His approval ratings would easily rise and be maintained.
"Yes. Is there any reason to turn the Soviet Union into a capitalist country and increase our trade competitors? It would be better to tame the Soviet Union well through my granddaughter's husband and redraw the 'Acheson Line'."
"The Acheson Line..."
Reagan murmured the words. The Acheson Line was a term from the 'Acheson Declaration,' where the U.S. had set Japan as a bridgehead and excluded Korea while establishing its defense line in Northeast Asia. In summary, it was a declaration that 'we must protect Japan no matter what, but we will not risk our lives for Korea.' For Korea, it was a strategy that felt disgustingly insulting.
"To be honest, while fighting communism, we bestowed the grace of capitalism upon many countries. But what has come back to us through that? We certainly gained the upper hand in the Cold War with the Soviet Union, but we have gained no real profit. Look at Japan right now."
"Whew... those annoying Japanese bastards..."
"They are the ones who dare to say, 'You could buy the United States with the price of Tokyo land.' In reality, the damage our country suffers in international trade because of Japan is immense."
While it couldn't be said to be '100 percent accurate,' the U.S. in the 70s had raised interest rates like crazy to solve the 'insane situation where economic recession and inflation occur together.' As a result, people bought dollars like crazy to deposit them in American banks, and the value of the dollar skyrocketed due to this demand. If one assumed the exchange rate was 100 yen to 1 dollar, and it suddenly became 125 yen, when the U.S. sold a 10-dollar product in Japan, it should have been 1,000 yen, but to the Japanese, it suddenly became 1,250 yen. Consequently, the U.S. manufacturing sector was crushed by these interest rate hikes, while the financial sector boomed. On the other hand, Japan was competing for world number one in manufacturing at the time. As a result, the U.S. trade deficit with Japan was record-breaking, which naturally led to anti-Japanese sentiment.
"Even though the Plaza Accord was signed in '85, our U.S. trade deficit with Japan is still huge. As such, looking at the case of Japan, it is dangerous to turn other countries into capitalist nations recklessly. Especially in the case of the Soviet Union, the moment it becomes a capitalist country, it will become a manufacturing powerhouse, which will lead to a second Plaza Accord. A Plaza Accord that has no real effect, at that."
The 'Plaza Accord' was a meeting where the U.S. called in several countries to agree on the value between the dollar and their respective currencies. However, since the U.S. trade deficit with Japan didn't recover much even with this, it wasn't strange that Guster argued the Plaza Accord of this time was useless. Of course, when the Plaza Accord didn't work, the U.S. coined the term 'currency manipulator' in '88, but it was currently '87. It was Guster's words without knowledge of the future, but they certainly had the power to move Reagan's heart.
"I suppose, rather than pointlessly turning the Soviet Union into a new manufacturing powerhouse, it might be much better to use it as a tool for the Republican Party's long-term reign."
"That is correct. Currently, Japan is measuring its own value abnormally high. In that case, rather than being suspicious by being directly nice to the Soviet Union, I believe it is necessary to chill the spines of those Japanese bastards by engaging in close exchanges with my granddaughter's husband's nationality, the Republic of Korea. We should reset the Acheson Line. Of course, you might think I am saying this out of personal desire..."
"No, not at all. I am not thinking that at all."
Reagan hurriedly waved his hands. Since 'taming the Soviet Union' was one of the strategies that had come from Reagan's own staff, there was no reason to suspect Guster's argument of having ulterior motives. Even if there were, it was a motive that posed no problem strategically. Therefore, Reagan made his final decision.
"If you were to hand me money directly, it would likely cause troublesome issues. If you were to give the donation in a lump sum, it wouldn't matter, but that would be a heavy burden on you."
In truth, it wasn't about the burden. Reagan absolutely did not want to give up the astronomical profits the AIDS medication would bring. A donation might be 1 billion, or at most 10 billion. But the AIDS medication? It would be far, far more than 10 billion.
"Then how about doing it this way?"
Yoon-gi made his move faster than Reagan.
"Hmm?"
"YK Pharmaceuticals will trade with an American distribution company."
"Trade with an American company?"
"Yes. With a distribution company established by your family, or a relative."
"Oh...!"
Reagan clapped his hands together with a sharp sound before he even realized it.
"Through a two or three-year contract, we secure external transparency, and during that time, YK Pharmaceuticals takes 80 percent of the net profit earned by the distribution company."
"Then the distribution company takes 20 percent instead of 10?"
"Because operating a company requires expenses as well."
Reagan's smile deepened.
"You would even provide that much consideration?"
"I am already receiving enough consideration from you, Mr. President. So that much is possible."
"It is a pity once again that you are not an American..."
Toward Reagan, who was truly sighing, Yoon-gi scratched the back of his head as if he were deliberately shy.
"I think it would be better for the distribution company to decide the appropriate price for the medication. Americans would know the U.S. market much better than I do. How is that, Mr. President?"
Reagan, as if he needed no further thought, jumped up from his seat and approached Yoon-gi, grabbing both of his hands firmly.
"I like it very much!"
By giving up just 20 percent of the profit, Yoon-gi had secured the world's greatest proxy agent.
* * *
There were truly many reasons why Yoon-gi had bothered to give 20 percent to Reagan's side. Not only did it deepen his relationship with Reagan, but it also scattered bait to the next presidential candidates currently active in the Republican Party. [If I become president, does that deal become mine?]
Furthermore, the approval from the U.S. FDA also happened at super-light speed. It was a natural occurrence since the interests of the ruling Republican Party were at stake. On top of that, he wouldn't be criticized for the price. In the United States, the greatest capitalist nation on earth, overflowing with incarnations of greed, the distribution company would naturally take all the heat. From countries other than Korea, the Soviet Union, and Africa, that is.
Additionally, he even received tax-related benefits. He already didn't have to pay taxes in the Soviet Union, but he had now reached a situation where he received tax benefits in the U.S. that were 'more than enough.' This was all thanks to his solid connection with Reagan.
And today. It was finally the day to sign the contract with the distribution company. The person in charge from YK was, of course, Jo Cheong-woo. Jo Cheong-woo handed the primary contract to the other party, and Lucas, the contract manager for Reagan's side, began to read the document.
"Hmm...?"
However, Lucas couldn't help but be deeply flustered. Because the contract was written entirely in pure Korean.