CH31 : Hyeonsan Construction

"Of course, aren't you President Wang Joo-young of Hyeonsan Construction? I've heard a lot about you."

"You're quite well-informed. So, do you know why I'm here?"

"I have a guess, but let's hear it directly from you."

I always anticipated meeting competitors or collaborators eventually, but I didn't expect to meet him this soon.

"Please help us. Hyeonsan also wants to participate in the US military construction."

"Sure. I heard the US military is planning to build a highway in Thailand."

The announcement about the Thai highway was made in the presence of President Park and Van Flint, so there should be no issue with Korean companies participating.

"... Was it that simple?"

Of course, it's simple.

In history, Chairman Wang originally built the Thai highway.

And I can't go to Thailand because I have to be in Qinyuan.

"Building a highway isn't simple, but facilitating it isn't difficult. Can you handle it?"

"Just leave it to us."

"Then make one promise. Spend about a million dollars more than the price you have in mind when bidding."

"Spend more, you say?"

Even if you spend a million dollars more, Hyeonsan will still get the job.

In history, Hyeonsan Construction took a massive loss of nearly a million dollars on the Thai highway project.

Why bear such losses in this timeline? Instead, I should teach Chairman Wang and have him owe me.

"Building a highway in the jungle is harder than you think. Don't even think about shortening the construction period."

Chairman Wang's competitive edge was reducing construction periods.

He would bid at a lower price than other foreign companies and make profits by drastically shortening the construction period.

In short, he burned through manpower, but this was impossible for the Thai highway project.

"Don't even think about shortening the construction period?"

"Does President Wang have the ability to stop the pouring rain?"

"!!!!!"

"Since I'm helping, I'll help even more. I'll negotiate with Gulf in Ulsan to supply asphalt at a lower price than the market."

"Huh! Even asphalt."

"But you have to grant me just two requests."

"Anything you ask, as long as it's within my capability."

As expected of Chairman Wang, he responded boldly.

The common industry view was that he repaid favours generously and never held grudges.

The way to have a good relationship with Chairman Wang is to hold the reins.

"First, localize this cement. Once localized, grant me the priority supply rights."

I handed President Wang the cement supported by the US military. It was the cement that would be used extensively from now on.

"We've already localized cement. We produce 400,000 tons annually at the Danyang plant."

President Wang said proudly.

Danyang was a limestone area, perfect for securing limestone, the raw material for cement.

"This isn't ordinary cement. It's sulfate-resistant cement, commonly known on-site as Type 5 cement."

"Type 5 cement?"

"It's resistant to seawater and contamination. It's essential for port construction. The demand will continue to increase."

We had to prepare from now.

Relying on imports makes it hard to secure the supply we want. Type 5 cement is essential for plant construction, which I am aiming for.

"So, you're brokering asphalt in exchange."

"That's right. Nothing is free in this world."

"Good. We will localize it and supply it to you first, Mr. Woo."

Chairman Wang readily agreed.

From Hyeonsan Cement's perspective, it's beneficial to secure a fixed customer.

"Second, during the Thai highway construction, break as many construction machines as possible."

"Excuse me? Break the machines?"

"The US military will provide the construction equipment. Break them as much as you can. That way, they'll become ours."

"Become ours? Won't we have to compensate for the damages?"

"Why compensate? Equipment becomes used over time and breaks down with continued use. If they ask for compensation, tell them to move it to Korea. Say you'll repair and return it in perfect condition."

"Does that even make sense?"

It doesn't.

But, that's what Chairman Wang did in history.

Despite the rainy season in Thailand, he forced the equipment into operation and broke it, leading to massive compensation to the US military.

This was a major reason for the near million-dollar deficit.

Interestingly, the equipment he reluctantly acquired became a valuable asset for Hyeonsan Construction.

In the end, Chairman Wang faced a situation where he had to acquire the broken equipment, which pushed the company to the brink of bankruptcy. He took a defiant stance against the US military, and they eventually agreed to a significant discount on the equipment.

The equipment, brought back to Korea and repaired with parts supplied by the US military engineers, was invaluable in building the Gyeongbu Expressway and Ulsan Shipyard.

They were significant construction projects that didn't require purchasing new heavy equipment.

This incident almost led to Hyeonsan Construction's bankruptcy, but life is unpredictable.

In this timeline, I plan to get a piece of the pie too.

Of course, I will try a similar strategy in Qinyuan, but it won't be easy to break equipment openly under US military supervision.

But the situation in Thailand is different.

The official client is the Thai government, even though the real client is the US military.

The supervision will be lax, so we can break the equipment as much as we want.

"Why doesn't it make sense? We know the real client is the US military, but officially it's the Thai government. The Thai government has no reason to worry if the equipment breaks. Only the US military will be troubled."

"... Deceiving the US military..."

"It's not deceiving. After the construction, the US military will sell the equipment to the Thai government at a low price. We should buy it, having worked hard on the project. Isn't that a reasonable right as the contractor?"

It sounded grand, but it was half a scam.

But what can we do? How can we afford to buy expensive construction equipment at full price?

We have to break it and buy it cheap.

"Can the repairs be done?"

"Getting parts through the US 8th Army Corps of Engineers won't be too difficult."

"!!!!!"

"Break the equipment enough that it looks like Hyeonsan Construction is on the verge of bankruptcy. That way, no one will suspect anything."

If we're going to do something crazy, we must do it thoroughly.

That way, there will be no backlash.

"What if we really go bankrupt?"

"I'll step in at the right time. We'll split it half and half."

Chairman Wang would surely break the equipment boldly.

"If you fail to keep your promise, Hyeonsan Construction will really go under."

"If you're scared, you don't have to do it. I'll do it alone."

"Who said I wouldn't do it? Of course, I will."

Chairman Wang reached out for a handshake without hesitation.

He's really a human bulldozer.

I shook his hand.

"Congratulations in advance on securing the highway project."

"If we secure it, I will definitely repay this favour."

Repaying a favor... How many people have heard those words from Chairman Wang? My heart, which was calm, started to pound.

The tides of the era were beginning to surge.

The Vietnam boom was approaching.

It was time to ride the wave to a new world.

***

May 18, 1965.

Washington, White House.

"Even the weather seems to welcome you."

"Thank you for inviting me to such a distinguished place."

After completing the official schedule of the Korea-US summit, President Park and President Johnson began a light conversation as they walked through the Rose Garden on the south side of the White House.

In the official negotiation meetings between the working-level staff, there was no significant progress on issues such as troop deployment or loans.

Naturally, a private meeting between the heads of state was arranged without the accompaniment of official aides or assistants.

"Was the flight uncomfortable?"

"The plane you sent was like a big hotel. Thanks to that, I came here very comfortably."

"How long did it take?"

"It took 17 hours."

"I'll send a faster plane next time, so please visit often."

"Thank you."

President Johnson had sent the US presidential Boeing 707 to Korea. For Johnson, it was a courteous state visit, but for President Park, it was a matter of pride.

The idea of a president having to borrow a foreign president's private plane was humiliating.

Taking a flight to Japan and then transferring to a US commercial flight like an ordinary person was even more disgraceful.

'I must grow the South Korean economy. I must use this opportunity to achieve self-reliance!'

President Park clenched his fists, hiding his emotions.

He took a deep breath, trying not to be swayed by Johnson's pressure, which was touching on his pride.

He knew it was a crude and desperate gamble to find an economic breakthrough for the nation at the cost of young soldiers' lives.

"I heard you mentioned a memorandum to the working-level staff?"

"Wouldn't it be a demonstration of the strong Korea-US alliance?"

President Johnson's probing question was deflected smoothly by President Park.

Answering slightly off-target was a skill.

"Sending additional Korean troops is essential. Isn't it sufficient with the condition of expanding loans and abandoning the withdrawal of US troops from Korea?"

Having already committed division-level troops and stepping into the Vietnam War, the US was in urgent need of additional Korean troops after the bombing of the US embassy.

"I understand Korea also needs to send combat troops, but I heard there is strong opposition in the US Congress, calling it a mercenary war or a hired war."

"That's just some exaggerated expression by a few media outlets, not the Congress. I believe you fully understand, Mr. President."

Johnson was putting his utmost effort into this negotiation.

He had sent memos to government agencies to ensure President Park's welcoming procedures were "thorough" and "grand," and instructed newspapers to prominently feature articles about President Park. He also requested that major statements be postponed during President Park's stay in Washington.

The Blair House, where President Park's entourage stayed, was prepared with rice and kimchi. They were also warmly welcomed with gifts such as gold presidential emblems, silver sets, a White House painting, Johnson's book, and a portable record player.

During the welcome dinner ball, "Arirang" was played.

"It's true that there's a political burden. However, it would be better to confirm it through a memorandum."

President Park reintroduced the memorandum.

"The working-level staff are opposing it due to its unilateral clauses..."

"The memorandum was reviewed directly by me and the advisor to the US Department of Commerce. If you step in, we can reach an agreement."

President Park wondered why Johnson was being like this.

Unilateral clauses? That made no sense.

Wasn't this the memorandum already agreed upon with Van Flint?

"Let's issue a joint statement agreeing on the deployment of troops first and then negotiate further on the memorandum."

"The memorandum comes first."

A joint statement wasn't a matter of negotiation.

It was just a predetermined result announcement.

"Phew, you're quite straightforward, wanting to conclude everything."

"The memorandum is absolutely not one-sided. It's a pledge of mutual trust needed to participate in the war to defend freedom against communist aggression."

President Park spoke confidently with a determined expression.

"Let's go. I can't help but admire your courage."

President Johnson led President Park to the rear door of the Rose Garden. Johnson's aides had already laid out the memorandum there.

'I knew it.'

President Park sat down to sign the memorandum. There was no need to read it since the clauses were already...

- The US government will bear the 'equipment and financial costs' of the Korean troops.

- The supplies and services for the Korean troops in Vietnam will be procured from Korea as much as possible. 'US military supplies in Vietnam will also be purchased from Korea as much as possible through special contracts.'

- Korean companies will be given priority participation in all relief and construction projects in Vietnam.

What? When did the clauses change like this?

Not just changed, but clauses that prioritized the participation of Korean companies were inserted. Even President Park found them unilaterally favourable to Korea.

'Could it be Woo Chan-soo?'

Woo Chan-soo flashed through President Park's mind.

Among the few people aware of the memorandum, there was no one else who would dare alter the agreed-upon clauses with Van Flint.

'... Did he think I would forget if he stayed in Vietnam for about a year? Did he think there was no need to report it to me because the clauses were favorable to the nation? Did he hate getting close to the political circles that much?'

Suppressing the questions swirling in his mind, President Park hurriedly signed the memorandum.

Johnson also finished signing beside him.

"Let's shake hands in front of the reporters."

"Let's do that."

When Johnson's aide opened the back door of the garden, flashes went off from all directions.

"Have you agreed to deploy troops?"

"What kind of exchange did you have? Does this mean the withdrawal of US troops from Korea is off the table?"

"Is the loan amounting to hundreds of millions of dollars approved by Congress?"

"Please, say a few words."

Reporters gathered in droves, jostling to push their microphones forward.

Johnson stood at the podium to announce the joint statement.

"The United States expresses its deep gratitude for the South Korean government's support for Vietnam, promises to maintain the same level of US troops in Korea as before, and invests 150 million dollars..."

Johnson read out the sentences that would be the headlines in today's newspapers.

President Park didn't need to pay close attention. The joint statement had been refined multiple times already.

"President Park, please make your announcement."

Before he knew it, Johnson had finished his announcement and handed the floor to President Park.

"The South Korean government..."

President Park raised his head after starting to read the prepared joint statement. Did he need to repeat what Johnson had already said in Korean like a parrot?

Suddenly, he felt the need to say something different.

"... Before coming to Washington, I had doubts about the American understanding and interest in the Korean effort to achieve a self-reliant economy and fight for freedom against communist aggression, but now these doubts have been completely dispelled."

President Park knew better than anyone how to package the sacrifices of the people to benefit himself.

"Oooooh."

The reporters widened their eyes at the unexpected address deviating from the standard statement. Even the interpreter's voice trembled with excitement.

"I am confident that from this moment on, the relationship between Korea and the United States has progressed to a level beyond an alliance."

"Waaaah!"

Click. Click. Click. Click.

The camera flashes were even more intense than during President Johnson's announcement.