Chapter 608: I Have Something to Tell You Both

As I entered, all eyes turned towards me.

"Just seeing you two facing each other lifts my spirits," I remarked.

At my greeting, deep smiles appeared on both their faces.

"Boss Kim, what brings you here?"

"May I sit down first?"

President Yoon Chang-ho glanced at Jang Seong-taek, who nodded in response.

"Of course. Please, have a seat. You're always welcome, Boss Kim."

With both President Yoon Chang-ho and Chairman Song Chan-woo sitting together, I naturally took a seat next to Jang Seong-taek across from them.

"Look at you, always sitting beside the Prime Minister."

Yoon Chang-ho grumbled lightly, while Jang Seong-taek laughed with ease.

"When else would Boss Kim sit next to me? Please be lenient, President."

As soon as those words were spoken, light-hearted banter began, and I jumped in a few times before quickly changing the subject.

"The official talks are set to begin tomorrow, but is today's meeting about the Kaesong Industrial Complex?"

It was President Yoon Chang-ho who answered, nodding before speaking up.

"Yes, that's why we are gathered here. After the upcoming five-party talks, we need to announce the construction of the Kaesong Industrial Complex simultaneously, so we need to finalize the details with Chairman Song and the Prime Minister."

"I see. So, have you come to a conclusion?"

Yoon Chang-ho shrugged.

"Well, there's not much to conclude. It's already a given that Daehyeon Group will construct the Kaesong Industrial Complex, so there are no significant objections. Chairman Song is confident he can have it finished in a year."

"If it's Daehyeon Group, it should be possible. Isn't that right, Chairman Song?"

I turned to Chairman Song Chan-woo, who hesitated before answering.

"A year is sufficient. However…"

I chuckled at the sight of Chairman Song looking cautiously toward President Yoon Chang-ho.

He really is surprisingly timid for a corporate leader.

"I understand what you wanted to say. You're concerned that Southern laborers need accommodation in Kaesong, right? Because to work around the clock 24/7, they'll have to stay there."

Hearing me anticipate his thoughts, Chairman Song's expression brightened.

"Yes. We need to work around the clock to meet the deadline. Otherwise, even for us at Daehyeon, completing the construction in a year would be difficult."

This was something I had already anticipated, so it wasn't a variable. I nodded and turned to President Yoon Chang-ho.

"Is it feasible for the Southern workers to build and stay in Kaesong?"

"Hmm…"

Yoon Chang-ho stroked his chin, seemingly troubled. To give him some thinking time, I asked Jang Seong-taek.

"How about North Korea? Can they stay there during the construction?"

"Of course. Our Republic is willing to accommodate anything Daehyeon Group desires. If laws need changing, we will change them; if labor is necessary, we will mobilize soldiers if needed."

Jang Seong-taek's affirmative response made Chairman Song Chan-woo's face light up even more.

For large-scale projects, the wages of laborers were the biggest concern.

If we could utilize Northern labor, construction costs could be significantly reduced.

"Great. If the South Korean government approves, we should be able to complete the project within a year as planned."

With Jang Seong-taek so clear on this, it was impossible for Yoon Chang-ho to ponder any longer.

He let out a small sigh before speaking heavily.

"Alright. If the Chairman says so, I can't reject it. I'll ensure it becomes feasible, even if it requires enacting special laws. In order for economic cooperation to go smoothly, it needs to allow for free passage across the borders, right?"

To develop Nampo City, it was essential for southerners to be able to stay in the North for extended periods.

However, as things stood, it was impossible.

As Yoon Chang-ho mentioned, we needed to enact special laws to allow long-term residency for the sake of inter-Korean economic cooperation projects.

"That's the right thing to do. True inter-Korean cooperation can only happen if extended stays are allowed, right? You needn't worry about our Republic; I hope the South can make it happen too."

As I listened to their conversation, I naturally jumped in.

"The results of the upcoming election have become even more important. President, do you think you can win?"

At my question, Yoon Chang-ho burst into hearty laughter.

"Haven't you seen the latest public opinion polls? If it continues like this, it's bound to be a landslide victory. Even those who were opposed have fallen silent after the Prime Minister's expression of regret today. Once again, thank you, Chairman. Just coming to Seoul is appreciated, but here you are, presenting me with such a great gift."

He must have been closely observing the public's sentiment for half a day.

Well, it's hard to imagine he wouldn't be vigilant. No one pays as much attention to public sentiment as a President.

"You seem quite confident of victory. But as you know, elections rarely go as planned, right?"

"You make a valid point. But even if we lose some seats to the Progressive Party, there shouldn't be any issues with passing the special law. Aren't they the ones who sincerely want to improve relations with the North? They probably won't oppose this legislation, so we can proceed."

As long as the legal issues were resolved, this wouldn't be difficult.

Now, the last remaining matters were the construction costs for the Kaesong Industrial Complex and the highway linking Korea to Kaesong.

"Chairman Song, what is the construction cost estimated by Daehyeon Group?"

In response to my question, Song Chan-woo instead asked Jang Seong-taek.

"First, I need a clear confirmation from the Prime Minister. Is it correct that you will lease 1 million pyeong for 3.3 million dollars as per the previous agreement?"

"Yes. We agreed to lease 1 million pyeong at 3.3 million dollars, plus we discussed an additional 16 million dollars for the cost of removing above-ground obstacles, if I remember correctly."

At his words, Song Chan-woo nodded slightly as if in agreement.

Seeing this, Jang Seong-taek chuckled softly and said.

"Alright. It's fine to proceed as agreed. This is a long-term land lease contract between not Daehyeon Group and the South Korean government but between our Republic and the South Korean government."

After hearing Jang Seong-taek's confirmation, Song Chan-woo turned to Yoon Chang-ho.

"Is it still the case that the South Korean government will guarantee the construction costs? We can't stop once the first shovel hits the ground."

Yoon Chang-ho nodded firmly.

"Indeed. The South Korean government will guarantee the payments. Once the tenants are chosen and the allocations are made, all the money will be reimbursed. So, it's not an issue for our government to offer payment guarantees. And should any problems arise halfway through, the South Korean government will take responsibility."

Chairman Song Chan-woo let out a sigh of relief.

For him, minimizing risk in North Korean projects was crucial.

"So, the South Korean government will also bear the costs for the highway connecting to Kaesong?"

"Yes. First, we'll consult with the Ministry of Construction and set the construction costs. If any loans are necessary, we can arrange them through the Industrial Bank…"

Getting loans through the Industrial Bank posed too great a risk.

The issues surrounding Daehyeon Group's illegal loans and remittances to the North could resurface.

I interrupted Yoon Chang-ho mid-sentence.

"President."

Yoon Chang-ho paused and looked at me with a puzzled expression.

"Securing another loan through the Industrial Bank could revive the controversy surrounding Daehyeon Group's illegal loans."

"Hmm…"

Yoon Chang-ho swallowed hard. After pondering for a moment, he turned to Song Chan-woo.

"Can Daehyeon Group proceed without loans?"

"…It's difficult, Mr. President. While the government can cover the costs for the highway, the buildings we have to erect in Kaesong will incur massive expenses initially since we plan to construct and then sell later on."

A look of distress crossed both Yoon Chang-ho's and Song Chan-woo's faces.

With a furrowed brow, Yoon Chang-ho turned to me.

"Boss Kim, did you hear? Daehyeon Group claims it's struggling with financing. Do you have a countermeasure?"

"Yes. Taesan Financial has given me a confirmation that they will cover all funding related to the Kaesong Industrial Complex project through PF loans."

"PF loans?"

President Yoon Chang-ho asked, seemingly unfamiliar with the term.

"When banks or financial institutions lend money, it's based on the creditworthiness of the entire company. Generally, loans are secured against property or stocks. However, with the construction of the Kaesong Industrial Complex, we can't burden Daehyeon Group with new risks. They've already suffered substantial losses."

"That's right. I was just discussing that. What does the North Korean government plan to do about the losses suffered by Daehyeon Group?"

"We can discuss that later. What we need to focus on now is securing the funds for the Kaesong Industrial Complex. There isn't a better financing method than project financing."

Project financing is a financial technique where loans are issued based on the expected income from specific sectors like construction and large projects.

Saying it is easy, but assessing cash flow and evaluating risks based on business plans to determine project values is, in reality, not a simple loan process.

Yet with Taesan Financial and my involvement, it shouldn't be that challenging.

"What's different about this loan compared to the existing ones? Isn't it all just loans in the end?"

"It's different. Instead of taking collateral from Daehyeon Group, loans will be secured against the expected revenues from the Kaesong Industrial Complex project. While it hasn't been fully activated in Korea yet, most real estate development projects in Japan rely on PF loans."

I spent quite some time explaining the benefits of PF loans. After hearing the complex details, President Yoon Chang-ho rubbed his temples.

"That sounds complicated. Anyway, it's clear this loan won't place a heavy burden on Daehyeon Group."

"Yes. That's correct. Korea will likely also transition most of its real estate development to PF loans soon. In this case, since the government will guarantee the payments, PF loans should be more easily secured. This approach offers better terms than loans through the Industrial Bank."

After rubbing his temples for a while, President Yoon Chang-ho turned to Song Chan-woo.

"How about you, Chairman Song?"

"We also believe that PF loans are a better option. It's a way to minimize risk for our group."

"I see. Then the two of you can discuss and proceed with that aspect. The government will provide the payment guarantee."

"Thank you, Mr. President."

Afterwards, we spent quite a bit of time discussing the Kaesong Industrial Complex project.

Once we finalized the funding plan, everything progressed smoothly from that point onward.

"Chairman Song Chan-woo, please go ahead and enjoy the banquet. I still have matters to discuss with these two. I appreciate your insights today."

As I wrapped up the conversation, I sent Chairman Song Chan-woo on his way.

Perhaps feeling relieved to escape a heavy situation, Chairman Song let out a long breath and offered his farewells.

"I have something to tell you both."

As soon as he left and I confirmed the door was closed, I immediately brought up the topic regarding Japan.

"On my way here, I ran into Toshiyaki, the Japanese ambassador. He requested that they also be allowed to attend the five-party talks taking place in a few days. He asked me to persuade both of you."

"Japan's attendance? I already notified them that it's not possible. Yet they sought you out to plead their case? They are utterly lacking in etiquette, aren't they?"

Yoon Chang-ho and even Jang Seong-taek furrowed their brows.

"Domestic politics in Japan must be quite complex. It's no wonder Koizumi is stepping in himself."

Yoon Chang-ho questioned with a surprised look.

"You spoke directly with the Japanese Prime Minister?"

"Yes. He insisted that I persuade you. He also mentioned they are willing to accommodate any requests. Just let them know what can be agreed upon."

"So that heavy-bottomed fellow is anxious, huh? I wonder what he'll request and if they'll agree to anything. Good grief…"

"How about leveraging this opportunity to gain something from Japan before allowing them to attend? It might be beneficial for both Korea and North Korea to get one concession each in exchange for their participation. What do you two think?"

Both of them fell into deep thought instead of responding. Jang Seong-taek was the first to speak up.

"Our Republic doesn't have much to gain from Japan. Even if we demand an apology for historical grievances, they wouldn't concede."

I nodded in agreement.

"Indeed. That might be challenging. An apology for past actions would be the worst kind of political move domestically in Japan."

"Then I will oppose this plan."

Yoon Chang-ho agreed with Jang Seong-taek's sentiment.

"I feel the same way, Boss Kim. Allowing Japan to participate carries far more risks than benefits. This could dilute Korea's significance, cannot we strengthen our stake without the need for Japan to attend the five-party talks?"

Both were firmly against any involvement from Japan.