Go back in time and be a chaebol

Chapter 2611 How vicious, those Koreans! (Happy New Year everyone!)

So what are your thoughts?

After Park Jung-woong finished speaking, he looked directly at Kim Young-chul, waiting for his answer. Although he had become increasingly stubborn in the past few years, his trust in Kim Young-chul had never changed.

After all, Kim Young-chul, a graduate of Nanyang University's business school, has served as South Korea's Chief of Staff for Economic Development for many years and is extremely competent.

Seventeen years ago, a young Kim Young-chul walked into the Blue House. At that time, Park Chung-woong, who had just become president, asked him: "How should the South Korean economy develop? We have neither resources nor technology."

Kim Young-chul's answer was straightforward: "We may not have resources, but we have hardworking hands!"

The only thing that's abundant on this land of South Korea is its people.

Therefore, Kim Young-chul pointed out that South Korea's greatest resource is the blood and sweat of its people.

He proposed "export-oriented industrialization".

Park Jung-woong, a former soldier, was drawn to Kim Young-chul's ideas, and from that day on, the young man entered the Blue House.

With the support of the Blue House, Kim Young-chul poured all the resources he could muster into industries that didn't require much technical expertise: textile factories, wig factories, plywood factories, and shoe factories.

Overnight, these factories sprang up like mushrooms from the ground.

Tens of thousands of young people, especially girls in their teens and twenties, left the muddy fields of the countryside and flocked to factories in the city, becoming "industrial warriors".

Their lives consisted of the monotonous "clatter" of sewing machines and the pungent smell of glue and dye.

Working twelve or thirteen hours a day is commonplace, let alone weekend rest.

Working 15 or 16 hours a day, 365 days a year, is the norm in South Korean factories.

Two years later, fifteen years ago, thanks to Kim Young-taek's efforts, South Korea's exports broke through the $1 million mark for the first time, and Park Jung-woong was so happy that he personally presided over the celebration party.

Nine years ago, that number became 100 billion. Seven years later, two years ago, it jumped to 10 billion US dollars.

South Korea, a poor country that was still relying on relief food yesterday, has achieved a national economic boom through the youth and sweat of a generation.

At the time, the withdrawal of US troops even threatened South Korea's survival. Although it later successfully recognized a new leader, the oil crisis broke out. As soon as oil prices rose, the costs of textile and shoe factories immediately soared, and they could not sell their products.

The "Miracle on the Han River" is about to turn into "Foam on the Han River".

When the oil crisis and the withdrawal of US troops hit South Korea at the same time, Park Jung-woong even felt that South Korea had no hope, while Kim Yong-chol bet on steel machinery and shipbuilding.

In the end, he succeeded!

South Korea now has its own steel companies, automobile companies, shipyards... For the first time, South Korea's heavy industrial products were exported.

This is why Park Jung-woong's trust in Kim Young-chul had reached a blind level. That's why, when faced with a new test, he turned his attention to Kim Young-chul and waited for his answer.

"We are currently upgrading our industries, and as for investment, participating in it is imperative. However, we must recognize that this competition is long-term and continuous."

After all, due to factors such as bloodline, they have a better environment, making it easier to attract foreign investment and acquire technology..."

Kim Young-chul thought for a moment and said:
"This also means that their development will be faster, and the challenges we face in the future will only be greater. Therefore, we must find a way to build a firewall!"

"Firewall?"

Park Jung-woong immediately became interested and gestured for Kim Young-chul to continue:
"Yes, it's a firewall. What is a firewall? Actually, it's rules."

The "rules" mentioned by Kim Young-chul prompted Park Jung-woong to think for a moment before he said:
"You mean labor rights? The ones that Chang'an forced us to do back then."

Whenever this matter is mentioned, Park Jung-woong's face turns extremely ugly. He clearly remembers how, a few years ago, when the Nanyang Free Trade Zone Committee issued an "ultimatum" to South Korea after conducting a labor investigation, the entire country was in a state of utter despair.

At the time, Park Jung-woong even considered withdrawing from the Nanyang Free Trade Zone market, but in the end he gritted his teeth and accepted it.

There's no way around it; this market is too important, too important to ignore.

"Yes, Mr. President."

Kim Young-chul nodded, then said:

"Mr. President, more than 20 years ago, U.S. President Eisenhower linked labor rights with joining the General Agreement on Tariffs and Trade (GATT). Only countries that pass the labor rights audit can join the GATT. Because it is an audit, even if a country joins, it will be disqualified if it fails to meet the standards after the five-year observation period."

Therefore, in the past few years, even India and Pakistan, both founding members of the treaty, have withdrawn. "Mr. President, they withdrew voluntarily, not because they were disqualified." This involves a historical case: after the US textile and other industries were severely impacted by the "Made in Southeast Asia" phenomenon, Eisenhower immediately learned from the experience. With his military mindset, he quickly formulated corresponding rules, patching up the General Agreement on Tariffs and Trade (GATT).

The core of this patch was the strict prohibition of sweatshops and mandatory requirements on workers' rights. This also led to the United States later using the General Agreement on Tariffs and Trade (GATT) as a pretext to interfere in the domestic affairs of countries like India and Pakistan, ultimately resulting in India's withdrawal—at the time, India was aligned with the Soviet Union's non-alignment policy.

Over the past two decades, the United States has repeatedly used its rules to interfere in the internal affairs of other countries, which is why the Soviet Union has always accused it of being a tool of American economic aggression.

And what about Southeast Asia?

Later, South Korea passed a law directly banning the import of products produced in sweatshops; South Korea had only just passed the trial period.

"Mr. President, the cost advantages brought about by working over ten hours a day and producing year-round without rest are undeniable. Mr. President, since the Nanyang Free Trade Zone can use relevant legislation to prohibit such products from entering Nanyang, why can't we strengthen this point?"

Then Kim Young-taek talked about his idea, which was very simple: to use the trade rules of the Nanyang Free Trade Zone to keep goods from other countries out.

"...and not just one country, but also India, Bangladesh, and even the Soviet Union,"

"...We should file a countersuit with the Free Trade Zone Commission, complaining about their unfair trade rules. As we all know, factories in South Korea have implemented an eight-hour workday, five days a week, and we also promote corresponding labor rights. But what about factories in countries like India? They work more than ten hours a day, yet they can trade with the free trade zone within quotas. This is clearly unfair treatment..."

As the chief of economic staff, Kim Yong-chol's target was clearly not just one country—but almost all non-GATT member countries.

Because those countries, as non-member states, can trade with Western countries through quota negotiations.

"Do you know that this will anger many countries?"

Park Jung-woong took a drag of his cigarette and then said:

"We are a small country."

"Mr. President, it is precisely because we are a small country that we must do everything we can to protect our own interests. After all, for large countries like India and the Soviet Union, their own internal markets are enough. But what about us?"

Looking at the president, Kim Yong-chol said sternly and solemnly:
"If we leave the foreign trade market, the whole country will be finished, Mr. President."

While Kim Young-chul spoke, Park Jung-woong remained silent, his hands clenched into fists as he silently watched the man in front of him. He could sense the seriousness in the other man's words and understand the key point within them.

"If we can drive those countries out of the Southeast Asian market and lobby Europe and the United States to pass the same legislation, then we will face a much larger market and receive more investment."

After all, our production costs are the lowest among all member countries!

Then, Kim Yong-chol emphasized:
"Therefore, I believe we should use issues such as labor as weapons to negotiate with the SEA, and make the most of the rules to build a trade firewall, excluding all countries that may threaten South Korea's economic development."

This will buy us time for development, rather than leaving us to be eliminated in the fierce competition of the future!

When he spoke of “elimination,” Kim Yong-chol emphasized his words as he looked at the silent president, awaiting his decision.

Park Jung-woong didn't answer immediately. He just silently smoked, puff after puff, until the cigarette butt was almost burning his hand. Then he forcefully stubbed it out in the ashtray and said:
"Oh dear, this is a real problem. South Korea is just a small country, yet we want to use these big countries to achieve our goals through this method... This..."

Looking at Kim Young-chul, Park Jung-woong said solemnly:

"Do you know how difficult this is, and how presumptuous it is?"

"Mr. President, these are the rules of the game they set. We are simply using their rules to protect ourselves. They may be a major power, but they can't apply double standards. We must protect our rights. This isn't directed at any particular country, but rather..."

After thinking for a moment, Kim Young-chul said:
"It's for the long-term interests of South Korea."

"So……"

Park Jung-woong looked at Kim Young-chul and asked:

"What if they also make the same changes? Then wouldn't we have ended up with nothing?"

"President, India has remained unchanged since it withdrew fifteen years ago. Change requires both momentum and time, and what we need is time. We cannot stop others' development in this way... but at least we can buy time for South Korea itself."

Perhaps in a decade or so, South Korea will be an extremely wealthy country, like those in free trade zones. We ourselves may even be members of free trade zones by then. At that point, even if others join or change their allegiance, it won't have a significant impact on South Korea.

When talking about "joining the free trade zone," Kim Young-chul's tone was full of anticipation. He paused slightly, then emphasized:

"After all, South Korea as a member of the free trade zone is a completely different country from the South Korea we know today!"

(End of this chapter)