1979, Manager Kim is Inheriting Dictatorship! - Chapter 92



Only Krnovel

Episode 92

“Your Majesty, as you know, our situation is not easy due to the foreign exchange crisis originating in Southeast Asia.”

When I tell him indirectly that I can’t do it, Chairman Jiang Zemin responds with a slightly annoyed look.

“President Kim! Isn’t the current situation something that Korea created? Then shouldn’t the Korean government at least show some sincerity in this regard?”

China could not have been unaware that this incident was a result of South Korea’s operation.

But officially, this incident was not the work of the Korean government, but of hedge funds from the United States and Korea.

I answered him, pretending as if I didn’t know anything as best as I could.

“What are you talking about? Our government didn’t do it directly, so why should the Korean government take responsibility for something that hedge funds did for their own benefit?”

“What are you talking about! Is there anyone who doesn’t know that the Korean government is involved in Korean hedge funds?”

Chairman Jiang Zemin, irritated by my ignorance, answers in a shout.

But I continued to pretend not to know.

“Well, is there any evidence that the Korean government was really involved in that hedge fund? If there is, I will hold the Korean government responsible.”

“That, that is… … .”

There was no way there could be any evidence.

The ownership relationships of South Korea’s government-owned hedge funds are extremely complex.

Because it was originally created as a complex corporate ownership structure of Korean conglomerates in history, even the person who created it had difficulty properly explaining how it came to be owned by the Korean government.

‘There’s no way you can explain something that even the creator can’t explain.’

I asked Chairman Jiang Zemin, who was unable to answer properly.

“This was done by hedge fund individuals in Korea and the United States. It has nothing to do with the Korean government. In China, does the state take responsibility for everything that individuals do?”

Finally, Chairman Jiang Zemin, who had nothing left to say, apologized to me.

“Huh, I’m sorry. But can you please defer the interest for a few months?”

I politely declined his request.

“I’m sorry, but we lent you money at a very low interest rate. Our financial situation is not good. It’s difficult to give you a grace period.”

“No matter how much they say that, they will not be able to pay the interest starting next month. The only thing China can pay is this month.”

Jiang Zemin appears to be almost half-dead.

“Your Majesty, you talk too easily about not paying off loans between countries. It seems that you don’t understand this because China has only recently opened its market economy.”

“You don’t understand?”

Jiang Zemin’s voice rises again, as if he is angry.

“Who would want to negotiate properly with a country that can’t even pay interest on its loans? China’s international credibility will fall to rock bottom. China’s international credit rating will fall to its lowest point, and it will be difficult for it to even make a proper deal with any other country for years or decades to come.”

After hearing my story, President Jiang Zemin sighed and returned to his tired voice.

“Ha, we know that too! So let’s negotiate a little bit about the interest. Or if there’s anything you want… … .”

“Because that’s what you want… … .”

“Tell me. If it’s something we can negotiate… … .”

I made him a ridiculous offer.

“Then, all tax breaks and special privileges for our company’s expansion into China. In addition, if our company is sued in China, it will be tried in a Korean court. Can you hear all of these things?”

It was a really ridiculous and messed up proposal.

These were almost exactly the kinds of things the victorious nation would propose to the defeated nation.

It was a word made up to get China to join the Asian economic community.

Of course, China would not accept it, but if it did, it would be a more advantageous proposal than China joining the Asian Economic Community.

Of course, as expected, after hearing my story, he started to get angry and raised his voice like fire.

“Speak your mind! Do you intend to turn China into some kind of economic colony? Even if we are isolated internationally, we cannot make such an agreement!”

I told him again my original purpose.

“Huh, then how about this?”

“What are you talking about? If it’s the same story as before, don’t even bring it up!”

He continued to answer in a huff, as if he was still angry.

I threw out to him the offer I had originally intended to make in a slightly more serious voice.

“Korea is trying to create an Asian Economic Community (AEU) where all Asian countries come together to create a single economic community. Please, China, join this AEU. If you do so, we will defer interest payments for several years without any conditions.”

“Asian Economic Community? Is that what you just said?”

“Yes. It’s the Asian Economic Union, or AEU for short.”

Chairman Jiang Zemin is a little taken aback by the unexpected news, but soon comes to his senses and asks me.

“What is this place called AEU for?”

In response to his question, I briefly explained the purpose of the AEU.

He explained three main agenda items: eliminating trade barriers, using a common currency, and establishing a central bank.

After hearing the whole story, President Jiang Zemin said:

“I think the most important thing is the use of a common currency.”

“Yes, that’s right. The ultimate goal is to have all the countries in Asia use the same currency, which will give the currency a little more stability and make it more valuable than the dollar in the future.”

Chairman Zhang thinks silently for a moment and then asks me.

“Do you really think you can beat the dollar?”

I never particularly thought about beating the dollar.

However, in the next ten or twenty years, it may naturally surpass the dollar.

But I kept that thought hidden for a while.

“Well, who knows what the future holds? But I don’t necessarily plan on ditching the dollar right now. I just want Asia to trade more fluidly and without barriers.”

Chairman Jang nodded after hearing the story and said.

“Hmm, this AEU community could certainly have negative consequences for China. But at the same time, it’s definitely an attractive proposition.”

Japan’s reaction was similar to China’s.

Clearly, the AEU is a community that will bring enormous benefits to Korea right now.

Usually, when such an economic community is created and a common currency is used, the ones who benefit the most are none other than the largest exporters.

Currently, Korea’s trade export volume is overwhelmingly ranked first among Asian countries.

However, if in the future their trade volume grows significantly and their exports increase more than those of Korea, the story will be different.

If that were to happen, it would be clear that this common currency that preserves value well would bring them enormous benefits.

The idea that Korea will not last long and the complacency that their country will quickly recover its exports.

Those easygoing thoughts were strangling both Japan and China.

And in the end, Jiang Zemin bit the bullet and accepted the offer.

“Let’s do it. That Asian Economic Community. Right now, there doesn’t seem to be a way out, and after thinking about it, it doesn’t seem like such a bad deal for China.”

“It’s a wise choice.”

The food rolled into the tiger’s den on its own.

* * *

[Asia Economic Union AEU Launch Ceremony]

May 1997.

Eventually, the Asian Economic Community was launched under the name of the Asian Economic Union (AEU).

Leaders and ministers from each country gathered in Seoul, shook hands and celebrated the launch of the AEU.

The headquarters of the AEU was decided to be in Seoul.

Initially, Shanghai, Tokyo, and Seoul were selected as candidates, but Japan strongly opposed the idea, saying that Shanghai was absolutely not allowed, and China also strongly opposed the idea, saying that Tokyo was absolutely not allowed, so the headquarters was decided to be in Seoul.

In some ways, the bad feelings between the two countries were beneficial to Korea.

The Asian Central Bank was also established in Seoul, and the first governor of the central bank was chosen to be Lee Hwa-min, the chief economic advisor who contributed greatly to the establishment of the Asian Economic Union.

As a co-founder of AEU, I gave a congratulatory speech.

“AEU will strive for the common economic development of Asia, and beyond the development of Asia, we will all work together to ensure that the global economy develops in a positive direction. In addition, we, AEU, declare that we will run for three goals. The first is the abolition of trade barriers among AEU member countries. The second is the use of a common currency among Asian countries. And the last is the establishment of an Asian central bank. And all of these… … .”

Of course, things like Asia’s development were an additional issue.

It was clear that if we developed together to some extent, it would certainly help exports, but the most important thing was that the Korean economy would develop one step further through this AEU.

The launch ceremony was a success, and it was agreed that the currency would begin use in January 1998.

Because each country has its own currency conversion period, it was scheduled to be used as the sole currency in all AEU countries starting in 2000 after a two-year grace period.

And the use of a common currency brought unexpected benefits to China and Japan.

It was the direct promotion of the underground economy.

The money from the underground economy, which had been piled up in cash until now, inevitably rose to the surface.

Both Japan and China confiscated the money or imposed huge taxes on it, with their mouths hanging open.

In Korea, since there were almost no people who hoarded large amounts of cash after the introduction of the real-name financial transaction system, it was meaningless, but in China and Japan, both countries had large underground economies, so it achieved meaningful results.

‘I never thought of that… … .’

I felt a little uneasy thinking that I had given China and Japan some advantage, but I felt a little better when I thought that I had given some insight into the enormous benefits that Korea would gain from using a common currency in the future.

And the establishment of this AEU made the whole world aware that Korea is now the de facto leader in Asia.

[AEU established under the leadership of Korea. It was confirmed that a large amount of funds were invested in the process of establishing the Korean AEU. Is Korea trying to become the leader of Asia? – KNN]

[South Korea grabs AEU Secretary General, AEU Headquarters, and even the President of the Asian Central Bank. In terms of military and economic power, South Korea is now overwhelmingly ahead of Asia, and is now reborn as the leader of Asia. – Wall Street Journal.]

[Asia’s new common currency unit is confirmed as the won. However, the existing Korean won is expected to have a different value assigned to it. – KBC Newspaper]

* * *

Korea’s exports increased dramatically after transactions began using a common currency.

As the economy grew and the exchange rate continued to be maintained, the enormous profits from exports grew to an unmanageable level.

Eventually, in March 1998, Korea surpassed Japan’s GDP and emerged as the world’s second largest economy.

And the population steadily increased upward.

Infrastructure projects that had been halted are also starting again, and the domestic market is also beginning to explode.

Despite virtually no immigration, the population is slowly approaching 100 million.

The proportion of the middle class, which is considered the most important factor in a country’s competitiveness, has begun to exceed half.

And in June 1998, six months after the common currency began to be used.

I got a call from an unexpected place.

“Mr. President, this is the Crown Prince of Saudi Arabia.”

“In Saudi Arabia? What’s going on?”

The chief secretary answers me with a very surprised expression.

“Well, what if we do oil trade with Korea in won in the future?”

Saudi Arabia’s proposal to trade oil in won.

The dollar’s hegemony is slowly beginning to crumble.