The Secret Investment Formula of a Chemical Genius - Chapter 157



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Episode 157 Trading Conditions

The atmosphere in the cabinet room, which had been as mild as a spring day just a moment ago, had turned cold and frozen.

“Did you say shares in the exchange?”

“yes.”

“Which exchange are you talking about?”

“Well, I don’t think I can tell you the exact name. It’s an exchange that hasn’t opened yet.”

“You want shares in an exchange that doesn’t even exist?”

A gentle smile appeared on President Larry Selden’s face.

A warm smile, like a grandfather looking at his reckless grandson.

“Jeffrey. Do you have any plans to establish an exchange?”

“None, Mr. President.”

“That’s what they say. I would like to grant Han Yu-jin’s request if possible, but I can’t give her something I don’t have.”

“I understand you visited Saudi Arabia recently.”

“… … .”

The smile disappeared from President Larry Selden’s face.

Among Middle Eastern countries, Saudi Arabia is unusually close to the United States.

The rift between the two countries was caused by one incident.

Saudi Arabia is one of the few remaining complete absolute monarchies in the world.

Unlike other constitutional monarchies, the king effectively ruled the people directly.

The person currently leading Saudi Arabia is the Saudi Crown Prince.

He was a man who wielded so much power that he was called Mr. Everything, meaning that anything was possible.

Because, unlike other countries, they maintain a monarchy.

There were many people who were dissatisfied with this.

The same goes for the media that represents the voice of the citizens.

One of the reporters publicly criticized the crown prince by name.

And soon after, the journalist who had criticized the crown prince was assassinated at the Saudi Arabian consulate in Turkey.

An unprecedented event.

The incident became known to the world and caused a huge stir.

At the consulate of another country.

The situation escalated when it was revealed that the journalist in question was a columnist for an American media outlet.

At the time, Larry Selden condemned Saudi Arabia’s behavior in a fairly strong tone.

He even used very strong words without hesitation, such as specifically referring to the Saudi Crown Prince as a “dictator.”

So a rift developed between the United States and Saudi Arabia.

After Larry Selden was elected President of the United States.

The era of high prices and high oil prices has arrived.

As the sudden inflation grew, discontent among American citizens also deepened.

President Larry Selden visited Saudi Arabia, a key member of OPEC, to address high oil prices, one of the main causes of inflation.

It was the first time that I reached out to someone to end the uncomfortable relationship and reconcile.

I have enjoyed seeing this kind of scene in many countries around the world.

Because it was highly unusual for an American president to be the first to bend his pride and make a gesture of reconciliation.

The majority opinion was that since the US president had reached out first, Saudi Arabia would also pretend not to win and restore relations.

But the results were far beyond people’s expectations.

The day after President Larry Selden left.

Saudi Arabia announced a surprise oil production cut.

In fact, the Saudi Arabian government is telling us to eat shit.

President Larry Selden returned to the United States in despair, having gained nothing and with a badly wounded pride.

“When President Larry Selden was a candidate, he promised the public to reduce the use of fossil fuels, including oil.”

“Yes, it was.”

Hidden behind President Larry Selden’s bright smile.

A huge anger that seems ready to explode at any moment.

“But it seems you failed to keep your promise. Recently, I saw that you raised US daily oil production to 13.9 million barrels, the highest ever.”

Ultimately, negotiations with Saudi Arabia failed.

President Larry Selden’s choice was to pump oil from the country’s own resources.

“The problem is that even after doing that, you still haven’t been able to control oil prices and inflation.”

People have been criticizing Larry Selden for his words and actions being inconsistent.

Even though he spoke passionately about reducing oil use for the sake of future generations and the environment during his candidacy, once he was elected president, he actually increased oil use compared to the previous administration under the pretext of controlling inflation…

“The presidential election is coming up soon. Do you have any good alternatives to solve this problem?”

“… … .”

Anything resembling emotion disappeared from Larry Selden’s face.

The reason he is trying to attract CZTERA by pouring in an astronomical sum of 200 billion dollars is… … absolutely not because I am pretty.

By reducing the amount of CO2 emitted in the US through CZTERA, he has now appeased the criticism directed at him.

The intention is to later create a carbon emissions trading platform for the political and economic gain of the United States.

virtually.

It means that I and CZTERA are absolutely necessary to realize the national interests of the United States and Larry Selden’s personal ambition of being ‘re-elected president’.

“… … If this deal goes through, CZTERA will also enjoy huge economic benefits.”

at las.

The turtle popped its head out of its shell.

“Do you really think so?”

“Isn’t it?”

Larry Selden, with his mask removed, no longer showed his fake smile.

“The U.S. government will likely expect CZTERA to act as a liquidity provider for the carbon emissions exchange that will be launched in the future?”

“Of course.”

President Larry Selden later stopped denying the existence of the exchange.

“So does that mean you are buying carbon credits from us at the current market price?”

“… … .”

There are quite a few companies in the US that have CCUS technology.

However, the reason we specifically chose CZTERA, a small company located in Korea across the Pacific Ocean, is because we needed the cost competitiveness that our company possesses.

That’s why they’re offering a ridiculous amount of support, 200 billion dollars.

“You’re going to ask for an outrageously low price, incomparable to what we have now?”

I would guess that they want to deliver at 1/5th or less of the current trading price of carbon emissions.

Perhaps, if it is not to that extent, the market itself cannot be formed.

This price is possible because CZTERA’s cost competitiveness is about 1/10 of that of other companies.

This is such an outrageous beating that if you were to offer similar terms to another company, you would have to worry about immediate bankruptcy.

“… … Instead, we can rely on the huge market and support of the United States.”

Larry Selden’s words are not wrong.

Sell ​​a lot at a low profit margin.

Than selling one item and making 10 cents.

Because it is a much bigger profit to sell 10 items and make 30 won each.

“In the end, the bear has the talent, and the eagle has the money… … Should we say that in this case, it is the eagle who earns the money?”

“The eagle makes money. What an interesting expression.”

I roughly paraphrased a Korean proverb and said it in English.

Let’s take the eagle, which symbolizes America, as an example. He seems to have understood the general meaning.

“This level of support wouldn’t be possible without the United States. Otherwise, would you rather go to China or Russia to do business?”

“europe.”

“… … .”

“Why are you talking about the EU without mentioning it?”

Although it may be a bit inferior to the United States or China, the European Union is also an economic union that forms one huge economic bloc.

And one more thing.

“If you open an exchange, do you plan to give preferential treatment to EU member states, excluding China and Russia?”

“… … .”

President Larry Selden had no comment on the matter.

As expected.

What is most surprising about the implementation of the Inflation Reduction Act (IRA) in the United States is that it shows no leniency towards many of America’s allies, including those in Europe.

EU member states, who had been watching with some composure, thinking, “Surely not us,” were shocked by the US announcement and came to the US.

Still, nothing changed.

They returned empty-handed, feeling a deep sense of betrayal.

The EU also clashed strongly with the United States by announcing plans to introduce a carbon border tax.

“EU member states will once again be betrayed by their trusted allies.”

President Larry Selden glared at me with a sharp gaze.

Chariri, you’ll probably shout “America First” like your predecessors.

Why do you bring trouble on yourself by always using the word alliance?

“What do you want?”

“As I said at the beginning, I want shares in the exchange.”

“How much?”

“10%.”

“There are too many.”

President Larry Selden shook his head negatively.

“So, Mr. President, what are you thinking about?”

“3%.”

At that moment, Taekang and I quickly exchanged glances.

also.

President Larry Selden also expected me to ask for a stake in the exchange.

If that were not the case, such an immediate answer would not have been possible.

“It’s different from what I asked for.”

“A huge subsidy of 200 billion dollars, a guarantee of company profits through the purchase of all carbon credits from CZTERA, and even a 10% stake in the exchange – doesn’t that seem excessive?”

“I read the draft that Professor Jennon Smith gave me. It stipulates that the CZTERA to be completed in the U.S. must have at least 90% American employment. 200 billion dollars… … As the President said, it is a huge subsidy. However, this is only about facility investment. That means that we have to take care of the operating expenses of the company, that is, the wages of the employed workers.”

The per capita GDP of the United States is a whopping 2.5 times higher than that of Korea, a so-called advanced country.

“They said they would buy all of CZTERA’s carbon credits and guarantee revenue, but in reality, they are wielding their right to purchase first. And at a ridiculously low price. If we were to sell carbon credits to other countries, would the United States just sit back and watch?”

“… … .”

“In effect, you’re buying carbon credits at a slightly higher price than what CZTERA gets, and using Americans, the highest paid workers in the world… … How much margin do you think that leaves, Mr. President?”

I calculated the approximate rate of return through Bli.

Assuming the company runs without any problems.

We concluded that in order to generate the same amount of revenue in the US as we do in Korea with CZTERA, we would need to be at least 20 times larger.

If there were unexpected damage, such as a natural disaster like a tornado destroying the facility or causing it to stop operating, this could actually result in a deficit.

As the company grows in size, the risks it must shoulder also increase.

“Do you still think I’m asking too much?”

President Larry Selden’s face blurred.

“Let’s stop here for today, and continue the discussion later… … .”

Just as he was about to end the meeting.

“However, if the US side accepts one condition, we may give up our 3% stake in the exchange, or even our entire stake.”

“… … !”

Larry Selden’s face hardened.

“What you just said… … are you serious?”

“Of course.”

“First, let me hear what conditions you want.”

“I want 100% of the shares of CZTERA USA Corporation.”

The draft provided by Professor Jennon Smith stated that the shares of CZTERA’s US corporation would be owned 51 to 49 by CZTERA headquarters and the US government.

“If it’s a management issue… … .”

I shook my head.

“That’s not the problem. I don’t know if it’s my nature, but I’m the type of person who hates being interfered with by others.”

President Larry Selden looked me in the eye.

As if he was trying to dig out my inner self.

“If CZTERA shakes its hand and leaves in the middle… … .”

“If it’s a hit and run, you don’t have to worry. Let’s set a condition that the U.S. corporation will be maintained for at least 50 years. Even if there is an unexpected deficit, as long as the company called CZTERA itself doesn’t go bankrupt, this condition will be maintained… … To this extent, I think I’ve made quite a few concessions. What do you think?”

“Hmm… … .”

After thinking for a while, he nodded.

“First of all, I have listened carefully to Han Yu-jin’s story. It seems difficult to give a definitive answer right here.”

“I guess so.”

It’s a whopping $200 billion contract.

Even if he is the president representing the United States, he cannot give an answer carelessly.

“Then let’s continue the discussion next time.”

“Okay, thank you for your hard work until late at night.”

Taekang and I got up from our seats and were about to leave.

“Ms. Han Yu-jin.”

“Why are you doing that?”

“I heard about what happened in Omaha. If Mr. Han Yu-jin and Mr. Lee Tae-gang had not intervened, there would have been many casualties… … I would like to express my gratitude on behalf of the American people.”

I also bowed my head to President Larry Selden, who offered his thanks.

“I just happened to get involved, it’s not something I deserve to be thanked for.”

“Is that so?”

President Larry Selden chuckled.

That’s the first time he showed it today.

It was a genuine laugh.