Chapter 103: That Time I Built a Car Assembly Plant in South America (4)

TL: Skye

That night.

Hotel Casa Dorada, in the heart of downtown Libertad.

For some reason, this hotel, a former gang hideout famous for its glowing reviews, had exactly one customer in its eleventh-floor bar.

Because the entire hotel had been cleared out for the Korean delegation.

And the customer quietly drinking at the bar was none other than Jeong Taeho, Vice Chairman of Hyunhwa Motors.

Back from the day's site inspection, he sat at the counter with his tie pulled loose.

"Whiskey. On the rocks."

The bartender nodded and prepared a glass.

Just as Jeong Taeho swallowed his first sip, another man walked in through the bar's entrance.

Kim Dohyeon, the Blue House Chief of Staff.

It might have looked like a chance encounter, but Jeong Taeho knew better than to believe that.

Kim Dohyeon slid naturally into the seat next to him.

"I see you can't sleep either, Vice Chairman. Ah, I'll have one too. Same as his."

When the bartender set down the second glass, Kim Dohyeon took a sip before speaking.

"How was today's inspection?"

"...Impressive. Honestly, I was surprised. I knew Father cared about this place, but I never expected it to be run this solidly."

"I see."

A brief silence passed, and Kim Dohyeon slowly lowered his whiskey glass.

"Vice Chairman, may I ask you something?"

"Go ahead."

"What do you think about building an automobile plant in San Marcos?"

Jeong Taeho set down his glass.

"...My father's will is firm."

"I'm not asking about the Chairman's will. I'm asking what you think."

Jeong Taeho looked at Kim Dohyeon.

Kim Dohyeon was smiling, but his eyes weren't.

"To be frank with you."

Jeong Taeho began slowly.

"I see business risks. We already have plants in Brazil and Mexico, and San Marcos has no skilled workforce, and its parts supply chain is nonexistent."

"Naturally."

"What's more, if a technology transfer clause goes in, I worry we'd end up raising a competitor in the long run. To avoid that, we'd have to set up a joint venture through co-investment, and then..."

"There's no telling what happens to management control. Like in China, you could have your technology stripped away and get tossed aside."

"Exactly. That part concerns me as well."

Kim Dohyeon had finished Jeong Taeho's sentence for him.

"As it happens, the President shares your view, Vice Chairman Jeong."

"Does he?"

Jeong Taeho looked at Kim Dohyeon with questioning eyes.

The Blue House had reached out first, before he'd even had a serious discussion with his father about this investment.

They'd said the investment and the FTA would be negotiated as a package, insisted they go together, even talked him into coming along.

So he'd had no choice but to tag along, but if the President was against it, that changed everything.

"Are you giving up on the FTA?"

"No. We're signing the FTA. In a recession like this, we can't walk away from a market of over ten million people, one that's growing in real time, no less. But automotive technology transfer is a matter of national interest. Hyunhwa Motors running an assembly plant in San Marcos is one thing, but once technology transfer enters the picture, it's a different conversation."

"......"

"If you were to take a reserved position at tomorrow's talks, Vice Chairman, the President would have more room to handle Hyunhwa Motors flexibly. The Blue House might even see its way to accommodating you on certain domestic matters."

In short, if he opposed it, they'd take care of the rest.

And the price was good, too.

Hyunhwa Motors' domestic matters could only mean the union problem.

There was no shortage of areas where the government could lend a hand.

Jeong Taeho's eyes shifted, just barely.

"I'll give it... deep consideration."

Kim Dohyeon smiled and raised his glass.

Because coming from a man famous even in business circles for weighing his words, "deep consideration" was as good as a promise to persuade Chairman Jeong.

"Thank you, Vice Chairman."

The two men clinked glasses.

In the quiet bar, only the sound of ice knocking against glass rang out.

And then.

The bartender standing behind the counter quietly bowed his head.

Jeong Taeho and Kim Dohyeon had no idea.

That this bartender spoke Korean remarkably well.

2 a.m.

I'd been sound asleep when Isabella's urgent report came in.

"A report from Commissioner Bruno."

Isabella held out a document.

[Among the Korean President's entourage, Chief of Staff Kim Dohyeon met with Hyunhwa Motors Vice Chairman Jeong Taeho in the hotel's first-floor bar at approximately 2300 hours for roughly forty minutes. Gist of conversation, the Korean government opposes automotive technology transfer and encouraged Vice Chairman Jeong Taeho to take a reserved position at the talks. Vice Chairman Jeong Taeho did not refuse.]

"......"

I'd seen it coming, but having it confirmed didn't exactly feel great.

"It appears the Korean government is trying to block Hyunhwa's automotive investment in San Marcos through Vice Chairman Jeong Taeho."

"Can't Chairman Jeong Suman just push it through?"

"Not necessarily."

I recited what I'd already looked into.

"Chairman Jeong Suman holds an overwhelming 32% stake in Hyunhwa Inc., the holding company of Hyunhwa Group. No one there can challenge his control. But Hyunhwa Motors is different."

"......"

"Hyunhwa Motors' ownership breaks down to 18% held by Hyunhwa Inc., 12% held personally by Vice Chairman Jeong Taeho, and 9% by the National Pension Service."

"So in the worst case, if Vice Chairman Jeong Taeho joins hands with the government..."

"He could push decisions through the board even against Chairman Jeong Suman's wishes. Especially since a large-scale overseas investment like an auto plant requires a special board resolution."

"......"

And there was an even bigger problem.

Chairman Jeong Suman's age was well past eighty.

However spry he might be, no one runs a company forever.

Once Jeong Suman passes, Jeong Taeho will obviously inherit the group.

Souring the relationship with Jeong Taeho now could, in the long run, poison relations with all of Hyunhwa Group.

"Should we knock on Tesla's or GM's door instead?"

"No. They won't be willing to transfer technology. Besides, with President Drump watching like a hawk, it's politically dangerous too."

"What about China, then?"

"Chinese technology is a bit..."

"Fair point."

"Hmm..."

I leaned back in my chair and stared up at the ceiling.

The Korean government wants to block the automotive deal.

Vice Chairman Jeong Taeho is privately opposed too.

Chairman Jeong Suman wants to make it happen, but at his age, he can't be our shield forever.

A frontal assault is out of the question here.

'Then I'll just go around.'

I straightened up in my seat and looked at Isabella.

"Chief."

"Yes."

"Why do you think the Korean government is acting this way?"

"Two main reasons, I'd say. One, they're worried about domestic jobs flowing overseas. And two, they seem to suspect we might set up a joint venture, strip out the technology, and toss them aside, the way China did. In the latter case, they'd be raising a competitor."

"Right. So let's flip it around. What conditions would leave the Korean government no choice but to allow it?"

"...A situation where allowing the automotive deal benefits them more than blocking it would."

"Then let's think from the Korean government's perspective. What can we offer that turns this into a win-win?"

"...I'll need some time to think about that."

Isabella furrowed her brow and nodded.

I met her gaze.

"Chief, starting now, let's lay out every card San Marcos is holding."

"Shall I call in the senior secretaries?"

"It's a little past 2 a.m., but..."

I glanced at the clock before answering.

"When a nation's urgent business is on the table, who cares if it's the middle of the night, and who cares about sleep? Have everyone assembled within twenty minutes. We start immediately."

If I, the President, am working, then of course they're working with me.

'If they don't like it, they can go be president themselves.'

Me, I'm free to resign whenever.

The day of the summit.

No Jaemin readily agreed to Yu-jin's request that the two of them talk alone before the working-level talks, and so the leaders' meeting took place discreetly in a small conference room on the third floor of the Presidential Palace.

Since Yu-jin spoke Korean, no interpreter was needed, and the two men sat facing each other directly.

The formality and diplomatic niceties of the luncheon two days earlier were gone; only the two men's gazes clashed across the table.

Yu-jin spoke first.

"We don't have much time, so I'll get straight to the point."

"Yes, please do."

"I want to build an automobile plant. My plan is to start with a semi-assembly plant, then build a parts manufacturing plant, and eventually receive technology transfer to produce finished vehicles."

A fastball, straight down the middle.

No Jaemin lifted his coffee cup and took a sip.

He set it down slowly.

"I fully understand your ambition, President Choi."

"It's not ambition. It's necessity. San Marcos's economy is growing fast. Within ten years, vehicle demand will explode, and I intend to meet that demand with domestic production."

"I understand your situation, but..."

No Jaemin looked Yu-jin straight in the eye.

"To be frank, Hyunhwa is expressing reservations."

It was a lie.

The one with reservations wasn't Hyunhwa; it was the Korean government.

If anything, Chairman Jeong Suman was itching to do it, and the only one balking was Jeong Taeho.

But Yu-jin didn't bring that up.

Tipping his hand here would be the worst possible diplomatic move.

"That's not the impression I got when I met Chairman Jeong Suman in person."

"I'm well aware of the Chairman's enthusiasm. However, I understand there's a cautious camp at the working level, particularly on the side overseeing the automotive division."

He meant Jeong Taeho.

"A semi-assembly plant may be feasible. If it's a matter of bringing parts from Korea and assembling them in San Marcos, Hyunhwa likely won't object too strongly. But technology transfer is a different matter."

No Jaemin's voice dropped a tone.

"Transferring core automotive technology is an issue directly tied to Korea's national competitiveness. On this point, the Korean government has no choice but to be cautious."

At last, his true position was out.

Yu-jin sorted it out in his head.

A semi-assembly plant, they could do.

But no technology transfer.

In other words, buy Korean parts and stick to assembly.

Then San Marcos would be forever dependent on Korea.

With parts coming from Korea, the moment Korea cuts off supply, the plant grinds to a halt.

They'd have an auto industry without really having one.

Yu-jin spoke slowly.

"Mr. President, in that case, the FTA discussions could become difficult."

No Jaemin's eyes flickered, just barely.

"Aren't the FTA and automobiles separate matters?"

"They are not separate."

Yu-jin's voice was calm but firm.

"When the FTA is signed, Korea is the one that profits. With Korean manufactured goods coming in duty-free, the San Marcos market effectively becomes a domestic market for Korean companies. We were prepared to sign it regardless, but if Korea takes this stance, we'll have no choice but to reconsider."

"I understand you're already reaping considerable benefits from Korean corporate investment."

"That investment was the Korean companies' choice; I didn't force anyone. And frankly, it doesn't have to be Korea. The new city, for one, is actually being developed with American investment."

"Is that so?"

"It is."

Tension stretched taut across the table.

No Jaemin watched Yu-jin without saying a word.

Yu-jin didn't back down either.

Their gazes collided in midair.

Five seconds.

Ten seconds.

No Jaemin spoke first.

"I understand your position, President Choi. But technology transfer is also a matter tied to Korean domestic politics. If the opposition attacks it as a technology leak, the government will struggle to hold the line."

"I understand you have domestic political considerations."

Yu-jin nodded.

"But I'm the president of this country too. If I bring in nothing but a semi-assembly plant and still sign the FTA with no technology transfer, what am I supposed to tell my people?"

"With an approval rating above 99 percent, surely there's no need to explain..."

"That's not what matters."

Yu-jin set down his coffee cup.

"What matters is that my people would be disappointed."

"......"

"Which brings me to a thought... how about we do it this way?"

*****

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