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CH199 | Heir
🕑 Added 2025-05-29 13:16:39 +0000 UTCI have always stayed ahead of the times.
The Planning Director knew this well, so when I suggested expanding the general trading company, he showed signs of surprise.
The perception of trading companies was more of a business stuck in the past rather than one leading a new era.
“Vice Chairman, while the trading company is necessary to keep the group running smoothly, I doubt it can do more than serve as a lubricant.”
“That might have been true until now, but from now on it must become a core affiliate.”
“May I ask why?”
“Because I plan to transform Taewoo General Trading into a raw materials–focused trading company. Without raw materials, we cannot push forward with home appliances, automobiles, or new businesses.”
The importance of securing raw materials could never be overstated.
Right now, it may not seem critical because securing raw materials isn’t a big issue yet.
But once the smartphone era fully arrives, and the era of electric vehicles begins, raw materials will definitely become the top priority for every company.
“When you say raw materials focused, do you mean purchasing overseas mines or oil fields?”
“Just handling distribution will keep the trading company struggling with losses like now. To achieve significant results, the trading company must take charge of the entire process—from mining to distribution.”
“That could lead to big profits, but also big losses. The funds required to buy mines exceed what’s needed to acquire most companies.”
Risk management is the core of corporate governance.
That’s why the Planning Director hesitated about the risky purchase of mines.
Even most entrepreneurs would avoid such management because it’s almost like gambling.
If you spend a large amount on a mine and its profitability turns out to be lower than expected, the entire investment becomes a loss.
Predicting which raw material prices will rise is extremely difficult, so it’s basically a gamble.
But I already knew the cards that would be played.
When you know the cards, there’s no reason not to join the gamble.
Still, I couldn’t burden Taewoo Group, so I had to at least pretend to manage the risk.
“We won’t buy mines using only Taewoo Group’s funds. We plan to purchase mines jointly with hedge funds and financial firms. That way, the risks are spread out, and even if we incur losses, it will be an amount we can comfortably handle.”
“If that’s the approach, I support it too. But which mines are you planning to acquire?”
“You know well that smartphone production will continue to increase, don’t you, Director?”
“The iPhone’s sales have been rising sharply every year, and other electronics companies like Samsung Electronics are rushing to launch their own smartphones. It is expected that sales will more than triple within five years.”
Smartphones required many raw materials.
Among these, the most essential raw material was rare earth elements.
Rare earth elements literally mean “rare earth” and collectively refer to 17 different elements.
“We plan to acquire rare earth mines.”
“You can buy rare earths cheaply from China. If we buy mines and mine them ourselves, it will actually cost us more to obtain rare earths.”
“That may be true for now, but if rare earth prices rise, securing a stable supply will be advantageous for us.”
Raw materials could be used as a tool for coercion.
Especially for a country like ours, with no mineral resources at all, there could come a time when we had to beg producing countries for supply.
To avoid that situation, we must establish our own supply chain for raw materials.
“China currently almost monopolizes rare earth mines.”
“And there are many undeveloped rare earth mines in China. I also know that Australia and Turkey have many rare earth mines.”
Rare earth—despite the name—was not actually such a rare resource.
Rare earth elements were buried all over the world, but their mining was avoided due to the environmental pollution it caused.
“How many rare earth mines do you plan to acquire?”
“We intend to buy every available mine. Start with the Chinese rare earth mines, and then acquire mines in Australia and Turkey as well. Prepare a plan.”
“China might be feasible, but in Australia, mining might be difficult due to environmental concerns even if we buy the mines.”
“Acquire them first. Even just holding them will cause their value to rise. Think of it like putting money into a savings account.”
No matter how sensitive Australia was to environmental pollution, ultimately, everything was controlled by politics.
If we consulted well with the Australian political circles, development would be feasible.
“I will discuss with Taewoo General Trading’s President Wang Hee-su to formulate a plan.”
“And also start acquiring lithium mines. Especially secure lithium mines located in Chile.”
“Lithium produced in Chile is not very efficient. In Australia, lithium is mined in mineral form, but Chile extracts lithium from brine.”
“With improving technology, that difference will diminish. The simpler extraction method might even allow mining larger quantities of lithium.”
In a few years, lithium will be called by another name.
White oil—lithium.
Expensive raw materials always carried the word ‘oil.’
Blue oil, sea oil, and so forth.
However, although most industries were merely superficial, the lithium mines were truly valuable enough to be called “white oil.”
“I will also draft a plan to acquire lithium mines in Chile.”
“There’s talk of an FTA being signed with Chile next year, so that should help.”
It was a business that could benefit from the FTA signing.
From the government’s perspective, it could be a justification for pushing through an FTA with South America, so the likelihood of their support was very high.
“There are always talks about concluding an FTA with Chile and other South American countries next year, but opposition is not insignificant. Farmer groups especially oppose it vehemently, and it has even failed to pass the National Assembly plenary session.”
“In the end, it will have to be concluded. Back during the financial crisis, we couldn’t open the economy, but now we are in a position to gain much more through economic openness.”
“Then let’s make plans to acquire mines centered on Chile.”
“Make broad plans covering Chile, Bolivia, and Argentina as well.”
The Lithium Triangle.
Because the three countries mentioned earlier have abundant lithium deposits, this region would come to be called the Lithium Triangle about 15 years later.
Since this information wasn’t widespread yet, we had the chance to secure a head start.
“Oh! Also, I want to diversify the raw materials and core materials needed for semiconductor production.”
“By core materials, do you mean materials like etching gas or hydrogen fluoride?”
“Exactly. Japan dominates over 90% of that market. We need to develop those materials ourselves and create a system to supply them independently. If relations between Japan and us worsen, Japan could impose sanctions using those core materials.”
“I will discuss that issue with Taewoo Chemical.”
Taewoo Chemical had become part of a joint refinery company formed with Aramco.
But since we still owned 50% of the shares, we retained influence.
Aramco was unlikely to oppose core material development.
“There’s no need to prepare mass production facilities right away. Just focus on technology development.”
“Other materials are manageable, but hydrogen fluoride requires purity above 99.999%, which will likely consume a lot of research funding. We can currently produce 99.99% purity with our technology, but going beyond that requires vastly more personnel and equipment.”
“I’m not demanding immediate production, so please proceed with development slowly.”
Diversification of raw materials and core materials was essential.
Only then could we run the company from a position of strength, not weakness.
With these thoughts and measures, the last month of 2003 passed.
The dawn of 2004 did not change my daily life.
I took just one day off on January 1st to rest with my grandfather, then went back to work on January 2nd.
“Planning Director, the atmosphere at the company feels restless today.”
“That’s probably because it’s Friday. Everyone has plans for the New Year’s events, so things seem unsettled.”
“Then let’s just work the morning shift today.”
Before my return, many companies had implemented “sandwich days” (days off sandwiched between a holiday and a weekend).
But now, not only had “sandwich days” disappeared, even taking a day off on a Monday or Friday felt awkward.
“The employees will be very happy.”
“And on days like today, when there’s a weekday between two holidays, we should designate it as a sandwich day so people can rest. I think it’s a necessary welfare measure to boost morale.”
“I’ll start planning to introduce sandwich days this year.”
Even I felt unsettled today—how much more so the average employee?
Working more hours or coming to the office more often didn’t necessarily mean higher efficiency.
You have to rest to increase focus and build company loyalty.
“Oh, by the way, how is Assemblyman Choi Jae-seok doing?”
“About 40 people on the list we prepared have been recruited. Assemblyman Choi has been actively meeting people, presenting a vision, and more are joining that vision.”
“Political matters really do move smoothly when a politician takes the lead.”
“Speaking of politics, the atmosphere in Yeouido is quite tense.”
Is there ever a quiet day in Yeouido?
But this time, it was noisier than usual.
“Has the ruling party gone crazy?”
“Yes. Since the ruling party split into two, sharp criticisms have been flying back and forth. The original ruling party is openly accusing the president of abandoning them and even openly discussing impeachment.”
Impeachment of the president.
It was just before an unprecedented event was about to happen.
Of course, the president wouldn’t actually be impeached, but just reaching the impeachment trial stage would be a first in South Korea’s political history.
“They’re so eager to tear each other apart it’s almost amusing. That’s actually good. The ruling party is fighting among themselves, and the opposition is noisy due to the fallout from illegal election funds, so it’s the perfect time for Assemblyman Choi Jae-seok to make his presence known.”
“The public’s political apathy is growing stronger. If we manage Assemblyman Choi well, he could become a viable alternative to the two major parties.”
“That’s exactly what we need to do. In preparation for this year’s general election, start drafting all the pledges of the politicians we’ve recruited from the planning office’s side. The election campaign company in the U.S. has agreed to help, so it shouldn’t take too long.”
The U.S. was the land of election campaigns.
David had a close relationship with an election campaign expert.
From advanced campaign strategies to image-making—
With expert help, even a 1% increase in the chance of winning was guaranteed.
“We’ll start by organizing projects that can benefit each electoral district as pledges from the Taewoo Group side.”
“Tell Assemblyman Choi and all affiliated politicians to completely ignore what’s happening in Yeouido. We need to establish an image of a party that focuses solely on economic development.”
This was a time when political apathy was increasing and centrist votes were wandering.
To capture those lost middle votes, careful preparation was essential.
TL/n -
The Lithium Triangle is a region in South America that includes Chile, Argentina, and Bolivia, which together hold more than 75% of the world's lithium supply beneath their salt flats. This area is rich in lithium resources, making it a significant player in the global lithium market. However, each country faces challenges such as poor infrastructure, remoteness, and environmental concerns, including water shortages that threaten lithium mining operations. Overall, the Lithium Triangle is crucial for lithium production but must navigate various obstacles to fully realize its potential.
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