"President Woo, what do you mean by that? Japan wants performance?"
Deputy Minister Yeom asked with a puzzled expression, not understanding at all.
"Think about it. No matter how much Japan has progressed, it is still difficult to say that it is an advanced technological country compared to West Germany and the United States."
"Well, that's what the Westerners think. But it's true that Japan is skilled."
"That's exactly it. Japan boasts about its abilities, but others don't recognize it. So, what do they need?"
"... Huh..."
Only then did Deputy Minister Yeom close his mouth tightly.
"Our steel mill's performance is what they need. Building a plant capable of producing a million tons also proves that their technological level is high."
"Is that all? The technical service fees, as well as the equipment and construction materials, are all Japanese-made, aren't they?"
"... Yes. The hot rolling equipment and iron-making equipment are Mitsubishi, the steelmaking equipment is Kawasaki, the technical service is Yawata Steel, and the initial operation is Fuji Steel... it's endless."
"Moreover, with our skilled workers, we will build the steel mill at an incredible speed. It will probably be completed in just over three years. It will be an outstanding achievement."
"No... no way... it will take at least more than five years."
"It took Brazil six years and India nine years to build a 500,000-ton steel mill. Foreign countries also differ by three years depending on the country. How much shorter will it be for us?"
"..."
In history, it took exactly three years and three months for our country.
The more surprising thing was that while it took foreign countries more than a year to raise the operation rate to 80% after building a steel mill, we achieved a 100% operation rate in just four months. Everything was Guinness-worthy.
"All of that will become Japan's achievement."
"Exactly. Based on that achievement, Japan will start sweeping the world's steel plant market. They will monopolize large contracts, leaving American and West German companies behind in South America, the Middle East, Southeast Asia, and Turkey."
That's what actually happened.
They even ran extensive advertisements, claiming that Japan's systematic technology transfer helped our country's technology advance rapidly.
"So Japan supports the construction of a million-ton steel mill despite opposing American opinions. Even invoking the Korea-Japan agreement."
Did Japan put the steel mill loan into the Korea-Japan agreement themselves? Wow, history has changed a bit.
It seems that since we've filled the barn a bit, we are now in a superior position in negotiations. There's no need to be dragged along.
"Now is an opportunity for Japan. Japanese companies are trying to secure large contracts while America's foreign loan support policy is in effect."
We are also in a hurry.
We must complete the construction of the steel mill before the price of iron ore skyrockets due to the oil shock.
"America releases the money, and Japan takes it. How could I not have guessed Japan's intentions until now..."
Deputy Minister Yeom groaned.
Did this man really think that Japanese businessmen were friendly to Korea?
"When it comes to money, they can wear any mask. Apologizing for colonial rule, saying they want to help fellow Asians, talking about opening the future together, what can't they say?"
"But if we lead the Korea-Japan negotiations well, we can invest about $100 million in the steel mill from concessional and non-concessional loans. No matter what their intentions are, we can gain practical benefits."
"Is $100 million in concessional loans considered practical? To give them the achievement of a million-ton comprehensive steel mill, we need to get at least $1 billion."
How much money will Japan make from this achievement!
I couldn't say out loud that if I were the president, I would never accept such a loan.
"Deputy Minister, I also think it doesn't make sense to settle for $100 million. Not only the design services but all the construction materials and steel mill equipment are Japanese-made. Under the pretext of concessional loans, we're just helping them clear their inventory."
"They've been so thorough... ha..."
Deputy Minister Yeom alternately looked at me and Director Seok and then repeatedly drank his liquor.
"Ha... how pathetic. For a deputy minister to be so naive."
Deputy Minister Yeom sighed and reproached himself.
This seemed to be his strength.
He confessed everything honestly and acknowledged it frankly.
"There's no need to be despondent. Japan has been covering our eyes."
I refilled Deputy Minister Yeom's glass.
In the 60s, even those so-called international experts all watched the global trends through Japan.
There was no way they could see the world correctly. They were brainwashed to suit Japan's taste and inevitably became fools.
"It's late at night. Let's all get some sleep."
"Yes. I'll be leaving now. Oh, President Woo. Please read this before arriving at Incheon Steel tomorrow."
Director Seok placed a report at the top of the stack of documents and bowed.
"Well, have a good rest."
Director Seok supported Deputy Minister Yeom and went to the next room.
Deputy Minister Yeom, already quite drunk and overwhelmed with inferiority, was out of his mind.
'Hey, Director Seok... I must have been a fool all this time...'
From beyond the wall, I kept hearing him mumbling, seemingly lamenting to Director Seok.
I leaned against the opposite wall and picked up the report.
I intended to get a rough idea until the surroundings quieted down.
「Incheon Steel West Germany Ruhr Company Loan Cooperation Project」
- Integrated Steelmaking Proposal
- Loan $9.2 million, loan interest $3.94 million, total $13.14 million government payment guarantee completed.
"Integrated steelmaking proposal? What is integrated steelmaking?"
I wasn't from a steel mill background, but I had gone through all sorts of trials in the heavy industry sector, yet this was an unfamiliar term.
I initially intended to read only the first page...
"What is this? This is a scam?"
The more I read, the more absurd it became.
It was written that iron ore and anthracite would be used to make sponge iron, which would then be melted again in an electric furnace for steelmaking.
This kind of steelmaking method was used by the Japanese military as a last resort during the end of the Pacific War.
They borrowed $9.2 million to introduce such technology? Including interest, we have to repay $13 million.
There's no scoundrel worse than this.
The one who borrowed such a loan is either a fool or a corrupt businessman who only cares about his pocket.
The Ruhr company that proposed this technology was no less of a scoundrel. Did West Germany do such a scoundrel act?
Aren't they known for their pride in the technical field?
I was so furious that I couldn't sleep.
I wanted to go to Incheon Steel right away and grab the collar of the people from Ruhr or whatever.
***
The next day,
Clap. Clap. Clap.
"Welcome."
We visited Incheon Steel with Deputy Minister Yeom and Director Seok. The employees even came out to welcome us as we had contacted them in advance.
"Nice to meet you. I'm the president of Incheon Steel, Dong Il-jun."
"I'm Woo Chansu from Daese Industries."
"You've come a long way. Please, this way."
President Dong Il-jun led us inside the steel mill.
"Our Incheon Steel has the country's largest 70-ton open-hearth furnace, capable of producing 140,000 tons of steel annually, and a reversible hot rolling mill that can produce about 100,000 tons of thick hot-rolled steel plates annually."
"!!!"
Producing thick hot-rolled steel plates?
Although the production volume is only 100,000 tons per year, it means they have experienced workers.
It was a company worth considering.
"Following the government's phased steel industry promotion policy, we expect that by constructing sponge iron production facilities with minimal investment and making steel from sponge iron in electric furnaces, we can approximate a comprehensive steel mill."
"Replacing the pig iron produced in blast furnaces with sponge iron, is that right?"
"That's correct. This is the intermediate product called sponge iron or integrated steel."
President Dong Il-jun proudly displayed the sponge iron on his palm.
It was a sponge-like bead with holes about 1.5 cm in diameter.
Each hole was filled with black coal dust, making it difficult to distinguish whether it was an iron bead or a coal bead.
Heating such sponge iron in an electric furnace causes the fine coal dust to trigger a reduction reaction, raising the temperature inside the electric furnace to 1500 degrees.
Electric furnaces can't withstand this, though blast furnaces might.
In short, someone who has never experienced mass production designed the process at their desk.
'This bastard Dong Il-jun must have pocketed the loan.'
The president of a steel mill is spending $9.2 million on such technology? It means he was pocketing the loan through the back door without even considering a technical review.
The Ruhr company that proposed this technology was no less of a scoundrel.
"You mean the Ruhr company will transfer this sponge iron technology for $9.2 million, correct?"
"Yes, renowned masters from West Germany are here in our company."
"Let's go."
"Pardon?"
"Let's go and see it. I need to see the integrated steelmaking method with my own eyes."
When I said let's go, President Dong Il-jun flinched.
"What are you doing, President Dong? President Woo wants to see it. We need to report to the Blue House!"
"Oh, yes, yes."
With Deputy Minister Yeom stepping in, President Dong Il-j
un finally led the way.
***
"Stop. Only authorized personnel are allowed beyond this point."
A large German man blocked our way.
"Step aside. We're from the Korean government. We need to see the master."
"No unauthorized personnel allowed. Go back."
The German man seemed to understand, but he waved his hand dismissively, pretending not to understand.
They even brought in security while transferring technology?
It couldn't be more suspicious.
"President Woo, German friends are very strict about technical security, so..."
President Dong Il-jun began to make excuses.
I knew this would happen. A thief always feels their feet burn.
"Step aside."
I warned the German man clearly.
How dare you act like a scoundrel in another country?
Whack.
"Unauthorized... ugh!"
"Shut up."
With a nod from me, Secretary Gi kicked the man in the groin.
Whack.
"Ooof!"
"Who dares block President Woo's way?"
Secretary Gi precisely kicked the man in the solar plexus and dragged him aside.
"Let's go."
"Yes, yes."
As I led the way, everyone followed with surprised faces.
Not only President Dong Il-jun but also the Incheon Steel employees were frozen stiff.
Rattle.
Secretary Gi opened the closed warehouse door.
"Who is it? Unauthorized personnel... oh?"
A young-looking German, supposedly a master, frowned upon seeing us.
"Are you the master from the Ruhr company?"
"Who are you?"
"You're saying you'll transfer technology using that drum?"
Seeing it in person was ridiculous.
It wasn't something taken from a concrete mixer; it was an electric furnace about 2 meters in diameter and 4 meters high.
"Who are you!"
He couldn't even understand basic English properly.
This guy was no master, not by a long shot.
"Is this electric furnace used to melt sponge iron for steelmaking, the core technology of the Ruhr company?"
Director Seok stepped forward and asked in fluent German.
The master couldn't even respond to Director Seok's question.
No, he probably had nothing to say. This was a scam.
Let's nail it down.
"Start the electric furnace now."
Director Seok translated my words into German.
"... What, what do you mean? Starting it all of a sudden. You need to read my report and gradually learn the operation method. To establish the optimal process, it will take at least a year..."
"Start it now! A $9.2 million furnace can't even melt steel!!!"
If we run this electric furnace, it will become clear.
When I grabbed him by the collar and shook him, he fell back.
"President Woo, starting it immediately is unreasonable..."
President Dong Il-jun intervened.
"Unreasonable? You've had it for six months, right? What have you done all this time? Does it make sense to talk about technology transfer without even running it once?"
President Dong Il-jun couldn't find words to respond to me.
"President, here's the report. The operation sequence is written here."
Director Seok brought a report from somewhere.
"No! No! No! Not yet!"
The German guy tried to snatch the manual, but Director Seok blocked him with his body.
"Great. Let's operate it as written here. Pour in the sponge iron, add auxiliary materials including limestone and deoxidizers, turn on the power, and blow in the air. Let's see what happens."
I operated the crane to pour a pile of raw materials into the electric furnace.
"President Woo, you can't do this."
"Can't? I don't feel any difficulty at all. Isn't it more difficult if a state-of-the-art $9.2 million furnace can't produce a few tons of steel? Do you all think my actions are problematic?"
"... Uh..."
The Incheon Steel employees only opened their mouths without answering.
"Turn on the power and blow in the air."
Following my instructions, Director Seok turned on the power and operated the equipment.
Click. Whirring.
"Ugh..."
The German master began to tremble.
"Everyone, get out of the warehouse. If you don't want to die."
"Pardon?"
People were startled and murmured, but they left the building.
"Hey, bulldozer driver! Build a dike in front of this warehouse with sludge. This place will turn into a sea of fire."
"Look here. Enough is enough!"
President Dong Il-jun stepped forward with a flushed face.
"Shut up! Do as you're told! Hurry!"
Deputy Minister Yeom pulled out his ID and waved it around.
"What are you doing? Build a sand dike here!"
With Director Seok stepping in, the Incheon Steel employees finally started moving in a hurry.
As soon as they built the dike, the electric furnace started glowing red-hot.
"Aaah! The molten iron... the molten iron!"
It wasn't a cheer. It was a scream.
The bottom of the electric furnace melted, and molten iron began to flow out.
As expected, it was a trash furnace.
You don't fix trash.
You completely destroy it to get money.
The West German government that failed to transfer the technology would have to pay compensation, and the ones who embezzled the loan would have to return the money.
Most importantly, the company would be put up for sale in ruins.