The Chaebol Returns To The Presidency 1967 [EN]: Chapter 109

109. Retirement Fund

The President explained.

“Universal welfare leads to moral hazard and weakens national competitiveness. That’s why I’m considering a welfare fund linked to earned income.”

“Yes…”

“It’s a personal pension welfare fund product. Like a savings account, you put a small amount into the fund each month, and from the age of 55, you can receive a pension like a monthly salary. If the sovereign wealth fund supports it, your retirement will be comfortable.”

“If that happens, it will truly be a welfare state!”

“That’s right. It’s benchmarking the most successful retirement security fund in the United States, where tens of thousands of millionaires are born every year in the 21st century. It’s a proven product.”

“Ah, then we should implement it immediately.”

*

In each government office, employees of the Korea Investment Corporation wore sashes and extensively promoted personal pension welfare fund products sold to the sovereign wealth fund.

Citizens were puzzled.

“Why are they promoting it at the district or community center instead of a securities or investment trust company?”

A public relations officer from the corporation replied.

“Because it’s the Korea Investment Corporation, a sovereign wealth fund guaranteed by the country. Even if it fails, it guarantees the average annual interest rate, and if the investment makes a profit, it will be added. You can deposit monthly like a savings account.”

“The state guarantees it, so there’s no risk of losing money, and it’s better than a savings account that only gives interest, right?”

“Of course. Moreover, since it provides a 15% income deduction, you earn at least 15% interest.”

“15%?”

“If you deposit or save in a bank, you can’t keep up with the inflation rate. That’s why it’s hard to buy a house no matter how much you save from your salary.”

“That’s right! But the investment corporation doesn’t live on digging up dirt, so where do they make so much money?”

“It’s supported by the sovereign wealth fund that puts in the money from selling oil. It’s a welfare fund created by the country to give high interest to the people without taking taxes. Later, when you turn 55, it will be paid out as a monthly pension. When you reach your sixtieth birthday, the retirement of those who have this fund and those who don’t will be vastly different.”

“Hmm, this guy is really good at talking. Should I sign up too? But how much do I need to deposit?”

“The amount is flexible, so you can deposit whenever you have money. However, you can only cancel it after three years, and if you cancel it before that, you have to return the 15% you received as an income deduction, so think carefully before depositing.”

Citizens were dubious, and the subscription rate for the first month was only 3%.

Initially, customers were recruited mainly through government offices to build trust, but later it was expanded to be handled by all financial institutions.

*

After the first quarter.

The sovereign wealth pension fund focused on intensively buying stocks of Korean and American oil companies.

Thanks to the soaring oil prices, the first quarter’s return was a whopping 30%.

A customer who checked the pension welfare fund account was surprised.

“What is this? I deposited 200,000 won [approximately $150 USD], and the interest is 60,000 won [approximately $45 USD]?”

A female bank employee explained.

“That’s the quarterly interest, so if the interest rate stays at that trend, the annual interest will be 120%.”

“What? 120%? Is this some kind of loan sharking?”

“Moreover, you have to add the 15% income deduction. And since this is compound interest, it will be several times higher in 10 years.”

“Wow~ the salesperson wasn’t lying. I should sell my house and deposit it right away!”

“Sir, there’s a limit.”

“A limit? How much?”

“Individuals cannot exceed 1 million won [approximately $750 USD] per year per person.”

“Too bad~ I was going to sell my fields and deposit it. The state should spend a little more while they’re at it.”

“This is not speculative investment but a dimension of welfare for earned income, so there is a limit.”

“I understand. Thank you.”

The news of the personal pension welfare fund interest was the talk of the town.

The middle-aged women who saw the interest printed on their bankbooks went wild.

“Oh my, my husband and I should sign up right away.”

“Can my child sign up?”

“It’s from age 25.”

The middle-aged women broke their ‘gye’ [rotating credit association, a traditional Korean informal lending circle] and rushed to the bank to open pension fund accounts.

The line was so long that bank operations were paralyzed for two weeks.

The total amount of the pension fund rapidly increased and was invested in stocks of Korean and American oil companies and promising Japanese companies.

31%, 27%, 30%… The quarterly average profit continued to be close to 30%.

Subscribers who paid the maximum annual limit of 1 million won saw their investment grow to 2.2 million won after one year.

Since it increases with compound interest, calculations showed that it would easily exceed approximately 30 million won [approximately $22,500 USD] in 10 years.

If you deposit for about 20 years, you will receive a generous pension every month from the age of 55, securing your retirement.

This was the working welfare that the President had pledged.

*

Paju Industrial Complex.

Today was the opening ceremony of the industrial complex.

The industrial complex fence had concrete walls.

This was a requirement from the North to prevent the outside from being seen.

The Paju Industrial Complex was subject to a personal safety guarantee treaty, so even if a North Korean worker defected to South Korea, they had to be returned to the North.

The South Korean President and 10,000 North Korean workers in work uniforms were in attendance.

In the ceremony hall, chairs were divided for South Korean industrial complex company officials, the press, and VIPs.

Security around the venue was extremely tight.

Military units, special forces, and the Presidential Security Service were all mobilized, providing triple security.

This was because they had received notification that a VIP from the North would be attending.

The VIP was expected to be North Korea’s Premier Kim, but they did not disclose the name for security reasons.

This was because if the State Security Department judged that the South Korean security was inadequate, they would replace him with another person.

The North Korean State Security Department carefully surveyed the scene.

They asked the South Korean security officer.

“Why are there so many reporters? We only prepare a few cameras, and the newspaper articles are received from the Party and published, so isn’t it excessive to have about 100 people?”

“We have freedom of the press, so reporters have to write articles about what they see.”

“It’s a waste, a waste! But are the reporters trustworthy? Have they all been body searched?”

“Of course. We received prior notification, verified their identities, and completed body searches.”

“Who are those Yankees over there?”

“They are reporters from the American Washington Post and the British BBC.”

“Why are the Americans involved in a national event?”

“Reporters have no borders. We guarantee freedom of the press.”

“Never allow the Yankee reporters to approach.”

“Understood. We have set up a separate photo line for the reporters.”

Opening tapes were installed at the entrances of about 20 new factories and auxiliary facilities.

The South Korean President and his entourage stepped forward.

At that moment, a black sedan stopped.

Screech~

The State Security Department opened the car door, and Premier Kim got out, walking awkwardly.

The leaders of North and South Korea shook hands.

As the North and South Korean leaders met and shook hands for the first time, camera shutters and flashes exploded.

Click! Click!

Pop! Pop!

The President said.

“Welcome, Your Excellency the Premier!”

“Pleased to meet you, Your Excellency the President!”

They shook hands and stood in front of the opening tape.

The Premier waved to the 10,000 North Korean residents.

The residents clapped, cheered, stomped their feet, and frantically chanted the leader’s name.

Some people were crying.

To justify the North Korean Premier’s visit to the South, they staged it as if North Korea had occupied some territory of South Korea and was holding a celebratory event.

The North Korean cameras captured this scene without missing anything.

The two leaders cut the five-colored tape with scissors.

Flap flap~

A flock of doves, symbolizing peace, flew into the sky.

The two leaders toured the industrial complex for 30 minutes.

The President visited the cafeteria and explained.

“Work uniforms, lunch, and snacks will be provided by the South.”

“First-class facilities.”

“Meals are prepared, would you like to join us?”

This was an unexpected proposal.

The Premier was horrified.

“No. I have another schedule.”

The Premier stayed in the South for about an hour and then left abruptly.

His true feelings, that he had no choice but to come because of the oil, were clearly revealed.

He was extremely wary of being seen as having any other meaning besides a cooperative industrial complex.

*

The next day.

The North Korean media was working hard to package the Premier’s visit to South Korea.

– The Great Leader visited the industrial complex to encourage the North Korean workers working at the North-South joint industrial complex. The South Korean President bowed his head and greeted him, and the South Korean people also warmly welcomed the Leader.

The word ‘South Korean oil’ was a taboo word in North Korea.

*

30,000 North Korean workers began work.

80% were women in the textile, clothing, and footwear industries.

In order to prevent defection, North Korea selected only men and women with families and sent them to the industrial complex.

The North Korean workers worked tirelessly in front of the sewing machines.

Thump thump thump!

They even held in their urine and went all at once during the 90-minute break.

The North Korean workers were surprised by the snacks provided by the South.

“What is this? Is it already lunchtime?”

The South Korean meal manager said.

“No. It’s a snack.”

“A snack? What is a snack?”

“You can think of it as a kind of ‘saecham’ [mid-meal snack].”

“Ah, ‘saecham’! Do you give lunch separately?”

“Of course.”

The North Korean workers were once again surprised in the cafeteria.

“You don’t serve the rice, but you can scoop as much as you want?”

“Yes, it’s a free buffet, so eat as much as you like.”

The meal manager only served the soup, and the rest of the rice and side dishes were a buffet-style free meal.

For several days, North Korean workers suffered from indigestion.

This was because they overate.

Some people skipped breakfast, ate as much as possible for lunch, and even solved dinner.

Since food was rationed, the more they didn’t eat, the more abundant the other family members could eat.

The most common request was this.

“Manager comrade, if there are any leftover snacks, can’t we get some?”

The bread and drinks taken from the industrial complex were not eaten but taken to the market and sold.

They were very popular because the children of the North Korean elite liked them, and they couldn’t be found even if they paid a high price.

The money earned from selling snacks was as much as the salary given separately in North Korea.

In North Korea, half of the workers’ wages were used for South Korea’s oil payments, 35% went to the Party, and only 15% was paid to the workers.

As the workers working in the industrial complex lived abundantly, North Korean residents all pleaded to work in the industrial complex.

Those with connections used their connections, and those without proper connections frequently bribed Party officials to buy positions.

The price of a position at the Paju Industrial Complex soared to the equivalent of one year’s salary.

South Korea was gradually becoming an ideal to them.

*

Jinhae Naval Base.

Toot toot toot!

The President’s helicopter landed gently on the deck of the light aircraft carrier.

“Salute!”

The Minister of National Defense, the Chief of Naval Operations, the US Deputy Secretary of Defense who had crossed the Pacific for this event, the US Asia-Pacific Commander, and the US Forces Korea Commander all saluted in unison.

Although it was a used item that had been acquired, it was the day to rename it in the Korean style as the owner had changed.

The majesty of the light aircraft carrier carrying fighter jets and helicopters was tremendous.

The Minister of National Defense proudly explained.

“Welcome, Your Excellency! Welcome to Asia’s first aircraft carrier.”

Only the Soviet Union had aircraft carriers, and China and Japan had not yet possessed them.

“You’ve worked hard training the crew!”

It was the first day to operate independently after receiving operation and technology transfer from the United States.

“Thank you, Your Excellency!”

The President approached the lined-up crew members and fighter pilots and shook hands with each of them.