The Chaebol Returns To The Presidency 1967 [EN]: Chapter 146

146. Standing Before the U.S. Congressional Hearing

American media outlets raced to cover the internal whistleblower’s revelations, making it a headline story.

Consumer groups marched in protest in front of the state capitol building, holding signs aloft.

“The height of hypocrisy! Shut down Monsanto!”

“No Roundup, No GMOs!”

Even those who had previously supported Roundup as a viable business venture now distanced themselves from Monsanto’s deceptions.

Upon hearing the news, CEO George clutched the back of his neck, his face reddening.

Seized by fury, he roared.

“Sue that bastard who leaked the internal documents! Make him pay for the enormous damage to the company and utterly destroy him!”

The lawyer responded cautiously.

“But sir, the Public Interest Whistleblower Protection Act prevents us from claiming damages from a public interest whistleblower, or inflicting any disadvantage or harm upon them.”

“What? You’re saying we can’t even touch him?”

“That’s correct, sir. We need to be more diligent in controlling internal leaks.”

Paranoia began to set in, and he found himself unable to trust anyone around him.

Finally, the American court delivered its verdict.

*

California Court.

The judge began reading the appellate ruling.

“Unlike the first trial, compelling scientific evidence proving harm has been presented! The link between the use of Roundup herbicide and the onset of cancer, and other specified diseases, is recognized! Monsanto, responsible for this outbreak, was aware of the harmful facts in advance but consistently committed perjury. Therefore, punitive damages of $100 million are to be paid!”

“Wow!”

Cheers erupted from the plaintiff’s side, while the defendant’s side remained stoic, as if they had anticipated the outcome.

The judge continued to read the verdict.

“Regarding the ban on the sale of Roundup, it can continue to be sold if the Roundup product clearly specifies carcinogenic hazards similar to those found in tobacco products!”

As expected, the ruling allowed for consumer choice rather than imposing a complete ban.

By shifting responsibility to consumer choice, a legal basis was established for victims who could prove the causal relationship between the disease and Roundup to receive compensation.

The second trial’s verdict was upheld in the third trial, forcing Monsanto to pay substantial damages.

Victim lawsuits began to proliferate across the country.

*

President Jeong donated a significant sum to the ‘Roundup Victims Litigation Group,’ formed by the American Consumers Association, to bolster their efforts in proving the causality of the disease.

The litigation group established branches in approximately 50 states across the United States, receiving a flood of damage reports.

The receptionist inquired of a new claimant.

“When did you begin using Roundup?”

A golf course manager suffering from thyroid cancer replied.

“I’ve been using it to control weeds for two years. I spray it regularly every week.”

Around 20 caddies and amateur golfers who frequented the same golf course also reported cases of leukemia, skin cancer, menstrual irregularities, asthma, and atopy [a type of allergic reaction].

Consumers who frequently consumed chicken and beer fried in canola oil (rapeseed oil) containing GMOs also reported severe atopic dermatitis and colon cancer.

Previously, these diseases were often attributed to alcohol consumption.

The following consumer inquiries flooded into the association.

“I’ve heard that Roundup herbicide is harmful, but it’s difficult for consumers to identify which foods contain GMOs. How can we distinguish them?”

The consumer litigation group filed a lawsuit in court to mandate GMO labeling on food products, empowering consumer choice.

However, state courts delivered conflicting rulings.

In states with large agricultural areas, the cultivators were favored, and labeling was not required. Conversely, in states with large urban populations, labeling was mandated to reflect consumer preferences.

The federal court remained neutral, stating that the decision rested with each individual state.

*

American economic news program.

The host turned to a stock analyst.

“Recently, Monsanto’s stock price has plummeted by 80% due to the fallout from the Roundup lawsuits over the past six months. Where do you see the bottom?”

“Lawsuits from victims of GMO agricultural products using Roundup are ongoing. With treatment costs and compensation for damages potentially reaching $10 million per person, losses exceeding $500 million are anticipated this year alone.”

“That’s equivalent to their annual operating profit?”

“That’s right. Furthermore, the scope of application is recently expanding from GMO grain to processed food damage, so the amount of damages is expected to snowball. This suggests that today’s stock price is not the lowest point.”

“Very pessimistic. However, the company announced that demand from farmers in cultivated areas has not decreased, and sales and operating profits are stable due to exporting 90% of the harvest overseas, suggesting a temporary shift to deficit. Will things improve after the wave of damage compensation subsides?”

“I’ve also reviewed the company’s report. However, in South Korea, the largest importer of GMO agricultural products, glyphosate is designated as a prohibited food additive, effectively banning the import of American GMO agricultural products. Germany and Taiwan are also enacting legislation to ban the import of GMO agricultural products. Overseas markets are shrinking as well. Ultimately, it’s unlikely to be a temporary downturn.”

“I see. Some rumors are circulating about Monsanto’s bankruptcy and insolvency. Is that a possibility?”

“For now, they have sufficient cash reserves, so bankruptcy is unlikely. According to Monsanto’s internal information, they are seeking a breakthrough by attempting to sell the company. However, it’s uncertain whether any company would acquire a company facing expected large-scale losses and a tarnished social image. While the drop is excessive, investors should exercise caution.”

It was President Jeong who delivered the final blow.

*

Cargill Headquarters.

Chairman Jeong convened a meeting with the directors.

“Recently, GMO agricultural products have become a significant social issue. Consumers are expressing aversion to GMO foods. Cargill is a grain distributor that pursues profits, but it also bears a social responsibility.”

“……”

“Cargill should consider suspending transactions involving GMO grains.”

Director Sorrow, the son of the Cargill family, was visibly angered.

“That’s absurd! I object! Most of Cargill’s distributed grains are GMO grains, and we participate in the government’s food aid program. If we halt this, are you suggesting we shut down the company?”

President Jeong countered.

“Director, do you feed your family GMO foods?”

“That’s my personal life, and I decline to answer.”

“Companies also have a social responsibility. We must guide cultivators to make informed choices.”

“What about the farmers who have already sown seeds and are nearing harvest? We should support the farmers, so why are we siding with the consumers?”

“There will be less disruption for farmers if we announce in advance that we will suspend transactions for GMO grains starting from next year’s harvest. Moreover, no other grain major can match Cargill’s immense purchasing power. The grain aid program will remain unaffected.”

“It’s certain that sales will decline. Are you unaware that management practices that inflict enormous damage on the company constitute a breach of trust, Chairman?”

He still harbored resentment toward his father, who was in the hospital.

Chairman Jeong replied.

“Various countries are regulating GMOs, leading to a decrease in grain exports. I am guiding the transition to NON-GMO crops to proactively prepare for the impending management crisis.”

“……”

“If sales decrease starting next year, we can compensate for it with hedge derivatives. Director Sorrow, are you concerned that the stock price will fall and the total value of your holdings will diminish?”

“Of course. Our family still owns 29% of the shares, so why would we want to see our assets decrease?”

“A decrease in sales is inevitable due to prevailing trends. Make a sound judgment.”

“……”

Ultimately, President Jeong’s proposal was approved by a board vote.

Sorrow, through a family meeting, decided to sell a substantial portion of his shares before sales declined and the stock price plummeted, and he took action accordingly.

Cultivators who received Cargill’s notice that they would no longer handle GMO grains starting next year were outraged.

The grain dealers and cultivators, wielding considerable political influence, ultimately summoned President Jeong to testify at a U.S. Congressional hearing.

*

U.S. Congress.

President Jeong swore an oath.

“I swear that I will be duly punished for perjury and will only tell the truth!”

President Jeong, standing before the esteemed foreign politicians, couldn’t help but feel intimidated.

He chewed two Cheongsimhwan pills [herbal medicine for calming nerves], but he couldn’t calm down.

Congressman Mackenzie, with blonde hair, asked with a condescending tone.

“90% of the grains handled by Cargill are GMO grains. For a grain distributor to refuse to handle GMO grains is a highly unusual decision from a business perspective. You’re sacrificing profits, so why did you make such an absurd decision? Are you plotting to bankrupt American farmers because you are of Korean nationality?”

President Jeong steeled himself and replied.

“The glyphosate component of Roundup has been designated as a carcinogen by the WHO [World Health Organization]. Cultivators may benefit from increased GMO grain production, but consumers suffer from deadly diseases. Companies have a social responsibility, so we guided farmers to avoid harming consumer health.”

“Isn’t profit pursuit the primary objective for companies? The cause is merely an excuse.”

President Jeong, angered by the overbearing attitude, retorted.

“I would like to ask the congressman: Does the United States subject managers who prioritize the social responsibility of companies to trial at a hearing, even at the expense of losses?”

“……”

Congressman Mackenzie was taken aback by President Jeong’s forceful response.

Caught off guard, he cleared his throat and regained his composure.

“Hmm, hmm, do you believe it is appropriate for a distributor to restrict the freedom of choice of cultivators?”

“Is it appropriate to restrict the freedom of purchase of grain distributors?”

Congressman Mackenzie, his face flushed, unleashed a barrage of questions to regain the upper hand.

“The U.S. government entrusts the food aid program to Cargill. Most of the aid food is GMO grain, and if you halt this, you are acting against the interests of the country. Have you not considered that this constitutes a rebellious act?”

“Food aid is a humanitarian relief activity carried out by the United States. But if that grain contains pesticides, does it truly fulfill the original purpose of humanitarianism?”

“……”

“Is it treason against the United States to take action to provide healthy grains that do not contain glyphosate? What defines American patriotism, Congressman?”

The audience stirred.

The four-term veteran congressman was offended by the counterattack from the foreign businessman.

Visibly embarrassed, Congressman Mackenzie sweated and attempted to reassert control.

“This is a hearing! The witness should not ask questions, but answer them!”

“Then please refrain from asking questions as if you are interrogating a criminal! Treason? Please avoid making reckless remarks. I don’t believe that’s the conduct expected of a four-term congressman.”

“……”

Congressman Mackenzie was effectively lectured and stepped down.

This time, female Congressman Jemina took his place.

“The grain distributed by Cargill is dominant in the United States and accounts for 40% of the world’s distributed grain. If the distributed grain decreases significantly, it will cause great chaos in the United States and around the world. The outcome may be entirely different from the noble motive of social responsibility. Do you have any intention of reversing your decision?”

This time, she launched a pointed attack.