The Chaebol Returns To The Presidency 1967 [EN]: Chapter 18

18. Nurturing the Automotive King

“Yes, but even then, we’re short on funds. That’s why Korea Tungsten will invest 25%. The government and Korea Tungsten will have a 75:25 split. It’s a joint venture.”

“All profits from Korea Tungsten will be invested in steel manufacturing.”

“Thank you. The future of the Republic of Korea rests on your shoulders. If we fail to transform into a heavy and chemical industry powerhouse, the modernization of the Republic of Korea will remain a distant dream.”

“I will keep that in mind, Your Excellency!”

Park Dae-joon was resolute, prepared to dedicate his life, but the President, knowing the future, wasn’t anxious about the outcome.

The President presented Park Dae-joon with a new path, one that did not exist in history.

“Mr. Park, there’s an export sample we need to create first.”

“A sample? What is it, Your Excellency?”

The President gestured, and a bodyguard placed a 007 briefcase on the desk and opened it.

It was the briefcase Lee Woo-rak had brought.

“Your Excellency, aren’t these Japanese coins?”

“That’s right. We import coins from the United States. Now, we need to become a coin-exporting country. The documents inside detail the Japanese coin manufacturing process.”

Park Dae-joon’s eyes gleamed.

“Ah, is that so!”

He said, flipping through the documents written in Japanese.

“Japan’s smelting and alloying technology is world-class. It developed rapidly while preparing for the Pacific War.”

“That’s why I acquired Japanese technology. Before making coins, we need to make commemorative coins first.”

“Commemorative coins?”

Mass production and distribution of domestic circulating coins would take at least a year.

That’s why he chose commemorative coins, which could be produced quickly in small quantities.

“Use special alloys, gold, and silver to create a limited edition with exquisite craftsmanship.”

“Using manufacturing technology to create commemorative coins seems like overkill.”

“It’s for an export business sample.”

“…….”

“We’ll need to build a steel mill and export steel products in the future. We’ll also build ships and cars. What will convince foreigners to trust Korea’s steel technology?”

“…….”

“We need to show them coins. It’s a kind of sample.”

“Ah! That’s what you meant. I misunderstood.”

“Did you think I wanted coins with the President’s face on them? We’ll make coins commemorating the scientific and technological prowess of the Korean people. Let’s create ten designs featuring the Silla gold crown, Hangeul [Korean alphabet], the Honcheoneui [armillary sphere, an astronomical instrument], the Turtle Ship, Singijeon [a type of fire arrow], and metal type.”

“Understood, Your Excellency!”

* * *

Kia Industrial Company’s Yeongdeungpo plant in Seoul.

Technicians were assembling machine parts along the assembly line in the factory.

In the final process, a three-wheeled vehicle was completed. It was the first automobile production plant in Korea.

The President visited the president’s office and shook hands with President Kim.

President Kim Cheol-ho, also the founder of Kia Industrial Company, was a man who had learned the mechanics of the Japanese machinery industry while producing automobile and bicycle parts in Japan.

During the Japanese colonial period, when Japan was building aircraft carriers and submarines, Korea couldn’t even make a single bicycle screw.

After liberation, he returned to Korea and made and sold bicycles, and in the 1960s, he began producing three-wheeled trucks.

“Your Excellency, I am overwhelmed by your visit to such a humble factory.”

“I hope the President’s visit hasn’t disrupted your work with all the cleaning and tidying.”

“Your Excellency’s visit is an unparalleled morale boost for me and our workers.”

“Let’s greet the workers here.”

“Yes?”

The president, as well as the aides, were wide-eyed.

“Your Excellency, what do you mean….”

“Since we’ve come to Kia Industrial Company, shouldn’t we meet both the management and the workers? Let’s go to the production plant.”

The president’s sudden visit to the production line embarrassed President Kim.

The President’s route had been swept and cleaned, but the factory, stained with noise and oil, couldn’t be cleaned so quickly. No, there was a limit even if they tried.

The President went to the factory and shook hands with the technicians who were working, one by one, their hands stained with oil.

President Kim and the bodyguards were equally nervous about the sudden situation.

When he finished shaking hands, the President’s hands were covered in black oil.

The President said to the workers.

“The soldiers guard the front lines, but you guard the industrial front lines. As President, I thank you.”

The President bowed, and the moved workers applauded enthusiastically until their palms were on fire.

Clap clap clap!

The sound of clapping echoed loudly inside the enclosed factory.

The president had not bowed to voters during the election, but he bowed in an oil-stained factory, which was shocking.

The existing presidential inspection was a confirmation of top-down command, like a military parade, but now the concept was changed to morale boosting, like a consolation performance.

Leaving behind a deep impression, the President returned to the president’s office.

The first thing that came into the president’s office was the Taegeukgi [South Korean flag] flag and the President’s portrait frame.

“President Kim, you can remove the President’s picture next to the Taegeukgi flag frame. There’s no reason for a private company to worship the President like the Japanese Emperor.”

The Taegeukgi flag frame was originally there, but the frame was hastily made and installed because the President was coming.

“Ah, I understand.”

President Kim briefed on a panel that briefly outlined the company and its future vision.

After listening to everything, the President asked.

“Is there an employee here named Kim Seon-heung?”

The reason the President came was to meet Kim Seon-heung.

President Kim was surprised.

“Yes, he’s our engineer management section chief….”

“Bring him here.”

“Ah, I understand.”

President Kim thought to himself.

‘Ha, this guy, he had the President’s backing? He should have said so sooner.’

If he had the President’s backing, he would never have started from the bottom and would have started in a management position.

Kim Seon-heung graduated from Seoul National University and joined Kia Industrial Company as its first open recruitment, starting as a regular employee.

He was a rare talent in Korea who rose to become the top executive from an engineering background.

His influence on the Korean automobile industry is unique.

He led the localization of automobiles at the forefront.

He surpassed 1 million cars produced (1988) and launched Korea’s first independent model (1992), not a Japanese OEM [Original Equipment Manufacturer], pioneering the global market.

In 1995, he recorded 1 million exports, and the following year, he recorded 5 million units of his company’s cumulative automobile production, growing Kia Group into the 8th largest conglomerate.

However, at the crossroads of business expansion, the IMF [International Monetary Fund] crisis broke out, and he was forced to step down from management due to political and diplomatic conspiracies.

Since the national bankruptcy was caused by politicians, he was actually very wronged.

The President wiped his hands, which he had shaken, with a towel hastily prepared by the company, but the oil did not come off easily.

Kim Seon-heung came in. The President reached out and shook hands with the young man with bright, sparkling eyes.

Kim Seon-heung was embarrassed.

“Your Excellency, there’s oil on my hands….”

“It’s natural for a farmer’s hands to be covered in dirt and a technician’s hands to be covered in oil.”

Like the other workers, Kim Seon-heung’s fingernails were also stained with black oil.

The President grabbed his oil-stained hand.

During Chairman Wang’s time, he faced the young days of a competitor who was fiercely competing as an automobile rival, and the memories of that time passed like a lantern.

While expanding into construction and shipbuilding, Kim Seon-heung focused solely on automobiles and succeeded in localization. Later, when he began exporting cars overseas, Chairman Wang once again spurred Hyundai Motors to compete with Kia, and then acquired Kia, which was leaning towards IMF, and grew into Korea’s top brand, Hyundai Motors.

The President, who had eaten oil rice [worked hard in the industry], was revitalized by Chairman Wang’s passion when he saw the young Kim Seon-heung.

But now, instead of being a competitor, he wanted to support Kim Seon-heung as a helper.

The President said to President Kim.

“This young man will lead Kia Motors in the future. And he will become the automotive king of Korea.”

He was a promising young man who was usually diligent, sincere, and had excellent creative technology, and he was promoted faster than others. Since the President showed his favor, President Kim had no choice but to decide to raise Kim Seon-heung as a manager.

“I understand, Your Excellency. He’s already a talent at our factory. He’s a young man with enough skills to do so.”

“And this factory is too small, isn’t it?”

“That’s right. As the number of cars increases, there is not enough space to park the finished cars. We are looking into the provinces.”

The President used future information.

“I prepared a gift while coming here.”

“…….”

“There is a large site in Soha-ri, west of Gwanaksan Mountain. The government will hand it over at a low price, so build a factory there right away.”

“Really?”

“Haha, the President’s mouth is heavy [I don’t make empty promises]. Economic Secretary!”

The secretary who was accompanying him came forward.

“Please give President Kim the Soha-ri site information I mentioned earlier.”

“Yes! President, here are the documents related to Soha-ri. Please review them.”

The secretary handed a thick file to President Kim.

There was no greater gift for an automobile factory president than this.

President Kim bent over and received the data with both hands.

“Thank you, Your Excellency!”

“Entrust this young man with building the Soha-ri factory.”

“Your Excellency, how could I not? Thank you so much.”

“But there’s one condition.”

“A condition?”

“Haha, your face suddenly changes.”

“…….”

President Kim was blaming himself, thinking that he seemed to be receiving a big gift too easily.

“I’m not asking you to offer slush funds [bribes]. Build a munitions factory on part of the Soha-ri site.”

“Did you say a munitions factory?”

“Yes. Start with military trucks and plan to produce cannons, armored vehicles, and tanks in the future. You’ll also be in the defense industry.”

This was a huge privilege. Having a safe delivery destination was a bigger gift than providing a low-cost site.

“Thank you, Your Excellency!”

But at the same time, it was not just a privilege for them.

During Chairman Wang’s time, he competed with Kim Seon-heung over the production of military trucks and domestic tanks, but he had a painful experience of losing because Kim Seon-heung was far ahead.

Kim Seon-heung was a talent more specialized in the production of military weapons than automobiles.

If military weapons were supplied, the stable profits from there could be used to maintain and expand automobile production more stably.

It was a win-win situation for both Kia and national defense.

“President Kim, don’t forget to share the profits with the workers if there are any left over.”

“Of course. Employees are also family. I clearly remember Your Excellency’s speech at the National Cemetery.”

He gave Soha-ri as a gift to raise Kim Seon-heung early.

In that way, Kia Motors’ foundation laid its first shovel in Soha-ri two years earlier than before the regression. Kim Seon-heung’s winged performance was expected.

The President visited the best executives who would grow into Korea’s electronics, home appliances, semiconductors, and construction industries in the future, such as Daewoo Group’s Kim Woo-joon, a myth of salaried men, and Samson Group’s Lee Byung-seol, and gave them gifts that could advance corporate development by several years.

As the offering of slush funds for governance was eradicated and the President released a huge bundle of gifts, the industry was revitalized at once, like rain on dry land.

Now, the last remaining person was Hyundai Group Chairman Wang.