The Chaebol Returns To The Presidency 1967 [EN]: Chapter 21

21. Those Who Object to the Expressway

Kim Young-wook lit a fresh cigarette and nodded.

“Exactly. Why would a district representative agree to use taxpayers’ money to build a road solely between Seoul and Busan? The Economic Planning Board will sort it out. The Ministry of Construction can just sit back and watch.”

National Assembly members viewed the expressway as a lavish project primarily benefiting tourists.

With a massive national budget allocated to the road, yet seemingly only benefiting the Seoul-Busan corridor, representatives from other districts voiced strong opposition in various ways.

“Understood, Minister!”

If he failed to secure the budget, the President’s evaluation of the Minister of Construction—whose performance was to be judged on the construction of the Gyeongbu Expressway—would be jeopardized. Kim Young-wook, however, remained relaxed, confident in his position.

* * *

Economic Planning Board.

The Director of the Planning Board cautiously addressed Deputy Prime Minister Kim.

“It would be far more profitable to invest the funds earmarked for the Gyeongbu Expressway in other industries. We have no choice but to oppose allocating such a substantial amount of money to a project with such a low cost-benefit ratio.”

“…….”

“Deputy Prime Minister, you know from your time at the Planning Board that numerous unnecessary and non-urgent items are already vying for funding.”

Having worked at the Planning Board himself, he understood the constant struggle of a limited national treasury stretched thin across numerous demands. He knew the pressure to allocate funds even to less critical areas.

However, now that he was in a position to request funds, he felt the repercussions of past budget cuts keenly.

“A country’s modernization hinges on its road infrastructure. This is the nation’s aorta. It may not yield profits until the next administration, or even the one after that.”

“…….”

“Despite the potential for unfavorable evaluations during his term, His Excellency is desperately pushing for this project for the future of the country. We must invest in our future.”

“Ah, you’re remarkably persistent. Why would I be acting this way if I had a choice? The National Assembly’s threshold is even higher. We need creative solutions, like raising the oil tax.”

One proposed source of funding for the expressway construction was an increase in the oil tax.

This was justified by the principle that those who use the roads should contribute to their construction.

Deputy Prime Minister Kim then proposed a condition.

“How about this condition?”

It was a condition suggested by the President.

“Refrain from using national finances and raise 70% of the massive construction cost through foreign loans.”

“70% through foreign loans?”

“Yes.”

“Then, if the foreign loan is secured first, it might be possible to persuade them if the remaining 30% is covered by the national budget.”

Because they had already assumed securing foreign loans would be impossible, it was a condition designed to avoid responsibility.

“Even if the foreign loan is secured, it takes time to implement, potentially exceeding the national budget review period and wasting a year. Therefore, please reflect it in next year’s budget, even if only a memorandum of understanding [a non-binding agreement] for the foreign loan is signed.”

“Yes, a memorandum of understanding is sufficient evidence. I will do so, Deputy Prime Minister.”

That’s how conditional approval was obtained.

* * *

The National Assembly was located at the Sejong Center for the Performing Arts in Taepyeong-ro.

The Speaker of the National Assembly’s official residence.

Minister of Construction Kim Young-wook was meeting privately with the Speaker of the National Assembly.

He reluctantly agreed to the President’s request to explain the Gyeongbu Expressway budget proposal to the National Assembly and seek their cooperation for its passage.

The Speaker of the National Assembly, after listening to the Minister’s explanation, put a pipe in his mouth and shook his head.

“We cannot allocate such a huge amount of money to such a wasteful project. We need to prevent floods, improve farmland, and build bridges. Do you know how many urgent issues there are in the districts?”

“I agree with you wholeheartedly, Speaker. I admit it’s a bold undertaking.”

“Why did you come to me knowing that so well?”

“It’s His Excellency’s key project. Please at least feign support for it.”

“Minister, this isn’t a matter of a few pennies. It’s a massive project costing tens of billions of won annually. What do you mean by ‘pretending’?”

“That’s why the plan is to spread the 13 billion won over three years, contingent on securing foreign loans. In other words, if foreign loans aren’t secured, it’s as if nothing happened.”

“…….”

“It’s unlikely to happen, but if foreign loans are secured, we’ll have an expressway. If not, the budget can be returned to the districts.”

“Hmm, foreign loans will be impossible… If it’s returned to the district budget, it’s worth considering.”

“Yes. That’s what will likely happen anyway. It’s a win-win situation where you follow His Excellency’s instructions and address the lawmakers’ concerns.”

“Okay. Let’s do it.”

* * *

Farmers held a demonstration with banners.

“Why build a road on fertile farmland!”

“We are against the destruction of rice-producing land!”

“We are against the expressway that disrupts the *feng shui* [geomantic principles] of this auspicious site!”

As soon as the Gyeongbu Expressway plan was announced, landowners and farmers in the affected areas protested.

A National Assembly member who opposed the expressway construction leaked information to landowners and voters in the district, encouraging opposition demonstrations.

This news reached the President.

“Your Excellency, the people in the area are holding opposition demonstrations. They claim it will damage farmland and disrupt the *feng shui*.”

“Farming? *Feng shui*?”

The President took out a cigarette.

“I can’t quit smoking, no matter how hard I try. Sigh~.”

He exhaled cigarette smoke to relieve his frustration.

“They’re truly stubborn people. The land around the expressway will skyrocket in value, yet they’re worried about farming. They should be thinking about this national artery project for national development, but they’re concerned about the *feng shui* of a small village!”

“That’s right. They’re old fogies who don’t understand industrialization and modernization.”

“Still, complaints are complaints, so do this.”

The President ordered a change in the construction plan.

“Reduce the 10-lane round trip to a 4-lane round trip. Instead, secure 50 meters on both sides to prepare for future expansion. Revise the shortest distance between Seoul and Busan to avoid farmland and minimize complaints. If it’s not done quickly, it’ll be difficult to even begin construction!”

The most troubled by this order was President Jung of Hyundai Engineering and Construction.

“Speed? If we avoid flat farmland, we’ll have to dig through rough mountain roads and build bridges over rivers. Making the more difficult section faster will be a challenge!”

It was a relief that the road width was reduced.

For the sake of speed, the construction route was also changed.

Initially, they planned a V-shaped expressway connecting Seoul-Busan and Seoul-Gwangju, but they changed it to a Y-shape with Daejeon as the starting point—that is, Seoul-Daejeon-Busan (Gwangju)—to minimize the construction section.

* * *

The opposition party’s office.

A debate was held over the Gyeongbu Expressway budget proposal brought by the ruling party.

“Isn’t this absurd? Is it right to pour taxpayers’ money into creating a tourist road for foreign cars?”

“We cannot pour national taxpayers’ money into a large-scale project that only benefits Seoul and Busan, excluding the Honam region [southwestern region of Korea].”

The Planning Director said.

“There must be an ulterior motive for pushing ahead with such a ridiculous project.”

“What kind of ulterior motive are you talking about?”

“Creating slush funds, that’s what. Construction is a prime opportunity to embezzle money. The Blue House [the presidential residence] coffers are empty after the two recent elections, so they’re trying to replenish them with this massive civil engineering project.”

“Hmm, that makes sense.”

The chairman attempted to shift the prevailing strong opposition.

“As the lawmakers have said, it’s the President’s absurd stubbornness. It shouldn’t end up in the Blue House’s wallet. But there’s a condition attached here: securing foreign loans!”

“…….”

“According to the ruling party leader’s explanation, if we don’t secure foreign loans, the funds will be returned to the district budgets. What sane country would readily give a developing nation without many cars a loan for an expressway?”

“That’s true.”

“So, when the National Assembly is normalized, let’s pretend to yield and secure our district budgets through prior consultation.”

That’s how the ruling and opposition parties secretly divided the budget in a closed room.

* * *

The International Bank for Reconstruction and Development headquarters.

Kim Chung-ryum flew to the United States to meet Eugene Black, the president of the International Bank for Reconstruction and Development (IBRD).

The IBRD was an international financial institution under the United Nations, established in 1945 to support post-World War II reconstruction and economic development in developing countries.

This was because the National Assembly had stipulated that if foreign loans were secured, they could allocate a portion of the budget to the project.

Before leaving the country, the President had advised Deputy Prime Minister Kim:

“The bank president will undoubtedly refuse. But don’t give up; try to persuade him in this way.”

Trusting the President’s advice, he crossed the Pacific Ocean.

On President Black’s desk was the Gyeongbu Expressway construction project budget proposal, which had already arrived by mail.

President Black, with yellow hair on the back of his hands, tapped the document with a Parker fountain pen and asked with narrowed eyes.

“Korea is building an expressway that is 416 kilometers long?”

“Yes. Currently, the first 30-kilometer section of the Gyeongin Expressway is nearing completion. We have sufficient technology.”

“What I mean is, Korea still lacks sufficient food. A significant portion of the population lives in poverty, and fertilizer plants are urgently needed. Why waste money on this, neglecting railroads and national roads?”

“…….”

“We have never granted a loan for expressway construction to a developing country.”

“President, the fertilizer plant is now completed and is accelerating production. Poverty will be resolved within a few years. President, do you know why Korea is poor?”

“Isn’t it because it was a Japanese colony?”

“It was because it was a pre-modern country centered on agriculture, not a modern industrial nation. Now, to create modern industries and export goods, we need expressways to transport resources and logistics efficiently.”

“Export? Hahaha, when Japan was building aircraft carriers, Joseon [historical Korean kingdom] couldn’t even make a bicycle. You’re only at the level of repairing and assembling machines left by the US military after the Korean War. With no car factories, building an expressway is absurd, isn’t it?”

“…….”

“We cannot support a construction budget for a small number of imported cars.”

“We are currently building a large-scale automobile factory. We have the technology to produce cars within a few years. Here are the blueprints and process photos of the Sohari factory construction.”

When Deputy Prime Minister Kim presented visual evidence, President Black became somewhat more serious.

“Still, there are a considerable number of vehicles lacking. It’s premature.”

“Expressways aren’t built in a year or two. It’s already too late when you need them. Roads must be built in advance. That way, it costs less in the long run.”

“Huh, really….”

“To escape poverty, we need to transform our economy by creating industries, not just relying on food aid, President. Isn’t that the purpose of establishing the International Bank for Reconstruction and Development?”

“Um, I understand what you mean, but 500 billion doesn’t align with the purpose of a development bank that should aid as many countries as possible.”

President Black flatly refused.

Deputy Prime Minister Kim then played his trump card.