The Chaebol Returns To The Presidency 1967 [EN]: Chapter 25

25. Bond Freeze! Real-Name Financial System! (2)

Party headquarters of both the ruling and opposition parties.

From early morning, lawmakers from both parties began to gather.

Interestingly, the content of their conversations was remarkably similar, regardless of party affiliation.

“How could this happen!”

“The world has turned upside down overnight!”

“My father’s money is tied up, and I’m in big trouble. I was grilled by him all night; he was furious that I, as a lawmaker, didn’t know about this.”

“I’m in the same boat. I almost got hit with my sponsor’s cane.”

“This is a disaster. We’ve been spreading money under relatives’ names. Do we have to collect it all back?”

“Otherwise, we’ll be helpless when they deny it’s our money later.”

“Sigh… How could he cause such a mess without even batting an eye?”

“Are we just going to take this lying down? We’ve been backstabbed by the administration every time this term. How can we do politics without money?”

“Exactly. Funding will dry up. The laws we make in the National Assembly are superior to presidential decrees, so let’s neutralize it.”

“That’s true in legal theory, but we lack justification. This is a pro-people policy, and the public welcomes it. We might face a backlash.”

“Why do we lack justification? It’s all in how you frame it.”

In fact, the heads of conglomerates were also on high alert due to the real-name financial system.

They had siphoned off vast amounts of company funds under the names of dozens of relatives to ensure they could live comfortably even if the company went bankrupt.

While the bond freeze was beneficial to companies, the real-name financial system was a critical blow to the families of the heads who had embezzled money.

The tax office and banks were swamped with customers registering their private loans and transferring deposits.

Cha Jin-chul and the 54 lawmakers did not miss this opportunity amidst the chaos.

“The National Assembly is in turmoil. This is the perfect opportunity to overturn the government.”

“That’s right. The National Assembly must block such radical and anti-market policies.”

* * *

National Assembly Plenary Session.

The opposition leader delivered a keynote speech.

“The Republic of Korea is a liberal democratic republic. It is a capitalist nation where market freedom is the foundation. Naturally, the flow of money should be free and based on individual beliefs.

But to unilaterally decide interest rates, freeze financial transactions, and demand real names overnight without any social consensus is a clear violation of private property! This is an outrage that would only happen in a communist country!”

Other lawmakers from both parties continued to voice their grievances.

“Is having money a crime? Receiving interest fairly is a legitimate activity in capitalism. Putting names on money will definitely shrink the economy and set back growth. We must stop it immediately in the National Assembly!”

“Political donations will dry up. How are we supposed to maintain our parties and constituencies! It will only drive things further underground!”

Both the ruling and opposition parties, fearing the loss of illicit funds from political-business collusion, focused their attacks on the President.

The President’s measures were in danger of being neutralized because National Assembly laws take precedence over presidential decrees.

The person the President entrusted with resolving the situation was Kim Jeong-pil.

“You handle this! If you can’t succeed, you’re not qualified to be Prime Minister!”

Due to the President’s outburst, Kim Jeong-pil was forced to take charge.

The President had appointed Kim Jeong-pil to the cabinet in preparation for such an event.

If Kim Jeong-pil had been in the National Assembly, he would have led the Assembly and attacked the President.

But now, as Prime Minister, he had to represent the President’s position and resolve the situation.

Kim Jeong-pil stood on the National Assembly podium, half willingly, half forced.

“Who do the members of the National Assembly represent?”

“…….”

“They represent the people. The people!”

“…….”

“Go out to the streets right now and listen. Are there any citizens who oppose and denounce this emergency measure like you do?”

The National Assembly, which had been buzzing with criticism of the President, fell silent.

“Ask the companies. The business people are cheering, cheering!”

Only the sound of swallowing could be heard occasionally.

“If you are members of the National Assembly, represent the people! Why are you representing loan sharks? Are you loan sharks yourselves?”

“…….”

“Are you saying that you will continue to enjoy a black market that is larger than the normal market, and political-business collusion and bribes?”

“…….”

The lawmakers with their gold badges awkwardly looked at the ceiling, avoiding each other’s gaze.

“To prevent the rich from getting richer and the poor from getting poorer, to normalize the free economy, and for the sake of the market economy, the President has wielded the power vested in him by law for the people. Isn’t this beneficial to the people?”

“…….”

It wasn’t just a whip; there was also a carrot [a reward or incentive].

“We will soon be introducing a political donation law. A donation system that allows you to donate fairly without receiving backhanded money and even deduct taxes. If you desperately need donations, pass this law! Now, come out of the shadows into the light!”

After a stern scolding and the presentation of alternatives, the lawmakers, who had been full of murderous intent, were now looking for a mouse hole to hide in.

Kim Jeong-pil suddenly thought while giving his speech.

What is this? Why do I feel like I’ve been played by the President?

The ruling party lawmakers completely branded Kim Jeong-pil as the President’s man.

For the President, it was a win-win situation: resolving the political crisis and weakening the rebels.

* * *

Presidential Office.

A special broadcast explaining the real-name financial system and the bond freeze measures was being aired on TV.

The President was on the phone with Chairman Hyun-seok Jung.

– I didn’t expect you to announce the bond freeze so quickly.

“I struck while the iron was hot [acted decisively], and started the export promotion drive early.”

– I was shocked by the real-name financial system report. Was the real-name financial system implemented in the future?

Chairman Jung, who had regressed [returned to an earlier state], had no way of knowing that the system was implemented in 1993.

“That’s right. It is an indispensable system for economic democratization. I handled it all at once while reforming.”

– You are truly amazing. But reform always has side effects. The bond freeze has caused a surge in suicides.

“So, I shortened the original three-year freeze to one year. And I also varied the repayment period according to the total amount of private loans. We will also be discussing value-added tax [VAT] in the National Assembly soon.”

– Ah, VAT!

It was a policy that Chairman Jung had many regrets about.

– You really need to be careful with value-added tax.

“…….”

– When I implemented it in ’78, prices soared, public sentiment was shaken across the country, the Bu-Ma Democratic Protests occurred, and we lost in the general election. It became the most failed economic policy.

“So, to reduce those side effects, we will raise the VAT rate by 1% each year over 10 years, and set lower rates for essential goods and higher rates for luxury goods.”

– Ah, that’s an excellent complement. You seem to be better at politics than I am, which stings a bit. If only I had done it that way, my final years would have been smooth.

“Hahaha, you are Chairman Jung now, so you can write an even bigger myth in this life than before your regression.”

– It’s chaotic for a soldier to suddenly try to manage a large corporation. Please help me a lot.

“Yes, let’s meet for a meal sometime.”

Meanwhile, private loan reports poured in.

In just four days, 40,677 cases of private loans were reported, amounting to 345.6 billion won, which was about 80% of the total currency in circulation and 34% of the domestic credit balance.

This was almost double the government’s estimate that the reported amount would be around 180 billion won.

It was a scale that allowed one to guess how huge the underground economy was.

Meanwhile, movements to reverse the President’s measures began in earnest in the National Assembly.

It was the biggest crisis where reform could become a bubble.

But the President confronted it head-on.

* * *

Courtroom.

The judge delivered the sentence.

“The defendant, Cha Jin-chul, is sentenced to a fine of 8 million won for violating the Public Official Election Act.”

The prosecution had sought 1 year and 6 months, but despite the reduced sentence, a sentence invalidating his election, which would result in the loss of his Assembly seat, was handed down.

Sentences were handed down simultaneously to election offenders in courtrooms across the country.

Newspapers rushed to cover it as a front-page special article.

– 88 elected lawmakers convicted, 63 facing loss of seats due to invalidation of election!

– Ruling party shocked as it loses majority with 55 members facing invalidation of election!

– General election-level election predicted if Supreme Court upholds the ruling

– Government declares strong will to eradicate illegal elections

They could maintain their Assembly seats until the end of the second and third trials, but the probability of the result being overturned was slim.

* * *

National Assembly Members’ Office Building.

The ruling party lawmakers who had received sentences resulting in the loss of their seats gathered without exception to hold a countermeasures meeting.

Cha Jin-chul passionately spoke from the platform.

“The members of the National Assembly are representatives of the people elected by the people! But for the prosecution to nitpick and brand them as criminals is nothing short of a provocation against the Assembly!”

That’s right!

Clap clap clap!

The election offenders blamed the judiciary and the prosecution and police for the Assembly’s outrage and marched to the Prosecutor’s Office.

* * *

Prosecutor’s Office.

In front of the Prosecutor’s Office, 55 ruling party lawmakers who had received sentences resulting in the loss of their seats, accompanied by their subordinates and party members, wore headbands, held pickets, held hand microphones, and stretched their clenched fists into the air, shouting.

“We strongly condemn the prosecution’s invasion of the Assembly!”

“Condemn! Condemn!”

“Political prosecutors, step down, Prosecutor General who oppresses the Assembly!”

“Prosecutor General, step down! Step down!”

* * *

Presidential Office.

On the desk in the office was an evening newspaper with a large photo of the protest in front of the Prosecutor’s Office.

The President called in Prime Minister Kim Jeong-pil and probed his thoughts.

This was because the person the rebels were supporting was none other than Kim Jeong-pil.

“What do you think about this matter, Prime Minister?”

“It is outrageous for criminals who have been found guilty to talk about representing the people. I think it was an appropriate law enforcement as a symbol of eradicating illegal elections, Your Excellency.”

The President was slightly surprised.

He was docile for once, and it was difficult to guess whether it was a survival tactic or sincerity.

“Then, Prime Minister, make a national address.”

“An address, you say?”

“They are portraying the prosecution and police as traitors. As you said, it is outrageous. Give a warning that the executive branch supports the ruling, so do not divide public opinion with unnecessary political strife.”

For Kim Jeong-pil, the Prime Minister’s address was a very unfavorable excuse [a task or situation that is difficult or unpleasant].

It was evidence that he had clearly turned his back on the rebels, so the two-legged strategy was inevitably damaged.

The President also aimed for this point and demanded the Prime Minister’s address, not the President’s address.

“I understand, Your Excellency. But I have one concern.”

“Concern? What?”

“The opposition party may not only question the general election but also the presidential election.”

In fact, the President had not thought that far.

This was also because the point of regression was from his inauguration.

As expected, Kim Jeong-pil, a master of politics, did not say it directly, but subtly threw a check [a move that limits the opponent’s options] by alluding to the opposition’s offensive.

“Hmm, that could be true.”

The reason why the President chose to sleep with the enemy [keep one’s enemies close] was also because he could quickly grasp the enemy’s intentions if they were nearby and secure an opportunity to respond quickly.

If Kim Jeong-pil was a master of politics, the President had a 10th-dan strategy [a very high level of skill or expertise].

Kim Jeong-pil warned again of the expansion of the war.

“The opposition party, which has become equal in the number of seats, will not want to miss this opportunity.”

“I am prepared.”

“Yes?”

“Prime Minister, push forward!”

Kim Jeong-pil flinched as the President took a risk and came out with a hard line.