The Conglomerate Family Became A Villain [EN]: Chapter 145

Decision Time (3)

The U.S.-Japan summit.

Jeong Hyun-woo believed this summit was a prelude to the Plaza Accord [a 1985 agreement among the G5 nations to depreciate the U.S. dollar relative to the Japanese yen and German mark].

‘Looking at the world, there’s no one more powerful than a U.S. president who has won a second term.’

The person with a longer term than a president who had just won an election and finished the inauguration was the incumbent president who had successfully won reelection.

“Are you uncomfortable?”

The person who cautiously approached him on the plane was Harold Byrne, the head of strategic planning at Johnson & Johnson. He was attending as a proxy because the legendary CEO James Burke was unable to attend due to illness.

For reference, James Burke had been selected as the greatest CEO of all time by Fortune and had received praise from everyone for his excellent handling of the Tylenol poisoning incident [a crisis in 1982 where Tylenol capsules were laced with cyanide, leading to multiple deaths].

“If I were uncomfortable in this seat, I shouldn’t be flying.”

Herald Byrne smiled at Jeong Hyun-woo’s answer.

“I’m not talking about the seat, but the atmosphere.”

Jeong Hyun-woo shrugged and responded to his words.

“Isn’t it nice and quiet?”

Except for the noise from the plane, there was hardly any sound.

“Everyone is too quiet.”

Herald Byrne was a generation younger than the CEOs on the plane.

And Jeong Hyun-woo was two generations younger than him.

“You’ll be more comfortable if you think of it as accompanying the elders.”

Herald Byrne sat next to him and said.

“Mr. Jeong seems to have attended events like this before.”

“It’s my first time accompanying the President.”

“Have you often attended other events?”

Jeong Hyun-woo replied in a calm tone.

“I went a little during the election.”

Herald Byrne looked surprised.

“Wasn’t Robert Bernard the face of Victoria Corporation, rather than Mr. Jeong?”

“Wouldn’t I have to be there in person for them to save face when it comes to donating money?”

Herald Byrne chuckled at his witty retort.

“That’s right. People remember those who donate money.”

This time, Jeong Hyun-woo asked.

“What about Mr. Byrne? Are you on the donating side?”

Herald Byrne shook his head from side to side.

“Don’t you know our company?”

“Are you talking about Mr. Burke?”

As mentioned earlier, Johnson & Johnson’s CEO was the legendary James Burke.

“Everyone seems disappointed that I attended instead of Mr. Burke.”

Jeong Hyun-woo said as if to comfort him.

“I don’t think so.”

Herald Byrne sighed briefly.

“Hoo… Mr. Jeong is comforting me.”

“It’s not just simple comfort.”

Meaning there was a basis for it.

Herald Byrne couldn’t help but ask about the basis.

“Not just simple comfort?”

Jeong Hyun-woo smiled and replied.

“The people on this chartered plane are some of the most prominent business leaders in the United States. Wouldn’t they have had the opportunity to meet Mr. Burke? They’ve probably met several times at business gatherings, cooperative organization meetings, or banquets.”

He was saying that there were people gathered who were acquainted with James Burke.

Herald Byrne nodded after hearing Jeong Hyun-woo’s words.

“Now that I hear it, that’s true.”

Except for him and Jeong Hyun-woo, everyone else was a famous businessman.

“Isn’t Mr. Jeong disappointed that he didn’t get to meet Mr. Burke?”

“I’m not disappointed.”

“Really?”

A look that said, don’t lie.

Jeong Hyun-woo shrugged and replied.

“Since I’m young, can’t I meet him anytime?”

He had plenty of time since he was young.

Herald Byrne couldn’t help but nod at those words.

“Mr. Jeong, your answers are flawless.”

“Unlike Sarah, you’re giving me compliments.”

“Sarah, as in?”

“My sister.”

Herald Byrne nodded as if he understood.

“If it’s your older sister, that’s understandable.”

He looked around and asked.

“Mr. Jeong, why did the White House call so many business leaders to L.A.?”

It was rare for this many business leaders to participate in a U.S. president’s summit diplomacy, especially since it wasn’t a developing country.

Jeong Hyun-woo immediately countered his question as if it wasn’t a difficult one.

“Isn’t it because of the U.S.-Japan trade war?”

Herald Byrne frowned at his question.

“Mr. Jeong, do you really believe in the term U.S.-Japan trade war?”

“Does Mr. Byrne think differently?”

Herald Byrne thought the levels were different.

‘Japan is just clinging to the United States.’

Japan’s recent boom was only temporary.

That’s what he was judging.

“I think differently.”

Herald Byrne wanted to hear Jeong Hyun-woo’s opinion.

“How do you think it’s different?”

“The U.S. and Japan are fiercely fighting behind the scenes.”

“Are you saying we’re already at war?”

Jeong Hyun-woo nodded and replied.

“The semiconductor negotiations last year are a good example.”

Last year, the U.S. implemented measures to prevent Japan’s semiconductor dumping.

Japan had to succumb to U.S. demands and reduce support for its own semiconductor companies.

“That was just correcting an unfair trade.”

Herald Byrne thought that Japan was using loopholes to threaten U.S. semiconductor companies.

Of course, Jeong Hyun-woo’s thoughts were different.

“Until now, the U.S. has been lenient with the protectionism of small countries. Do you know why?”

“Is it because those small countries were allies?”

Jeong Hyun-woo replied in a soft voice.

“It’s because they thought the levels were different.”

Even if small countries engaged in protectionism, they couldn’t compete with the U.S.’s overwhelming industrial production and competitiveness.

However, as the Cold War continued, the situation changed. The U.S. was faltering due to excessive defense spending, while Japan and Germany focused their national power on economic development, threatening U.S. companies.

“Are you saying that the reason the U.S. is correcting the unfairness of countries like Japan is because they’ve grown enough to sit at the same table?”

Jeong Hyun-woo nodded at Herald Byrne’s question.

“That’s what I think.”

Herald Byrne sighed softly and asked.

“Is Mr. Jeong Japanese?”

Jeong Hyun-woo erased his smile and replied.

“If you ask people with the same surname as me that question, they’ll be 100% furious.”

“So you’re not Japanese.”

“My motherland, Korea, and the war criminal state, Japan, don’t have a good relationship.”

War criminal state.

Japan was a war criminal state that started World War II along with Germany, so it couldn’t have an army.

However, Germany was able to rearm in 1955 to defend against the powerful enemy, the Soviet Union.

Japan was also able to have a paramilitary organization called the Self-Defense Forces for the same reason. However, it had more restrictions than Germany.

“Your motherland doesn’t have a good relationship with Japan. I didn’t know that.”

Jeong Hyun-woo smiled again and said.

“Neighboring countries often don’t have good relationships.”

“The U.S. has a good relationship with Canada.”

“They fought a war with Mexico.”

Herald Byrne thought that Jeong Hyun-woo had a fighting spirit that didn’t back down even a little.

‘I can’t underestimate him just because he’s young.’

The CEOs who appeared in Fortune magazine were all formidable.

Jeong Hyun-woo was the same.

Even though he was young, he was still the CEO of a respectable IT company.

“Mr. Jeong, may I ask you one more question?”

“It seems like there’s a lot of time left until L.A., so feel free to ask as many questions as you want.”

Jeong Hyun-woo thought that the conversation with Herald Byrne wasn’t bad.

‘He’s not as good as James Burke, but this person is also a key figure at Johnson & Johnson.’

For reference, Johnson & Johnson was a huge company that ranked among the top 10 in the world.

In other words, Jeong Hyun-woo was talking to a key figure from one of the world’s top 10 companies.

“If the U.S. and Japan are waging a trade war, how is the war going?”

This question was mainly for entertainment.

Jeong Hyun-woo answered this question as diligently as before.

“Since they blocked Japan’s dumping with the semiconductor agreement, you could say the U.S. has taken a breather.”

Herald Byrne tilted his head and asked.

“If it’s just a breather, then you can’t call the semiconductor agreement the Battle of Midway [a decisive naval battle in the Pacific Theater of World War II].”

He explained the U.S.-Japan trade war by comparing it to the Pacific War.

During the Pacific War, the U.S. succeeded in changing the tide of the war by winning the Battle of Midway.

“The semiconductor agreement is more like the Battle of the Coral Sea [another major naval battle in the Pacific Theater of World War II] than the Battle of Midway.”

The Battle of the Coral Sea, where Japan and the U.S. exchanged blows.

This battle, which was close to a draw, was also the battle that ended Japan’s winning streak.

“Mr. Jeong, do you even know about the Battle of the Coral Sea?”

“The Pacific War is so famous.”

If you were an ordinary Korean person who wasn’t a military enthusiast, you would know about the Battle of Midway but not the Battle of the Coral Sea.

The reason Jeong Hyun-woo knew about the Battle of the Coral Sea was because of a military game he participated in the production of.

‘It was a game that recreated naval battles during World War II.’

He was in charge of balance and historical accuracy, so he had to look at almost all the naval battles that took place during World War II.

“What percentage of chance do you think this summit will be the Battle of Midway?”

Jeong Hyun-woo shrugged.

“This summit is not the Battle of Midway.”

“Aren’t you being too confident?”

“This summit will probably be a meeting to confirm each other’s positions.”

“Confirming positions. Hmm, I don’t know if it will go well.”

Jeong Hyun-woo said with a faint smile.

“The U.S.’s weapon will probably be the J-theory.”

J-theory.

The J here wasn’t the J in Japan, but the letter J itself.

“Are you talking about the J-curve effect?”

Herald Byrne knew the J-theory that Jeong Hyun-woo was talking about.

Jeong Hyun-woo raised his eyebrows at his question.

“Mr. Byrne, you know the J-theory.”

Herald Byrne shrugged and said.

“I went to the University of Texas and happened to hear Professor Magee’s lecture.”

The J-curve effect was a theory advocated by Professor Stephen Magee of the University of Texas.

To put it simply, the J-curve effect meant that changes in exports and imports due to exchange rate fluctuations were not immediately reflected but appeared after a considerable amount of time.

‘It was the same during the Plaza Accord.’

Jeong Hyun-woo knew that the effects of the Plaza Accord would not occur immediately but would gradually appear over time.

‘The problem is that I don’t know exactly how long it will take for the effects to appear.’

If he knew the exact time, he could recover his investment at the exact timing.

‘What’s certain now is that the effects will be minimal until the 1988 Olympics.’

Herald Byrne asked Jeong Hyun-woo.

“Is Mr. Jeong predicting that the U.S. will use exchange rates as a weapon?”

“Isn’t the exchange rate the most powerful weapon?”

Herald Byrne shook his head.

“I have a different thought.”

“You seem to be thinking of something other than the exchange rate.”

“I’m thinking of opening up.”

The opening up that Herald Byrne was talking about was a massive opening of the Japanese market.

“Are you talking about tariff elimination?”

“Tariff elimination is a given, and there should be no restrictions on imported goods.”

When the two had talked this far, a White House official called the guests to the conference room, saying there would be a briefing.

“It looks like we have to go too.”

“I guess we have to.”

Jeong Hyun-woo and Herald Byrne also got up from their seats and moved to the conference room.

* * *

After the White House official’s briefing, Jeong Hyun-woo returned to his cabin.

“Mr. Jeong, there wasn’t much in this briefing.”

The person standing next to him wasn’t Herald Byrne, but John Wood.

John Wood was the vice president of IBM, and in 1985, IBM was the world’s number one company in terms of market capitalization.

In other words, he was the vice president of the largest company in the world.

Jeong Hyun-woo smiled when John Wood spoke to him and responded to his words.

“Still, the conference room in the sky was refreshing.”

The plane they were on was the famous Air Force One. And the conference room where they had listened to the briefing earlier was the conference room of Air Force One.

John Wood was in his early 50s, and along with Herald Byrne, who was in his mid-40s, he was one of the younger business leaders.

“Mr. Jeong, is this your first time on Air Force One?”

Jeong Hyun-woo calmly responded to his words.

“This isn’t just my first time on Air Force One, it’s my first time with everything.”

John Wood thought.

‘Mr. Jeong is so calm that you could describe him as cold, considering it’s his first time with everything.’

He got a slightly different feeling from Jeong Hyun-woo than he did from Herald Byrne.

“How was this year’s CES [Consumer Electronics Show]?”

Victoria Corporation was planning to release a new package developed in cooperation with IBM.

“I understand that preparations are all finished.”

“There are no problems. Is that what you’re saying?”

“It would be a disaster if there were problems with a month left until the release.”

As the two sat down, a flight attendant approached and offered them drinks.

“Orange juice, please.”

Jeong Hyun-woo raised his right hand after seeing John Wood order orange juice.

“I’ll have apple juice, please.”

John Wood asked him.

“Juice? You don’t seem to be old enough to be taking care of your health yet.”

This was a question that could be asked because he didn’t know Jeong Hyun-woo’s exact age.

“My sister said I’m not allowed to drink alcohol yet.”

“Your age is……”

“I’m still eighteen.”

“You’re young.”

In fact, the expression young was more appropriate for Jeong Hyun-woo than the expression young.

“But you’re an adult, so you can drink alcohol, can’t you?”

The age of majority in the United States was generally 18, but some states (Mississippi) adopted 19.

“I’m an adult according to state law, but the drinking age is 21.”

John Wood scratched his head and said.

“I think we just drank without worrying about that kind of thing when we were your age.”

When he was young.

In other words, the United States in the 1950s and the United States in 1985 were clearly different.

Herald Byrne of Johnson & Johnson, who had been listening to the two’s conversation, joined the conversation.

“18 is the age when you can buy a gun but not drink alcohol.”

Strangely enough, in the United States, the age at which you could drink alcohol was later than the age at which you could buy a gun.

Of course, the law was later revised, and the age at which you could buy a gun was also changed to 21 or older, just like the drinking age.

“Herald, long time no see. When did you get here?”

When John Wood pretended to know him, Herald Byrne shrugged and replied.

“I’ve been here since earlier. And Mr. Jeong was my partner.”

He seemed disappointed that his conversation partner had been taken away.

“Your partner?”

“Mr. Jeong and I were talking about the U.S.-Japan trade war.”

John Wood nodded after hearing Herald Byrne’s answer.

“This summit will definitely focus on the economy.”

He did not deny the economic war between the United States and Japan.

“Do you think we’ll win?”

John Wood answered with a slight emphasis in his voice.

“We’ll be in trouble if we don’t win.”

He seemed to view the situation more pessimistically than Herald Byrne.

“Would we be in trouble?”

“Herald, don’t underestimate Japan’s momentum.”

At this time, Japan’s momentum was so great that even the vice president of the world’s number one company was wary of it.

John Wood turned to Jeong Hyun-woo and said.

“What do you think, Mr. Jeong?”

“I agree with Mr. Wood.”

He was thinking of Japan as a strong competitor. Jeong Hyun-woo answered like this.