Chapter 180
Chapter 180
I headed to the branch manager’s office with Taek-gyu. Inside, Ellie was sitting with Hyunjoo’s older sister.
Hyunjoo’s older sister smoked a cigarette and said.
“Now tell me. Why do we need $20 billion?”
I put the book on the table.
The title of the book is ‘The Big One is Coming’.
“Have you read this book?”
Eli picked up the book and looked at it.
“Who wrote it? Professor Kiran Mohan… … Ah! He’s a professor at the California Institute of Technology that Jinhoo met.”
“Yes. I also decided to support research.”
Hyun-joo’s sister asked.
“Is that related to the issuance of corporate bonds?”
I nodded.
“There will be earthquakes in America in the next few months.”
Exactly two months later.
Hyunjoo noona and Ellie were surprised at my words.
“What?”
“Is that really true?”
Together with Taek-gyu, I told Professor Mohan about the story I had heard. In a nutshell, it was said that there was going to be a major earthquake across the San Francisco Bay around September.
Again, Hyun-joo’s sister responded that it was ridiculous.
“Are you saying you came to such a conclusion based on the professor’s words?”
“I have also received the data, and there is sufficient evidence.”
San Francisco, which spans the San Andreas Fault, is the most seismic region in the world.
“There is no law that prevents something like the Great East Japan Earthquake from happening in San Francisco.”
San Francisco is one of the largest cities in the United States, and it is also densely populated.
In Korea, it is the difference between whether an earthquake occurs in Gyeongju or in the middle of Gangnam. Of course, the damage to life and property is incomparable.
Taek-gyu stood by and helped me with my words.
“lets think. When was the last time Jinhu was wrong?”
In the meantime, I have succeeded in investments that others thought were impossible. L6 explosion, Brexit, Ronald election, etc.
Hyun-joo’s older sister rubbed her cigarette into an ashtray and put it out.
“Even so, this time is different.”
“I know.”
Hyunjoo noona asked me, looking straight at me.
“Are you really sure?”
I was convinced inside, but I deliberately answered vaguely.
“There is nothing bad about being prepared.”
Hyunjoo noona sighed as if she couldn’t understand.
“Are you going to spend more than 20 trillion won to prepare for something that might happen?”
“I plan to turn half of that into investment. I have no intention of losing anything.”
I explained the plans I had made so far.
“But what if there is no earthquake?”
“That’s right, 20 billion dollars. If the new car is successful, you can earn that much. If that doesn’t work, we can sell some subsidiaries, including Faceit.”
$20 billion is a lot of money, but even if things go wrong, it’s not enough to completely take over the company.
In fact, if I think about what I’ll do in the future, it won’t end with just wasting money. But there is no need to say that here.
I said cheerfully on purpose.
“Anyway, it has already been decided, so please know that.”
After all, I am the CEO of OTK Company. Therefore, my decision is the company’s policy.
* * *
If a similar earthquake occurs in other countries, recovery will not be feasible for a while.
In fact, in the case of Nepal and Haiti, which were damaged by the earthquake a few years ago, recovery is still slow.
But America is different. Given San Francisco’s geographic location and surrounding infrastructure, it’s impossible to leave it in ruins.
Just as the New World Trade Center was built after the collapse of the World Trade Center in the 9/11 terrorist attacks, it is natural that a massive restoration will begin after the aftermath of the earthquake subsides. There will probably be a large-scale construction of several megacities at the same time.
If the damage is minimized, the timing will be much faster.
Taek-gyu heard the story.
“According to my experience in urban development… … .”
“You’re?”
At my words, Taek-gyu corrected his words.
“From what I’ve done with SimCity, the most important materials for urban development and restoration are steel and concrete.”
I nodded.
“That’s right.”
The most important thing is steel.
Steel is used throughout the industry to the extent that there is a saying that it is the rice of industry. It was not made by Pohang Iron and Steel (now POSCO) as compensation from Japan for nothing.
If the recovery begins in earnest, steel demand is highly likely to soar. This will increase producer price inflation.
Only companies that have their own steel mill (Eunsung Steel), like Eunsung Motors, can absorb the price increase to some extent, but companies that purchase from outside will be hit hard.
For Karos, who is about to launch a new car in the second half of the year, he has to start calculating production costs again.
The current situation in the steel industry was that Chinese companies started to operate in earnest and suffered from oversupply. International prices are falling day by day, and the stock prices of steel companies have also fallen sharply. POSCO, which once stayed at the top of the KOSPI market cap, has also been pushed out of the top 5 for a long time.
I called Henry.
“Did you find it?”
There seems to be some dissatisfaction with the expression on his face.
I was excited to go on vacation with Hyunjoo’s sister, so I booked a villa in the Maldives, because I was unilaterally notified of the cancellation of the vacation.
“Go on a business trip to Japan and China.”
“what happened?”
“I was thinking of buying some steel.”
Henry asked curiously.
“Are you talking about cars?”
“Secretly contact the companies and tell them that they will buy as much production capacity as the production capacity allows for the next three years, not only for automobiles, but also for construction and industrial use.”
Henry was taken aback by my words.
“Why are you buying steel for construction?”
I briefly explained Professor Mohan’s story, and Henry was shocked. Unlike me and Taek-gyu, who are Koreans, he is American. He was surprised to hear that there was going to be a great earthquake in his country.
“Hey, is that really true?”
I said around.
“It is not certain yet. But there are plenty of possibilities.”
That said, he must be well aware that I’m not going to make a business out of possibilities alone.
“I don’t quite understand.”
“I mean… … No, I hope Professor Mohan is wrong.”
I have no intention of trying to convince you.
“Anyway, I plan to buy steel and concrete first, considering the need for restoration later.”
“Companies may want to hedge against price fluctuations.”
Steel prices are linked to iron ore, scrap and crude oil prices.
Buying steel now is to prepare for future price hikes. Linking costs is meaningless.
“It doesn’t matter if you add an additional premium to the current market price, so sign all contracts at a fixed price. He said that he would pay the advance payment as much as necessary.”
I don’t have much time to think about the future. In addition, concrete, copper, and crude oil should be secured as much as possible.
Henry looked still confused. He seems to be confused as to whether this is a joke or not.
“It will be known soon, but until then, only you will know.”
“Oh, I see.”
After Henry left, Taek-gyu asked.
“Isn’t it insulting to invest in this way?”
“I have no intention of making a huge profit from this. If the market price soars in the future, I plan to sell it to the US government at a low price to stabilize the price.”
Taehyung was amazed.
“Oh, that’s a good idea.”
After all, you can make money with anything else.
* * *
I then called Sangyeop senior.
“How are you doing today?”
“What are you busy with? Yesterday too, I was taken to a drinking party at a trading company, and I drank until dawn and came back.”
He’s still not drunk.
I said with a smile.
“You didn’t just follow me for a drink, did you?”
Senior Sangyeop strongly denied it.
“no. The boss said he wanted to have a drink with me at least once, so I had no choice but to leave.”
Startups invested by K Company are growing rapidly in the domestic market. If the value of subsidiaries is added, K Company alone can be listed in the business rankings. (OTK Company and K Company are not included in the business rankings announced by the Fair Trade Commission, etc. This is also true of RCK Bros., a PEF).
Some startups were talking about going public. However, since the parent company’s financial power is so strong, I did not feel the need to raise funds through an IPO.
“Come to think of it, it’s been a while since I worked with a senior.”
Sangyeop senior joined us after Hyunjoo’s older sister. It’s almost like starting a business. That’s why I gave some of the shares of K Company.
“What is it?”
“Just looking at seniors reminds me of the past.”
My horse, Sangyeop, said with a drunken expression on his face.
“What, what? You’re not trying to cut me, are you?”
I burst out laughing.
“Is it possible? If you don’t have a senior, who will I get you to work for?
Senior Sangyeop breathed a sigh of relief.
“Hey, that’s good.”
“Leave what you are doing to the staff, and follow my instructions for a while.”
“What the hell is going on?”
I did the same thing I just told Henry.
Again, Sangyeop was surprised.
“A great earthquake in San Francisco? Is that real?”
“If Professor Mohan is right.”
“What is the probability that the professor is right?”(Read more @ wuxiax.com)
“It’s not 100 percent, but it’s quite high. It could be this year or next year.”
“Wait a minute. Real assets such as gold and crude oil would skyrocket once a major earthquake strikes… … Shouldn’t we first secure raw materials?”
Again, this is where my head goes straight. That’s why I’m just leaving the job to you.
“I left it to Henry. I want to entrust my seniors with other tasks.”
“What happened?”
“Go to China and buy disaster preparedness supplies, relief supplies, etc. Tents, bottled water, blankets, first aid kits, etc.”
“How much is the quantity?”
“All we can produce in the next two months.”
It is not that the producers are playing and taking our orders and moving. We have to produce as much as we ordered in addition to the amount we originally produced.
China is the only country in the world that can produce the maximum amount in a short period of time. If that is not enough, production will be consigned to Mexico and Canada. It will take less time to transport.
??next day.
Henry and Sangyeop went to Japan and China respectively. And I contacted the relevant companies and carried out the instructions I gave.
In the meantime, I was looking for an alternative site to relocate the subsidiaries with headquarters and research centers in Silicon Valley. For now, Orange County near Los Angeles, Pasadena, and Ontario were the most likely.
There will be a lot of backlash against the sudden move, but we have no choice but to force it.
At the same time, we looked for warehouses that could be rented for a short period of time. At the same time, it should be located in the safe zone from earthquakes, and it should be located closest to the danger zone, and the transportation should be convenient. That way, manpower and supplies can be transported quickly.
“I have to let the public know.”
What is being said is as important as the content of the words. I will not listen to my words in vain as I have gained wealth and fame through my investments.
I could reduce the number of casualties just by giving a warning, but it’s not even that much.
In order to minimize damage, an evacuation plan should be established at the national level. And there’s only one person I know who can do it.
The question is whether or not that person will believe me.
* * *
OTK Company has always been the subject of interest since it appeared in the financial market.
People paid attention to where to invest the $20 billion raised through corporate bond issuance. No matter how secretive the contract was, it could not stop the rumors from spreading.
Not long after, it became known that OTK Company was purchasing steel in large quantities.
Then, rumors circulated that OTK Company would enter the construction industry, and the stock price of the construction company designated as the target of the acquisition rose sharply.
But it didn’t take long for that to turn out to be a rumor.
This is because OTK Company began to accumulate energy and non-ferrous metals in the raw material market, regardless of spot futures.
The market struggled to understand Kang Jin-hoo’s intentions.
Meanwhile, new rumors spread. That is, they are buying disaster preparedness and relief supplies.
Then people remembered that Jinhoo Kang recently decided to sponsor a professor at the California Institute of Technology. The professor’s field of specialization is none other than seismology.
President Park Si-hyeong, who was informed of the relevant contents, said as if muttering.
“What is this guy trying to do this time?”
