No one could have expected the issue of the claims agreement with Japan to come up in a meeting meant to discuss the demolition of the Mount Kumgang tourist facilities.
Perhaps for that reason, everyone in the meeting hall, from both the North and the South, wore complex and subtle expressions.
Vice Chairman Ri Hae-yong and the North Korean delegates, who had been about to storm out of the meeting, were now somehow seated again. While their expressions remained firm, it was clear their ears were wide open. The same was true for the South Korean delegates, including the Minister of Unification.
Everyone was staring only at my mouth with curious eyes.
Back when I was receiving political education in the military about how North Korea were the bad guys, I never could have imagined a day would come when I would be the center of attention at an inter-Korean ministerial-level meeting.
In any case, I continued.
"In the past, Japan invaded many Asian countries, including Korea, and paid reparations for it after their defeat. The money South Korea received at the time was a mere 600 million dollars, including loans and private aid. This amount is even less than the 800 million dollars the Philippines received. It's an absurdly small sum for the price of being exploited under colonial rule for over 30 years."
Of course, that money was an enormous help to the post-war economic revival. It was as if a seed money of 600 million dollars was multiplied a hundred, a thousand times over.
But that doesn't change the fact that we received too little. What's even more absurd is that this wasn't reparations, but grant aid and loans.
"It may have been the best they could do at the time, but the problems arising from this agreement continue to this day."
Unlike South Korea's stance that only the issue of reparations between nations was settled, Japan's position is that everything was concluded with this one agreement. Therefore, they are brazenly stating there will be no further apologies or reparations.
The expressions on the faces of the government officials soured at the mention of the South Korean government's mistake. But what could I do? It was the truth.
I continued without paying them any mind.
"We can't turn back what's already done, so shouldn't North Korea at least get what it's properly owed? It seems Japan is thinking of up to 20 billion dollars, but I believe it should be at least 70 billion dollars."
In short, I was saying I would blow it up to more than three times the amount.
It might not seem like much because of the large sums I've been dealing with lately, but 70 billion dollars is a truly astronomical figure. Even more so when you consider North Korea's GDP.
Even accounting for inflation, it's more than ten times the compensation South Korea received.
Vice Chairman Ri Hae-yong's eyes showed a mixture of belief and doubt.
"Do you think that's possible?"
"We have to make it possible."
It was natural for him not to believe it. I probably wouldn't have believed it either if it weren't for my foresight.
- North Korea-Japan Post-War Reparations Agreement of 70 Billion Dollars -
That was the future I had seen.
Realistically, there was no way the amount could jump like that so suddenly. Furthermore, it wasn't grant aid, but reparations!
Paying money in the name of reparations was tantamount to admitting their acts of aggression against Korea, which would be a complete reversal of Japan's existing stance.
How could this be possible?
Therefore, I had no choice but to conclude that a variable that did not exist before had been introduced.
What variable could possibly make Japan agree to such a huge sum in reparations and even an apology?
"..."
No matter how I thought about it, wasn't it me?
Vice Chairman Ri Hae-yong was maintaining a cool expression, but he must have been furiously crunching the numbers in his head.
"Politics is not something that ends with words; someone has to take responsibility."
If he proceeded with the negotiations believing my words and it didn't work out, it would be difficult for him to keep his position as well. He had no choice but to be cautious.
"The same goes for economics. If the negotiated amount falls short of 70 billion dollars, OTK Company will cut all future dealings with Japan. With this, I believe I've shown that I am prepared to take sufficient responsibility."
A silence fell over the meeting hall for a while.
As if in a battle of wills, everyone sat still without a single change in posture or expression. Except for Taekgyu, who was yawning next to me.
If you're sleepy, just go home...
In the end, it was Vice Chairman Ri Hae-yong who broke the silence first.
"What are the South's demands?"
Minister of Unification Yoon Je-hoon cleared his throat and said.
"First, we would like you to withdraw the request to demolish the Mount Kumgang facilities."
He nodded readily.
"I will try to persuade the Chairman on that point."
After going to all the trouble of seizing the momentum, is that all you're asking for? How modest.
"Since the Chairman expressed his displeasure with the dilapidated state of the facilities, how about we take this opportunity to modernize them and resume the Mount Kumgang tours?"
At my words, President Han Byung-sun quickly chimed in.
"I also think that would be a good idea."
Resuming the Mount Kumgang tours was Eunsung Kumgang's long-cherished wish.
I continued.
"And I would like to proceed with the railway and gas pipeline project linked to the Najin-Khasan project that was discussed in Vladivostok. I believe it is a project that will be of great help to the South, the North, and Russia."
Perhaps he hadn't expected the conversation to proceed so rapidly, but a look of bewilderment was evident in Vice Chairman Ri Hae-yong's eyes.
The original agenda for this meeting was the Mount Kumgang facilities. But that issue was now out of the picture. How much could they earn from resuming tourism anyway?
What had become important now were the claims against Japan and the railway and gas pipeline project. He must have already realized that I was trying to link these two together.
Although North Korea was doing its best to shout "self-reliance," everyone knew that its foreign currency reserves were nearly depleted. In this situation, economic cooperation and the claims against Japan were both tempting propositions for North Korea.
I looked at my counterpart and said.
"I will say it again: 70 billion dollars in reparations. I believe the price of the people's blood is heavier than a thousand pieces of gold. What are your thoughts, Mr. Vice Chairman?"
"..."
Vice Chairman Ri Hae-yong could not say a word.
A look of conflict appeared on his face. He probably never imagined he would receive such a proposal in a meeting where he had come to pressure the South.
He probably wanted to shout, 'Are you trying to buy me with money! Is this an insult!' but...
Taekgyu, still yawning, muttered in a small voice.
"...it was far too much money to scold him with that."
***
The first day's negotiations ended there.
We got back in the car and returned to Seoul. As expected, the drive from Panmunjom to Seoul was quick. It made me realize anew just how close North Korea is.
It would be a real disaster if a war broke out.
A quick search on my phone showed that various articles had already poured out. The tone of the articles was sharply divided depending on their political leaning.
Foreign media also showed deep interest in the inter-Korean talks. But they were all just debating the demolition of the Mount Kumgang facilities and the possibility of resuming tourism.
No one would have imagined that the claims against Japan and the railway and gas pipeline project were discussed in this meeting.
Even after returning to Seoul, I couldn't go straight home.
Minister of Foreign Affairs Kim Sung-chul joined us, and a meeting continued late into the night at the government complex.
Minister of Unification Yoon Je-hoon asked.
"Did you plan to bring up the claims against Japan from the beginning?"
"Yes."
He said, as if crestfallen.
"Why didn't you give us a heads-up?"
The government wasn't stupid. They had been keeping a close eye on the North Korea-Japan claims agreement. They just kept their mouths shut because it wasn't a matter for the South Korean government to interfere in.
"South Korea and Russia have long hoped for the construction of gas pipelines and railways, but the project couldn't proceed because we couldn't trust the North Korean side."
Although the Supreme Leader had guaranteed the project's progress at the banquet in Vladivostok, the truth was that it wasn't enough to feel at ease. After all, North Korea was a country where even inter-state negotiations could be overturned by a single word from the Supreme Leader.
Didn't the demolition of the Mount Kumgang facilities, which was the current problem, start with a single word from the Supreme Leader in the first place?
"The claims agreement with Japan will serve as a safety device for the project's progress."
The claims agreement was not something that could be finalized overnight. Given the large discrepancy in the amounts, it would take years even if negotiations started now.
That was enough time for South Korea and Russia to complete the construction of the railway and gas pipeline in North Korea.
If, in the meantime, North Korea were to scrap the project again, citing threats to its regime, then I could just pull out as well.
"Then North Korea would lose 50 billion dollars."
Minister of Unification Yoon Je-hoon said.
"North Korea is not afraid of its own losses. If North Korea pursued profit, it would have opened up and developed its economy long ago."
"The reason North Korea has scrapped economic cooperation several times until now is because they were afraid that attracting foreign capital itself would be seen as a failure of their regime. But the claims against Japan are a different story. Human psychology is a strange thing; they might refuse 50 billion dollars from someone else depending on their mood. After all, if they think of it as someone else's money, there's nothing to be regretful about. But their thinking would change if it's money they are supposed to receive by right."
Since it would be North Korea receiving money it was rightfully owed, it would not be a problem for the stability of their regime. Rather, receiving more money would be a way to promote the legitimacy of the regime.
The picture looked quite good too.
From North Korea's perspective, they could take the stance of using South Korea to pressure Japan, rather than unilaterally receiving aid from Russia and South Korea.
Taekgyu said.
"If they receive reparations and an apology far greater than what South Korea received, they can promote it as an achievement of the Dear Leader."
"I don't think it's a bad proposition for South Korea either."
Regardless of political leanings, South Korea wants North Korea to give up its nuclear weapons and pursue economic development. But economic development requires money, and the bill has to be sent somewhere.
The country that would have to foot the largest portion of that bill is South Korea. Therefore, it is also in South Korea's interest for North Korea to get the maximum compensation from Japan.
The inter-Korean issue is not just a problem between the two Koreas; the interests of surrounding countries are sharply intertwined. The major powers involved are the United States, China, Russia, and Japan.
Minister of Foreign Affairs Kim Sung-chul said.
"This issue requires close consultation with the United States."
"I have already spoken to President Ronald."
At my words, everyone looked dumbfounded. Who else could discuss such matters directly with the President of the United States?
The United States had proposed to guarantee the stability of the North Korean regime and help develop its economy in exchange for denuclearization. But who was Ronald? He made the proposal, but he had no intention of spending a single penny of American money.
President Ronald had openly stated that 'economic support for North Korea should come not from the United States, but from South Korea, Japan, and China,' and that he was 'very interested in Japan's contribution.' Japan had expressed its displeasure at this.
If the amount of the claim were to increase significantly, the Japanese side would lobby Washington, but as long as I was involved, the United States would not step in to mediate for Japan.
"And Russia...?"
"I discussed this matter with President Vysotsky when I met him last time, and I will speak to him again directly about the progress. As you know, President Vysotsky wants to escape Western sanctions and make Vladivostok the central city of the Far East. As he desperately wishes for the success of this project, I believe he will naturally support my position."
The government officials looked speechless once again. I was probably the only person who could contact the Russian President directly as well.
In any case, the United States and Russia were in favor. China wouldn't be thrilled, but they wouldn't oppose it either.
The problem was Japan, which was being hit while doing nothing.
Minister of Foreign Affairs Kim Sung-chul said cautiously.
"Japan will not stand idly by. They will protest fiercely to the South Korean government diplomatically, and they might even resort to retaliation like last time."
From an international law perspective, South Korea and North Korea are distinctly different countries. If South Korea were to get involved in negotiations between Japan and North Korea, it would likely escalate into a diplomatic issue.
That is why South Korea has refrained from commenting on this matter.
"What does that matter? I'm just a private investor."
Taekgyu nodded beside me.
"That's right. Just one incredibly disobedient citizen acting on his own whim."
Minister of Foreign Affairs Kim Sung-chul wiped the beads of sweat from his forehead with a handkerchief and said.
"Even so, the Japanese side will strongly demand that the South Korean government sanction your actions, CEO Kang."
I nodded.
"Then tell them you will. But have I ever listened to the government?"
"..."