The business leaders' meeting proceeded in a warm and friendly atmosphere.
Everyone had lively expressions, their eyes sparkling with excitement.
“This inter-Korean economic cooperation will bring tremendous opportunities for South Korean companies.”
Even without the President saying it, any businessperson could sense the opportunity to make money. The reason they hadn't been able to easily access North Korea until now was because they were tied up in various sanctions and the risks were too great.
But the prevailing thought was that this time was different.
The economy is like a living organism; once it starts, it tends to roll on its own.
Even during the nuclear tests, the Kaesong Industrial Complex did not stop and continued to operate. It was South Korea that actually shut it down.
Ukraine, too, despite being at war with Russia, cannot touch the Russian gas pipelines that run through its territory.
Once the gas pipeline and railway are completed, they will continue to be utilized in the future, regardless of the relationship with North Korea.
The country that will benefit the most from this is South Korea.
Experts have slightly differing opinions on the economic effects of inter-Korean economic cooperation. While it is true that North Korea is a land of opportunity, there is no need to have excessive illusions.
Some experts cite North Korea's cheap labor as a strength, but in reality, there is already plenty of that in Southeast Asia and Africa.
This isn't the 1960s; labor-intensive industries are mostly being replaced by machines. What is more important than wages is social infrastructure and the educational level of the workers.
Looking at the Kaesong Industrial Complex, one might think that the level of North Korean workers is quite high, but those workers are among the most highly educated within North Korea. Not to mention their loyalty to the Party and the Supreme Leader.
However, this doesn't mean there is no merit in setting up factories in North Korea.
From the perspective of South Korean companies, there are the major advantages of close proximity and a common language. If logistics are connected, the underdeveloped infrastructure can be overcome to some extent by utilizing South Korea's infrastructure. In fact, the Kaesong Industrial Complex was operated in that way.
After the luncheon meeting, President Heo Chang-min walked with the business leaders in the Blue House grounds, chatting.
Reporters followed behind, taking pictures of us. It would be the headline on the evening news.
Among the invited business leaders were Chairman Ryu Cheol-gyun and Vice Chairman Shin Byeong-doo of RCK Bros.
Chairman Ryu Cheol-gyun smiled and said to me.
“You’ve pulled off something incredible again.”
“Not at all. It’s just that a previously pursued project has come to fruition.”
“But isn't it true that no one has been able to do it until now? This will completely change the situation in Northeast Asia. RCK Bros is also looking into investments in Central Asia and Eastern Europe.”
Vice Chairman Shin Byeong-doo continued.
“Once the railway is connected, the movement of goods will become free, which will have the effect of binding the economies into a single bloc.”
Currently, the Russian economy is growing rapidly despite Western sanctions. In addition, the development of Siberian resources and Central Asian development projects will also accelerate.
It also has the effect of checking China's Belt and Road Initiative. That's why the US is also in favor of it.
Although there are still considerable concerns and opposition, if it proceeds well, it will certainly yield returns greater than the money invested.
“I heard that the Vice CEO also played a big role in this.”
I nodded.
“Taek-gyu worked hard too.”
He's still busy fighting keyboard battles with right-wing netizens online. That kid is as fierce as Lu Bu when he's on the internet.
As I was thinking that, President Heo Chang-min came up beside me. Chairman Ryu Cheol-gyun and Vice Chairman Shin Byeong-doo naturally slowed their pace and fell back.
President Heo Chang-min said to me.
“I’ve come to realize anew that one outstanding person can change the world.”
I answered modestly.
“It's thanks to everyone's efforts.”
“But if it weren't for you, CEO Kang, no one could have done it.”
Whether they are politicians or businesspeople, those with a lot to lose and a lot of responsibility can't help but be mindful of their surroundings. I'm probably the only one free from such concerns.
***
Although it was the world's third-largest economy, the Japanese economy was currently facing various difficulties.
Astronomical national debt, an ever-increasing budget deficit, an aging population, population decline, chronic deflation, and so on.
As a way out, they were focusing on expanding exports through a weaker yen, but after taking a hit in the last Korea-Japan trade dispute, both exports and domestic demand were decreasing.
The South Korea-North Korea-Russia economic cooperation, which took place in this situation, was another piece of bad news for the Japanese economy.
South Korea and Japan are global manufacturing powerhouses. Both countries are also nuclear power giants, but they share the commonality of having a high proportion of thermal power generation and importing all of their energy from abroad.
What would happen if South Korea imported natural gas at less than half the price of Japan?
Electricity costs are directly linked to producer prices.
If gas is brought in cheaply, the production costs of South Korean products fall, giving them a price advantage. This is a major blow to Japanese industries whose export items overlap.
The North-South railway connection was also not very good for Japan. There are only two ways for South Korea and Japan to transport exports: by air or by sea.
Air transport is fast but expensive. Sea transport is slow but cheap. Rail transport is somewhere in the middle in terms of both time and cost.
However, the story changes if the export destination is a landlocked country. For regions like Siberia, northern China, Central Asia, and Eastern Europe, rail transport is much more efficient.
If goods, capital, and labor move freely through the railway, and South Korea forms an economic bloc with Russia and Central Asia, Japan will fall behind that much.
Japanese economic research institutes analyzed the economic effects that South Korea would gain and expressed concern over the loss of Japan's economic hegemony in Asia.
As concerns about "Japan passing" grew both politically and economically, the business community urged for countermeasures.
Proposals included building an undersea tunnel to connect gas pipelines and railways to the Japanese archipelago, sending containers to Busan Port and loading them onto trains there, and improving relations with South Korea.
No matter what they did, they were in a position where they had to ask South Korea for a favor.
The political world was busy searching for countermeasures. Opinions were divided within the LDP.
“I don't understand why they keep bringing up something that happened over 50 years ago.”
“How long are we going to be shackled by the past?”
“Japan has already taken as much responsibility as it can. Paying any more compensation is unreasonable.”
“Even though we lost the war, what other country has paid this much compensation to its neighbors?”
“We must inform the international community of this injustice.”
While there were hardline opinions, cautious views were also significant.
“We must hold a Japan-Korea summit as soon as possible.”
“The Prime Minister should visit South Korea and cooperate closely with them on this issue.”
“Rather than that, normalizing Japan-North Korea relations is urgent.”
“We must actively review the claims agreement.”
“At this rate, Japan could become isolated in Asia.”
In this situation, LDP veteran and Prime Minister Okazaki's right-hand man, Fujiwara Itsuki, said in a disgruntled tone at a drinking party.
“What on earth has the government been doing until things got to this point? Shouldn't they have taken steps long ago to prevent South Korea, North Korea, and Russia from cooperating? It's not in Japan's interest for neighboring countries' relations to improve. Japan needs another special procurement boom like the Korean War to escape the recession.”
This remark was reported by an Asahi Shimbun reporter who was present at the time. At first, Fujiwara denied having said it, but when the recording was released, he changed his story, saying he 'was drunk and doesn't remember well.'
When asked by reporters about the true meaning of his remarks, he said irritably.
“I can only see a malicious intent in making an article out of a joke made at a drinking party. Does the reporter have no patriotism?”
Right-wing media outlets like the Sankei Shimbun downplayed the incident or did not report it at all.
In fact, this was not the first or second time politicians and bureaucrats had made such reckless remarks. Until now, it had been a good means of rallying their support base.
But in a situation where the world's attention was already focused on Japan's past, this remark spread like wildfire.
The Russian Foreign Ministry issued a statement.
“Does Japan talk of peace while secretly hoping for conflict? Has it still not shaken off the ghost of militarism that stained Asia with blood?”
The spokesperson for the South Korean Ministry of Foreign Affairs said in a calm yet firm tone.
“The Korean War was a terrible war in which about 2.5 million people died, including soldiers and civilians from the Korean peninsula, as well as soldiers from over 20 countries. We would like to ask if you wish for such a global tragedy to happen again simply for Japan's economic benefit.”
In addition to North and South Korea and Russia, which were mentioned in the remark, public criticism also flared up in China and the United States. American veterans of the Korean War issued a protest statement and demanded an explanation from the Japanese government.
These two countries, aside from North and South Korea, were the ones that had sent the most troops and suffered the most casualties.
As the situation grew uncontrollably, Fujiwara eventually resigned from his position and left the party, and Prime Minister Okazaki finally bowed his head.
“I want to make it clear that the remarks of the said lawmaker have nothing to do with the position of the Japanese government and the party. As the president of the LDP, I express deep regret over this incident. Japan promises to continue to do its best for the peace and prosperity of Asia, as it has done so far.”
But the international criticism showed no signs of abating. Vietnam, the Philippines, Indonesia, and other victim countries of the Pacific War also sent cold gazes.
But it was North Korea that was most enraged.
On Korean Central Television, the "Pink Lady" shouted in her characteristic agitated voice.
“The whole world has once again witnessed the true nature of the cunning Japanese bastards, who spew bullshit from their gaping maws instead of reflecting on their cruel and horrific past crimes. If Japan, the malignant tumor that destroys the peace of Northeast Asia, messes around again, we will have no choice but to punish those four insignificant island scraps with the nuclear bomb of Juche.”
***
Watching North Korea's reaction, Taek-gyu couldn't help but be impressed.
“That was a penetrating voice that moved the hearts of the people. I think I'm moved right now. A People's Hero is not just anyone.”
In fact, you could easily find that level of cursing just by going online.
But North Korea is the only country in the world that says such things so nonchalantly on public broadcast. It's truly an amazing country.
The reason North Korea is coming out so strong is because they can use it to strengthen their regime. As always, an external enemy is helpful for internal unity.
What should be noted is Japan's response.
This incident showed just how complacent the Japanese political world was about the current situation.
As they try to change course from their unilateral right-wing path, internal noise is bursting out. It also means that Prime Minister Okazaki is not properly managing his internal affairs.
Taek-gyu crossed his arms and said.
“Hmm, these guys still haven't come to their senses.”
Japan's backlash was easily predicted. The negotiations start from now. The outcome will depend on who takes the initiative.
For that, it is necessary to have international public opinion on our side.
“If they can't come to their senses on their own, we have to make them.”
***
I decided to visit the House of Sharing, where the comfort women grandmothers were gathered, with Ellie.
I had donated a large sum of money before, but this was my first time visiting in person. OTK Company had announced it a few days in advance, and since it was a matter of global interest, numerous domestic and foreign reporters were already gathered in front of the House of Sharing.
As soon as I got out of the car, a flood of questions poured in from the reporters.
A Sankei Shimbun reporter, who I thought I had seen before, shouted.
“I am curious about your intention in visiting this place at such a politically sensitive time.”
“At such a politically sensitive time, the Japanese Prime Minister and politicians have no problem visiting the Yasukuni Shrine, where Class-A war criminals are enshrined. Are you suggesting that it's okay to pay respects to war criminals, but not to visit the victims?”
He asked in Korean, but I deliberately answered in English. That way, it would be easier for the world's media to broadcast it as is.
The Sankei Shimbun reporter asked again in a sharp voice.
“Isn't doing volunteer work with the media in tow nothing more than a show for the cameras?”
I shook my head.
“That's not true. Among the victims of the Japanese military comfort women, there are those who were dragged away by the Japanese military from Hwanghae and Hamgyong provinces. Wouldn't it be helpful in calculating the compensation that North Korea will claim from Japan to hear directly from them about what they experienced?”