chapter 34
#34
“Grunt…”
Yun Ho-chang, the mayor of Gunsan City, couldn’t sleep because he still felt unfair when he thought about what had happened.
It was the closure of the KM Gunsan plant, an automobile company representing Gunsan.
As a result, even partner companies were closed one after another, and Gunsan City was overflowing with unemployed people.
“Why are you shutting down right after I took office!”
The problem is that the closure occurred right after Yun Ho-chang took office.
That’s why, in order to somehow deal with it, Yun Ho-chang poured out various support by having another company take over KM’s Gunsan factory.
In the end, they finally managed to find a buyer for the Gunsan plant, but that was no solution at all.
The company that acquired the Gunsan plant acquired the plant through a joint venture with a Chinese automobile company, but it did not utilize even a tenth of the Gunsan plant site.
It was a Gunsan plant that produced up to 300,000 cars a year, but since the new owner took over, it has fallen to the level of making only 10,000 to 20,000 cars a year. .
“sh*t.”
His term of office will end in a year from now, and if this happens, he will be branded as an incompetent person who failed to deal with the aftermath of the KM plant in Gunsan, and the fear that he may quietly disappear from the political world comes over him.
But then the extension phone started ringing.
“yes.”
– Poetry, mayor, a guest has arrived.
“customer? Didn’t you say you had no appointments today?”
-Well, he said he forgot to investigate the feasibility and apologized for the sudden visit.
It’s a mayor that represents a city in its own way, but I thought I’d come and meet you without making an appointment.
Rather, the mayor was angry with the secretary for not taking care of even one of these things.
“You say that? I don’t know who it is, but this is polite…”
-That, that’s Saeron’s representative, Han Ji-hyeok, and this time, as an article, I said that I wanted to talk about Seron’s attracting partners.
“···uh?”
As Yun Ho-chang, who has always eagerly hoped to attract new investment to fill the void left by KM’s closure, the contents of the public discussion and the partner company’s investment collaboration ceremony from the article keep passing in my head.
10 partners with sales of 800 billion won.
Yun Ho-chang jumped up from his seat and said.
“I ask you to come in! hurry!”
After a while, Han Ji-hyeok entered the mayor’s office with a relaxed expression, guided by his secretary.
‘A Class Awakener. And the owner who created a mid-sized company with hundreds of billions of annual sales by creating a dying industry. In addition, the possibility of attracting additional investment through partner companies.’
The appearance of a person who has no corner that does not covet anything in the market position.
Of course, since it is a business that uses skeletons, there is a downside that the employment effect for local residents will be very low compared to the amount of investment and sales, but Yun Ho-chang, who was sorry for the company, was not in a position to cover hot meals with cold meals.
Yun Ho-chang said with a bright smile.
“Welcome, CEO Han! I have heard many stories.”
“hahahaha. is that so?”
“now. Come this way.”
Yun Ho-chang, who sat down like that, said with a smile.
“You came to see me about attracting business partners?”
“yes. I think it would be easier to work if I was in the same place as my partners.”
To come to the mayor of Gunsan with such a business?
Yun Ho-chang calmed his overwhelmed heart and said.
“Well, then please.”
“yes. I think of Gunsan City as a promising candidate…”
Han Ji-hyeok said with a smile.
“What are the benefits of coming to Gunsan City? I came here because I was curious.”
*
When I asked what kind of benefits he could receive, Yun Ho-chang started talking about this and that.
“First of all, Gunsan City is selected as a special area for responding to industrial crises, so corporate and local taxes can be exempted for 5 years, and special guarantees are supported through credit and technology guarantee funds.”
Simply put, tax cuts and guarantees will be provided if the investment is insufficient, so please ask companies to come in and save the local economy.
This is what I have been researching all along the way.
“In addition, additional subsidies according to the number of employees employed, as well as various other benefits…”
Yun Ho-chang lists the benefits one after another.
I nodded and said.
“okay. By the way, mayor?”
“yes.”
“Aren’t those benefits available in other special industrial crisis response areas?”
At my words, Yun Ho-chang stunned and said,
“That, that.”
About 5 places in Korea have been selected as industrial crisis areas.
And what those five places have in common is that the representative company that supported the local tax revenue was hit hard by the collapse.
Representative examples are automobile factories in Gunsan and shipbuilding companies in Gyeongnam.
“Isn’t Gunsan the only industrial crisis area?”
Then Yun Ho-chang spoke in an urgent voice.
“After all, taxes are under the jurisdiction of the central government, so other regions will not be able to provide more benefits than this!”
“Of course I know. But isn’t the benefit just about taxes?”
I didn’t even expect that in the first place.
Because the mayor is just the one who decides how to spend the tax money he collects.
But the market definitely has the power to give me what I want.
“I don’t know if you know, but I run quite a few factories, and this is because there are so many difficulties.”
“You mean your troubles?”
“We use skeletons as workers. So, I have to squeeze the skeleton in as much as possible to increase sales even more, but the floor area ratio keeps getting in the way.”
Just because you bought land doesn’t mean you can build anything you want on it.
Each region has a floor area ratio, and it is decided that only buildings of this size can be built relative to the land area.
However, the government eased the floor area ratio that had been set for attracting new investment and at the same time allowed each local government to diversify according to circumstances.
Only then did Yun Ho-chang, who understood my words, speak with a firm expression.
“Are you asking for the floor area ratio to be raised to the maximum?”
“you’re right.”
“It is not an easy decision to make because there is also an issue of fairness with other companies.”
“Isn’t our situation a bit special? And above all…”
I said with a smile.
“So wouldn’t we be able to hire more employees as well?”
Hochang Yun was startled and said,
“Is the number of employees increasing?”
“It is said that the skeletons do the work, but it is absolutely necessary to have someone who can coordinate the skeletons and supplement the incomplete parts. In addition, you can’t have a skeleton do office work, can you? In short, the more skeletons there are, the more people and staff to manage them.”
Those words made Yun Ho-chang’s pupils shake.
“The more skeletons you have, the more staff you need… What is the percentage?”
“The ratio of people to skeletons is about 6%, including production and office workers.”
A ratio that is possible because it is a labor-intensive industry.
“Six percent? Wait. What is the total number of skeleton batches signed with partners now?”
“About 3,000.”
“So you’re saying there are less than 200?”
Yun Ho-chang said with a dejected expression.
“I expected it to be small, but this is…”
The reason why local governments are trying to attract companies is because tax revenue is a tax issue, but the issue of local jobs is more important than anything else.
When there are more jobs, people’s consumer psychology revives, and when consumer psychology revives, the commercial district also revives.
In that respect, it is true that Saeron and its partners are extremely inefficient compared to other companies when it comes to job creation.
KM, which existed before that, had 2,000 direct employees and reached 10,000 when adding partners.
“That’s why the floor area ratio and licensing are important. Skeletons must be attached as closely as possible to increase efficiency and hire as many management staff as possible.”
As it was an expected reaction, I took out a list I had prepared in advance and presented it to the mayor.
“Let’s see. These are foreign companies that have proposed to us and companies that wish to make a U-turn to Korea.”
Yun Ho-chang’s pupils shake as he receives the list.
“You mean this many?”
“yes. The 10 partners that have signed an agreement are just a few of them.”
I said with a relaxed expression.
“No matter how much it is 6 percent, what if those companies are not 10 but 100 or more? Are you going to do less then? And if that many companies come in, there is a limit to the site, so we have to extract the floor area ratio as much as possible so that we can place more and more skeletons and hire more employees.”
In order to increase human jobs, more skeletons have to be pushed in.
“And don’t just think about jobs, but also think about the taxes that will be paid to Gunsan City. Even with just 10 suppliers, annual sales are 800 billion won, and the amount of direct investment that will go into factory site construction costs is staggering.”
I deliberately explained every word in order to get Yun Ho-chang’s cooperation, but Yun Ho-chang had no choice anyway.
As representative companies and partners flew away, the Gunsan Industrial Complex was currently operating at close to half.
In addition, it is true that fraudulent scams are not uncommon in which local governments desperately want to invest in foreign countries, saying that they will invest, and run away without drinking sweets.
However, the 10 partners Seron and I have chosen are properly verified companies that have already been verified.
In other words, taxes are taxes, jobs are jobs, and there is no reliable company other than our taxon that can fill even this much vacancy in a short period of time.
In the end, Yun Ho-chang, who had been thinking for a while, spoke.
“Can you promise that all new partners will move into the Gunsan Industrial Complex in the future?”
I said with a bright smile.
“If the mayor shows good intentions, I must repay with good intentions.”
In the end, Yun Ho-chang nodded and said.
“All right. We will actively push for it.”
*
“…Yurim Electronics’ factory in China was a sound factory with annual sales of over 200 billion won. And the factory of Yurim Electronics, which had been away from home, has returned to Korea!”
Mayor Yun Ho-chang, who attended the event to celebrate the official move-in of Yurim Electronics, the first partner company, to celebrate and promote his achievements, stepped up to the podium and spoke to local reporters.
“That also goes to our Gunsan Industrial Complex! In the meantime, Gunsan City has had a lot of things. Until the shipyard went out of business, and that wasn’t enough, until the car factory closed. As a result, many people were unemployed and the city’s finances were getting worse and worse. But now I can say it with confidence! That was our bottom, and now we have only one thing left to do!”
Hochang Yun shouted in a loud voice.
“Yurim Electronics’ U-turn in Korea is just the beginning! Well-known companies such as Jewon Tech and Smart International are moving in soon, including not only Korean companies but also American and Japanese companies! Don’t you think of something? Overseas investment flooded into Korea during the period of rapid growth. Maybe we are looking at the second part of the great footsteps? That too in Gunsan!”
good publicity
“The dream of a manufacturing powerhouse that was crumbling. We will make that dream come true in Gunsan!”
After such a rough congratulatory speech, reporters started asking questions.
“How many announced tenants are there?”
Then Mayor Yun Ho-chang looked at me with a soft expression and said,
“I think it would be good for CEO Han Ji-hyeok of Seron to answer that.”
You mean to show how close we are?
I looked at the reporters and said.
“I will only say that 15 companies have been confirmed, and there are more companies that are being talked about. Of course, all of these companies are planning to move into the Gunsan Industrial Complex.”
While the 1st phase partners decided to take root in Gunsan and looked for a factory site, only 5 companies signed additional contracts, and if you add the companies that are in the process of agreement, there are literally dozens of companies.
“As the estimated sales of only confirmed companies reach 1.2 trillion, I am confident that it will be of great help to the local economy.”
And each of those companies is a small but strong company with at least tens of billions of annual sales, so their sales alone are truly enormous.
Of course, all of that sales did not lead to Serron’s net profit, but it was clear that this alone would make Serron several times larger than it is now.
I said while looking at Mayor Yun Ho-chang.
“Anyway, I would like to thank Mayor Yun Ho-chang once again for borrowing this seat and giving me a lot of advice.”
Me and Yun Ho-chang made eye contact, smiled lightly, and silently bowed to each other.
Then a reporter said.
“It is clear that it will be of great help to the development of the local economy. But isn’t it a job that the citizens can feel the most? As far as I know, I heard that the ratio of workers to Seron and its partners is extremely low because of the skeleton.”
I said with a relaxed expression.
“It is true that it is low. But just because it’s low doesn’t mean it doesn’t exist, does it? It’s because you can’t have a skeleton do an office job. Roughly speaking, 6% of the skeleton?”
Then the reporter said with a puzzled expression.
“Six percent? Isn’t that too low?”
“Not low.”
I said with a smile.
“It will be enough if the number of skeletons increases enough to employ all of the economically active population. I heard that the number of workers who lost their jobs due to the closure of the automobile plant is about 10,000, including suppliers.”
“This is true for workers who lost their jobs directly, but if you add up the number of employees in commercial areas affected by it….”
I interrupted the reporter and said.
“I’m not trying to tell a complicated story. Isn’t the indirect effect said that when 10,000 people return to work, everything goes back to where it was?”
“That’s… that’s right.”
“If you want to hire all 10,000 people, you will need to place about 200,000 skeletons.”
Then the reporter opened his mouth wide and said.
“Two hundred thousand?”
When he mentions a number that transcends common sense, not only the reporter but also others are shaken.
I shrugged and said.
“That’s what the horse is, the horse. It means that we will deploy as much as we can.”
Reporters and people who make a face that says then.
If you put 200,000 of them in real time later, you’ll be able to see their expressions, right?
“Anyway, I think this is a win-win situation between Korea and Seron. Skeletons aren’t taking people’s jobs. Rather, it is bringing back jobs that have been leaked abroad. As the number of skeletons increases, jobs and sales increase at the same time, which increases the finances of Gunsan City as well as the corporate tax paid to the state.”
You’re not wrong, are you?
It will actually happen.
Of course, I’ll make more money that way.
“So, I promise that Seron will continue to attract more foreign companies to Gunsan to contribute to the economy of Korea and Gunsan. thank you.”
As we finished the story, questions poured in to Mayor Ho-Chang Yun again.
I looked at him and said in a quiet voice.
“Take a look, I’ll make it sound like it’s going to be a big deal later if Seron isn’t there.”
If Saeron leads the economy of Gunsan by arranging partner companies in a pile, who in Gunsan will say anything to me?
Starting with Gunsan, we gradually increase the number of partners and increase the share of Seron in the Korean economy.
If your influence grows like that, you’ll be able to make money comfortably without anyone interfering.
At the same time, even after I finish all my work and retire, no one will try to displease me.
“All of them, whether it be partners or citizens of Gunsan.”
And the same goes for partners.
The key to determining the relationship between A and B is which of the two has more substitutes.
In general, the reason why brands with technology and products are the best is that there are infinite factories that brands can choose from and they all want to be chosen.
But Seron is a completely different case.
There is no substitute for the ultra-low labor cost of the skeleton, just as shoe makers try to secure production by somehow cramming in a little more guaranteed quantity.
In other words, Seron’s partner is Eul.
B, who develops and markets products on behalf of Saeron.
And the more such partners increase, and the more companies with overlapping industries among those partners, the more the partners have no choice but to pay attention to the public.
The moment the skeleton is retrieved due to a strained relationship with Seron, they will be pushed out of the competition with the competitor who receives the skeleton.
The perfect way to make money and prepare for retirement.
I said with a smirk.
“I will make Gunsan into Seron City.”