I headed to the branch manager’s office with Taek-gyu. Inside, Hyun-joo and Ellie were sitting together.
Hyun-joo, smoking a cigarette, said, “Now tell me. Why do you need $20 billion?”
I placed a book on the table.
The title of the book was ‘The Big One is Coming.’
“Have you read this book?”
Ellie picked up the book and examined it.
“Who wrote it? If it’s Professor Kiran Mohan… Ah! He’s the professor from Caltech that Jin-hoo met.”
“That’s right. We’ve also agreed to support his research.”
Hyun-joo asked, “Does this relate to the corporate bond issuance?”
I nodded.
“There will be an earthquake in the U.S. within a few months.”
To be exact, it’s around two months from now.
Hyun-joo and Ellie were taken aback by my words.
“What?”
“Is that true?”
I shared what I heard from Professor Mohan with Taek-gyu. In summary, he predicted that a major earthquake would occur across the San Francisco Bay area around September.
As expected, Hyun-joo reacted incredulously.
“So you’re saying you reached that conclusion just by believing that professor?”
“I received some data, and there’s sufficient evidence.”
San Francisco, located on the San Andreas Fault, is one of the areas in the world most likely to experience earthquakes.
“There’s no rule that something like the Great East Japan Earthquake can’t happen in San Francisco.”
San Francisco is one of the largest cities in the U.S., and as such, it has a dense population.
It’s like the difference between an earthquake happening in Gyeongju versus in the middle of Gangnam. Naturally, the loss of life and property damage aren’t comparable.
Taek-gyu chimed in beside me.
“Think about it. Has Jin-hoo ever been wrong?”
I had successfully made investments that others deemed impossible. The L6 explosion, Brexit, Ronald’s election, and so on.
Hyun-joo extinguished her cigarette in the ashtray.
“That may be true, but this case is different.”
“I know.”
Hyun-joo looked straight at me and asked,
“Are you really sure?”
While I felt confident internally, I answered ambiguously on purpose.
“There’s nothing wrong with being prepared.”
Hyun-joo sighed, seeming completely at a loss.
“So you’re saying you’d spend over 20 trillion won preparing for something that might not happen?”
“I’m thinking of investing half of that. I don’t intend to take losses.”
I explained the plans I had made.
“But what if an earthquake doesn’t happen?”
“That’s just $20 billion. If the new car is successful, I can earn that much easily. If it’s not, I can sell a few subsidiaries, including FaceIt.”
While $20 billion is a significant amount, it wouldn’t put the company completely under, even if things went awry.
In fact, considering what I plan to do in the future, it won’t just end with losing money. But I don’t need to mention that here.
I deliberately spoke cheerfully.
“Anyway, it’s already been decided, so just keep that in mind.”
“Anyway, I am the CEO of OTK Company. Therefore, my decision is the company’s policy.”
***
“If a similar earthquake occurs in another country, recovery will be unthinkable for a while.
In fact, in cases like Nepal and Haiti, which suffered from major earthquakes years ago, recovery is still slow.
However, the U.S. is different. Considering the geographic location of San Francisco and its surrounding infrastructure, it won’t be left as ruins.
Just as a more magnificent and beautiful World Trade Center was built after the collapse of the Twin Towers during the 9/11 attacks, it is expected that massive recovery efforts will begin once the effects of the earthquake subside. Perhaps several mega-cities will be built simultaneously.
If the damage is minimized, that timeline will accelerate significantly.
Hearing this, Taekgyu spoke up.
“From my experience in urban development…”
“You?” I interrupted.
Taekgyu quickly corrected himself.
“Based on my experience in SimCity, important materials for urban development and recovery are steel and concrete.”
I nodded.
“That’s right.”
The most crucial element is steel.
Steel is known as the “rice of industry,” as it is used across various sectors. It’s no coincidence that Pohang Steel (now POSCO) was established with compensation received from Japan.
Once recovery picks up, demand for steel will likely surge, creating upward pressure on producer prices.
Companies like Eunsung Steel, which have their own steel mills, can absorb some of the price increases, but those who purchase externally will suffer significantly.
For Carros, preparing to launch new models in the second half of the year, it means recalculating production costs immediately.
Currently, the steel industry is facing oversupply as Chinese manufacturers have started full-scale operations. International prices continue to fall, and steelmakers’ stock prices have also plummeted. POSCO, once among the top in the KOSPI market capitalization, has long been pushed out of the top five.
I called for Henry.
“Did you call for me?”
It seems like there’s some dissatisfaction in your expression.
It’s understandable since he was excited about going on vacation with Hyun-joo and had even arranged for a villa in the Maldives, only to receive a sudden cancellation notice.
“Please go on a business trip to Japan and China.”
“What’s the matter?”
“I’m considering purchasing steel.”
Henry asked in surprise, “Are you talking about automotive?”
“Contact suppliers in secret and say to buy as much as possible for the next three years, regardless if it’s for automotive, construction, or industrial use.”
Henry looked bewildered at my suggestion.
“Why would you buy construction steel?”
I briefly explained what Professor Mohan had told me, and Henry was shocked. Unlike me and Taek-gyu, who are Korean, he’s American. Hearing that a major earthquake might occur in his country naturally surprised him.
“Is it really true?”
I replied indirectly, “It’s not certain yet, but the possibility is quite significant.”
Though I said this, he certainly knows I wouldn’t take action on mere possibilities.
“I don’t quite understand.”
“I wish my, no, Professor Mohan’s words would turn out to be wrong.”
I wasn’t trying to persuade him overly much.
“Regardless, I’m thinking of purchasing steel and concrete, considering future restoration demands.”
“Companies will likely try to hedge against price fluctuations.”
Steel prices are linked to those of iron ore, scrap metal, and crude oil.
Purchasing steel now is to prepare for future price increases. If it’s linked to production costs, it wouldn’t make much sense.
“Even if you add a premium to the current market price, just make sure to contract at a fixed price for everything. Also, say you’ll pay as much upfront as needed.”
Considering future events, there isn’t much time left. Additionally, we need to secure as much concrete, copper, and crude oil as possible.
Henry still looked confused, seeming unsure if this was a joke.
“You’ll find out soon enough, but until then, keep this to yourself.”
“Ah, I understand.”
After Henry left, Taek-gyu asked, “Aren’t you going to get criticized for investing like this?”
“I’m not thinking about making a huge profit from this. If prices soar in the future, I plan to sell cheaply to the U.S. government to stabilize the market.”
Taek-gyu was impressed. “Oh, that’s a good idea.”
After all, money can be made in many other ways.
***
I then called Sangyeop.
“How’s work these days?”
“I’m busy. I got dragged to a drinking party with a trading company yesterday and drank until dawn.”
He still looked like he hadn’t fully sobered up.
I smiled and said, “You didn’t just go because you wanted to drink, right?”
Sangyeop strongly denied it. “No, it’s not like that. The owner over there insisted he wanted to have a drink with me, so I had no choice but to go.”
The startups that K Company has invested in are growing rapidly in the domestic market. When considering the value of its subsidiaries, K Company could easily rank among the top in the industry. (Both OTK Company and K Company are not included in the rankings published by the Fair Trade Commission, and the same goes for RCK Bros, a PEF.)
Some startups were beginning to mention the possibility of going public. However, given the parent company’s robust financial strength, there was no real necessity felt to raise funds through an IPO.
“Speaking of which, it’s been quite a while since I worked with you.”
Sangyeop joined us right after Hyun-joo, making him almost one of the founding members. That’s why he was also given a share of K Company.
“What’s wrong?”
“I just thought of old times seeing you, Sangyeop.”
At my words, Sangyeop looked wide awake. “W-what? You’re not planning to cut me off, are you?”
I burst into laughter. “No way. Without you, who am I going to delegate work to?”
Sangyeop sighed in relief. “Phew, that’s a relief.”
“Delegate your current tasks to the staff and follow my instructions for a while.”
I just told Henry exactly what I had said.
As expected, Sang-yeob was surprised.
“Are you saying that an earthquake will occur in San Francisco? Is that true?”
“If Professor Mohan is correct.”
“How likely is it that the professor is right?”
“Not 100%, but quite high. It could happen this year or next.”
“Wait a minute. If the earthquake hits, physical assets like gold and oil will skyrocket… shouldn’t we secure raw materials first?”
As expected, his mind was immediately focused on this aspect. That’s why I trust him with tasks.
“I’ve entrusted that job to Henry. I’m assigning you something else.”
“What job?”
“Go to China and procure disaster preparedness supplies and relief materials. Tents, bottled water, blankets, emergency medicines, etc.”
“How much volume?”
“All production capable within the next two months.”
The manufacturers are not just idling until we place an order; they need to increase their usual production to meet our request.
Currently, only China can produce the maximum volume in a short time. If that’s not sufficient, we plan to subcontract production to Mexico and Canada, as transportation times will be shorter.
The next day.
Henry and Sang-yeob crossed over to Japan and China, respectively, and contacted relevant companies to carry out my instructions.
In the meantime, I searched for an alternative site to relocate our subsidiaries based in Silicon Valley. Currently, the most promising locations appear to be Orange County, Pasadena, and around Ontario near LA.
There will be considerable resistance to the sudden move, but we have no choice but to go ahead.
At the same time, I looked for warehouses that could be rented short-term. They need to be in earthquake-safe zones, close to danger areas, and easily accessible. This way, we can quickly transport personnel and supplies.
“What on earth is this about?”
I just told Henry exactly what I had said.
As expected, Sang-yeob was surprised.
“Are you saying that an earthquake will occur in San Francisco? Is that true?”
“If Professor Mohan is correct.”
“How likely is it that the professor is right?”
“Not 100%, but quite high. It could happen this year or next.”
“Wait a minute. If the earthquake hits, physical assets like gold and oil will skyrocket… shouldn’t we secure raw materials first?”
As expected, his mind was immediately focused on this aspect. That’s why I trust him with tasks.
“I’ve entrusted that job to Henry. I’m assigning you something else.”
“What job?”
“Go to China and procure disaster preparedness supplies and relief materials. Tents, bottled water, blankets, emergency medicines, etc.”
“How much volume?”
“All production capable within the next two months.”
The manufacturers are not just idling until we place an order; they need to increase their usual production to meet our request.
Currently, only China can produce the maximum volume in a short time. If that’s not sufficient, we plan to subcontract production to Mexico and Canada, as transportation times will be shorter.
The next day.
Henry and Sang-yeob crossed over to Japan and China, respectively, and contacted relevant companies to carry out my instructions.
In the meantime, I searched for an alternative site to relocate our subsidiaries based in Silicon Valley. Currently, the most promising locations appear to be Orange County, Pasadena, and around Ontario near LA.
There will be considerable resistance to the sudden move, but we have no choice but to go ahead.
At the same time, I looked for warehouses that could be rented short-term. They need to be in earthquake-safe zones, close to danger areas, and easily accessible. This way, we can quickly transport personnel and supplies.
“We need to inform the public as well.”
Who says something is as important as what is said. Given the wealth and reputation I’ve gained through my investments, people won’t take my words lightly.
Just my warning alone could reduce casualties, but that’s not enough.
To minimize damage, a national evacuation plan must be established. And among the people I know, there is exactly one person who can execute that.
The issue is whether that person will believe me.
***
Since its entry into the financial market, OTK Company has always been a subject of interest.
People focused on where the $20 billion raised through corporate bond issuance would be invested. No matter how secret the contracts were, the rumors couldn’t be kept at bay.
Before long, news broke that OTK Company was making large-scale purchases of steel.
This sparked rumors that OTK Company would be entering the construction industry, leading to a significant rise in the stock prices of the targeted construction firms.
However, it didn’t take long for those rumors to be debunked.
OTK Company had started accumulating energy and non-ferrous metals in both spot and futures markets.
The market struggled to decipher Kang Jin-hoo’s intentions after the earthquake.
Amidst this, a new rumor emerged: that they were stockpiling disaster preparedness and relief supplies.
It was then that people recalled the recent news about Kang Jin-hoo sponsoring a professor from the California Institute of Technology, whose specialty was none other than seismology.
Upon hearing this, President Park Si-hyeong muttered, “What on earth is this guy planning this time?”
