Kang Jin-hoo’s announcement that the electric vehicle industrial complex would be built in Asia, not Korea, caused enormous repercussions.
Self-driving electric vehicles are a core industry of the future. Therefore, the world had been paying close attention to this investment plan.
Attracting an industrial complex is not just about jobs; it’s also incredibly beneficial for technological development.
The automotive industry is linked to numerous parts suppliers. Since it’s impossible to source all parts within the industrial complex, collaboration with local SMEs is inevitable. This is a great opportunity for developing countries to grow their parts industries and adopt advanced technologies.
No sooner had the announcement ended than investment promotion officials from Vietnam, Thailand, the Philippines, Malaysia, Indonesia, and other countries flocked to Korea.
“Vietnamese workers’ average wage is less than 30 percent of that in Korea, but we pride ourselves on having high education levels and being diligent and sincere. Furthermore, since Seosung Electronics factories are already operating in various locations such as Ho Chi Minh City and Hanoi, we believe the synergistic effect would be significant.”
“Indonesia has a domestic market of over 200 million people and is growing faster than any other country in the world.”
“Thailand is considering providing land free of charge, building surrounding infrastructure, and various tax incentives.”
“The Malaysian government is fully prepared to provide all support to attract the electric vehicle industrial complex.”
ASEAN countries foreshadowed a fierce competition to attract the investment. They all expressed a strong desire to bring the electric vehicle industrial complex to their country at all costs.
On the other hand, local governments that had been dreaming of attracting the industrial complex were plunged into shock. Local residents who had hoped for the complex and young people seeking jobs were extremely angry.
The industrial complex was the last hope to revitalize the local economy. But now, even that hope was about to disappear.
Originally, people tend to get angrier when something is given and then taken away. But in this case, it wasn’t the giver who took it back, and the giver was willing to give, and the receiver wanted to receive, but suddenly someone else stepped in and told them not to give it.
At this rate, the cutting-edge industrial complex that would lead the future and tens of thousands of jobs would really fly overseas!
– Are the Eunsung Motors union and the two major labor federations driving the industrial complex out to a foreign country?
– Crazy lol. Are they going to hand over the electric vehicle factory, a core future industry, to a foreign country entirely?
– Is Korea determined to ruin itself?
– This is why there are no jobs in Korea! What the hell is the government doing?
– Don’t just be mindful of the two major labor federations, but step up and do something!
– If the New Politics Party doesn’t do a proper job this time, let’s vote for the Liberty National Party in the next general election!
– Even so, the Liberty National Party is a bit…
As public opinion boiled over, the two major labor federations showed a sign of backing down, saying they might consider it if the solidarity wage system was abolished, but the Eunsung Motors union insisted that Eunsung Motors should withdraw from the electric vehicle industrial complex investment altogether. They also declared that if the business agreement with OTK was not terminated, they would continue their struggle to the end.
The mass rally scheduled for the weekend was decided to proceed as planned. It was to nail down their position so that they couldn’t change their words or attempt anything else.
These actions of the union to protect their vested interests provoked even greater backlash.
– Fucking stop it already.
– There are people lining up to work for 40 million won annual salary, and you’re saying it’s nonsense to drive the factory away?
– What the hell are you going to rally for?
– This is not the time to be doing this here! Let’s go to Gwanghwamun and protest too!
– Right on! If the Eunsung Motors union and the two major labor federations are holding a mass rally, let’s have a mass rally of the people too!
– Let’s gather in Gwanghwamun with candlelight vigils!
– Let’s seize jobs with our own hands!”
– Gwanghwamun candlelight vigil, let’s go!
***
A small-scale rally by the KCTU was also held in front of the Seosung Group’s Gangnam headquarters.
Chairman Im Jin-yong looked down at the scene and said, “My junior colleague is making the country noisy again. The media is in an uproar, and public opinion is in an uproar.”
Taek-gyu looked at me with an expression of agreement. “I saw on the news yesterday that Representative Gensei was cornering you, saying you are fueling social conflict and causing conflict between workers.”
Why are you picking on me?
I sighed and said, “Well, social conflict isn’t necessarily a bad thing.”
The easiest way to avoid conflict is to do nothing. Social conflict rarely occurs in dictatorships in general. Have you ever seen North Koreans protesting against the Supreme Leader or the policies of the Workers’ Party of Korea?
If you think about it, conflict is natural in a democratic society. Saying “don’t cause conflict” is no different from saying “recognize vested interests.”
Whether it’s the independence movement against Japan or the democratization movement against dictatorship, conflicts arise.
To provide ride-sharing services, you have to clash with taxi drivers, and to build university dormitories, you inevitably clash with studio apartment owners.
Taek-gyu, listening to my words, nodded enthusiastically. “So, Your Excellency severely scolded the opposition party for creating national conflict just because they opposed your policies.”
If you want the political sphere to speak with one voice, you should have a one-party system like North Korea, not a multi-party system. And the person who said that actually caused huge social conflict due to corruption and ended up in jail.
What’s important is to rationally mediate conflicts. Isn’t that what we’re pouring taxes into politicians to do?
But why is everyone just standing by and doing nothing?
“Looking at the protest, Chairman Han Chan-young must also have a headache.” Taek-gyu said.
“Come to think of it, the Seosung Group union isn’t protesting.”
Chairman Im Jin-yong responded with a smile instead of an answer.
Seosung Group had adhered to a non-union management policy in the past. Of course, it was illegal. They had already received rulings from the court several times, and as times have changed, union establishment is now permitted.
However, the membership rate is minimal. As wages and benefits are among the highest in the country, employees don’t seem to have much dissatisfaction.
Chairman Im Jin-yong sat back down. Already, the Seosung Group fact-finding team was conducting on-site surveys of ASEAN countries hoping to attract the investment.
On his desk, data analyzing domestic local governments and data analyzing ASEAN countries were neatly placed.
Taek-gyu and I sat across from him and scanned through the data.
“Annual production of at least 200,000 units and direct employment of 15,000 people. It’s a huge deal that these industrial complexes are not just one, but two. If SMEs were excluded from the industrial complex, the number of employees could have been reduced, and the backlash from the two major labor federations would have been less.”
“As you know, my family’s company used to be a partner company.”
DHK Engineering was a small company that supplied to a 3rd-tier vendor.
It went bankrupt due to Eunsung Motors’ unfair practices, but in reality, the ones who engaged in the most unfair practices were none other than the 3rd-tier vendors who placed orders for supplies.
When a large corporation squeezes the unit price from a 1st-tier vendor, the 1st-tier vendor does the same to a 2nd-tier vendor, and the 2nd-tier vendor does the same to a 3rd-tier vendor. Unfair practices trickle down like a chain of command.
Until now, the economy has been running fine even with this system. However, it was likely that this would not be the case in the future.
People may not realize it well, but rapid changes are occurring across the entire industry.
Electric vehicles use motors and batteries instead of complex engines and transmissions. This alone reduces the number of parts by more than half. This, in turn, means that more than half of the partner companies currently producing parts may close down, and mass unemployment may occur.
Therefore, we must hasten the transition to future cars as soon as possible and enhance the competitiveness of the parts industry. And more factories and more jobs must be created.
My decision to build a factory in Korea was not just out of patriotism.
Korea has the advantages of a high-quality labor force, a domestic market of over 50 million people, purchasing power reaching a national income of $30,000, and proximity to huge markets such as China, Russia, Japan, and ASEAN.
It is truly the optimal location. But the only problem is the labor unions.
Chairman Im Jin-yong asked, “What if they continue to oppose it to the end?”
I shrugged. “Then unfortunately, there’s nothing we can do.”
What I can do is up to this point. The choice will have to be left to the people.
***
In the past, when workers’ rights were weak, the public supported the Eunsung Motors union. They believed that their efforts were improving poor working conditions.
But strangely, the more the large corporation union gained, the more severe job polarization became, and every time there was a strike, only partner companies and non-regular workers suffered.
Looking closely, this was only natural. Unions are organizations created to represent the interests of their members. Therefore, there was no reason for them to care about the circumstances of other workers.
Only then did the public cast a cold gaze on the large corporation unions’ self-serving actions.
In this situation, when Kang Jin-hoo stepped forward and said he would create jobs with a solidarity wage system as part of an effort to reduce job polarization, the public all cheered. Even young conservatives who had been criticizing Kang Jin-hoo applauded.
Due to technological advancements and declining growth rates, manufacturing jobs in Korea were steadily decreasing. How else could the saying that Korean youth are unemployed despite having the highest specs since the founding of the nation have emerged?
In this situation, the electric vehicle industrial complex was like welcome rain in a drought. But due to the established unions’ protection of their vested interests, tens of thousands of jobs were about to fly overseas, and public anger exploded.
In fact, although the two major labor federations seem to represent the entire labor community, their actual membership rate is only 10 percent. In other words, only one out of every ten workers is affiliated with them.
But because they opposed it, the remaining 90 percent of workers were about to suffer damage. SME unions that had been watching cautiously began to declare their withdrawal from the two major labor federations one by one.
That’s because the solidarity wage system may be downward leveling for large corporation unions, but it is upward leveling for other workers. There is no reason to oppose the increase of such jobs.
The two major labor federations expected the number of participants in the mass rally to be up to 300,000. However, as public opinion worsened, even industry-specific unions with less relevance backed out, making various excuses, and the actual number of participants did not even reach 10,000.
A stage and speakers were set up on one side of Gwanghwamun Square. Workers wearing red headbands and vests sat down. It was difficult to even fill one side of the square, let alone fill the entire Gwanghwamun area.
Instead, other people began to gather on the opposite side. They were people who had gathered after seeing notices of candlelight vigils posted on social media and portal sites.
Unlike the labor federation rally, which was systematically organized by the executive committee, the numbers were small as they were scattered and spontaneously gathered individuals.
The heads of the two major labor federations took turns going up to the stage and denounced OTK Company, Seosung Group, and Eunsung Motors Group.
Union leader Joo Seong-mu shouted at the top of his lungs. “We oppose the solidarity wage system that worsens working conditions and drives labor-management relations to ruin!”
“Oppose! Oppose!”
“CEO Kang Jin-hoo, immediately apologize for the union-busting actions!”
“Apologize! Apologize!”
But as the sun began to set, a murmur spread among the union members. Candlelights were flickering from all directions, east, west, south, and north.
“Stop union-busting actions! A, and…”
He couldn’t continue speaking.
The number of participants in the candlelight vigil increased to the point where they filled not only Gwanghwamun Square but also the roads on both sides and the surrounding area.
It was as if the candlelights were surrounding the union members.
Voices that were initially scattered and individual began to merge together as time passed. In an instant, it transformed into a huge roar.
“We support the electric vehicle industrial complex!”
“We support the solidarity wage system!”
“We support it!”
“The people support it!”
“Support! Support!”
The roar shook the Gwanghwamun area.
Union leader Joo Seong-mu could not say anything and lowered his head.
