WeTried Translations
Translator/Editor: LilGuyBlastoise
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◈ Second Life of the Trade King ◈
Chapter 11: Grain Imports (2)
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The next morning, Father was reading the newspaper at the counter on the first floor.
My brother was sorting parts in the back of the shop, and there were no customers. Since it was a quiet time, I took a seat in front of the counter and spoke.
“Father, may I ask you something?”
“...What is it?”
“Did you ever have a run-in with President Lee Man-su of Han-il Feed in 1980?”
Father slowly lowered his newspaper, his expression completely frozen.
After a long silence, he finally spoke.
“...How do you know about that?”
“Mr. Park told me yesterday. I asked him to recommend a major feed company near Busan, and he said there was a company whose president had history with you. He wouldn't tell me exactly what happened. He told me to ask you directly.”
Father folded the newspaper and stared past the counter for a long time.
He looked as though he was searching through old memories.
“...That was about eight years ago. I did something wrong. Yeongdo Shipping was having a hard time back then, and I rushed into things. I couldn't find a way out, so I thought I'd try getting into grain imports. Han-il Feed was just starting to establish itself then. When I went to secure a U.S. grain line, I asked President Lee Man-su to come with me. I thought that if Yeongdo Shipping and Han-il Feed went together, one of the American grain giants might arrange a Korean line for us.”
“...And?”
Father shook his head weakly.
“It didn't work out. The Americans said they only wanted Han-il Feed on the line, but I insisted Yeongdo Shipping couldn't be left out. In the end, the Americans decided to go with Han-il Feed alone. At the time, President Lee promised to bring Yeongdo Shipping in as an intermediary supplier on Han-il Feed's grain import line.”
That still sounded like a decent opportunity, but Father let out a long sigh.
“But I turned it down at the end because my pride was hurt. I said I couldn't work under Han-il Feed. So Yeongdo Shipping was left out, while Han-il Feed secured that line and became one of the top five companies in Korea. We were left with nothing but foreign-vessel supply work, then got hit hard in 1981 and went under.”
In short, Father had turned down Han-il Feed's line in 1980 because of his business pride, and that had been the true beginning of Yeongdo Shipping's downfall.
There was one more thing.
When Mr. Park said President Lee Man-su was someone who had clashed with Kim Sam-sik, what he really meant was that Father had rejected President Lee's goodwill.
From President Lee's perspective, Kim Sam-sik was probably someone who had made light of their goodwill and disrespected them.
“Father, I'll go see President Lee.”
“They may still have bad feelings. Will you be all right?”
“Yes. What happened in 1980 was eight years ago, and I'm not from that time. I won't go as Kim Sam-sik's son. I'll go as Kim Hyun-woo of Yeongdo Trading.”
Father was silent for a long time before quietly speaking.
“...All right. Go ahead. If you meet President Lee, don't tell them I said I'm sorry. If I use you to give an apology I couldn't give myself, that'll only make it more ridiculous. You go your own way.”
“Yes, Father.”
My brother, who had been listening nearby, put down the parts and walked over to the counter.
“Hyun-woo, if you're going all the way to Yangsan, take my car.”
“...Thanks, Brother.”
The next day at two in the afternoon, I arrived at Han-il Feed's headquarters in Yangsan in my brother's car. I was slightly impressed by the size of the company.
It had a five-story office building, feed trucks lined up as they entered through the main gate, and company flags fluttering on both sides of the entrance.
So this was what one of Korea's top five feed companies looked like.
I was immediately shown up to the president's office from the reception desk. Outside the office, the secretary spoke.
“The president said they can only spare about five minutes. Please keep it brief.”
The secretary was putting pressure on me before I had even met the president.
A new company no one had heard of wanted to meet the president. They probably found it annoying and worried I had come to ask for help.
“Please open the door.”
The secretary frowned slightly before opening it. In the distance, I saw President Lee Man-su.
President Lee was heavily built, in their late fifties, and dressed in a black suit.
The deep wrinkles on their face gave them the air of someone seasoned by age.
“Hello. I'm Kim Hyun-woo, president of Yeongdo Trading.”
“A president? You're awfully young.”
“Yes. I started my company right after graduating, and I'm currently operating a foreign-vessel provisioning business. A few days ago, I handled supplies for Pacific Grain Lines' MV Adelaide Star without any problems.”
“Well... I understand that, but why are you here?”
“I'm considering grain imports.”
“Hah. Imports? This is a different scale from supplying ships.”
“I know. But are you going to keep me standing there? I haven't even had a cup of tea. If you could at least give me a glass of cold water, I'd like to explain properly.”
My nerve made President Lee look incredulous. Then they shouted toward the door.
“Miss Kim! Go bring us some coffee!”
They rose from their seat and walked over to the reception sofa.
“I gave you coffee instead of cold water, so I've shown some sincerity too. Sit.”
“Thank you.”
After sitting down, President Lee stared at me for a moment and tilted their head slightly.
“But Yeongdo Trading? Where did you get a trade registration certificate right after graduating?”
“I started with my father's registration certificate.”
“Is that so?”
As I watched President Lee sense that something was off, I realized they really did have good instincts.
“The truth is... President Kim Sam-sik of Yeongdo Shipping is my father.”
President Lee's expression hardened. They glared at me with sharp eyes.
“You're President Kim Sam-sik's son. Hah, I thought you looked familiar. Did your father tell you I'd help if you came to see me?”
“No. He was worried you would look unfavorably on me.”
“Really? And you still came?”
“The past is the past, and business is business, isn't it? I didn't come hoping for help. I came to propose a business deal that could be good for both you and me.”
“You certainly know how to talk. Fine, business is business. But you need to understand this. No matter how much money a deal might bring in, people are the ones who do it. If my heart doesn't move, I won't do it.”
I nodded firmly.
“I understand. But from what I've heard, it was a very long time ago. It may have left you with bad feelings, but you didn't suffer any losses because of it. My father was the one who lost out by protecting his pride. So I hope you won't hold it too deeply in your heart.”
“...”
“May I get to the point now?”
“...Go ahead.”
I smiled broadly, took out the documents I had brought, and placed them on the table.
“I brought information on an Australian headquarters line. Pacific Grain Lines is considering direct trading arrangements with Korean feed companies, and Han-il Feed is their first-choice candidate.”
President Lee scanned the documents.
“...These are real internal materials from the Australian headquarters? How did they end up in your hands?”
“I received them from Pacific Grain Lines' Korean branch. They're internal documents from their Korea business department, and they rarely leave the company.”
“Well, you do have reason to talk big. Go on.”
“President Lee, Han-il Feed is currently importing feed grain through the Agricultural and Fishery Products Marketing Corporation. American corn makes up the largest share, while Australian grain is probably under twenty percent. Because of the government subsidy structure, importing outside the Agricultural and Fishery Products Marketing Corporation's line is difficult. Is that correct?”
“That's true for every Korean feed company. It's not just us.”
“Yes. But there is one fact clearly stated in these materials.”
I opened a page and pointed to it with my finger.
“The Australian headquarters has set its export prices to Korea seven to ten percent lower than those of the United States and Argentina. Their internal assessment suggests this is because they lack negotiating power. The Agricultural and Fishery Products Marketing Corporation controls the Korean government's subsidy line and handles the negotiations, so the Australian headquarters lowers its export price. Then the corporation adds its own margin to that reduced price before supplying Han-il Feed. That's why Pacific Grain Lines is seeking another customer in Korea, for a higher margin.”
“And?”
“If you trade directly with the Australian headquarters, that intermediary margin disappears. Han-il Feed's purchasing price will be seven to ten percent lower than it is through the Agricultural and Fishery Products Marketing Corporation.”
President Lee’s eyes sharpened.
“The purchasing price would go down seven to ten percent?”
“Yes. Han-il Feed purchased about forty thousand tons of corn last year, correct? These materials even analyze the Australian grain purchases of each of Korea's top five feed companies. Even if the price drops by only seven percent for those forty thousand tons, your annual purchasing costs will fall substantially. Considering that feed companies operate at around a five percent profit margin, that would mean an additional amount equal to thirty to forty percent of Han-il Feed's annual net profit.”
“...Half of a year's net profit, every year?”
“Yes. Every year.”
With their arms folded, President Lee stared intently at the documents before asking.
“...How do you know our corn purchase volume? That's not a figure disclosed outside the company.”
“It's in the Australian headquarters' materials. From their perspective, analyzing the purchase volumes of Korean feed companies is basic information for negotiations. Since your company is among Korea's top five, the data is recorded precisely.”
President Lee nodded and leaned forward.
“Then what does Yeongdo Trading get from this line?”
“We enter as the intermediary supplier. We'll handle customs clearance, transportation, and payment settlement between the Australian headquarters and Han-il Feed. Our rate will be set as a certain percentage of Han-il Feed's purchase price, and we'll determine that percentage in consultation with you. Even with a recommendation from the Australian headquarters, the line only works if Han-il Feed accepts it.”
Securing the Han-il Feed line would not simply raise Yeongdo Trading's sales by one level.
Foreign-vessel provisioning brought in a margin of around five million won per ship. With two or three ships a month, that came to about fifteen million won in monthly margin.
Even over a full year, the limit was around 150 to 200 million won.
At that pace, reaching the first-stage seed capital target of 100 million won through foreign-vessel provisioning alone would take eight to ten months.
But Han-il Feed's grain import line was on a completely different scale.
Based on Han-il Feed's annual corn purchases of forty thousand tons, even an intermediary supplier margin of just five dollars per ton would bring in two hundred thousand dollars a year, or roughly 150 million won.
That was from corn alone. Add soybeans and wheat, and it would rise into the 300 million won range annually.
The entire annual revenue of the foreign-vessel provisioning business was equal to one year's margin from a single grain import line.
And that was not all. The Australian headquarters wanted to develop new importers. Once Han-il Feed was established, lines would open to Korea's number one and number two feed companies as well.
When that happened, Yeongdo Trading would no longer be a new foreign-vessel provisioning company. It would become the first new entrant in Korea's grain import trade.
If Yeongdo Trading already had two or three Korean feed company lines in hand by 1989 or 1990, when the Agricultural and Fishery Products Marketing Corporation's monopoly line broke apart, the next leap would be into the major ranks of Korea's grain import trade.
“Isn't this the position your father rejected in 1980? An intermediary supplier on Han-il Feed's grain import line?”
“Yes. It's the same position.”
President Lee looked at me with an odd expression.
“The situation has become strange, hasn't it?”
“In a way, yes. But I think it worked out for the best. This is a chance to correct an old mistake.”
“Hmm...”
“President Lee, I came here today as a businessman to make money, not to apologize for the past. I want to build Yeongdo Trading's capital and establish it as a genuine grain importing company, and the Han-il Feed line is the starting point. Still, I think there is meaning in taking the place my father rejected and becoming the bridge that helps Han-il Feed grow into an even larger company. If I can help Han-il Feed become Korea's number one feed company through the Australian headquarters line, then won't that unfortunate past become just a memory?”
After a brief silence, President Lee asked,
“True, who doesn't have pride? That's how everyone lives. Tell your father I've forgotten it.”
“...Understood.”
President Lee moved their lips as they thought for a moment, then shouted toward the door.
“Miss Kim! Bring another cup of coffee. And clear my entire afternoon. I'm going to have a long talk with President Kim here.”
When the secretary came in with another cup of coffee, President Lee spread out the documents once more.
“Good. Let's start by talking about the rates.”
“Yes, President.”
That was how President Lee Man-su and I began serious negotiations for grain imports.
At that Han-il Feed conference table, Yeongdo Trading was building the foundation it needed to become a true trading company.
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