WeTried Translations
Translator/Editor: LilGuyBlastoise
Discord: https://dsc.gg/wetried
◈ Second Life of the Trade King ◈
Chapter 35: Winning Over the Cat (3)
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An odd silence fell.
That made sense.
The two of them must have had very complicated thoughts running through their heads.
“Let’s hear it. Which market?”
Managing Director Park Young-seok spoke in a low voice, arms crossed.
He looked ready to listen.
“Hungary.”
Manager Song furrowed his brow and asked back.
“Hungary?”
“Yes. Geumhwa Electronics’ older models are the latest models there. You know the level of home appliances in the Eastern Bloc. The models gathering dust in warehouses here because nobody will buy them would have people lining up to buy them over there.”
After thinking for a moment, Managing Director Park slowly opened his mouth.
“So you mean... you’ll buy our inventory, then resell it in Hungary?”
“You’re only half right.”
“Half?”
“Hungary has no dollars right now. Its foreign currency reserves have dried up paying off debt. So even if they want electronics, they can’t buy them with cash. That’s why... I’ll take sunflower seed oil and sunflower meal from them. Hungary will pay for the electronics with sunflower products instead of dollars. I’ll bring the oil into Korea and sell it. Goods move both ways, and the money is settled within that.”
“Ha... That’s impressive. How did you even come up with that?”
Managing Director Park Young-seok locked eyes with me, amusement in his gaze, and continued.
“If you’ve set up a deal like this, you must have already made inroads with the Hungarian embassy. Ah, has the embassy not been fully established yet?”
“Something like that.”
“Extending credit and clearing inventory...”
“Come on, don’t leave out opening a new market.”
Looking only at those two things, extending credit was a losing proposition.
If Yeongdo Trading defaulted on the Hungarian deal, Geumhwa International would have to take on the debt.
That was why they were subtly trying to narrow it down to make it seem like they were the only ones taking a loss, so I corrected them.
“And honestly, isn’t this getting something for nothing? You want to open the Hungarian market, but you can’t do it right now.”
Neither of them said anything.
I must have hit the heart of the matter.
I chuckled and continued.
“You won’t just be clearing inventory little by little. You’ll be setting foot in the Eastern Bloc. Once Geumhwa Electronics appliances are sitting in Hungarian living rooms, Poland, Czechoslovakia... all of Eastern Europe will open up next. I’m saying I’ll lay the groundwork for that beginning.”
Manager Song cleared his throat.
Ahem.
“It sounds good enough, but what are you going to do with that oil?”
“Don’t worry about that. I’ll take all the oil. Not a drop of oil will get on your hands.”
“...”
“Geumhwa Electronics will sell its inventory to me. That’s the end of it. I’ll pay for it, and whatever I receive from Hungary is my business. If Hungary defaults or the oil doesn’t sell, I’ll take all the risk. All you have to do is hand over the inventory and take the money. Do you understand?”
Managing Director Park cut in.
“No. Isn’t extending credit the key part in the middle?”
“Ah, well. It is, but that’s just fuel to make the deal happen...”
At my attitude of treating it like nothing important, Managing Director Park gave a short laugh.
It seemed half incredulous and half admiring.
“Fine. Then what about the price? We can’t hand it over for next to nothing.”
Manager Song intervened again.
“Not for next to nothing. Just the value of goods gathering dust in a warehouse.”
“...”
“Manager Song. That inventory is listed as an asset in your accounting books right now, isn’t it? But you know what happens if it doesn’t sell. It simply becomes an expense. You pay storage costs, it gets harder to sell with time, and eventually you either dump it at a bargain price or throw it away. I’m offering to turn that into cash, so if you expect regular wholesale prices, I’m the one who should feel embarrassed for coming all the way here.”
After I humiliated him that openly, Manager Song shut his mouth.
He looked like he was searching for a rebuttal, but none came easily.
This was not a negotiation between partners. I had come as a buyer, so he was clearly troubled over how to respond.
Unable to watch any longer, Managing Director Park spoke in a mildly negative tone.
“Well, it is a good idea, but I think we need to consider it. We’ll also need to discuss it with Geumhwa Electronics.”
He was openly playing hard to get.
I did not know much about dating, but in negotiations, if you try to persuade someone who is playing hard to get, they only pull farther away.
When the other side pulled away, you had to pull away too if you did not want them leading you around.
“I understand. It’s not like Geumhwa is the only electronics company out there.”
Both their faces stiffened at once.
Managing Director Park asked with an awkward smile.
“Il-sung Corporation is there, of course. But aren’t you and Il-sung on... uncomfortable terms?”
I shrugged.
“People fight and make up as they live. We’re all adults, not children...”
“Do you already have an appointment with them?”
“Come on, I’m not the kind of person who makes two appointments in one day. But since I’ve already come all the way to Seoul, I can rest here today, meet them tomorrow, and head back down.”
If they thought saying I would leave tomorrow gave them a full day, they were mistaken.
The moment I walked out of this room, I was declaring that I would arrange a meeting with Il-sung Corporation.
Even if it was arranged for tomorrow, the appointment would not fall through. Then I would compare the terms from both companies and decide.
Knowing that, Managing Director Park’s face became caught in an awkward state where he could neither smile nor get angry.
“But don’t we have a relationship? If we’re going to handle the CWB deal well together, shouldn’t we work smoothly together and show some loyalty to each other?”
“Come on, why are you saying that? We’re professionals, aren’t we? Especially trading companies. It’s deal by deal.”
Managing Director Park looked dumbfounded, then asked bluntly.
“Aren’t you worried? If you’ve opened up Hungary, we might try to contact them directly.”
I raised one corner of my mouth.
“If that’s what you want, you may.”
“Is that confidence?”
“No. Unfortunately, I’m not that close with the Hungarian commercial attaché. But if Geumhwa International cuts me out, can you really enter Hungary in earnest? The people upstairs won’t like that.”
Managing Director Park’s face hardened completely at those words.
At this time, there was only one conglomerate interested in Eastern Europe: Woojin.
No one else cared about Eastern Europe, not because it was unprofitable, but because the political risk was too great.
It had only been shortly after diplomatic relations were established. Nobody knew what would happen to the Eastern Bloc.
Would the system endure? Would it collapse? If it did collapse, would all the contracts made until then become worthless paper...?
Woojin alone was interested because it was unusually aggressive and willing to take risks.
So they might talk about trying something with Eastern Europe without me, but there was a strong chance it would be cut off at the president level.
They were reluctant to move directly, so I was offering to do it for them.
Extending credit might make them uneasy, but if they handled it directly, they would need to open an office, send staff, research the market, and build connections. The fixed costs would be enormous.
For the president of Geumhwa International, there was no reason to cast aside Yeongdo Trading and do it themselves.
Managing Director Park was surprised because I had pointed that out.
“You speak as if you know our internal situation quite well.”
“Hmm... Well, I should be going now...”
The moment I rose from my seat,
“Wait a moment.”
Managing Director Park called out to me immediately. I looked at him while half-risen.
“Yes?”
Phew. “You’re quite something for a young man. Fine. Let’s do it.”
Only then did I smile brightly.
“You made a good choice. I find it more comfortable to work with someone I know than someone I’m on bad terms with, too. Now I can head back to Busan with peace of mind. Hahaha!”
The two men watched me laugh heartily with strange expressions.
* * *
After Kim Hyun-woo, president of Yeongdo Trading, had left, inside the Commodities Headquarters director’s office.
Managing Director Park Young-seok sat in the seat of honor, frowning as he muttered.
“That bastard’s a pervert... He really is a pervert.”
“Yes. He’s no ordinary pervert.”
“...He profits off both sides with just a few words. What the hell did he learn to be able to do this?”
He could not understand it at all.
Even they, with the countless assets and connections of a major corporation, would never have dared to think of doing such things. Yet this young man carried them out without hesitation.
What was even more absurd was that, upon close inspection, every single move made money.
“Should we just approach the commercial attaché ourselves?”
“...Say we do. What if it doesn’t work out?”
“...”
“Not only would the deal be ruined, but who knows what would happen with the Canadian Wheat Board?”
“That’s true. Yeongdo Trading has the Canadian Wheat Board firmly in its grasp, so we’re completely stuck.”
“Even if the discussion goes well, there’s another problem. If they hear that Geumhwa International wants to enter without Yeongdo Trading, won’t they demand more? Then we’ll have to send resident staff to Hungary, open an office, and do everything else. And what if the country collapses?”
“...”
“Woojin might be able to do it. Woojin’s chairman is that kind of man to begin with. If we tried to imitate them, we’d be destroyed.”
“I know, but Yeongdo Trading acting like that is still irritating. Like you said, Managing Director, they’re just sitting there and raking in money... From what I heard earlier, they only plan to start with a trial shipment, but even that shipment would bring nearly 100 million won in profit per ship if they profit on both sides. Once full-scale trade begins, quarterly profits of one billion won would be nothing.”
“He’s smart like a pervert. In the end, he profits entirely with other people’s money and credit without taking a loss himself. Especially the way he drove down the electronics prices earlier. He’ll make at least 30 percent.”
His estimate was correct.
The profit Yeongdo Trading could earn by importing sunflower seed oil and sunflower meal and distributing them domestically would be no more than 20 percent. After various inspection and distribution costs, they expected to secure roughly 15 percent or more.
But electronics were different. Hyun-woo expected a profit of around 30 to 40 percent.
“Then do you intend to report it to the executive director as it is?”
“Since it has come to this, we need to dress it up well. Kill two birds with one stone.”
Manager Song Jae-jun immediately understood.
“I’ll prepare a strong report saying that we will extend credit, clear Geumhwa Electronics’ inventory for cash, and at the same time pursue the Eastern European market.”
“Present Yeongdo Trading well. Trade with Canada will keep growing, so even if something happens, we can say they should be able to handle it to some extent on their end.”
“But will the executive director or president like it? They might think we’re being led around by Yeongdo Trading.”
“That goes without saying... That’s why we need to dress it up well. Say we weren’t being led around. Say we guided them into it.”
Manager Song’s eyes widened at the unexpected words.
“We guided them?”
“That’s right. Say we joined hands with Yeongdo Trading to enter the Eastern Bloc... Can’t you picture it clearly?”
There was nothing to picture.
President Kim of Yeongdo Trading had already drawn the whole picture for them.
“Ah... We can say that we selected Hungary as a test bed for the Eastern Bloc and brought in Yeongdo Trading to reduce costs and risk.”
“Exactly.”
Then Manager Song tilted his head.
“Wouldn’t the president or executive director find it strange that the order is a little backward?”
“No. Even if they know, they’ll let it slide.”
“Will they?”
“You brat... I’m telling you, I’m right. The report will sound plausible. It’ll be perfect to show the chairman.”
“Ah...”
At first, he had found it irritating, but once Manager Song Jae-jun realized Yeongdo Trading might help him impress his superiors, Kim Hyun-woo suddenly began to seem endearing.
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