The Secret Investment Formula of a Chemical Genius - Chapter 170



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Episode 170: Letter of Marque

“Will this do?”

“That’s enough.”

Park Soon-jin, the international economic management officer, slowly savored the warm coffee placed in front of her.

“I saw it on my way here, and the company atmosphere is very different from when I saw it on the news before.”

“As time went by, things became more organized.”

When we first started the business, Taekang and I both had no experience in this field, so we went through trial and error.

Time heals all wounds.

Eventually, as experience accumulated, the company system gradually became more stable.

“So, why did you come here?”

“I came here to finish the story I couldn’t finish last time.”

He began to take out documents one by one from the leather bag he was carrying.

“Would you please take a look at this?”

I read down what Park Soon-jin handed me.

What he gave me was a report on Korea’s carbon emissions.

Last year, Korea emitted 658.6 million tons of carbon dioxide.

The document stated that the share of the dual industrial sector was 294.3 million tons, or about 31.8% of the total.

Especially the very bottom.

There were estimates of the carbon dioxide captured by CZTERA last year and the carbon dioxide that CZTERA will capture this year.

“You investigated more thoroughly than I expected.”

Although approximate, the government’s estimate was pretty close to what I expected.

“I work for taxes, so how can I do something carelessly?”

Near the office entrance.

Taekang, who was sitting on a chair listening to our conversation, smiled meaningfully after hearing what International Economic Management Officer Park Soon-jin said.

The appearance of quivering lips, the appearance of a quivering mouth.

I shot him a look that seemed to tell him to be quiet, just in case he said something useless.

“But why did you show this to me?”

“CZTERA headquarters said that although the company is rapidly expanding its size, it will still take a considerable amount of time to cope with the amount of carbon dioxide emitted by Korea. At the current rate of development, it will take at least 20 years.”

“I guess so.”

The United States was able to do business on such a large scale at once because of its economic power and vast territory.

In Korea, it was out of the question.

“The government wants CZTERA to pick up the pace a little bit more.”

I looked at him with a blank expression.

“As I said before, it seems difficult to increase the size of the company in such a short period of time.”

“If there were sufficient economic incentives, it would be a different story.”

A confident smile appeared on the lips of Park Soon-jin, Director of International Economic Management.

He took out a pen and paper and drew a shape.

“CEO Han Yu-jin, would you happen to know what this is?”

“It’s the KS mark.”

A K symbol inside a circle.

It was a certification mark imposed on industrial products distributed in Korea that met certain standards according to the Industrial Standardization Act.

“That’s right. In addition to the KS mark, there are various certification marks attached to products, such as HACCP and Q-mark.”

The reason I am bringing up this topic of certification marks is…

“Are you talking about the ‘Carbon Footprint Labeling Certification System’?”

“As expected… … Representative Han Yu-jin noticed it right away.”

He let out a small exclamation.

Since 2009, Korea has been implementing a carbon footprint labeling certification system.

This is a certification mark granted by the government for low-carbon products, and can be attached to actual products in the form of a label and sold.

“The government intends to do a little bit about this.”

“How do you say that?”

“From ‘recommendation’ to ‘obligation’, and from ‘low-carbon’ to ‘zero-carbon’.”

“… … !”

Of course, that goes without saying.

Just because a product does not currently have a carbon footprint label attached, it does not mean that it cannot be sold in Korea.

If you don’t have it, then don’t worry, if you do, it’s good.

This is only a recommended guideline.

But when it becomes mandatory, it’s a completely different story.

“The current government plans to introduce a new certification mark called Carbon Free (CF) within five years, in line with the plan developed in the United States.”

“You said it was mandatory earlier, but to what extent do you plan to enforce it?”

“There are ‘respites’ but no ‘exceptions.’”

Park Soon-jin, Director of International Economic Management, has become more hardened in tone.

The intention is to put the CF mark on virtually all products produced in Korea.

“Can you tell me how the CF mark works?”

“We are still in the process of establishing the outline, but to give you a rough idea, we plan to award the CF mark to products that are made entirely of renewable energy with no carbon dioxide emissions, or to products that capture carbon dioxide from the atmosphere equivalent to the amount of carbon dioxide they emit. The specific rules may change slightly, but the overall framework will not change.”

“… … There will probably be considerable backlash.”

“It can’t be helped. If you can’t adapt to the changing times, you’ll be eliminated.”

At that moment, Taekang gestured for me to come out for a moment.

“Excuse me, I need to go to the bathroom.”

“I will be waiting.”

While he was sipping his coffee.

I’m going out of the office.

After a while, the guy followed me out and snuck out.

“Hey, it’s coming out stronger than I thought.”

“I know.”

“At best, I expected a small subsidy or a temporary corporate tax cut… … .”

Taekang stuck out his tongue.

Same goes for me.

The government came out much stronger than I expected.

It’s called a certification mark, but it means that if you want to do business in Korea, you have to pay for the carbon emissions.

Carbon Free.

In that regard, Park Soon-jin, Director of International Economic Management, presented two options.

The first method among them.

There are significant constraints on producing products using a high proportion of renewable energy.

It is true that Korea, with its relatively high solar radiation, is advantageous for solar power generation.

Summer season.

If we have a long rainy season lasting more than a month, we may not be able to produce enough electricity to run our company.

In running a business, such uncertainties are a huge risk.

What that means is that… … .

“They’ll set the table and tell us to just go ahead and rob the big companies.”

I nodded.

I don’t know about small and medium-sized companies that are relatively small in size and can respond quickly to changes.

It was impossible for large corporations to take such big risks and blindly increase the proportion of renewable energy.

In effect, you said there were two choices, but they only had one path to choose from.

Currently, the only company in Korea that can afford it is CZTERA.

That’s why they eventually have no choice but to reach out to us.

“What are you going to do?”

“well…….”

Honestly, I didn’t know the government would be this proactive.

Should we say that it was something beyond the scope of expectations?

“Oh, what a pity.”

The guy whetted his appetite.

“what?”

“No, usually in times like this, the government pressures us, we lie down and say we can’t do it, and the media reports on this incident with excitement… Isn’t that how it should proceed?”

“… … .”

“Why are you looking at me like that?”

I let out a small sigh.

I can understand the government’s feelings to some extent.

That must mean they are taking the current situation very seriously.

Foreign media outlets are rushing to report that one of the countries expected to suffer the most damage from the sudden announcement by the current U.S. President is South Korea, which has a high ratio of both manufacturing and trade.

In the current situation where public exports are not as good as before, if exports to the US also decrease, we will have to worry about a chain reaction of corporate bankruptcies.

Without businesses, there are fewer jobs and fewer taxes.

If tax revenues decrease, the government cannot function properly.

There will be enormous public criticism and pressure for failing to respond properly.

That is why this issue is a matter of life and death not only for companies but also for the government.

“Let’s go in first.”

It’s already been quite some time since I exchanged opinions with Taekang.

We headed back to the office.

“It’s late.”

“I didn’t even realize how much time had passed while I was looking around CEO Han Yu-jin’s office.”

“I’m talking about the CF mark you mentioned earlier.”

“yes.”

“What happens if we don’t agree to this?”

“The introduction will probably be delayed. In any case, this is a plan that includes the existence of a company called CZTERA.”

Ultimately, this means that CZTERA is absolutely necessary for the introduction of this CF mark.

While I was lost in thought for a moment.

“CEO Han Yu-jin.”

Park Soon-jin, Director of International Economic Management, opened her mouth in a low voice.

“The government sees this as an opportunity.”

“Opportunity?”

“Five years… … It’s a very short period of time for a system to become established.”

I nodded.

Five years is a long time for one person.

Five years is not enough time for one system to be engraved in the minds and accepted by over 50 million people.

“If the CF mark is introduced, there will inevitably be a short-term confusion.”

Park Soon-jin, the international economic management officer, quietly put down the teacup she was holding.

“But that’s the same for other countries as well. The three East Asian countries of China, Japan, and Korea have very similar economic structures. So the products they produce are also the same.”

Korea, China, Japan.

Because they are geographically close together, they outwardly growl at each other all the time.

Trade and economy.

In both areas, they filled in each other’s shortcomings.

But at some point,

The three countries of Korea, China and Japan are now in a position to compete with each other in the areas of economy and trade.

“In the end, those who adapt to change will survive, and those who cannot adapt to change will be eliminated.”

“… … .”

“Fortunately, Korea has the option of CZTREA, but other countries don’t even have such an option. Even if it seems like they’re suffering a short-term loss due to the short-term confusion, I think the gap will widen considerably over time.”

You prepared more thoroughly than I thought.

Short-sighted cards such as subsidies or corporate tax cuts also pose a significant burden to the government.

There could be controversy over preferential treatment for CZTERA.

However, the CF mark can be relatively free from such criticism and pressure.

Anyway, it is not a form of direct support to CZTERA.

In fact, there is also the justification that it is in line with global trends.

“To what extent are you willing to allow this?”

“If it doesn’t have too big of an impact on prices, we’ll turn a blind eye to it.”

So, what I mean is, you should know how to rip off companies appropriately and cleverly.

Just enough so that it doesn’t affect inflation.

In effect, a Letter of Marque issued by the Korean government.

The corners of my mouth went up without me realizing it.

“What would you like to do?”

“Okay, I’ll do that.”

“Good idea.”

Park Soon-jin, Director of International Economic Management, smiled brightly.

There were tentative discussions about a full-scale expansion of CZTERA after the government’s announcement.

He was just about to finish negotiating and get up in a good mood.

“Can I ask you one more thing?”

“What are you curious about?”

“I just heard from the Ministry of Food and Drug Safety that MR Bio’s application for Celletic’s compassionate use approval has been approved. Honestly, even I, who applied for it, never thought that the Ministry of Food and Drug Safety would give it approval. Do you know anything about this?”

Is it really a coincidence that Park Soon-jin, Director General of International Economic Management at the Ministry of Strategy and Finance, came to visit us right after the Ministry of Food and Drug Safety’s approval was granted?

At my words, he smiled broadly.

“Well, I’m a yard boy, but I have no connection to that side at all. However… … I understand that the higher-ups are watching Han Yu-jin’s movements with great interest.”

As expected, something was strange.

In the end, the point he’s making is.

I guess the point is to resolve such trivial matters as quickly as possible and focus on more important matters.

For example, this expansion of CZTERA.

But I had no reason to refuse.

“I don’t know if what I said was helpful to CEO Han Yu-jin.”

“That’s enough.”

“Okay, I’ll take my leave now.”

The footsteps of Park Soon-jin, the international economic management officer, who was leaving were quite brisk.

“Are we just going to start rip off companies from now on?”

“… … ”

“Where should I start? Come to think of it, I’ve been getting a lot of calls from SC lately. Should I call you first?”

The guy smiled broadly and hummed.

… … I think I may have officiated at the wrong time.

I shook my head.

* * *

The content of the conversation with Park Soon-jin, the Director of International Economic Management at the Ministry of Strategy and Finance, that day was never leaked to the outside.

A few days later.

The government made a surprise announcement to the media through a statement that it would introduce a CF certification mark system.