Episode 102: Daewoong Chemicals
As public dissatisfaction soared, voices erupted from all sectors of society.
“What is the government doing that the recovery support is so delayed?”
“How long are they going to keep fighting? Shouldn’t they prioritize saving the affected residents first?”
With public sentiment in turmoil, the government found itself in a critical situation. The current government, lacking democratic legitimacy in its rise to power, was extremely sensitive to the direction of public opinion.
Aware of the public sentiment, the Blue House quickly moved to control the situation. A special disaster response team was formed, and as negative public opinion spread through a series of TV specials, the family of the Daewoong Chemicals owner, who caused the disaster, faced a flood of criticism.
The Blue House. Cabinet meeting room.
During a meeting chaired by the President with senior secretaries, attendees included Prime Minister Ha Jae-kyu, Chief Secretary Won Jong-pyo, Interior Minister Kim Hyung-seok, Finance Minister Shim In-geol, Transport Minister Shin Chi-yeol, Health and Welfare Committee Chairman Choi Jung-moon, and Construction Minister Choi Man-ri. The President began speaking during the disaster response meeting.
“I’ve seen on TV lately that the disaster recovery support funds related to the Iri Station explosion are not being properly executed. What exactly is going on?”
Choi Man-ri, the head of the joint government task force and the Minister of Construction, reported.
“Yes, Your Excellency. The Ministry of Construction is doing its best to support the recovery, but we need a supplementary budget for government support. However, discussions in the National Assembly regarding the extent of the damage are prolonging…”
As the excuses continued, the President’s expression darkened significantly.
The angry President slammed the table and said,
“Minister Choi, enough. So, right now, we’re relying on public donations for disaster recovery? Not Daewoong, who should be responsible, but a small business owner in Iksan is leading the recovery. Do you think the public will understand this situation?”
“I… I apologize, Your Excellency.”
The Transport Minister fell silent at the President’s angry reaction. The cabinet meeting room became as quiet as a mouse. With a disapproving look, the President turned to ask another question.
“At a time when the government and the ruling party should be working together to handle a national disaster, you’re all busy bickering, leading to calls for the abolition of the National Assembly. Isn’t that right, Chairman Jung Ki-hyun?”
“Yes! You are absolutely right.”
The President nodded at the response from Jung Ki-hyun, Chairman of the Construction Standing Committee of the National Assembly.
“If you understand, make sure to pass the supplementary disaster recovery budget by next week.”
“What? By next week?”
“Yes. I think I’ve given you enough time already. Are you saying you can’t do it?”
Sweat began to form on Jung Ki-hyun’s forehead as he rolled his eyes, sensing that saying “no” would mean immediate dismissal.
“N-no. We’ll do our best.”
“No need for your best. Just do what you’re told. Chief Secretary Won Jong-pyo! What’s happening with the compensation from Daewoong Chemicals?”
“They’re preparing it. They mentioned they need more time to secure funds…”
“What nonsense is that? If they made a promise, they should keep it quickly. Arrange to secure 9 billion won in compensation by next month, even if it means selling company assets.”
“Yes, understood.”
“If it’s not enough, you can divert funds from the redevelopment plan. Ensure that the Ministry of Construction keeps technicians on-site to prevent any difficulties in winter construction. Understood?”
“Yes, Your Excellency!”
At the same time, in the chairman’s office at Daewoong Chemicals.
On the TV in the office, a debate was ongoing with reporter Joo Young-mi, Professor Choi Byung-gil from Korea University, reporter Ahn Jae-hyun from Hansung Ilbo, and Professor Song Moon-yeol from Seonggwang University as panelists. The topic of today’s debate was none other than the responsibility for the Iri Station explosion.
Professor Song Moon-yeol and reporter Ahn Jae-hyun represented Daewoong, while reporter Joo Young-mi and Professor Choi Byung-gil represented the victims.
The KBN host asked reporter Joo Young-mi, who was representing the victims.
“The stock price of Daewoong Chemicals has dropped by more than half due to the Iri Station explosion. Some say it is inappropriate to blame the company for an individual’s mistake. What do you think about this, reporter Joo?”
“That’s an absurd argument. The train car accident is primarily Daewoong’s responsibility. Entrusting the transportation of explosive materials to a single escort who hadn’t even received proper safety training is an irresponsible act.”
Professor Song Moon-yeol, representing Daewoong, countered.
“Reporter Joo’s argument is utterly nonsensical. It’s strange not to trust someone who has operated accident-free for seven years. Moreover, isn’t it the fault of the Railway Authority for not passing the train car on time? It’s too harsh to blame Daewoong entirely.”
Then Professor Choi Byung-gil, representing the victims, countered.
“Daewoong saved labor costs by not having any other responsible person except for the escort, Mr. Shin. Although there were several people listed as in charge on paper, Mr. Shin had been transporting the train alone for the past seven years. Is this normal? As a human, it’s natural to take breaks for meals or biological needs, and it’s a miracle that there hadn’t been an accident in such poor conditions until now.”
Then reporter Ahn Jae-hyun countered.
“Of course, I’m not denying that Daewoong had a significant fault in managing the train carrying explosives. However, it’s problematic to blame Daewoong entirely. Accidents result from various complex factors, not just the fault of one person.”
At this, reporter Joo Young-mi, who was watching the debate, interjected angrily.
“What nonsense is that? Even if there had been one more manager, things would have been different. Looking at the transport management of explosives so far, Daewoong must have been aware of the loopholes in the transport process. The complacency in response was due to the belief that it would be okay as there had been no accidents so far. Are you defending a company that has acted so irresponsibly when the entire nation is furious?”
“No, that’s not what I meant…”
Sensing the escalating tension, the host stepped in to mediate.
“Let’s refrain from using extreme language. I’ll give you enough time to debate, so please follow the order. Please avoid emotional expressions.”
Despite repeated attempts by the Hansung Ilbo reporter and the Seonggwang University professor to counter Joo Young-mi’s unilateral attack, it was in vain. Anyone could see that Joo Young-mi’s side had the upper hand in both logic and progression.
Chairman Sung Wan-seung, who had been watching the debate for a while, sighed and turned off the TV.
“Sigh, this is hopeless. Just when things seemed to calm down, why stir up more trouble? They say adding fuel to the fire, and this is exactly it. Why did they put such inept panelists on?”
“I’m sorry. Hansung Ilbo and Seonggwang University said they put in their best effort, but it was my fault for not checking properly.”
“Is saying sorry going to solve the problem? Don’t use those guys next time. They’re useless.”
“Understood. I’ll be more careful next time.”
“Man, even stealing requires teamwork. You need smart people like Joo Young-mi to make any progress.”
While Chairman Sung was calming his emotions, a secretary holding a file entered the office.
“Ah, Secretary Kim, is the investigation into the accident cause complete?”
“Yes, it has been concluded that the fault lies entirely with the explosives escort. On the afternoon of the 11th, around 5 PM, he drank a bottle of soju with dinner, returned to the train car around 7 PM, lit a candle on a dynamite box, and fell asleep. He woke up because his face felt hot, found three or four dynamite boxes burning, tried to extinguish the fire with his sleeping bag, but the feathers in the bag caught fire, spreading the flames. He then opened the train car door and fled.”
“So, to summarize, he drank during work, lit a candle, and caused this mess?”
“Yes, that’s correct.”
“What an insane person. Lighting a candle on top of explosives. There’s a limit to being oblivious to safety. The media will tear this apart. What a sudden disaster.”
“If this fact is revealed, public opinion against us will worsen, so we need to hurry with the compensation payments. With the documentary airing, public interest has increased, and the fact that the company leading the recovery is participating without any compensation promises has fueled public outrage.”
“Who doesn’t know that? The problem is the lack of money. Why did this accident have to happen now? Damn it!”
For Daewoong, which had been pouring its heart and soul into the petrochemical plant project, this was a severe blow.
Injecting all available funds into the expansion of the PVC plant and new business ventures, this incident was maddening and driving them crazy.
“Is the disaster recovery director named Lee Chang-jin? Where did this guy come from, barging in everywhere?”
“The bigger issue is our responsibility. The prosecution plans to request arrest warrants within a few days, and it looks like all the executives will inevitably be arrested.”
“Try to limit the scope as much as possible. We need to weather this storm first. Have you contacted Jang & Lee?”
“Yes, we’ve assembled the top defense team. They are all former officials who retired less than three years ago.”
“Spend as much money as needed. Use every resource to block this. If we fail to cut off the tail this time, we’re all finished.”
As Chairman Sung was discussing countermeasures, a ringing sound interrupted.
“Chairman, there’s a call for you.”
“What? I’m very busy, if it’s not urgent, tell them to call later or leave a message.”
“Well, Chief Secretary Won is on the line. He said you must take it immediately.”
“What?”
Surprised, Chairman Sung quickly picked up the phone.
“Ah, Chief Secretary Won? How have you been?”
“I haven’t been well. Chairman Sung, let’s cut to the chase. When will the promised donations and disaster compensation be resolved? That’s why I’m calling.”
“Ah, we’re currently gathering funds. There are still many outstanding promissory notes, so we need a bit more time. I apologize.”
“It seems Daewoong has plenty of leisure while the situation at the top is critical. Is the government a joke to you, with all talk and no action?”
“No, that’s a misunderstanding. It just takes time to secure funds. We’re doing our best. The amount invested in the petrochemical plant is significant, so we have no available funds at the moment.”
“Your words differ from before. You publicly stated that you would put up your entire private fortune. Was that just lip service?”
“No, Chief Secretary.”
“Do your job properly. I won’t say much. Secure 9 billion won for disaster recovery by the end of this month. If you fail to prepare it within the deadline, we’ll hand the case over to the Central Intelligence Agency. And we won’t be as polite next time.”
Startled by the mention of transferring the case to the CIA, Chairman Sung quickly protested.
“Chief Secretary! That’s too harsh. 9 billion won in just two weeks is impossible. Please give us more time.”
“It’s been almost a month and a half since the accident. What have you been doing all this time? That’s your problem, find a way to secure the funds. As originally promised.”
“Chief Secretary! That’s…”
“No more words. The VIP is very upset. This is the last warning. I’m hanging up now.”
Chairman Sung, holding the phone, was unable to move for a while. The VIP being upset meant the company’s survival was at stake. Sweating profusely, Chairman Sung shouted.
“Call an executive meeting immediately, right now!!”
Daewoong Chemicals was in a state of emergency and started moving quickly.
A week later, Daewoong Chemicals announced several guidelines.
First, all workplace reservists of Daewoong Chemicals will be dispatched to the accident site to assist in disaster recovery operations.
Second, all employees of Daewoong Chemicals will participate in blood donations for local injured individuals.
Third, 10% of the November salary of all employees of Daewoong Chemicals will be collected as disaster relief funds.
Additionally, Chairman Sung Wan-seung included his personal assets and secured some office properties as collateral, with some being sold off. The secretarial staff reported back to the chairman’s office after completing the rough process.
“All the office buildings have been secured as collateral, and all the commercial buildings offered as personal assets have been sold.”
“What’s the total amount secured?”
“A total of 8 billion won. We’re still short 1 billion won.”
“What about issuing corporate bonds?”
“The total amount includes the maximum amount that can be issued. Any more would risk issues with management control, so it’s not feasible.”
“Is that all we can get?”
Then, Sung Wan-seung’s eldest son, Sung Jin-woo, offered a suggestion.
“There is one way to secure funds.”
“What is it? Tell me.”
“We can sell our business rights. The construction projects we’ve secured in the Middle East.”
The chairman’s face noticeably contorted.
“What? You want to give up our future growth engine to overcome the current crisis? That’s our company’s future!”
“I’m not suggesting we sell everything. We can sell a few less profitable projects. Most of the big projects are handled by our company directly, but most others are subcontracted anyway.”
“So you want to grow our competitors? The Middle East market is hard to enter but once you’re in, it’s different. Raising a tiger cub? That’s something we must never do.”
“But Father, Chief Secretary Won is not a man of empty words. If this case is handed over to the CIA, the entire company might collapse.”
Chairman Sung and the executives racked their brains for alternatives but found none.
With only a week left, securing funds was a matter of the company’s destiny. At that moment, a secretary entered with a ringing sound.
“What is it?”
“Someone in the company lobby wants to see you on business.”
“They should have made an appointment. Is this a neighborhood store? Just send them back.”
“It’s the president of Daese Industries. He said he wants to discuss the funding issue related to the Iri Station explosion recovery.”
“Lee Chang-jin from Daese Industries is here?”
Chairman Sung’s face wrinkled. His expression was blatantly displeased.
Then Sung Jin-woo, standing next to him, quickly stepped forward.
“Father, I’ll meet him directly on your behalf.”
- To be continued in Episode 103 -
