Episode 111: Hot Trade
“Manager Park Seung-hoon, how are things going with molybdenum these days?”
“Ah, I hear the prices are skyrocketing recently. It’s not just molybdenum. Platinum, as well as cobalt prices, are surging at an alarming rate. Even the price of manganese, which is used as an oxidizer, has risen significantly. Manganese prices have soared by 73% compared to last year.”
The price of molybdenum had reached an all-time high of $0.6 per ounce as of May, which was an increase of more than 25% compared to the previous month. Having already reviewed the data, Lee Chang-jin nodded in agreement.
“The upward trend is faster than I thought. It’s probably because the atmosphere in the U.S. is not looking good, right?”
“That’s the only way to see it. In the case of special metals, the resource policies of the producing countries inevitably affect global demand and prices. However, since it’s unclear how long this trend will last, everyone is just watching.”
Lee Chang-jin agreed with this point. However, unlike others, he had confidence.
“The demand for special steel will surely rise. We need to contact the molybdenum mines in Korea and secure the supplies first.”
“Us?”
“Yes. If the price of strategic materials rises, the more we secure the supplies, the higher our bargaining power will be. We need to act before large companies like Anglo American or Rio Tinto move. Contact the representatives of the Korean mines immediately.”
“Understood.”
The U.S. had already regulated Japanese steel products that posed a threat to the U.S. through the Trigger Mechanism in 1978. Satisfied with the results, American protectionists moved on to curb the Soviet Union, targeting molybdenum used in special steel.
Since American companies controlled most of the molybdenum supply and production at the time, export restrictions were a tool to curb the Soviet Union’s military expansion.
‘We need to hurry to secure enough supplies before the U.S. export regulations take effect. And I can finally see Seon-ah again.’
Excited at the prospect of seeing Jin Seon-ah after a long time, Lee Chang-jin felt a sense of anticipation.
Just then, his thoughts were interrupted by a voice.
It was none other than Manager Koo Chang-dong.
“President, there’s a guest outside.”
“A guest? Who?”
“He says he’s Brandon, the former manager at DuPont. He’s here to see you. What should I do?”
“Brandon? Please bring him in immediately.”
If it was Brandon, he was the one who had introduced Lee Chang-jin to the titanium dioxide factory in Mexico.
Surprised, Lee Chang-jin stood up quickly to greet him.
Brandon, with his distinctive Pringles mustache, warmly hugged Lee Chang-jin.
“Mr. Lee! It’s been so long!”
“Haha, Brandon. What brings you here?”
“Haha, I’m sorry. I was in a hurry. I hope I’m not interrupting.”
“It’s fine. I was surprised to hear last year that you had left DuPont. How have you been?”
“Ah, I’m sorry. Actually, I’ve been busy starting my own agency. Thanks to the experience I gained from the chemical plant project you introduced me to, I had the courage to do it.”
Brandon explained that he had been traveling between the U.S. and the Middle East for business.
He had come across news about Lee Chang-jin in the newspaper by chance and decided to visit.
It was fascinating for Lee Chang-jin to see how much one person’s life could change because of him.
“Congratulations on your successful startup. I’m honored that you came all this way to see me.”
“Haha, I wanted to see your face and also propose a recent hot trade deal.”
“Oh, a trade deal? That sounds interesting. What is it?”
“I heard from a contact in the UAE Ministry of Defense that they are looking for a supplier to import military uniforms.”
“Hmm, a trade deal, you say? I thought the contract for military uniforms was secured by Taeyang Group? It was all over the newspapers.”
In advanced countries like the UK, Canada, and the U.S., the military’s dress regulations often changed completely when a new president took office. It was a kind of reward for those who lost the election.
In these countries, many military uniforms remained unsold and were eventually sold as scrap. Traders who bought these uniforms sold them to the Saudi military for a tidy profit.
However, as Saudi Arabia accumulated oil money, its military also sought to unify their uniforms and standards to revamp the kingdom’s army.
The total amount was $110 million. For a single letter of credit for general merchandise, it was the largest scale in export history. Considering the total export amount was only $6.5 billion at the time, the scale was unimaginable.
It was a deal Lee Chang-jin had regretted missing out on. But why bring up a done deal now? Lee Chang-jin questioned Brandon, who smiled meaningfully.
“Haha, actually, there’s a problem with Taeyang’s delivery. It’s a secret known only to a few, but they rushed to meet the delivery deadline and messed things up. They tried to save labor costs by not hiring someone fluent in Arabic. As a result, there’s a big claim from the Middle East.”
They had made a mess by attaching the washing instructions meant for winter uniforms to summer uniforms and vice versa because they couldn’t read Arabic.
Moreover, the different sizing standards between the Middle East and Korea added to the confusion.
Hearing this, Lee Chang-jin couldn’t help but chuckle.
“Ha… Unbelievable. For Taeyang Group to make such a basic mistake.”
“Because of this, General Humaid, who mediated the deal through the Saudi Embassy, is furious. He feels his reputation has been tarnished.”
“Trying to save a few labor costs has cost them dearly.”
“And here’s the main point. This incident has led the UAE to cancel the direct contract with Taeyang. They were also planning to replace their military uniforms with Taeyang.”
“Is that true? Then…”
“Yes. Don’t be surprised. Mr. Lee, do you know how much the trading price is? For the first batch alone, it’s 50,000 uniforms, amounting to $30 million. This is a big opportunity.”
“I’ll look into it and get back to you. It won’t take long.”
Lee Chang-jin immediately contacted Deputy Chief Jeong Pil-joo through Mannheim.
“We did some digging, and it seems to be true. Because of this incident, Taeyang’s CEO Lee Taek-hoon and Executive Director Oh Jeong-hoon both resigned. Even though the CEO visited the UAE to plead, they remain adamant. It seems they’re planning to switch from a direct contract to a limited competitive bid. Only a few resident staff know about it. They’ve embargoed it to keep it from the reporters.”
“Then?”
“It’s definitely worth a try. You have connections with both Cheongwoo and textile businessmen in the Guro Industrial Complex, don’t you? There’s nothing you can’t do.”
It was a plausible suggestion. If the military uniform bid were to proceed as a competitive bid, it would be an opportunity to grow the clothing business, make money, and take a shot at Taeyang Group.
‘This is a highly feasible endeavor.’
Having made up his mind, Lee Chang-jin contacted Brandon.
“Our Daese Textiles has decided to participate in this. How about joining the bid as partners?”
“I was waiting for those words. An excellent decision.”
Having worked with Lee Chang-jin before, Brandon knew he would find a way to make the deal happen.
“Then, I’ll start by checking the military uniform samples. When do we need to submit them?”
“The sooner, the better. Taeyang Group is negotiating behind the scenes, so it won’t be easy. If they finish the negotiation first, it’ll be tough for us.”
“Understood. Please send me the specifications and requirements from the UAE Ministry of Defense.”
“Got it. I’ll fax them to you right away.”
Given the tight timeline, they needed to hurry. After finishing the conversation with Brandon, Lee Chang-jin immediately contacted Jeong Ho-seong.
“Ah, Chang-jin. What’s the sudden matter?”
“Manager Jeong, are you busy these days?”
“Well, I was gathering information on the international market trends and clients for molybdenum.”
“Oh, really? I have a more urgent matter. Pass the molybdenum task to Manager Park Seung-hoon and quickly get me a sample of the military uniforms that Taeyang is supplying to Saudi Arabia.”
“Huh? Why the sudden interest in military uniforms?”
“Do you remember Brandon? The agent from DuPont’s chemical plant. He contacted me out of the blue, saying there’s an opportunity to export military uniforms to the UAE.”
“Where am I supposed to get a military uniform sample all of a sudden?”
“There’s a textile businessman we deal with in the Guro Industrial Complex, remember? President Lee Man-soo, the one we helped with the loom repair. Get a sample from him, analyze the specs, and prepare a report within a week. Time is of the essence.”
“Ah, got it. I’ll get right on it.”
“Also, can you connect with any resident staff in the UAE? I want to get detailed information about the local situation.”
“Yeah, I have a few friends there. If I contact Yoon-geun, it should be possible. He’s always been well-connected.”
“Great, get in touch with them and connect with the UAE side.”
“Okay. Leave it to me.”
If it was Kim Yoon-geun, the resident staff in Malaysia, he could definitely find out the situation there. Having coordinated the schedule, Lee Chang-jin hurried back to Korea. The urgency was not only due to the molybdenum issue but also because he needed to secure the military uniform samples as soon as possible.
Three days later, Lee Chang-jin arrived at Gimpo Airport.
“Here, over here!!”
Waiting at the airport exit with a sign was none other than Jin Seon-ah.
Seeing her waving enthusiastically, a smile spread across Lee Chang-jin’s face.
“Seon-ah, have you been well?”
“Well? I was bored without you, Chang-jin. But you’ve gotten so tan. You’ve almost turned into a black person.”
“Haha, Seon-ah, you look exceptionally fair. You’ve become even more beautiful.”
“I’ve always been beautiful, haven’t I? What’s with the sudden compliments…”
Jin Seon-ah’s beauty had blossomed with makeup.
Her youthful charm remained, but she had noticeably matured in a short period.
After a warm hug, Jin Seon-ah playfully tapped Lee Chang-jin’s firm chest.
“You didn’t let me come, so how did you manage all this time? Didn’t you miss me?”
“Of course, I missed you. That’s why I’m here.”
“Pfft, you talk well. Did you take the herbal medicine I sent you on time?”
“Of course. I took it diligently every time. We even have a witness here. Right, Manager Koo?”
“Yes. I made sure he took it properly. To confess, I did sneak a few myself. Whatever it was, the effects were immediate.”
Hearing Manager Koo Chang-dong’s words, Jin Seon-ah looked slightly apologetic.
“Oh, I’m really sorry, Chang-dong. I was so busy. I’ll make sure to prepare some for you next time.”
“No, please don’t. Otherwise, there might be accidents. Do I need to do gymnastics at night? I’ll pass.”
The group laughed heartily at Koo Chang-dong’s joke. Jin Seon-ah then said to Lee Chang-jin.
“Leave your luggage with Manager Koo and me, and head straight to the head office. I’ll contact you separately for dinner.”
“Is that okay?”
“Of course. I know our President Lee’s personality better than anyone. If I tell you to rest at home, you’ll just think about work. Go handle your business first.”
“Understood, madam.”
Lee Chang-jin headed straight to the office in Seodaemun-gu. As he had already given a heads-up, Jeong Ho-seong and the trade company employees were waiting.
- To be continued in Episode 112 -
