Episode 50: A Guest from America
Lee Chang-jin hurriedly checked the telex message, excited by Jin Seon-ah’s attitude.
“Regarding the Letter of Intent for the OEM Cooperation Project in Construction Machinery Manufacturing”
“To President Lee Chang-jin, I wish your company endless development.
I am Robert L. Jr., Asia Pacific Manager, whom you met at the Düsseldorf Fair in Germany. Our company, Clark International Company, is a U.S. firm specializing in the production and manufacturing of construction equipment such as forklifts, payloaders, and cranes.
We are reaching out to collaborate with a partner in Korea for the expansion of our business. The delay in contacting you was due to the necessary coordination between our Asia Pacific headquarters and the U.S. head office, resulting in the board’s approval.
We apologize for the delay in communication regarding this OEM cooperation partnership.
If your company is interested in participating as an OEM partner supplying the heavy equipment we produce, please review the possibility of a visit from our Asia Pacific manager and provide your feedback at the earliest convenience.
For your reference, we have sent a draft agreement via international mail for the purpose of a factory inspection and OEM partnership agreement. Please respond by next week.
P.S. The Asia Pacific Manager will stay in Japan with our partner company until next week.”
After reading the telex to the end, Lee Chang-jin spoke.
“Clark is planning an inspection visit. The scheduled date is in two weeks.”
“What? So soon? We’re not prepared at all…”
“Can we welcome the inspection in a perfectly prepared state? First impressions are crucial, so we need to start preparing now. The Yeongcheon factory is the main inspection target, so we should start by cleaning the factory interior. Manager Gu and Team Leader Seo Yohan, please take responsibility for the cleaning. Deputy Yeo, please prepare separate work clothes, safety shoes, and helmets for the VIPs.”
Upon hearing the news, Team Leader Lee Yong-sik was taken aback by the mention of factory cleaning and commented.
“Cleaning? A thorough cleaning will be no joke. To do it properly, production will be delayed by two or three days.”
“We still have to do it. Clark will probably send a team consisting of the purchasing manager and a technical expert in quality. Since there’s a limit to what they can review technically in a short time, the image is very important. We can set aside a day or two for cleaning.”
“Understood.”
The next morning, a package arrived via international express mail. Upon opening it, it contained special terms related to the supply of materials, penalty clauses for delays and quality assurance, and technical protection and security conditions for OEM. However, the annual and monthly manufacturing supply volumes and supply prices were left blank.
After reading the mail, Lee Chang-jin nodded.
“Deputy Yeo, please prepare the manufacturing manual separately. Select a cleaning company and notify the employees of the major cleaning schedule. And Manager Gu and Team Leader Seo, please oversee the cleaning.”
“Yes, sir. I will execute as instructed!”
From early morning until late at night, a professional cleaning company was mobilized to scrub the factory’s grime and replace the floor mats with new ones. The peeling paint on the door edges was repainted.
After removing the accumulated dust and dirt, they cleaned every corner until it shone.
Manager Gu Chang-dong reported after finishing the cleaning.
“This side is roughly finished, but the Mapo warehouse is also a problem. The inspection team will probably visit there too, so it’s better to clear out the scrap metal piles outside the warehouse.”
Lee Chang-jin, agreeing with the comment, nodded.
“You’re right. First, classify the twisted or damaged angles and pipes as scrap metal, and send them to Anyang Steel. Anyang Steel has a department that buys scrap metal, so they’ll pay about 30-40 won per kilo.”
“Not Siksin Heavy Industries but Anyang Steel?”
“Yes. Siksin Heavy Industries collects waste equipment and machinery, not specialized in processing scrap metal. On the other hand, Anyang Steel produces steel, so it’s more appropriate to sell it there for a fair price. And send the non-combustible waste to the Nanjido landfill. Move about half of the usable raw materials to the newly built Majukgeori warehouse.”
“Understood. I will implement it immediately.”
After roughly finishing the factory cleaning, Lee Chang-jin gathered the employees and reiterated the work rules and manuals.
While Daese Industries was busy preparing for the guests, the scheduled time finally arrived.
On the scheduled date, two men from Clark arrived at Gimpo Airport.
“Hmm… so this is Korea.”
“But the air is bad. It’s like my lungs are rotting.”
Jack, who looked smaller in his suit than his frame, was the chief engineer of Clark. Jack, a White macho man exuding the scent of Old Spice, was a close friend of Robert and a typical American who enjoyed pizza and burgers. Jack grumbled incessantly as if he was annoyed.
“Look at the air quality, we should have brought masks.”
“Don’t complain, Jack. This is not Hawaii, which you love. But it’s a remarkable improvement. It’s a world of difference from before.”
Robert glanced around the airport surroundings with a nostalgic expression.
Jack sneered at Robert’s nostalgic remark.
“Are you kidding? If this is an improvement, even a passing dog would laugh.”
“No, I’m serious. If you had been here 10 years ago, you wouldn’t say that.”
What Robert felt upon visiting Korea was an unusual vibrancy.
The rapid changes of high-growth periods were evident everywhere. However, Jack didn’t seem to agree.
“Come on. Did you live in the Stone Age?”
“Don’t be sarcastic, Jack. I’m speaking sincerely. There was really nothing here before. This country was one of the poorest in the Third World. This nation has clawed its way up to here. Isn’t that amazing?”
In fact, Robert had lived at Camp Market in Bupyeong following his father, a naval officer in the 60s. The ESCom City, a combat service support complex for the U.S. military, was a place of childhood memories for him.
To Robert, who remembered the impoverished Korea, the transformed Korea was astonishing. But to Jack, who had reluctantly come along, Robert’s nostalgic talk sounded like a story from a distant land.
“I really don’t get it. Robert, do we really need to come to such a backward country? I can’t believe there’s a company here that we can form a partnership with.”
“Well, we’ll see. Don’t assume everything in a developing country is backward. There are always exceptions.”
“Hmm, well, the women here are not bad. Better than in Japan. They have a good sense of fashion.”
Jack ogled the women walking around the airport.
He licked his lips at the sight of women in mini-skirts in the hot summer.
Robert sighed and warned him.
“Don’t get any ideas, Jack. You’re here to support me. If you cause any unnecessary trouble like in Japan, I won’t tolerate it. I will fire you.”
“Alright, alright. But it wasn’t my fault. They failed to meet the requirements in the first place. They had other intentions.”
“Enough with the excuses. There’s no point in talking about past events. By the way, where is Mr. Lee? He said he would come to pick us up…”
While Robert was looking around, a well-maintained limousine arrived.
Lee Chang-jin, who got out of the car, waved his hand.
“Mr. Robert? Over here.”
Lee Chang-jin, who had heard about the schedule in advance, had arranged for the limousine.
As Lee Chang-jin, dressed in a sophisticated suit, stepped out, Jack murmured in surprise.
“A limousine? Not bad for an Asian.”
Robert extended his hairy hand.
Lee Chang-jin shook hands and replied in fluent English.
“Mr. Robert? It’s been three months since we last met. Nice to see you again.”
“Nice to see you too, Mr. Lee. You seem to be doing well these days?”
“Ha ha, thanks to the fair, I’ve been busier than before. But who is this gentleman? I don’t think I’ve met him before.”
Robert laughed and introduced Jack.
“Oh, this is Jack. My bodyguard, you could say? He also works as our chief engineer. He was a talent at Mannheim, but we scouted him.”
“Ah, I see. Actually, I also worked at Mannheim. What a coincidence.”
“Really? You worked at Mannheim too?”
“Yes. I worked there until last year. I was a manager in the Project Engineering Department.”
Jack, who suddenly changed his expression, looked Lee Chang-jin up and down.
“Then you’re my junior. Feel free to call me senior if you like.”
Jack’s sudden affection made Robert smile wryly and pinch his side.
“Sorry about that. This guy can be a bit forward. He’s not a bad person, though.”
“Ha ha, it’s fine. It’s an honor to meet you, senior. By the way, Mr. Robert, you don’t seem to be a stranger to Korea.”
Lee Chang-jin, who had been observing Robert attentively, asked, and Robert nodded.
“Yes, actually, this is my second visit. I lived at the Bupyeong U.S. military camp when I was a kid. It’s been about 15 years, and it has changed a lot.”
“Ah, I see. It must feel quite different.”
After exchanging a few formal words, Lee Chang-jin guided the party to the limousine.
“Well, let’s not stand here. Please get in. I’ll take you there.”
Jack, who got in the limousine with them, was busy looking out the window.
While Robert sat quietly and observed the surroundings, Lee Chang-jin slyly brought up the topic.
“By the way, why did a world-renowned company like Clark choose a small company like us as a potential partner? Can you tell me the reason?”
“Ah, I was impressed by the drying technology using the high-temperature vacuum dryer that I saw at the fair. You can tell a lot from one thing. When I heard that your company could also manufacture and assemble cranes, I became interested. We’ve done our homework, so it wasn’t an impulsive decision.”
“Honestly, it’s a bit surprising for us. There are big companies like Cheongwoo and Oseong in Korea, aren’t there? But you’re interested in a small, unknown startup like us… it’s not common.”
Jack, seated next to him, laughed and replied.
“We don’t evaluate companies based on size. The important thing is technology and quality control. Moreover, large companies have slow decision-making processes, making it difficult to respond promptly to market needs.”
However, Jack’s boastful words were far from the truth. In Korea at the time, major groups like Oseong, Taeyang, and Myeongdong Trading were forming technical alliances with Japanese companies like Komatsu and NHK to start full-scale production of electric forklifts.
Clark, who entered the Asian market late, initially sought contacts with large companies. However, the local companies, long veterans of capitalism, were not easy to deal with.
Moreover, at the final stage of the contract, they all suggested new clauses for technology transfer and commission payment, altering the contract terms.
After several failed contracts, Clark’s headquarters decided to abandon partnerships with large Korean companies and chose to partner with small and medium-sized enterprises that could respond flexibly to market changes, had technical capabilities, and reliability.
During that time, Daese Industries caught Robert’s radar by chance.
Lee Chang-jin, who knew such a backstory, didn’t feel the need to show off his knowledge.
“Thank you for the positive evaluation. Oh, by the way, have you eaten? If you are hungry, there is a good restaurant on the way. Shall we stop for a meal?”
“No, it’s fine. I’d like to see the factory first.”
“Understood. We’ll head straight there.”
Upon arriving in Seodaemun-gu, Lee Chang-jin guided the party to the Yeongcheon factory. The factory interior, freshly cleaned, was very tidy and well-organized. The machinery for manufacturing gears and crane parts was on a different level compared to other companies.
Robert whispered to Jack after looking around the factory.
“What do you think? Not bad, right?”
“Hmm… well, it’s pretty good for a small company. It’s practical.”
Seeing the technicians working systematically according to the manual, Jack was secretly satisfied.
After inspecting the gear production site and checking for defects, Jack was impressed.
“This is as good as the Alabama factory’s products. How did you manage this?”
“Our technicians have at least three years of experience. We hire only experienced workers and operate in three shifts to ensure they don’t get too tired.”
With his extensive experience, Lee Chang-jin knew exactly what the factory inspection report’s main contents and desired points were.
Therefore, he had given the employees prior training.
“When the inspection team visits, act as usual and don’t rush. Most importantly, don’t make mistakes. Wear goggles and helmets during work and follow the rules. Check the operation schedule in advance to avoid overlapping movements.”
Having gained inspection experience at Mannheim, Lee Chang-jin knew the key elements that large companies wanted. In such inspections, the core element was quality control through the production process.
For example, in the case of gears, if they come into contact during transportation, the teeth can wear down, causing inevitable damage. To prevent this, Lee Chang-jin placed thick cardboard between the gears. Such meticulous measures were rare even among Japanese companies known for strict quality control.
After completing the inspection and checking the checklist, Robert nodded in satisfaction.
“As expected, my judgment was correct. Although there seems to be a shortage of skilled workers for production, that’s something we can supplement. The rest seems to meet our delivery conditions.”
“Thank you for the positive evaluation.”
“Let’s now discuss the detailed conditions.”
Lee Chang-jin guided Robert’s party to an office that looked like a modified container.
- To be continued in Episode 51 -
