Episode 9: Loading Live Ammunition
“Oil Prices Soar! Is the Shaky Global Economy Okay As It Is?”
“Relentless Climb in Fuel Costs, Is Oil Becoming as Valuable as Gold?”
Right after the war broke out in the Middle East, domestic newspapers were plastered with one particular piece of news: reports related to international oil prices.
On October 6, 1973, taking advantage of the highest Jewish holiday, Yom Kippur, the Fourth Middle East War erupted.
The war, which started with a surprise attack by Egypt and Syria, initially developed into an extremely unfavorable situation for Israel. Within a week of the war’s outbreak, Israel was on the brink of destruction, facing a crisis akin to a candle flickering in the wind. However, with U.S. intervention, the situation completely reversed.
For Egypt, which had been sharpening its sword for this war, it was akin to having its prey snatched away right before its eyes.
The angry Arab oil-producing countries agreed to take retaliatory measures and issued a joint statement.
“This intervention by the U.S. is a clear case of internal interference. From this moment, the Organization of Arab Petroleum Exporting Countries (OPEC) will raise the price of crude oil from $2.9 per barrel to $5.11. Additionally, if Israel does not withdraw from the Sinai Peninsula, we will implement a further 5% production cut each month.”
The Western countries, accustomed to cheap oil, were in an uproar as if a hornet’s nest had been stirred. Despite protests from around the world, the united Arab nations did not budge. Saudi Arabia and other emirates, the leaders of the Arab world, maintained the same stance.
“The reason oil was cheap in the first place was that global oil companies were acquiring crude at excessively low prices. So now is just the time to receive a fair price.”
In the Middle East, which had been under the control of colonial powers, oil seemed to be the exclusive domain of major oil companies for a long time. However, the Arabs did not remain naive nomads forever. At some point, Arabs realized that oil was a weakness for the Westerners who helped Israel and, at the same time, a magic lamp that could fill their empty pockets.
The impact of the Oil Shock was severe. For South Korea’s economy, which had settled into an oil-dependent production and consumption model, it brought a tremendous shockwave.
As oil became scarce, the demand for coal briquettes exploded. To prevent hoarding, the government introduced a coal briquette card system. However, due to tricks like reducing the weight of the briquettes to save on coal usage, there were many complaints.
“Damn, we used to burn three briquettes, now we have to burn four. What’s this? Are they joking?”
“Shouldn’t at least hospitals not run out of oil?”
Despite people’s grievances, the government had no other solution.
In a country that didn’t produce a single drop of oil, the surge in oil prices was a fatal blow to the economy.
Factories, without exception, were forced to cut down on operations. The appearance of the city, devoid of light, was dark and silent. Most neon signs in bustling areas like Myeong-dong lost their glow, and occasionally, Korea Electric Power Corporation’s street broadcast cars roamed the alleys, appealing for energy conservation.
The entire country seemed to be in a massive recession.
The office, with plastic sheets added to the windows, was very chilly.
By around 4 p.m., the lights went out, and the day grew dim.
This was because the government was controlling the electricity used for lighting.
Lee Chang-jin’s company was no exception, and they had no choice but to leave work early.
Office workers, pushed into an early commute, grumbled as they waited for the rarely arriving bus.
“Why isn’t the bus coming… It’s freezing.”
“They’ve reduced the number of bus rounds to save oil these days. I heard taxis are running on a rotation basis too.”
“Really, it’s not coming at all. Might as well ride a bicycle.”
“In this weather? You’ll freeze to death on the way.”
People stood around the bus stop, blowing on their frozen hands to warm them up.
Everyone was wearing thermal underwear and long scarves around their necks.
With a wry smile, Lee Chang-jin headed towards the underground parking lot of Myeong-dong Shopping Center.
Lee Chang-jin got into the Cortina vehicle he had rented in advance and headed to the bonded customs area where import and export cargoes were stored.
An elderly guard with a radio in his hand was pacing in front of a container secured with multiple chains and locks. Lee Chang-jin got out of the car and approached the guard.
The guard, wearing a military surplus jacket and thick mittens, bowed his head as he recognized Lee Chang-jin.
“Welcome, sir.”
“You’re working hard as always. Have you noticed any suspicious people around?”
“Not at all. It’s so deserted, it’s almost boring. Not even a stray cat in sight.”
In response to the man’s answer, Lee Chang-jin handed over an envelope filled with money.
“Good job. Here’s your pay for today. I’ve added more than usual. Keep yourself warm in this cold weather, and I look forward to your continued diligence.”
“Thank you, sir. At my age, there’s not much else I could do.”
After the customary exchange, Lee Chang-jin unlocked the padlock and checked the inside of the container. The warehouse, filled with the smell of oil, was half full with drums of kerosene.
At that moment, the sound of a vehicle moving outside was heard. It was a tanker truck disguised as a waste collection truck. As the vehicle slowly entered and smoothly parked, a middle-aged man got out from the front door, turning off the headlights.
Lee Chang-jin waved as he saw Kim Cheol-ho blowing warm breath from his mouth.
“Uncle! You’re here.”
“Oh, Chang-jin?”
“How much did you manage to sell today, Uncle?”
“Well, ten drums of 200 liters each. So, 2,000 liters? The price has gone up quite a bit since it’s gotten colder.”
“That’s good.”
“But it’s a bit bothersome. Can’t we just sell it all at once instead of in dribs and drabs?”
“I’m sorry, but we can’t do that. This is a period of intensive crackdowns on hoarding, and if we get caught by the special oil management team, it’ll be a big headache. Please handle it bit by bit without drawing attention.”
With no clear alternative to the skyrocketing oil prices, the government was fiercely cracking down on hoarding. If one recklessly released stockpiled goods during such times, they were bound to get caught.
Selling wholesale through land dealers was the safest option, but it didn’t yield much profit. Therefore, Lee Chang-jin secretly supplied the goods to places that required 24/7 operation through Kim Cheol-ho’s contacts.
For instance, textile factories, flower farms, and large hospitals couldn’t afford to stop operations, so no matter how expensive it was, they had to secure extra kerosene by any means.
However, selling the goods this way required more legwork, and it was no wonder Kim Cheol-ho, now turned errand boy, was grumbling.
“I get it. I was just saying. You’re quite fussy. It’s tough serving the boss.”
Lee Chang-jin smiled apologetically at Kim Cheol-ho’s grumbling response.
“If it weren’t for you, Uncle, who else could I trust with this? Please bear with me a little longer.”
“If you’re grateful, show it with cash, not words. Appreciation is shown through money, nephew.”
Seeing Kim Cheol-ho draw a circle with his fingers, Lee Chang-jin nodded willingly.
“Ha ha, understood, Uncle. I’ll make sure you’re well compensated.”
In just a few months, the price of crude oil, which had been $3 per barrel, soared to $11 in three months.
OPEC, under the banner of protecting Arab interests, raised oil prices twice, once in October and again in December, announcing that they would not export oil to countries supporting Israel.
The price of kerosene, which had soared to $45 per barrel, showed no signs of coming down.
The sudden cold wave also spurred an increase in demand, further driving up prices.
Although the economy was in a slump, Lee Chang-jin made a significant profit.
Even after deducting costs and interest, the business yielded a profit margin of three to four times.
Within three months of the war’s outbreak, Lee Chang-jin had cleared most of his inventory.
Even after paying off all the debts and additional compensation, he had over 30 million won left.
It was a more satisfactory income than he had expected.
‘This should be enough for business capital.’
Counting the crisp bills piled high in the box, Lee Chang-jin felt full as if he had eaten a meal.
At that moment, the phone rang.
“Hello, this is Lee Chang-jin.”
A familiar voice came from the other end of the line. It was none other than Jin Seon-ah.
“Mr. Lee, congratulations. You’ve finally escaped the clutches of debt. We confirmed full payment as of yesterday.”
“Ha ha. Thank you.”
Jin Seon-ah’s voice seemed slightly excited.
“Did you foresee the oil price surge?”
“Not at all. How could one predict such a thing unless they were a god? I just bet based on the trends.”
“Hmm, so you kind of anticipated this situation.”
“Ha ha. It was a gamble. Pure luck.”
To Lee Chang-jin’s humble words, Jin Seon-ah offered praise.
“There’s no need to be humble. It wasn’t a gamble; it was skill. Investment is ultimately about calculations.”
“Ha ha, thank you for seeing it that way.”
“Actually, I’m grateful too. When you bought a large amount of kerosene, I also bought some petroleum products just in case. Thanks to you, I made a profit. It’s all thanks to you, so I’ll treat you later.”
With that, Jin Seon-ah hung up the phone.
Lee Chang-jin, momentarily dazed, let out a wry smile.
‘Did she buy it beforehand? She’s quite perceptive.’
So, was the reason she met him back then to gauge the situation?
‘If I had known, I would’ve tried to negotiate the loan interest down a bit more.’
The 12% monthly interest was actually higher than the interest on black-market dollars.
But knowing he could definitely repay it, he had willingly accepted the terms.
Strangely, he didn’t feel too bad about it.
Perhaps because she acknowledged his ability.
After all, spotting opportunities is one of the virtues of a businessman.
‘Now that I’ve made money, the basics are covered.’
However, it was too early to become independent. Starting a business before the economy recovered was out of the question.
While diligently working at the company, the Korean economy, which had been struggling due to the oil shock, fortunately began to recover gradually from the latter half of 1974.
During this time, Lee Chang-jin prepared a business plan while recuperating. As the long winter passed and the cold began to subside.
Section Chief Jeong Pil-ju nudged Lee Chang-jin as he was getting ready to leave work.
“Mr. Lee, aren’t you going to check today?”
“Check what?”
“Hey, did you forget already? Today is the announcement day for the technical certification exam results. The notice should be up now… Let’s go together.”
Only then did Lee Chang-jin remember.
‘Today is the exam result announcement day, isn’t it? Oh, right…’
Because it was the first exam, they said there would be a collective announcement. When they arrived at the Korea Technical Qualification Corporation, there was a long line of people eager to check their results.
Section Chief Jeong pushed his way through the crowd towards the notice board.
“Move aside, please!”
Jeong, who reached the notice board, hurriedly scanned the list of exam numbers. With trembling hands, he scanned through and soon shouted with joy.
“Oh, I passed. I passed! I made it!”
“Congratulations, Chief Jeong.”
An excited Jeong Pil-ju then said,
“Look, your name is here too.”
“Really?”
Lee Chang-jin confirmed his name written at the top of the architecture section.
“Hold on, I need to report to my wife first. Let’s receive our certificates and meet in the waiting room later.”
“Sure, see you then.”
Excited, Jeong Pil-ju went to the public phone booth. Meanwhile, Lee Chang-jin also went around the notice board to look for his name. He found his name in the electrical, as well as the industrial safety and civil engineering sections.
Unfortunately, the chemical engineering part did not have his name on the list.
‘Looks like I failed in the chemical engineering section.’
Honestly, Lee Chang-jin felt a bit disappointed as he had hoped to pass all subjects.
As expected, it seemed there was a failure in the process control part.
He had barely answered one question, and it turned out he got it wrong.
Though slightly disappointed, Lee Chang-jin adjusted his mindset.
Considering the study time, passing four subjects was still an impressive feat.
Heading to the reception desk, Lee Chang-jin handed over his exam and driver’s licenses.
“I’m here to receive my certificates.”
When he handed over several photos, the female employee covered her mouth and chuckled.
“Wow, you’re very prepared. Eight photos aren’t necessary…”
“Well, I have four certificates. Please check. There’s one for internal use and one for proof.”
The female employee, looking up at Lee Chang-jin, meticulously checked the documents.
Finding his name, she looked at him with admiration.
“You’re amazing. Earning four certificates at once… You must be very good at studying.”
“It’s just technical exams, not a bar exam. I got lucky.”
“Please wait a moment.”
The employee handed over the black, passport-like certificates with the Mugunghwa emblem engraved on them. Receiving the certificates, Lee Chang-jin felt a sense of accomplishment rising within him. Just as he was about to leave, the employee, who had been tilting her head, called him back.
“Excuse me, you need to submit two more photos.”
“What? What do you mean?”
“According to the documents, you also passed the chemical engineering exam. Aren’t you going to take this one?”
Lee Chang-jin’s pupils dilated. Stunned, he asked again.
“How is this possible? My name wasn’t on the list. Could there have been a mistake?”
The employee smiled and kindly explained.
“There was a significant error in one of the questions this time. Question 30, I believe. Anyway, it caused quite a controversy, so they accepted all answers for that question. The list of successful candidates has been updated, but it seems the notice hasn’t been posted yet.”
“Oh, so that means…”
“Yes. Congratulations, Mr. Lee Chang-jin. You also passed the chemical engineering exam.”
When Lee Chang-jin came out holding five certificates, Section Chief Jeong Pil-ju looked at him in astonishment.
“They said you graduated top of your class at Korea University, and it shows. Mr. Lee, when did you manage to study all that?”
“Honestly, I’m just as surprised. I didn’t expect to pass all of them.”
In response to Lee Chang-jin’s candid reply, Section Chief Jeong said with a hint of envy.
“But still, passing five exams at once is quite an achievement. Do you pass every exam you take? Share some of that brainpower with me.”
“Ha ha. You’re no slouch yourself. Someone with dual certifications shouldn’t be saying that.”
Muttering with envy, Section Chief Jeong was holding two certificates himself.
Lee Chang-jin subtly remarked,
“Your wife won’t have any reason to nag now. You’ve saved face, Chief Jeong.”
“Yeah, after all the hard work, it’s time to treat myself to some beef tonight.”
Section Chief Jeong seemed delighted. His face was noticeably brighter, as if he had shaken off the stress of the exam period.
For some, it might be the end of a long and tedious exam journey, but for Lee Chang-jin, it was a moment of significant importance.
He was now ready to stand at the starting point.
That night, Lee Chang-jin couldn’t sleep. Listening to the sounds of stray cats outside, he got out of bed as the sky began to lighten. Quietly, so as not to wake the others in the boarding house, he got dressed.
Just like in the old days, he wanted to go watch the sunrise.
Lee Chang-jin headed towards a nearby hill. The weather was clear and bright, perhaps because it had rained the night before. Although he was out of breath from the hike, the experience from his university days made it manageable. It took less than 30 minutes to reach the top.
Sitting on a rock on the mountainside, Lee Chang-jin took a sip of the water he had brought.
Soon, the sky began to reveal the horizon.
He watched as the sky gradually brightened. Slowly, the sun chased away the darkness. Looking at the cityscape unfolding beyond the horizon, Lee Chang-jin made up his mind.
‘Now, it truly begins.’
Taking a deep breath, Lee Chang-jin felt the refreshing breeze blow along with the crisp air.
Thus, Lee Chang-jin reaffirmed his resolve to start his business.
That morning, as soon as he arrived at work, he headed straight to the HR department.
- To Be Continued in Episode 10 -
