Episode 91: Escom City
A few days later, 『Gyeongun Daily』.
「Mid-sized Company Saeyoung Construction Bankrupt, Inhumane Executives」
「Ranked 38th in Domestic Construction, Apartment Builder Bankrupt, Damages Abound」
「Saeyoung Construction Executives Embezzle 1.8 Billion Won for Bankruptcy Party, Arrested」
The executives of Saeyoung Construction, who embezzled a whopping 1.8 billion won of company funds for a so-called ‘debt party,’ were arrested on the 9th. Recently facing liquidity issues, Saeyoung Construction had severely cut wages by over 30%, and delayed salaries for nearly six months.
Despite the company’s dire situation, employees were infuriated by the executives’ behavior of using company funds as if it were their own money. A former Saeyoung Construction employee, Mr. Yang (28), said:
“I had no idea our company was in such a state. They told us to tighten our belts due to the recession, and then they go and stab us in the back like this.”
“I feel like a fool. The president always emphasized sharing, saying we were like family. But now it seems his smiling face in the work uniform was all an act. While our salaries were delayed for six months and we couldn’t even afford formula for our kids, his wife was flaunting luxury goods worth more than a house.”
Particularly at the center of this controversy is Lee Jin-hee (59), wife of Saeyoung Construction Chairman Kim Young-hoon and Chairwoman of the Saeyoung Foundation. It was revealed that until early last year, she had illegally brought in three Cambodian women, disguised them as Saeyoung Construction employees, and employed them as housemaids, subjecting them to habitual abuse and verbal assault.
Additionally, she was known to frequently visit T Department Store in the city and harass the employees, causing a social stir.
- Business Department Reporter Joo Young-mi
Manager Goo Chang-dong, who was reading the newspaper in the office, stopped making coffee and clicked his tongue.
“Wow, look at this, Manager Lee. It says Saeyoung Construction went bankrupt.”
“Really? Isn’t Saeyoung one of the leading construction companies? You never know what will happen in this world.”
Assistant Managers Seo Yohan and Lee Yong-sik, who were next to him, agreed.
“That’s right. There were rumors they made a lot of money from road construction… Embezzling 1.8 billion won, I’m glad I didn’t buy their stocks.”
“To have embezzled so much money, it makes sense they went down in one blow.”
They lamented as if it were their own company. Assistant Manager Seo tilted his head.
“Indeed. Life is unpredictable. But it’s a bit strange. How could a company of that size collapse so suddenly? Could it be they fell out of favor with the authorities?”
“Who knows? Maybe they crossed the wrong high-ranking official.”
At Manager Goo’s mumbling, Lee Chang-jin, who was eating galbitang, looked up at the TV.
The sight of the madam in handcuffs with her head lowered seemed familiar.
‘So that was the lady causing a scene at the department store. I didn’t realize she was the madam of Saeyoung Construction.’
Lee Chang-jin felt a strange emotion. A company that was doing so well suddenly bankrupt.
Could it be the work of an unseen hand? Or perhaps… Seon-ah?
‘Impossible, that’s an absurd delusion…’
How could someone as kind and affectionate as Seon-ah do such a thing?
Lee Chang-jin quickly dismissed the possibility that had crossed his mind and asked Lee Chang-sik.
“It must be an insider tip-off. With so many shady dealings, it’s their own fault, isn’t it? By the way, have you checked the location of the land for the chemical plant?”
Lee Chang-sik nodded and replied.
“Of course. We’ve completed a thorough preliminary investigation.”
“That’s good. We have many places to inspect from today, so let’s get to it.”
After finishing their meal, Lee Chang-jin and his team headed straight to Bupyeong. Securing funding was important for establishing a factory, but selecting the site was the top priority. The Guro Industrial Complex in Seoul was too close to the city center and unsuitable for a large-scale factory.
In contrast, Bupyeong was advantageous with its proximity to Daese Industries’ heavy equipment factory, relatively cheap land prices, and its closeness to Seoul, allowing nationwide distribution through the road network. Additionally, it was favorable for water and electricity supply.
The first task for the team was to identify landowners willing to sell. Lee Chang-jin, along with Manager Park Seung-hoon, Assistant Manager Seo Joo-myung, and Consultant Hong In-young, individually checked the sale conditions over several days.
“Did you find any suitable areas for purchase?”
Assistant Manager Seo, who had just returned from a survey, shook his head.
“I looked into it, but it’s tricky. Establishing a chemical plant in Bupyeong right away seems difficult. The industrial complex admission review appears quite strict.”
“What exactly is the issue?”
Consultant Hong In-young responded on behalf of Assistant Manager Seo.
“Bupyeong Industrial Complex is more popular than expected. There are many prospective tenants waiting, so the review process is stringent. Even if we apply for a review now, it seems unlikely that the documents will pass by the end of the year.”
This was unwelcome news for Lee Chang-jin.
“How long would it take?”
“It would take at least over six months just for document review.”
“Darn, that’s too slow. What about the Juan area?”
Manager Park Seung-hoon was in charge of surveying the Juan Industrial Complex.
However, the response from that area was equally disappointing.
“There’s a relatively higher likelihood of admission there. But the land prices are high, and renting a suitable area would cost twice as much. Moreover, the recent increase in rental prices means it doesn’t seem cost-effective.”
In the newly established Juan Industrial Complex, land prices exceeded 2,300 won per pyeong.
Speculative capital had recently flooded the Juan area, causing land prices to soar due to high expectations.
Even after considering several alternatives, immediate admission to an industrial complex posed many challenges.
As Lee Chang-jin pondered the difficulty of breaking ground within the year, an idea suddenly came to him.
“How about turning our direction towards the U.S. military base? Since the military units have been relocated recently, there should be some abandoned areas.”
“Are you referring to Escom City?”
Escom City (ASCOM: Army Service Command) refers to the combat service support complex where the U.S. 24th Quartermaster Command was stationed from just after liberation until June 30, 1973.
However, due to the Nixon Doctrine announced in July 1969, which decided to reduce U.S. military forces in Asia, Escom City was dismantled and moved to Yongsan Base.
“Most of Camp Market is just a shell now, so it’s practically dismantled. Except for the Defense Reuse and Marketing Office (DRMO) and the 55th Military Police, the bakery facility is all that’s left. If we purchase areas other than those designated for apartment sites and convert them into a chemical plant, we should have enough space.”
Consultant Hong In-young, who had been listening to Lee Chang-jin’s idea, showed a concerned expression.
“It sounds like a reasonable plan, but will Incheon City grant the establishment permit?”
“We’ll find out by inquiring. However, since the government is also struggling with what to do with this area, if we propose to build a factory and boost the economy, they’ll likely welcome it with open arms.”
After all, there was nothing to lose. There was no harm in trying.
As expected, a quick response came after inquiring with the city hall in charge.
“According to the inquiry, the city also views it positively.”
“The land prices are quite cheap too. It’s less than 1,000 won per pyeong, so let’s purchase as much as possible. Including city-owned and rental land, we should have ample space for future expansions.”
As Manager Goo suggested, the area around Camp Market that could be effectively utilized amounted to approximately 485,000 square meters. After conducting a final inspection of the sewage treatment plant site and the bakery factory surroundings, Lee Chang-jin met with landowners near the former base to negotiate specific terms.
“Are you saying you’d like to buy this land?”
“Yes, we’ll offer 1,200 won per pyeong. However, it must include all facilities and buildings.”
For local residents, who were worried about their livelihood after the disappearance of Escom City, this was a welcome proposal. Most of the residents, who had no attachment to the area, easily agreed to sell their land. Since it was previously used as a military base and had many usage restrictions, there was little chance of land value appreciation.
Lee Chang-jin’s cautious approach also helped in purchasing the land.
Fearing that rumors of land purchase might attract speculators, he initially imposed a confidentiality condition.
After about a month of negotiations, Lee Chang-jin successfully secured the factory site.
Consultant Hong In-young reported the progress.
“We made an initial deposit of 10% of the total payment, with the remaining payment to be made after the establishment permit is decided. The land purchase cost is expected to be around 2.3 billion won, securing about 30,000 pyeong.”
“Well done. You’ve all worked hard.”
Although some initially thought it was excessive, they deliberately secured ample land considering potential future expansions and the need to relocate residents near the chemical plant.
They purchased land at about half the market price in less promising areas, thanks to Assistant Manager Seo Joo-myung’s negotiation skills. With the land secured, Lee Chang-jin instructed:
“Everyone, thank you for your hard work. The construction team should prepare the basic layout plan, and please complete the business plan report by next week.”
Although the land was secured, creating the business plan was not easy.
Unlike general buildings, chemical plants are classified as special process plants.
Since they handle toxic substances, they must meet strict safety standards to prepare for potential accidents.
In fact, chemical plant interiors usually prohibit photography during tours and never disclose key parts to outsiders due to concerns about technology leaks.
Moreover, in the context of tensions with North Korea, chemical plants could be targets of terrorism, leading to stringent permit standards.
However, designing the plant layout was not easy. As the work stalled, Consultant Hong In-young, who was overseeing the project, expressed concern.
“It seems we need a sample of a chemical plant establishment plan. The situation here is very different from the plant in Mexico, so it’s hard to know if we’ve met the permit requirements. South Korea’s standards for plant establishment permits are much stricter.”
The business plan and business application were essential for obtaining the permit. The technical documents required in the business plan included the plant layout, process diagram, equipment layout, architectural drawings, and electrical drawings.
The problem was that such documents were treated as top secret, making it impossible to obtain a complete chemical plant design.
“So, are you saying it’s impossible to design?”
“At least for safety standards and process protocols, we need reference materials to design. We need to check the layout for power distribution and other water supply facilities according to the site shape. The plant entry and exit routes, plot plan, and flow diagram-based plant layout are essential.”
Even through Mannheim’s Deputy Director Jeong Pil-joo, it was confirmed that it was equally difficult.
That part was treated as company confidential, so he couldn’t leak it either.
However, Lee Chang-jin was nonchalant about Consultant Hong’s explanation.
“If we don’t have a chemical plant design, we can get a sample of a similar plant. Manager Yeo Jin-joo, did you find out where the Mirae Chemicals naphthalene plant application was submitted?”
“Yes, it’s stored at Ulsan City Hall’s Business Support Department. Should I request an information access application?”
Lee Chang-jin shook his head lightly at the suggestion.
“No, just accessing it isn’t enough. We need to get the design.”
“What? But I thought copying is prohibited. How do you mean?”
“In this world, there’s no such thing as impossible. We won’t use it exactly as it is, so it won’t be a problem if we get caught. It’s not a copy; we’ll just use it as a reference for the design.”
In fact, chemical plant designs have many similarities. With the preliminary data sent by PEMEX, obtaining the base plant design would make the work much easier.
Kim, the county governor who was awarded together in the Saemaul Movement, came to mind.
Setting up a meeting date by phone, Lee Chang-jin promptly headed to the Iksan County Governor’s office.
- Continued in Episode 92 -
