Hollywood Hunter

Seoul, Blue House.

In a dressing room in the Presidential Palace, Kim Young-sam changed into an old-fashioned gray suit, asked a makeup artist to make a tired look for himself, and then walked out of the room.

A staff member who chased out from the locker room tried to put the windbreaker on Jin Yongsan, but was refused.

The current temperature in Seoul is already below zero, but the next thing to do is to play the sad card, and a little cold will definitely increase the effect.

In the outer living room, a group of cabinet officials and the president's staff saw Jin Yongsan appearing, and they stood up one after another with solemn expressions.

In the end, he nodded slightly to everyone. Jin Yongsan glanced at the crowds outside the Blue House on the screen on one side of the wall. He took a document from the secretary Jiang Xuanhao, looked at it as he walked, and finally came to a temporary building outside the Blue House to face tens of thousands of people. podium.

There are two large screens on both sides of the podium, reflecting the figure of Kim Young-sam on the stage.

offstage.

The crowd stretched for several kilometers, much larger than the one on October 18.

Kim Young-san had already obtained some inside information in advance. This time, there were also people instigating, but it was no longer a small team like last time, but mainly chaebols in South Korea who had stronger mobilization capabilities in all aspects.

The time is the evening of November 20th.

The content of the agreement announced at ten o'clock in the morning exceeded everyone's expectations. If the public could handle it well, the chaebol, who realized that their interests were seriously threatened, couldn't sit still.

The $60 billion rescue plan involves specific agreements, each of which makes the chaebols feel that the next life will not be easy.

For example, some of the core clauses.

First, South Korea needs to increase the bank's benchmark interest rate by 25% in one go.

The main problem facing South Korea's financial crisis this time is debt, which is so huge that many companies need to continue to maintain cash flow through cyclical lending. The one-time increase of the benchmark interest rate by 25% will undoubtedly greatly increase the financing cost and difficulty of financing for Korean companies, which in turn will cause many companies to completely break their capital chains and go bankrupt.

Second, open trade and abolish import licenses and export subsidies.

The main reason for South Korea's rapid economic rise in the past three decades is the country's foreign trade system.

Since the Park Chung-hee era, the South Korean government has supported enterprises to earn foreign exchange through export at all costs, including a large number of explicit or covert import protection and export subsidy measures.

This time, trade is completely opened, import restrictions are abolished, and export subsidies are cancelled. There is no doubt that the export competitiveness of Korean companies will not only be greatly reduced, but they will also face competition from a large number of overseas companies due to the abolition of import barriers.

Bearing the brunt is the South Korean auto industry.

Previously, with the protection of trade barriers and the support of export subsidies, this has created a grand occasion where four of the top ten chaebols in South Korea are mainly engaged in automobiles. Next, it is conceivable that all these protective measures will be cancelled, and the Korean auto industry will face strong competition from auto companies around the world.

Thirdly, it is also the deadliest item in this agreement. Korean banks, brokerages and other financial companies need to be supervised by the imf, and the financing and mergers and acquisitions of the Korean consortium need to be approved by the imf.

This is the complete takeover of South Korea's financial sovereignty!

Among the specific details involved, the South Korean government's next financial measures such as interest rate adjustments and national bond issuance need to be approved by the IMF; South Korea's foreign exchange inflows and outflows need to be approved by the IMF; as for the Korean consortium, of course, the IMF is not It manages everything, but only supervises capital operations above a certain scale.

It's just that the threshold for this "considerable scale" is so low that it is unbearable.

1,000,000!

Within the imf supervision period, large Korean consortiums, financing, mergers and acquisitions with a scale of more than 1 million US dollars need to be reported to the imf, and can only be implemented after being signed by the chief representative of the imf in Korea.

A mere $1 million may not be a big deal for small and medium-sized enterprises, but for large consortiums, it is simply a degree of supervision before taking a breather.

How can this be easily accepted by the major chaebol families in South Korea?

So, what should you do if you are disobedient and violate it?

Of course, these details will not be ignored in the final 291-page rescue agreement.

If some companies are unwilling to comply, it is very simple. The imf will work with the Korean government and overseas capital to recover all loans from the violating companies.

To put it bluntly, if you don't want to obey the rules, that's fine, just pay off the debt.

That's the problem.

With the ultra-high debt ratio of major Korean conglomerates generally exceeding 300%, it is impossible to afford it. I couldn't afford it, and was forced to pursue it, and the only result was bankruptcy.

All in all, before contacting the imf, the precarious South Korean conglomerates were very eager to seek help. However, when the agreement was finally finalized, it was found that the agreement was too harsh, almost like a noose that could hang them to death at any time Wrapped around the neck and shoulders, the consortium suddenly became reluctant again.

In addition, the case on October 18 is the first, so let’s make a fuss again.

The authorities are incompetent, so let some people see that the Korean people are not easy to mess with. Everyone is making a fuss, even if the imf agreement cannot be completely overthrown, there is a good chance that some concessions will be obtained.

"... Citizens, I do not deny that this crisis is a painful lesson for the Republic of Korea. Although it is extremely painful, we have to accept this lesson because this is the Republic of Korea

The consequences of thirty years of blind, aggressive economic policies..."

"...If the IMF's rescue is rejected, South Korea will become the first developed country to declare bankruptcy, and the wealth accumulated by the people for decades will disappear with the continued sharp currency depreciation. The Republic of Korea will usher in the United States in the 1930s In the Great Depression like the economic collapse, a large number of companies closed down, countless people lost their jobs, and the unemployment rate may reach more than 30%. Perhaps our entire generation will lose its future because of this. This is an even more unbearable result for us..."

"... Citizens, at this time of crisis, I only hope that everyone can unite as one and overcome the difficulties together, instead of intentionally creating differences and dragging the Korean nation into a darker abyss..."

"……please……"

Following Kim Young-sam's deep bow once, the crowd who had been chattering during the president's speech finally gradually quieted down.

Jin Yongsan knew very well that this was a good start, so he had to relax a little bit. After standing up straight, facing the cold wind with a temperature below zero, he offered to ask with a sad expression that some media reporters and trade union representatives at the scene could talk about the issues they cared about. Take public questions and he will answer them live.

In the gradually falling twilight, the lights outside the Blue House began to light up.

The microphone was passed on, and soon the first questioner appeared.

"Mr. President, I am Noh Chan-hyuk, a reporter from Chosun Ilbo. May I ask, the authorities have signed a 7-year agreement with the IMF. Do we really want to accept the 7-year financial supervision of an international financial organization? "

Hearing the sad question from the loudspeaker, Jin Yongsan was overjoyed.

It was a question that the staff team had rehearsed in advance.

After calming down, Kim Young-san replied with a heavy tone, "This is exactly what I would like to explain to the people. The total amount of the IMF bailout agreement is 60 billion US dollars, but this does not mean that South Korea must bear the full 600 million US dollars. billion US dollars in loans, we only need to withdraw the funds needed by the country in batches, so we need the joint efforts of all citizens. Similarly, the 7-year agreement is not fixed, as long as we can reduce the withdrawal of funds as much as possible through our own efforts and repay them as soon as possible, then The day when South Korea repays the IMF loan is the moment when we get rid of IMF supervision."

Whether it was the hundreds of thousands of people at the scene, or the countless people in front of the live TV broadcast in South Korea, they couldn't help but breathe a sigh of relief when they heard Jin Yongsan's explanation.

The human heart is like this.

When there is room for change in a matter that was supposed to be absolute, the tit-for-tat mentality will inevitably fade a bit.

Immediately afterwards, another trade union representative asked a question: "Mr. President, the IMF agreement requires the authorities to change the current labor system and allow companies to lay off workers on a large scale. Don't you think this clause is too harsh?"

"This is indeed a very harsh clause." Contrary to many people's expectations, Jin Yongsan did not deny it, and said to the microphone with his face still heavy: "However, it is a result that we have to bear in a short period of time. I I just said that this is a catastrophe for the Republic of Korea, and no one can escape. Therefore, I can only guarantee that the authorities will be the first to bear the consequences. Whether it is myself or signing the imf agreement The three presidential candidates will push the government to carry out a large-scale downsizing of personnel in order to save the country's budget. Moreover, I believe that the predicament is only temporary, as long as the country gets through the difficulties, employment can also return to its previous level."

The layoffs started from the government. Such a promise once again eased the emotions of countless people.

The microphone passes again.

Another question: "Mr. President..."

"..."

With the continuous questioning and Kim Young-sam's patient answers, the mood of public opinion has changed from the anger of the authorities signing the agreement of humiliating power and humiliation to a kind of united and united hatred.

This public speaking and interaction finally came to an end when night completely enveloped the city.

Jin Yongsan finally reminded everyone to disperse in an orderly manner in a gentle tone of an elder to avoid being trampled, and finally returned to the presidential palace surrounded by escorts.

Go back to a lounge inside the Blue House.

This time, Jin Yongsan, who was really exhausted, sat paralyzed on the sofa, looked at the TV screen that was still broadcasting the live broadcast of the crowd outside the venue, and slowly drank a cup of hot tea until General Secretary Jiang Xuanhao came to report again, saying that the crowd had begun to disperse Go, finally relieved.

However, it's not over yet.