At Department Head Oh’s sharp question, I couldn’t readily answer and merely twitched my shoulders.
“Haa.”
That was answer enough. Department Head Oh’s sigh said he had already grasped the whole story.
“Why? Why on earth?”
“...”
“Do you not know who appoints the chairman of a public corporation? Instigating a private equity fund to get that man fired is the same as picking a fight with the Blue House right now!”
“...I know. That’s why I moved as carefully as possible, so as not to leave any traces.”
“You bastard, you call that an explanation?”
“Even so, it has to be done, Department Head.”
I raised my voice.
I know how reckless what I did was. But I know even better what will happen if I pretend not to see it too.
If my memory is correct, KEPCO’s debt will soon open the era of 300 trillion won. Since whoever took the bullet and raised public utility rates would be cursed as someone who ruined people’s livelihoods, every administration, ruling or opposition, had looked the other way on that debt. But the train runs on, no matter how much the dogs bark.
As time passed, the deadline for carbon reduction promised by the global community drew closer, and we suffered the double hardship of 200 trillion won in debt and a reduction in coal energy.
How could an energy public corporation that couldn’t even pay off its debt invest in R&D? If my memory is correct, the renewable energy targets we achieved as if being chased were all filled with Chinese-made components, and naturally, once those Chinese-made components finished taking over the market, their prices soared to absurd levels.
“To be honest, we’re not raising electricity rates now just to pay off some debt. KEPCO, KHNP, and KPS are the largest energy companies in the country. If they don’t develop technology and invest in R&D, then what company is supposed to invest in renewable energy?”
In truth, the importance of renewable energy had already been raised long ago. Accordingly, private companies had also thrown themselves into developing related technologies, but at present the market was dead.
It was only natural. The global supply chain itself had been shattered by China’s low-price offensive... Now, it was hard to find any company willing to jump into this business anymore.
“The only ones that can keep investing steadily while enduring long-term deficits are public corporations. If those public corporations spend the money they should be using for R&D on freezing electricity rates again, it will become an even greater disaster later.”
It was a regrettable thing.
If my memory is correct, with the coming of the AI era, demand for electric energy will explode even further. Soon, AI data centers will be consuming more electricity than people, but unfortunately, we have none of the necessary infrastructure for it.
—Ring, ring. Ring, ring.
In the middle of my desperate persuasion, Department Head Oh’s cellphone received its twenty-first missed call. Judging by his expression, it seemed to be a call from the Korea Development Bank.
“Get out.”
I couldn’t back down. There were dozens of other reasons electricity rates had to be raised.
“Department Head.”
“I said get out!”
Damn it. Looks like this is as far as I go.
At his coercive voice, I lowered my head and withdrew from my seat.
—Ring, ring. Ring, ring.
After Sejun left.
Department Head Oh was lost in thought for a long while, then finally picked up his cellphone.
“Yes. This is Oh Taeseong of the Pension Fund Risk Management Department.”
*
“No, Division Head. Why have you been so unreachable? You scared me.”
Park Bong-su, who had hastily returned from Europe, rushed to Jeonju as soon as he arrived at Incheon Airport.
It was truly a wartime schedule.
He had been striking a pose at the Leaning Tower of Pisa when he suddenly heard the news that he had been sued by a private equity fund.
At first, he hadn’t thought much of it. Silchest was a group he had already fought once over the electricity rate issue, and he assumed this time they were trying to pressure him over dividends again.
But the materials they exposed contained his attendance records and corporate card usage in glaring detail, and because of that, reporters were lined up in droves at Incheon Airport.
That was why he had no choice but to make a beeline from Incheon to Jeonju.
“In any case, whatever the circumstances, I’m truly sorry about this. But it’s nothing serious. There’s a fund called Silchest that’s been picking fights with us every dividend season, you see?”
“...”
“But it seems they weren’t very satisfied with this round of dividends. Since we’ve been in the black for eight consecutive quarters, they must have expected a large payout.”
“...”
“In any case, the essence of the problem isn’t this sordid talk, but ultimately money. We’ll resolve it as soon as possible, so there’s no need for you to concern yourself, Division Head.”
Department Head Oh, who had been quietly listening, asked,
“Yes, Chairman. We also believe Silchest’s true objective is money. Whether the KEPCO chairman is clean or not should have nothing to do with them, so why else would they make an issue of this?”
“Exactly. That’s exactly it. You’ve seen it correctly.”
“However. Excuses aside, their demands do seem to have some merit, so we too are troubled.”
“...What did you say?”
“Since you came here in person, I’d like to hear your explanation. What are you going to do about KEPCO’s deficit?”
At the uncomfortable question, Park Bong-su’s face stiffened slightly.
“Your words sound strange, Department Head. Why are you asking me that?”
“Are you not the chairman of KEPCO?”
“This position is a ceremonial one anyway. Don’t you know that all decision-making authority over public utility rates lies with the Blue House?”
“Then persuade the Blue House, as the chairman.”
“W-what?”
“Eight consecutive quarters in the black is something to congratulate you on, but considering KEPCO’s annual interest burden is five trillion won, there is still an unfathomably long way to go. Would parents accept it if a student who used to score 50 now scored 60 and decided to stop studying?”
Bang!
“I find what you just said extremely unpleasant. Just because the pension fund owns some KEPCO shares, are you trying to play parent in front of me now?”
“Then tell me your plan.”
“What plan! The people are already shedding tears of blood because of the previous administration’s failures. If we raise electricity rates again in a situation like this, what will we do about public discontent? With living costs having risen this much, must we raise public utility rates too?”
“Are you saying you won’t raise them?”
“If the chairman of a public corporation were a position where all one had to do was make money, I’d raise them tenfold, a hundredfold too! Why do you keep blaming me for not being able to raise them because of people’s livelihoods?”
Department Head Oh let out a low sigh.
Judging by the man’s attitude, it seemed he had no intention of raising them within the term of the current administration.
“Then when will we be able to pay off our KEPCO debt?”
“When people’s circumstances improve!”
“Forgive me, but in my twenty years working at the pension fund, I have never seen such a world.”
“What?”
“There has never been a time when prices did not rise, never a time when the economy was good, and never a time when common people’s wallets were comfortable. Does such a thing as the perfect right time exist in this world?”
Park Bong-su’s face hardened coldly.
“What are you trying to say?”
“Raise the electricity rates. If this administration freezes them again, the succeeding administration will be left holding the bag.”
“Why are you meddling in that!”
“Because I know very well what will happen to KEPCO’s stock price in the meantime.”
“What?”
“It will be cut in half. Once the deficit begins, you’ll cover it with bonds again, and for that financing, you’ll come asking our pension fund again. But in a market like this, do you know how inefficient it is to hold government and public bonds, Chairman?”
Department Head Oh’s voice gradually grew louder.
“Our pension fund is a company where money we could have earned but failed to earn is no different from money lost. And is it as if KEPCO bonds are attractive for risk diversification? Whether in profitability or stability, by any metric, they fall short of U.S. Treasuries, and now we’re tired of providing funding as well.”
“Division Head!”
“If you do not show a sincere attitude, then we too cannot remain a friendly stake for you.”
“You!”
Park Bong-su screamed.
“If you don’t remain one? What are you going to do if you don’t! Foreign capital is kneading our public corporation like rice cake dough, and the pension fund is going to go along with it?”
“Forgive me, but there were far too many circumstances in your attendance records and corporate card details that could not be understood.”
“Those are all just excuses!”
“Isn’t politics originally all like that? It is frightening because even things that could be let go smoothly can be made into issues.”
Park Bong-su, who had acted with utter arrogance until now, could no longer behave as though he had nothing to fear.
The people knew too. They knew that the chairman of a public corporation was a position for lining one’s pockets. But it was another matter when the reality of it was exposed to the whole world.
Quick-witted newspapers had already begun investigating Park Bong-su’s every movement. If this fever of coverage continued, not only the money he had pocketed but also his private life would be exposed. If no one extinguished this fire in the middle, it was obvious that he would fall without end.
To the man whose face had turned deathly pale, Department Head Oh spoke as if coaxing him.
“Chairman. It’s not too late yet.”
“...”
“Still, KEPCO has posted profits for eight consecutive quarters. If we look the other way to an appropriate degree, this matter will be as if it never happened.”
Park Bong-su clenched his molars and sank into thought for a long while before opening his mouth.
“What... What should I do?”
“Please recommend an electricity rate increase to the Blue House. If that is resolved, Silchest will have no particular reason to bring up this issue.”
“But that’s not something I can do anything about. Public utility rates are all decided by the government. I’m just a figurehead.”
“Then at least show yourself being driven out after speaking your convictions.”
“W-what?”
“I know well that persuading the government will not be easy. But if even the chairman of KEPCO does not speak up about such a problem, then who will?”
Department Head Oh’s coldly hardened face said everything.
If he was driven out after speaking his convictions to the government, they would at least preserve his honor, but if not, the pension fund would drag him down. And in an extremely dishonorable fashion at that.
To the man fallen into despair, Department Head Oh carefully held out a sheaf of documents.
“Chairman, this is a rate increase road map submitted by one of my valued employees.”
“...”
“It may be lacking, but I believe this method can minimize public backlash... Would you have it reviewed internally?”
*
Next news.
Park Bong-su, chairman of KEPCO, who recently sparked controversy over his attendance record, issued his first official statement today. He drew a line, saying, “All allegations raised by Silchest are groundless, and there were no problems with management.”
In addition, Chairman Park stated, “There has often been interference in management rights by Silchest whenever dividend season came around,” and added, “All allegations raised will be verified according to procedure under relevant laws.” However, rather than his explanation, it was Chairman Park’s subsequent remarks that further inflamed the controversy.
At the press conference held to explain the controversy that day, Chairman Park for the first time suggested an increase in electricity rates. He made his first mention of the “electricity transmission cost,” which had been the subject of various controversies until now.
Chairman Park stated, “In order to resolve KEPCO’s current debt, a differential rate system is essential.” His explanation was that under a differential rate system, it would be necessary to impose higher rates on the Seoul and Gyeonggi regions, where transmission costs are high.
However, considering that half the population lives in the metropolitan area, this is being interpreted as a statement effectively suggesting an electricity rate increase.
Reporter Lee Chaeseon has the details.