“Welcome to Buenos Aires. I’m the secretary-general, Karina Milei.”
When we followed the secretarial staff into the conference room, a woman who looked formidable at a glance extended her hand to us.
“Yes, it’s a pleasure to meet you. I’m Director O Taeseong, in charge of overseas investment at the NPS.”
Director O and I smiled brightly as we shook hands with the members of the transition committee.
To be honest, I was a little nervous. Even I, who had done no shortage of reckless things up to now, found myself slightly cowed in front of them.
And for good reason—I knew all too well what would unfold one month from now.
Within a month of its launch, the Milei administration would dismiss civil servants, abolish subsidies, and carry out a brutal devaluation of the exchange rate.
As a result, the streets would overflow with the unemployed, and prices would explode by 250% in the first year of his presidency, turning the country into a living hell. Even so, he would not lower the banner of reform.
The next cabinet members who had designed and would push forward those measures were gathered here in one place… so it was no exaggeration to say I was currently meeting with some of the most hard-nosed people on the planet.
“First, thank you for your thoughtful interest in our Argentina.”
Karina Milei had quite a different air from her older brother, who rampaged about swinging a chainsaw.
“According to what our Ministry of Economy has confirmed, the Korean NPS has made an investment of seven hundred million dollars. A very wise choice. Our Milei government will reform Argentina’s economic structure down to the bone.”
“I have no doubt of that. President-elect Milei’s reformist performance has served as a great example even to us on the other side of the globe.”
“However, regarding the additional investment of three billion dollars, there is one point we hope both sides can adjust.”
As the main issue appeared, the cabinet members on their side and we on ours exchanged guarded looks.
“Yes, please go ahead.”
“First, I’d like to hear the honest reason. Mm… why automobile tariff reductions? I’ve seen global investment firms or the IMF demand ‘collateral,’ but this is the first time I’ve seen anyone demand tariff cuts.”
“That was not solely our decision. Our NPS and the Ministry of Trade, Industry and Energy always take an organic strategic approach when entering emerging markets. From our perspective, if Argentina’s economy improves, demand for cars will certainly rise and the market will expand.”
Karina Milei was not an easy woman to deal with.
“I’d like to hear something more candid. Is that really ‘all’ there is to it?”
“…What other reason could there be? Korea and Argentina are not competitors in the automobile industry. Not a single part overlaps. Rather, considering Argentina’s abundant natural resources, we believe we could become reliable partners in resources such as lithium.”
“Partners… Then allow us to make a proposal as well.”
“What kind of proposal?”
“Trade operates on the principle of reciprocity. Since we are lowering our tariff barriers, Korea should also show sincerity.”
“Madam Secretary-General…”
“Of course, I understand Korea’s circumstances very well. I know how sensitive the rice market is there. And though you did not mention it just now, Director, the Korean auto industry is currently competing with G2 companies over market share in electric vehicles, is it not?”
Damn it. I wanted this to end easily, but as expected, she was no pushover.
“At present, the Argentine government does not impose tariffs on Korean electric vehicles. What you are asking for now is a reduction in tariffs on internal combustion vehicles, isn’t it? Mm… you want to use the revenue from internal combustion vehicles as war funds for the EV market. That is how I understand Korea’s proposal.”
“…”
“If that is the case, Korea should show a little more sincerity as well. We are not asking for as much as we lower our tariffs. At least show us half that much goodwill.”
At her bold stance, Director O turned his eyes toward me.
It was over. This was as far as we could go. Lowering agricultural tariffs in Korea was absolutely impossible, and she seemed to know our weakness all too well.
“If you refuse this proposal, we cannot accept the NPS’s offer. Trade must follow the principle of reciprocity.”
The only difference was whether it looked bizarre or not; she, too, seemed to have inherited the Milei family’s fiery temperament.
“If that is the case, then… we will first consult with the relevant authorities and…”
“Madam Secretary-General Karina. Are you truly not in urgent need of dollars?”
But just as Director O tried to take a step back, I endured his glare and opened my mouth.
Karina and the transition committee members looked at me with hardened faces.
“What did you say?”
“Forgive my impertinence, but I understand that you are very much in need of them. President-elect Milei promised a twofold devaluation, but in truth, it will not end there, will it?”
“What are you…”
“The future you are worried about will unfold exactly as you fear. With government subsidies cut, unemployment will soar, and with the exchange rate rising, prices will soar as well.”
I knew. I knew how terrible the withdrawal symptoms from seventy years of populism had been.
With Milei’s ultra-high-intensity restructuring, the streets would soon overflow with the unemployed, and prices would skyrocket by 250%.
“If it was put forward as a representative campaign pledge during the presidential election, I imagine the transition committee has already calculated even its side effects.”
“…And? Are you saying that because we are a country desperate for dollars, you can push us around however you please?”
“Quite the opposite. Argentina is a country with more than enough will for reform; it is simply a little short on dollars right now. So we will help you on better terms.”
“I’m afraid I don’t understand.”
“I understand you have been engaged in a lengthy tug-of-war with the IMF over additional loans. But they will not grant the Argentine government the terms it wants. They will not break their principle of lending in dollars and being repaid in dollars.”
“…”
“But our NPS will buy bonds issued by the Argentine government and invest in the Merval Index. Not only will this be far cheaper than the loans proposed by the IMF, we will not interfere in your domestic affairs either. Even so, is our proposal such a bad one?”
I knew.
I knew just how miserable a lack of dollars could make a country.
The 15th presidential election in 1997. At that time, Korea’s leading presidential candidates had to write the IMF a “pledge to keep their promises” in order to run for president. And so the ruling party, the opposition party, and the third party all stamped their seals on that document side by side.
When the nation’s coffers are empty, national prestige and pride mean nothing.
“We believe this proposal is sufficiently reciprocal. We invest, but we do not ask for investment funds from the Argentine government. And automobiles are not an industry in which Korea and Argentina compete for the same market. However.”
Worried that their pride might be wounded, I quickly added more.
“If this proposal is insufficient, we will double it.”
Karina’s pupils doubled in size.
“D-double?”
“Yes. We promise an investment of six billion dollars, not three.”
“…Are you serious?”
“I am. We will immediately purchase the index and bonds at an eight-to-two ratio. With an investment of this scale, I believe the Milei government may be able to reduce the peso’s devaluation by even one additional step. And receiving investment from us will also be a strong card in your negotiations with the IMF.”
The members of the transition committee exchanged visible glances.
Before COVID, the loan they had borrowed from the IMF was forty billion dollars. Now that they had been promised an investment amounting to roughly 20% of that—nearly eight billion dollars—they would no longer even think about something as trivial as automobile tariffs.
Karina gave a bitter smile and exchanged looks with the various nominees.
When the long silence finally ended, she steadied her trembling voice and said,
“Now that I think about it, Korea and Argentina could become good friends. Our natural resources and Korea’s technology… I find myself quite looking forward to it.”
“Yes, indeed. I sincerely hope that will be the case.”
“Then, would it be possible to draft an MOU today… no, something more certain—an MOA?”
*
“Aaaagh!”
We left after the suffocating negotiation.
Inside the car, Director O let out a scream.
“We came here to remove one lump and ended up attaching another! Hey, Manager Lee, does this make any sense?”
“…”
“We already invested seven hundred million dollars, and now you’re reinvesting six billion? You punk, that’s ten trillion won, ten trillion! What on earth are you trusting in to invest that kind of money in these beggars who go around defaulting even on IMF money?!”
It was a good thing I had taken the wheel today.
Seeing Director O with his eyes flipped, I wondered if he would have driven us straight into a utility pole if I had left the steering wheel to him.
“In exchange, we received good terms too. A 10% tariff reduction on all Korean cars, regardless of model.”
“Do you think that means Asan Motors’ stock price will rise by more than ten trillion won? Forget it. This time, absolutely not! Pull out all the money we invested in the Merval Index. Let’s use the profits from that as the penalty for breaking this MOA.”
“Come on, that’s not what we agreed. At the risk meeting, you clearly decided to give me full authority over this matter.”
“That was because no one could say a word thanks to your recent investment performance, you brat. And the money promised back then was clearly three billion dollars. You coming back after doubling it was not part of the agreement.”
“Please let this slide just once. I’ll really handle this matter properly.”
When I gave him a gentle smile, Director O clutched at his hair.
“…Are you really going to do it? Even after I’m begging you like this?”
“We absolutely have to.”
“You… got completely played by that woman today. Those bastards aren’t in a position to pick and choose dollars right now. They just swaggered in front of us for no reason and squeezed more investment money out of us.”
“I know. But it’s all right.”
“What?”
“We lost on the front end, but we’ll make money on the back end. Argentina’s stock market will definitely rise at a terrifying pace.”
The Argentine stock market, the Merval Index, had already leapt to 700,000. But if my memory was correct, it still had about four times more to go.
Every time the Milei government dismissed civil servants, the stock market soared, and every time it devalued the peso, global investment money headed for Buenos Aires.
All of these were miracles that would unfold within just one year of his administration.
“No matter how I look at it, it feels like we just invested ten trillion won in a penny stock. And you think this is possible?”
“Yes.”
“Peronism has ruled for seventy years, and you think that’s going to change in an instant because of that chainsaw man?”
“Yees.”
Being born in a resource-rich country was truly a blessing.
They had not done anything particularly well… yet simply by making a single pledge that they would no longer live wrongly from now on, their stock market soared at a terrifying pace.
And as his economic reforms proceeded at frightening speed, the IMF lent them 4.7 billion dollars—50% more than the originally promised 3 billion-dollar loan.
“So, Director, please help me. We have to add three billion and invest six billion dollars.”
“Haa…”
“I’ll make you one promise in return.”
“What?”
“We won’t keep holding on to the ten trillion won investment. What we promised them, after all, was to maintain a seven-billion-dollar scale, not to invest anything beyond that.”
“You’re saying you’ll realize the gains?”
“Yes. Around the first anniversary of Milei’s administration, I’ll also sell in stages. If prices rise, we have to distribute the risk. At the very least, I’ll make sure to recover the principal no matter what.”
Director O stared at me as if he found me absurd.
“You can make sure to recover the principal no matter what…? Manager Lee, do you really think the Argentine stock market is going all the way to Mars?”