-Kim Sangcheol, resume agricultural subsidies at once!
-Resume them! Resume them!
-How dare you open agricultural markets and destroy food security!
-How dare you! How dare you!
-We will defend our farm products unto death! Immediately withdraw approval for cultured meat sales!
-Withdraw it! Withdraw it!
Eojin-dong, Sejong City.
Another protest of 300,000 farmers was being held today at the Ministry of Economy and Finance’s Sejong Government Complex.
The closer the recent negotiations with the United States came to an agreement, the fiercer their protests grew. The government was currently trying to agree to a 15% tariff, with no investment funds for the United States, in exchange for opening agricultural markets, and naturally, that could not help but provoke fierce resistance both inside and outside the country.
It seemed his words from twenty years ago had been right after all.
Whenever negotiations failed to go their way, the United States issued threats and toyed with the card of U.S. Forces Korea. It was a carbon copy of the way they had forced the dispatch of troops to Iraq twenty years ago. Back then, we had even gone so far as to send troops, breaking the backs of our own support base. And yet the biological and chemical weapons Hussein supposedly possessed in great quantities still had not been found.
So it really had just been punishment for getting on their nerves?
-How dare you hold humiliating negotiations!
-You can’t even protect the people—is this a country?!
In truth, America had become an even nastier country than it had been then.
The FTA demanded by the Bush administration at the time had been a mutual 0% tariff agreement, a gentlemanly condition of sorts grounded in reciprocity.
But now, America was suddenly slapping on a 15% tariff and strutting around as if even that were some tremendous act of grace.
Taken together, the White House’s explanation amounted to this: America had played world police, so pay up... but the bill was so expensive that arming ourselves with nukes seemed cheaper.
“Tsk—”
Lee Seongjun, head of the Tax Office at the Ministry of Economy and Finance, clicked his tongue as he looked out at the 300,000 protesters gathered again today.
“This isn’t it. This isn’t how politics should be done. Tsk, tsk.”
Born with an exceptional political sense, he was a man who had passed through key posts at the Ministry of Economy and Finance and had already become head of the Tax Office in his early forties.
It was an astonishingly fast rise. After all, it would not be an exaggeration to say that the head of the Tax Office at the Ministry of Economy and Finance ranked one step above the commissioner of the National Tax Service.
Recently, he had been loitering around the political world, constantly seeking a party nomination, and as luck would have it, he had received an offer for quite a good position from the political sphere this time. The upcoming by-election seemed likely to serve as an excellent debut stage for him.
“Manager Choi, isn’t it frustrating?”
“Pardon?”
“The Blue House, I mean. If they turn the farmers’ votes against them, their final years won’t be pretty, but they have no fear at all. I feel like I could do it better.”
“Well, isn’t that why you received the nomination this time, sir? With your ability, you’ll have a smooth, straight path all the way to the Blue House.”
“You think so? Hahaha.”
Lee Seongjun burst into laughter, thoroughly intoxicated by Manager Choi’s flattery.
“Come to think of it, after I received the nomination this time, I had my fortune read by a renowned fortune-teller.”
“Oh? What did they say?”
“They said I have the face of someone who will save the country. But not just save it—they said I’d ruin it once and then save it. I’m not sure what that means, but it must be a good thing, right?”
“That fortune-teller must be skilled indeed. With that sort of talk, the more vaguely you say it, the more consultation fees roll in.”
“How did you know? They told me I’d have to die once and come back to life, but no matter how I looked at it, it sounded like they were telling me to perform some strange shamanic rite. So I threw down the fee and left right away.”
“You did well.”
Recently, the Ministry of Economy and Finance had been facing various challenges both inside and outside the organization, but Lee Seongjun’s interest lay elsewhere entirely.
Soon, he would be putting an end to this tedious life as a bureaucrat and going off to make his name in central politics. He truly would try his hand at splendid politics. Politics that did not neglect any class of society, that did not leave farmers groaning like that, and that allowed everyone to be happy.
“Anyway, enough of that. So how much do we need for this national budget?”
But for everyone to be happy like that, a rather large sum of money was required.
“Yes, the National Assembly has passed the largest supplementary budget in history this time. However, since there is no clear plan to expand tax revenue, experts expect there will be another supplementary budget.”
“Two supplementary budgets in one year? What is this, practically COVID? So how much do we need?”
“Roughly in the range of 50 trillion won. Since the government has announced that it will buy up taxi licenses and provide subsidies for item-specific tariffs, it may be even more than that.”
Manager Choi made a troubled face.
“The Tax Office is already deeply troubled over this. The previous administration cut corporate taxes too much, so there’s nowhere for the money to come from... How should we collect it?”
“Put it on the tab.”
“...Pardon?”
“Tell the Bank of Korea to put it on the tab.”
“Are you referring to loans to the government?”
“Yes. And let’s cover the rest of the budget with bonds. If the Tax Office tries to collect this money, a million people will protest.”
“But recently, the debt-to-GDP ratio has risen...”
“Compared to Europe, we’ve been living like misers. We still have plenty of room.”
For the Ministry of Economy and Finance to issue bonds meant covering it with pension fund money. After all, pension funds took on 30% of domestic bond issuance.
“Put this on the tab too. Hmm... this one too. Yes, this as well.”
Still, the fortunate thing was that Korea’s debt ratio was relatively sound.
Korea’s debt-to-GDP ratio was lower than the OECD average, and even lower compared to the average among major countries; the previous generations had passed down a fairly healthy household ledger.
Now, if this seed money were invested in R&D and technological innovation succeeded, Korea could even surpass Europe. The Blue House’s recent purchase of taxi licenses and approval of cultured meat distribution were interpreted as part of such a future strategy.
“And this is... hm? What is this?”
Then Lee Seongjun’s gaze stopped on one document.
As if he had expected it, Manager Choi hurriedly continued his explanation.
“Ah, this is a document requested by the pension fund.”
“The pension fund?”
“Yes. As you know, the domestic steel industry is currently facing an unprecedented cold spell.”
“So?”
“According to the pension fund, a national response is necessary against dumping attacks from China. That is why they sent this request.”
[Request for Establishment of an Anti-Dumping Team at the Ministry of Economy and Finance]
With an displeased expression, Lee Seongjun read through the request.
There was nothing particularly special in its contents. It was a request asking the state to protect the domestic steel industry, which was currently tottering because of dumping attacks by Chinese companies.
“This bastard must be insane. An anti-dumping team? If we launch a tariff attack against China, we’ll get retaliated against tenfold or worse, and he wants us to do this?”
“...Strictly speaking, it isn’t tariffs. The intent is that, just as the Chinese authorities provide subsidies to steel, we should provide subsidies as well.”
“That’s an even bigger problem. We already have no shortage of places money is leaking out, and now they want us to keep the steel industry alive with subsidies too? Who the hell submitted this?”
Manager Choi answered with a troubled face.
“It was submitted by a man named Lee Sejun, the head of the pension fund’s risk team.”
“Tsk, tsk. A man who’s a team leader and he understands macroeconomics this poorly? Tell him no. We’re debating whether to eliminate agricultural subsidies or not, and now he’s talking about steel subsidies?”
“...However, Director, this is difficult for us to flatly refuse.”
“What?”
“The pension fund is our largest customer for government bonds. If we say we’ll cover the supplementary budget with bonds and the pension fund refuses to buy them, there’s no telling how many times the interest rate will jump.”
“No, that’s—”
“We can’t persuade them with national interest. If the pension fund says it can’t recklessly use the people’s retirement funds, public opinion will turn even more against us.”
“You little, you...”
Director Lee could not continue.
The pension fund was an independent institution, and the executive branch absolutely could not force orders upon it. Of course, it could not be called a perfectly independent institution, but just as the Ministry of Economy and Finance could not recklessly meddle with the Bank of Korea, it could not treat them recklessly either.
“Instead of that, Director, why don’t you meet with him once?”
“What would I meet him for? This is something we absolutely cannot accept.”
“If you meet and talk for now, perhaps some point of compromise will emerge. In truth, until the bond issuance succeeds smoothly, there’s nothing to be gained from antagonizing the pension fund.”
Lee Seongjun’s anger surged, but he calmed himself by thinking of the approaching by-election.
Now that he was preparing for the second act of his life, causing an unnecessary incident would do no good for his career.
When he nodded with a dissatisfied expression, Manager Choi bowed his head.
“Understood. I’ll set a date as soon as possible.”
*
“Welcome. I am Lee Seongjun, head of the Tax Office. Haha.”
Sejong City Government Complex.
When I arrived at the Ministry of Economy and Finance after scheduling the meeting, a man who looked like some kind of snake greeted me.
“Yes, hello. I am Lee Sejun, head of the pension fund’s risk team.”
My first impression of him was very bad. I felt an inexplicable sense of déjà vu.
What was it...? Where had I seen him...? My memories of the past were not intact, but I did remember the faces of a few politicians. Was he perhaps a major figure in politics? If so, there was no way he could be a good person...
“You are far younger than I expected. In fact, working at the Ministry of Economy and Finance, I often meet various pension fund officials over issues of government bond purchases, but I believe you are the youngest team leader I have seen.”
“Thank y—”
“However, perhaps that is why. The request you submitted gave me, for some reason, the concern that it may stem from a lack of experience.”
At his blunt manner of speaking, I hurriedly came to my senses. This was no time to leisurely rummage through the past.
“What do you mean?”
“You requested that we create an anti-dumping team within our Tax Office. But you know the situation our Ministry of Economy and Finance is in right now, don’t you?”
“Yes, well...”
“I hate to say this, but the situation is not very good. With the department undergoing a major reorganization, there is tremendous confusion internally as well. In a situation like this, asking us to establish a new department is extremely difficult for us.”
“Are you saying it is difficult to establish an anti-dumping team?”
“Not only that, but the work that department would have to do is also extremely tricky. To protect the domestic steel industry, we would have to either impose tariffs or support it with subsidies, and both require an enormous amount of money. With the current government budget, it is very difficult.”
He lifted his teacup.
“That is why I am saying this. Please have the pension fund reconsider.”
“Director.”
“Of course, you must have your own circumstances, but our circumstances are no small matter either. Anyone who has spent a long time in an organization would understand that much.”
I looked at him with distaste as he continued to take issue with my young age and position.
“I see. Then we will also reconsider our purchase of government bonds.”
His teacup trembled.
“What did you say?”
“Anyone who has spent a long time in an organization should understand. For the pension fund, government bonds are an opportunity cost.”
“Look here.”
“The current global market is in an unprecedented boom. Even investing in an index brings at least 10% returns. So why should we spend tens of trillions on government bonds that leave us with nothing?”
“Mr. Sejun?”
“We intend to sell even the bonds we already hold and invest in indices instead. I believe you will understand our position as well, Director. Then, if you’ll excuse me.”
As I rose from my seat, I heard the sound of the desk overturning.
The snake-looking bastard soon revealed his true colors.
“You son of a bitch, what the hell do you think you’re doing?”