CH15 | MCT

Pohang Steel: Park Tae-jong (4)

Park Tae-jong asked with a serious look in his eyes.

"How can I repay you?"

"I just need you to make a deal with me."

This was the very reason Tae-soo had come all the way down to Pohang.

Park Tae-jong smiled wryly, looking conflicted.

"I do owe you a debt, so it’s hard to refuse. But business is business. Let’s hear your proposal first. I’ll decide afterward."

"I want to supply minerals to your company."

"Hmm, minerals?"

Park Tae-jong spoke frankly.

"We’re already doing business with Daewoon Tungsten, a state-owned enterprise. Since this is directly tied to national industry, I can’t just change suppliers at will."

"I understand. But this is something Daewoon Tungsten cannot provide."

Tae-soo pulled out a document from inside his jacket.

"A molybdenum quality certificate?"

"Yes, tested and certified by a Korean university. As you can see, it’s high-quality molybdenum."

Park Tae-jong examined the test results carefully, his expression serious.

"Hmm… molybdenum. Isn’t that used to manufacture stainless steel and chromoly steel?"

"That’s correct."

"It’s true that Daewoon Tungsten doesn’t have molybdenum mines. But we don’t have the capacity to produce specialty steel like chromoly yet."

Park Tae-jong closed his eyes for a moment.

"We haven’t even completed our first blast furnace. His Excellency is urging us to finish construction as soon as possible and start steel production. I can’t betray those expectations."

"But Pohang Steel has already completed its heavy plate mill. Doesn’t that mean specialty steel production isn’t too far off?"

"The heavy plate mill was a priority because of the shipbuilding industry. His Excellency has high hopes for shipbuilding."

Park Tae-jong chuckled bitterly.

"To be honest, the money we secured from Japan isn’t nearly enough to build a steel mill. We’re critically short on funds. That’s why we prioritized producing heavy plates—because they bring in immediate revenue."

"Then why not secure construction funds earlier by producing stainless and chromoly steel?"

But Park Tae-jong remained firm.

"It’ll be a long time before we start producing chromoly steel."

The stainless and chromoly steel markets were practically monopolized by steel companies from the U.S., Germany, and Japan.

At this stage, Pohang Steel wasn’t ready to compete with them.

They lacked capital, technology, and experience.

"You know this too. The U.S. produces molybdenum at incredibly low costs, making chromoly steel barely profitable."

Currently, the U.S. controlled a staggering 87% of the global molybdenum market.

"Even if you sell molybdenum on the global market, you’ll lose in price competition. There’s no way to compete with the U.S."

However, within a month, the U.S. would announce a suspension of molybdenum extraction.

Knowing the future, Tae-soo was confident.

"Soon, molybdenum prices will double—no, triple. And when that happens, stainless and chromoly steel prices will skyrocket as well. What will you do then?"

"If that really happens, there’d be no question—we’d have to start producing specialty steel immediately. But that’s never going to happen."

It was going to happen.

With molybdenum prices surging, chromoly steel would become a rare commodity.

From power plants to the military, petroleum, gas, and chemical industries—chromoly steel was used everywhere.

Once companies struggled to secure molybdenum, Pohang Steel could dominate the market by supplying chromoly steel freely.

"Park Tae-jong could sit on a goldmine too… if only I had a way to make him see it."

Tae-soo grinned.

Even though he was being turned down now, it was only a matter of time before they would come running to him, asking to buy molybdenum.

After much deliberation, Park Tae-jong finally made his decision.

"I’m afraid it won’t be possible. I’m sorry, but you’ll have to look elsewhere."

Without hesitation, Tae-soo tucked the molybdenum test report back into his jacket.

"That’s unfortunate. Since molybdenum is considered a strategic wartime resource, I came to Pohang Steel first out of patriotism, putting national interests above all else."

He already knew Park Tae-jong would reject his offer.

Still, he couldn’t skip a visit to Pohang Steel.

‘Once molybdenum prices skyrocket, I’ll be the first person he thinks of. That’s all that matters.’

To be honest, coming here was more about making an impression on Park Tae-jong than securing a deal.

And now, that goal was achieved.

Tae-soo had three key reasons for choosing Park Tae-jong as his business partner—none of them for the short term, but for the future.

First, securing a contract with Pohang Steel, Korea’s only integrated steel mill, to ensure a stable market for his molybdenum.

Second, leveraging Park Tae-jong’s connections to President Park Jung-hwan to protect his mine.

Third, using Park Tae-jong to keep his longtime rival, Han Chung-ho of Cheongil Group, in check.

‘As long as Park Tae-jong thrives, Han Chung-ho won’t be able to gain too much power.’

In the future, Han Chung-ho, backed by presidential favor, would secure a steel business license.

His steel mill, Cheongil Steel, would propel Cheongil Electronics and Cheongil Heavy Industries to new heights.

This would ultimately establish Cheongil Group as Korea’s leading conglomerate in comprehensive heavy industries.

‘I’ll make sure to disrupt that. This time, Cheongil won’t get their steel mill so easily—because Park Tae-jong will be standing in their way.’

This was one of the key moves in Tae-soo’s grand strategy.

"You’re quite an impressive young man."

Despite their unspoken agendas, Park Tae-jong was genuinely pleased with Tae-soo’s response.

"I won’t forget your sincerity—coming all this way with your heart set on the nation and its people."

"It can’t be helped. The situation is what it is. Well then, I’ll take my leave."

Tae-soo rose from his seat without hesitation.

"Is there any other favor I can grant you?"

"No, there isn’t."

"I am Park Tae-jong, you know."

"I know. Unfortunately, I’ll have to save my request for another time."

Was this man ambitious or not?

Park Tae-jong stroked his chin thoughtfully.

"Hmm… wait a moment. Letting you leave like this doesn’t feel right."

He had taken a liking to this sharp young man before him.

Seating Tae-soo back down, Park Tae-jong closed his eyes for a moment, lost in thought.

"Given the circumstances, I can’t offer much help when it comes to mining-related businesses. However, I may be able to pull some strings in the construction sector."

"What do you mean?"

"Would you be interested in working with me?"

The unexpected proposal caught Tae-soo off guard.

At the same time, he could practically smell the money in the air.

‘This scent… this is serious money. Just what kind of opportunity is this?’

He couldn’t afford to let this slip away.

‘I can’t pass up an opportunity that reeks of money like this.’

Tae-soo swallowed hard.

What started as a simple visit to make an impression under the guise of selling molybdenum had just turned into a jackpot in construction.

‘What exactly does he mean by working together? Whatever it is, it’s definitely lucrative.’

Park Tae-jong had already made it clear he wasn’t interested in buying molybdenum.

"You’re not talking about a partnership, are you?"

"If you took a look around the construction site earlier, you’d know. This isn’t just about building a steel mill."

Tae-soo caught on immediately.

And that only made him more curious.

"But the worker accommodations are already mostly built, aren’t they?"

"Yes, the houses are built. But there are still plenty of buildings that need to go up."

"You don’t mean—"

"Hospital, school, shopping center, or sports field. Choose one—what do you want?"

Park Tae-jong was offering Tae-soo a subcontract.

‘Wait a second. Weren't all of these supposed to be handled entirely by Pohang Construction?’

To confirm, Tae-soo asked again.

"Isn’t this all part of Pohang Construction’s original plan?"

"Of course it is."

Park Tae-jong smiled.

"Didn’t you hear what the technical advisor said earlier? The construction of Pohang Steel’s smelting plant is about to speed up. We don’t have a moment to waste."

This meant Pohang Construction was committing all its resources to completing the steel mill as quickly as possible.

"I’ll even provide you with the prepared blueprints and some of the materials."

"So, all I have to do is handle the construction and completion?"

"Just follow the design and build it properly. I’ll even assign you a specially invited technical advisor."

Of course, that advisor was none other than Ushiroda Takeshi.

This was pure generosity on Park Tae-jong’s part.

With every word he spoke, the scent of money grew stronger.

It was almost intoxicating.

"Not a bad offer, don’t you think?"

‘Not just “not bad”... this is huge!’

A chance to build a hospital, school, shopping center, or sports field?

These were high-value projects that most companies would kill to get a piece of, yet here he was, being handed the opportunity on a silver platter.

Not only was this a massive money-making deal, but it also came with an invaluable connection—Park Tae-jong himself.

‘This deal smells way too profitable to turn down. Should I run it alongside the mining business?’

There was only one choice.

When someone offers you gold, you don’t hesitate.

"Thank you."

No pointless refusals, no fake humility—just a direct acceptance.

"Which one will you build?"

TL/n - 

1968 - 1971

In the 1960s, the South Korean administration concluded that self-sufficiency in steel and constructing integrated steelworks were essential to economic development. Since South Korea had not possessed a modern steel plant before 1968, many foreign and domestic businesses were skeptical of Republic of Korea Government's decision to invest heavily in developing its own industry. The Korean government created Pohang Iron and Steel Company, Ltd (POSCO) in 1968 and appointed as president of the mill a competent retired army general and friend of President Park Chung Hee, Park Tae-joon, a man with a track record of having turned around the government-owned Korea Tungsten Company. Construction of the Pohang plant began on April 1, 1970, and was dedicated on July 3, 1973, with an initial annual capacity of 1.03 million metric tons.

Japan provided the money for the construction of the initial plant, following an agreement made at the Third South Korea-Japan Ministerial Meeting in 1969. Financing included US$119 million in government grants and loans, US$54 million in credit from the Export-Import Bank of Japan, and technical assistance from Nippon Steel and other corporations. This cooperation was one consequence of the normalization of relations with Japan in 1965 and reflected the view of the government of Japan as noted in the Nixon-Sato communique of November 21, 1969, that "the national security of the Republic of Korea is essential to the security of Japan."

POSCO - Wikipedia