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CH40 | VOC
🕑 Added 2025-02-11 12:15:11 +0000 UTCThe contract with the smelter finally expired.
"I'm sorry, I failed to persuade them."
Park Jong-bum reported with a dejected voice upon returning from Japan.
"It's okay. We lost the exclusivity, but the data we accumulated over the past year and our track record with large corporations are enough to stay competitive. We're not banned from doing business with the smelter, so don't worry."
We failed to renew the contract, but it wasn't like we couldn't deliver to the smelter anymore. The profit margin would decrease, but I consoled myself, thinking it was just returning to normal after a period of exorbitant profits.
"What are the smelter's plans?"
"They're going to send salespeople to Korea to promote urban mining."
"But why? It shouldn't matter to them who they receive the goods from, as long as they get their profit margin."
"As you know, sir, in this business, the one with the goods is king. If we monopolized the market in Korea, they were concerned about potential abuse of power. So they decided it was in their best interest to open up the market, even if it meant the same profit margin."
"Hmm."
I could understand the smelter's perspective.
Although smaller than Japan, the Korean market was growing rapidly and was not to be underestimated.
Korea was quickly catching up to Japan in manufacturing, and it was one of the few countries with semiconductor companies, which were crucial for the precious metal recovery business.
If all of Korea's electronic scrap went to Chunha Trading, we could use it as leverage in negotiations.
Companies, whether profitable or not, needed to keep operating, and this was especially true for smelters.
They needed to keep their furnaces running constantly to maintain the high temperatures required for smelting, which consumed a massive amount of electricity and fuel. If Chunha Trading withheld the supply or delayed deliveries, it would be a major blow to the smelter.
"A mere guarantee that it wouldn't happen wasn't enough, was it?"
"No, Managing Director Sasaki actually supported the exclusivity because he benefited from our deal. But he couldn't overturn the decision made by the board of directors, especially now that they're expanding their overseas operations."
"It can't be helped. Maintain the 30% profit margin and strengthen our relationships with the existing large corporations. Make them unbreakable. Got it?"
Park Jong-bum bowed.
"Yes, sir. I'll take care of it immediately."
"So with this, we can extract gold in the first stage?"
The money we had invested in the research lab was finally paying off. They had developed a new technology.
"Yes, it still involves chemical treatment, but it only extracts the gold from the surface of the product, without the solidification process. So the processing cost is low, and the recovery rate is 99% because there are no other impurities."
Lab director Lim Jong-seok said confidently.
He might only have four researchers under him, but he was still the director.
"How does it work?"
"We submerge the gold-plated parts in a solution of hydrochloric acid and nitric acid, in a ratio of 3:1. The gold plating dissolves, and then we use zinc powder to solidify the gold for final refining."
"Hmm, so you're saying we still need the smelter to extract the gold inside the electronic scrap."
Director Lim Jong-seok scratched the back of his head.
"We're working on that, but there are no tangible results yet."
There were two main sources of gold in electronic scrap.
One was the gold wire used in the internal circuitry of expensive semiconductor components like IC chips and CPUs, which was invisible to the naked eye. The other was the gold plating on the connectors of electronic products.
The gold plating was used to improve conductivity and ensure the stability of the electronic product.
A typical example was the square, gold-colored contact points on IC cards, which were gold-plated.
"So this method can only extract gold from surfaces that can be reached by the acid solution. What percentage of the gold in electronic scrap is that?"
"It varies depending on the type of scrap, but it's about 20%."
The smelter boasted a 98% recovery rate, but after deducting the smelting fee and their profit margin, the actual amount we received was about 90%.
We still needed the smelter to extract the gold inside the components after removing the external gold, but if we could recover even 20% of the gold ourselves, it would still be worth hundreds of millions of won per month.
"That's good. So we can actually see the gold we extract now?"
We had been in the business of extracting gold and silver from electronic scrap, but I had never actually held the precious metals in my hands.
We just received payment from the smelter based on the estimated value of the extracted gold.
"Of course. Even 20% is a significant amount. Our company is doing very well, isn't it?"
Our monthly sales from electronic scrap exceeded 3 billion won, and 20% of that was 600 million won.
The price of gold fluctuated between 10,000-11,000 won per gram, so 600 million won meant we could potentially own 60 kg of gold.
I smiled brightly, seeing Director Lim Jong-seok's proud expression, and encouraged him.
"Keep up the good work. I can't wait to see actual gold bars. I'll be heading back to the office now."
***
"The economy seems to be slowing down this year."
I said, reading a newspaper article.
"There are 270,000 college graduates this year, but only 90,000 jobs available, a 3:1 competition ratio. For large corporations, it's 10:1."
"Is it really that difficult to get a job?"
I felt a pang of sympathy for those who had to go through the grueling process of graduating from college and then compete against nine other candidates for a single job at a large corporation.
"Apparently. The exchange rate is rising, so export performance is suffering. That's probably why companies are reducing their hiring."
Due to the low exchange rate policy implemented by the Kim Young-sam administration to join the OECD, the exchange rate, which had been hovering around 700 won per US dollar, started rising in the middle of the year, exceeding 800 won.
The rising exchange rate and the resulting decline in export companies' performance were dominating the news.
"Why does a rising exchange rate negatively affect export companies? Our business is booming."
"I know, right?"
Chunha Trading generated all of its revenue from exports, so our sales were increasing as the exchange rate rose.
If we were exporting 1 kg of boards for 10 US dollars, and the exchange rate was 700 won per dollar, we would receive 7,000 won. But if the exchange rate was 800 won, we would receive 8,000 won.
Other export companies should be experiencing the same benefit, so I didn't understand why their performance was declining.
"Maybe I should study economics. Director Park, do you know why this is happening?"
"I majored in philosophy, so I'm not very knowledgeable about economics. I heard something about the US raising interest rates, but I don't know the details."
I sighed, listening to Director Park's awkward response.
"Maybe I should start studying."
"But the economy really seems to be bad these days. It's all over the news."
"They're exaggerating. The news always focuses on the negative. I'm sure it'll get better soon."
Maru nodded.
"I guess so. There have been economic crisis rumors every year."
Korea had experienced high growth since the 1980s, but there were always crisis rumors.
And the following year, the Korean economy would continue to grow, proving the rumors wrong.
So I didn't think much of it, and I wasn't the only one. Everyone in Korea shared that sentiment.
"By the way, Maru, I'm planning to visit CEO Kim's junkyard tomorrow. Want to come with me?"
"CEO Kim? The one who taught you about the junkyard business?"
"Yeah, I want to go and say hello. I haven't visited him in a while because I've been busy."
Since I started the secondhand goods business, I had been paying CEO Kim the full price, without taking any profit margin.
I had also given him several donation boxes to install in prime locations.
It was a way of showing my gratitude.
"I'll stay at the company. You go ahead."
"Alright, I'll buy him something nice."
***
"How have you been, sir? You look well."
"Well, my ass. It's not a compliment to tell an old man he looks well."
I took CEO Kim to a seafood restaurant and ordered flounder sashimi.
I offered to buy him something more expensive, but he insisted on flounder sashimi.
"How's your business doing? I'm sure you're doing well, but I'm just curious."
"Of course, it's booming. Thanks to you, sir."
"Don't give me that."
CEO Kim was embarrassed by my compliment but seemed pleased.
We enjoyed the sashimi and soju, chatting and catching up.
But as we drank more, CEO Kim's sighs became more frequent.
"Sir, is something bothering you?"
"Bothering me? I'm making good money thanks to you, CEO Park. What could possibly bother me?"
"Come on, you seem troubled. Tell me if you don't mind. Maybe I can help."
"Hmm…"
Perhaps fueled by alcohol, CEO Kim started confiding in me.
"Did I tell you I have a son?"
"Yes, you said you have a son older than me."
CEO Kim sighed deeply.
"He's the problem. He's full of hot air."
"What's wrong?"
"He quit his job and wants to start a business. He asked me for a loan."
"A business? What kind of business?"
"He said he wants to start an electronics company."
"An electronics company?"
Chunha Trading collected electronic scrap from electronics companies all over the country, so I knew the industry better than anyone.
"Yes, an electronics company."
"What does he want to manufacture? And what was his previous job? Was it related to electronics?"
"He used to work at an electronics company."
He had the minimum requirements, but experience didn't guarantee success in business, so I said worriedly,
"It matters what he wants to manufacture."
"He said he wants to make cell phones."
"Cell phones?"
I almost blurted out "He's crazy!" but managed to hold back.
"Is he serious? He wants to make cell phones?"
"It sounds ridiculous, doesn't it?"
"To be honest, it's practically impossible. All the cell phone manufacturers are large corporations. And they require a lot of technology, including telecommunications technology."
I strongly advised against it, and CEO Kim, who seemed to share my sentiment, said,
"Right? Right? I might not be educated, but I know that much. That's why I'm against it, but he's stubborn and won't listen."
"He could try making radios or something. Small businesses can handle that. But cell phones are out of the question. Who would buy an expensive phone made by a small company?"
"So, since we're on the topic…"
CEO Kim looked at me cautiously and said,
"Could you meet with him?"
I stared at him in surprise.
"Me? What would I do?"
"You're the most successful person I know. You must have seen and heard a lot more than me. Can you please try to talk some sense into him?"
