Money Keeps Piling Up No Matter How Much I Spend

Chapter 117

Translator: Dreamscribe"So, are there listings available?"

"Yes. In fact, there's an overflow of listings. There are so many storage facilities, after all."

"What about the prices?"

"With talks of an imminent production cut agreement between Russia and Saudi Arabia, the prices of the storage facilities are also falling.

After the agreement, crude oil prices will go up, and all the oil stored will be used."

News that the production cut agreement would soon be smoothly concluded was spreading.

As a result, crude oil prices were already rising, while storage facility prices were falling in contrast.

"But CEO-nim, did CEO Jung really say to buy up the storage facilities right away?"

"Yeah. He told me to buy all of them as soon as they hit the market."

"But with the production cut agreement, wouldn't the storage facilities become useless?"

The executives were puzzled.

Right now, shipping had more than enough money, so buying storage facilities wasn't a big deal.

However, no matter how much capital there was, wasting money was still out of the question.

"But since it's not just anyone, but CEO Jung giving such an instruction, wouldn't there be a reason behind it?"

"Maybe he's planning to use the storage facilities for a different purpose, not for storing oil?"

"Yes. If not that, then there's only one reason to buy up the storage facilities."

"And what's that?"

"The production cut agreement suddenly collapses, and crude oil prices crash."

Kim Doo-young and the executives fell silent for a moment.

Soon, one by one, they began to let out small chuckles.

"No, that can't possibly happen."

"Russia and Saudi Arabia backing out of the production cut? That's like shooting themselves in the head with a pistol. It makes no sense."

Saying they wouldn’t make the production cut agreement was as believable as saying the sun would rise in the west tomorrow. With the world already suffering from COVID, that would be like choosing to all die together.

"Since that sort of thing absolutely won't happen, he must be planning to use the storage facilities for some other purpose, right?"

"Yes. That's probably the case. He didn’t mention exactly what he’d use them for?"

"Hmm. He just told me to buy up all the available storage listings. As always, I didn’t pry and just said I would do it. You know our company motto."

Do not question Jung Jin-ho’s orders.

As COVID swept the globe and the shipping industry collapsed, Kwangwoon was smoothly regaining the company.

But perhaps dissatisfied with Kwangwoon fattening themselves while sitting idle, a new disruptor had appeared.

The problem was, that disruptor wasn’t ordinary in scale.

"Levant Link seems to own a considerable amount of assets. Especially with the massive inflow of oil money from the Middle East, they’ve rapidly expanded their size."

In other words, it meant to throw away your ego.

Just follow the orders and the money would roll in automatically.

"Buy up all the storage listings available. We're buying up shipping companies for pennies anyway, so we’ve got plenty of money left over, right? Don’t hold back. This is also CEO Jung’s instruction."

"Yes, CEO-nim."

From Korea to across the globe, storage facility listings were pouring out. No one knew exactly what they planned to do with them all.

But curiosity aside, they just had to do as they were told.

"Oh. What about those shipping companies in the Middle East?"

"I was just about to report on that. A few shipping companies that came up for sale in Europe are now in talks with the Middle East."

Kim Doo-young furrowed his brow.

Levant Link was a shipping company born in the Middle East.

The name “Levant” itself referred to the eastern Mediterranean region, and their goal was to revive that place, once the hub of East-West trade since ancient times.

"Also, Beirut in Lebanon, which serves as the gateway there, is the key. Since it’s a strategic point connecting the Mediterranean and the Middle East, they aim to leverage its geographical advantage to build a logistics hub linking Europe, Africa, and Asia."

"And that Beirut port is now up for sale?"

"Yes. With COVID completely killing the shipping industry, the companies that originally held business rights there have all withdrawn, and now Levant Link is trying to take over."

As with all ports,

The port business involves government intervention.

Beirut Port was also a core business of Lebanon, and through partial privatization, they had been maximizing profits.

However, as shipping companies began collapsing one by one, the port business also started to face difficulties, and eventually, even the companies that had been firmly established there withdrew, putting the business rights up for sale.

"Levant is trying to move in there?"

"Yes. The problem is, if we just leave this alone, the snowball will grow big. As I mentioned earlier, the region has a lot of geographical advantages, so if they significantly expand their influence, they'll first dominate the Middle East and then eventually start spreading their influence to our side as well."

Kwangwoon Shipping had one goal.

That was to build a shipping company that no one could ever touch.

But whether they knew Kwangwoon’s objective or simply wanted to dump their overflowing oil into their own new shipping venture.

A powerful rival had emerged in the Middle East and was rapidly expanding its influence.

"In that situation, if we lose even that port, we can’t guarantee what will happen next, right?"

"Yes. On top of that, they’ve got oil money. They can get oil cheaper than anyone else. Didn’t our shipping company grow big in the first place because we quickly bought up oil before prices surged, which let us cut operating costs?"

Levant was trying to follow a similar strategy, cutting operating costs to maintain a price advantage.

Even if they suffer losses now, with oil money backing them, the one who endures will win in the end.

The company could end up being torn apart again by the likes of the EU, just like last time.

To prevent such a disaster, the company had to become even more solid.

So what should be done?

They had to completely dominate the global shipping market, so that the shipping system itself couldn’t function without them.

"Then we have to secure the business rights there, no matter what it takes."

"Yes. The Lebanese government seems to have picked up on what's going on and is already asking a high price. But even if it's expensive, we cannot afford to lose to Levant."

In other words, if they failed to secure the Beirut Port, a day would come when they would surely regret it.

Normally, he would decide the acquisition price himself, but-

"Sigh, this doesn’t feel like something I should decide alone."

If the future of the shipping business was at stake, he definitely had to consult the final decision-maker.

***

Organization of the Petroleum Exporting Countries, also known as OPEC.

It plays a role in stabilizing oil prices and adjusting member countries' interests by jointly controlling oil production levels.

Put nicely, it’s about stabilization, but from a slightly cynical view, it’s collusion in plain sight.

Isn't collusion among corporations prohibited in every country?

Anyway, this production cut agreement was effectively a negotiation between OPEC and Russia.

Because Saudi Arabia, the head of OPEC, and Russia, the most influential non-OPEC country after the U.S., were the ones deciding the final oil output.

"This production cut agreement was absolutely necessary. Not just OPEC, but Russia and other countries were also suffering. In short, if they didn’t quickly implement production cuts, they’d drown in overflowing oil."

That’s why everyone expected the production cut agreement to proceed as quickly as possible.

"But... it seems something that should never have happened has happened."

Even the employee giving the report had a slight tremble in his voice.

"Saudi Arabia and Russia have effectively withdrawn from the production cut agreement, and Saudi Arabia has even announced plans to increase production."

Both Saudi Arabia and Russia had pulled the trigger on their own heads.

"What? Are they both crazy? Why would they do that-"

"They’re seriously out of their minds."

The shocking news left the employees in disbelief.

Even more disturbing was that Saudi Arabia had not just abandoned the cuts but announced an increase in production.

"CEO-nim. These days, it really feels like the world has gone mad. We’ve got this coronavirus pandemic spreading like wildfire, and now Saudi Arabia is talking about increasing production in this situation? The world just keeps moving further and further away from what I thought was common sense."

I felt the same way.

This was all happening because of futures and storage facilities.

Even though oil was purchased through futures, as the expiration date approached, the oil wasn’t being sold and was stuck in storage.

"But why did it turn out that way?"

"Apparently, Russia refused a major production cut because they wanted to keep the U.S. in check. They figured that if Russia and OPEC proceeded with the production cut, the one who would ultimately benefit would be the U.S."

"And that’s when Saudi Arabia lost it?"

"Yes. Since Russia was acting uncooperative, it seems the Saudi government got seriously angry. So they decided to crush both Russia and the U.S. altogether and went ahead with the production increase."

In other words, it wasn’t a rational decision, but an emotional one that led them to increase production.

With that, the future was obvious.

The problem was, to store oil, you had to pay expensive rental fees, and as storage space ran out, traders were forced to offload the oil quickly even at a loss.

That was exactly why prices were plummeting like crazy. And if no buyers showed up, just like Department Head Seo had said, prices could even go negative.

This was exactly what had triggered my instincts.

"As this news spread, the oil price has already dropped to $10. And judging by the current trend, it looks like it’ll fall even further."

"If it drops below $10... In the worst-case scenario, it could even go negative."

Oil prices going negative?

That would mean if I bought oil, the other party would actually have to pay me.

"Many say such an extreme situation won’t actually happen, but looking at how sharply it’s falling right now, you never know."

"Did the shipping division manage to buy up the storage facilities properly?"

"I did receive a report earlier that they were preparing to buy up storage facilities in bulk, but I’m not sure if they’ve actually completed the purchases yet... I’ll check on that right away.”

But there was no need to do that.

Because my vibrating phone showed the name of CEO Kim Doo-young.

"Yes, CEO-nim."

Looks like our CEO Kim is no ordinary man.

***

"Wow. How the hell did you find out this time? I was seriously shocked when I heard the news. I mean, who would've guessed those crazy bastards would actually scrap the production cut agreement?"

Honestly, I had a rough feeling based on my intuition the other day, was the production cut deal really going to fall through?

But I never imagined they would actually scrap it and go so far as to increase production.

Just like Department Head Seo said, the world really is spinning in a strange way these days. It feels far from anything logical.

"Heh. So tell me, does it make any sense that they pumped 700 trillion won from the National Pension Service?"

"That’s true. Oh, and what happened with the storage facilities?"

"Hmm. Don’t worry about that. Before the production cut deal collapsed, we already bought up all the storage facilities. It cost us a pretty penny, but do you know how much their value has increased since the deal fell apart? Already by 50%. It’s insane, I’m telling you."

The oil market right now was utter chaos.

"So, when would be a good time to start buying oil? I saw it was already under $10."

"Not yet. Wait a bit more. It’s likely going to drop even further."

"Even more? How far down are we talking?"

"All the way to negative."

"What?! Negative? So you're saying if I buy oil, they’ll pay me money? Oil prices have never gone negative before!"

From a common-sense standpoint, it was ridiculous.

Oil prices had never fallen into negative territory before. But the current data was pointing that way, and more importantly, my instincts had shown me this situation beforehand.

"When people start begging you to take the oil, saying they’ll even pay you, that’s when you start buying it slowly. Fill up the storage completely. We’re going to use a lot anyway, right? Especially for our future shipping business."

"Well, yeah, that makes sense, but… really, it’ll go negative…?"

Maybe because he’s been in this industry for decades, he seemed to have trouble adjusting to a phenomenon he’d never witnessed before.

Everyone was only trying to sell oil now, with no one buying. But the futures contracts were nearing expiration, and storage costs were going up.

"So… is that why you came all the way here?"

"Hmm? Oh, no. That’s not it. Actually, there’s something I need to discuss with you quickly."

I had already heard a rough overview of the situation from CEO Kim.

Currently, Kwangwoon had entered a bidding war over the Port of Beirut in Lebanon, and there were concerns that if their rival, Levant, succeeded in acquiring the project, there would be no way to stop their growth.

For us, who were dreaming of becoming a complete shipping group, Levant was an extremely threatening competitor.

"So I think we have to secure the port business at all costs, even if it means taking a loss."

"Roughly how much is the bidding price?"

"15 trillion won. The problem is, the price is expected to go even higher from here."

15 trillion won for a port project.

It was far beyond what I had expected.

And yet, both our side and our competitor were willing to pay that price, that only proved how critical the Port of Beirut's location was.

I froze in my seat.

"CEO Jung, are you okay? Your face is completely pale. What’s going on?"

What was that just now?

It felt like something overwhelming, something I couldn’t possibly handle, had struck me.

The feeling was so intensely nauseating that I quickly turned to the next page.

I didn’t know exactly what was happening there, but judging from the reaction, it seemed better to give up on that project.

I was going over the report CEO Kim Doo-young had brought when I placed my hand over the Beirut Port section.

"!?"

Then, as I turned the page, another wave of intuition hit me when I saw the bidding price.

‘It showed such repulsion toward the Beirut Port, and yet… why is this bidding price…??’

Was it telling me not to pursue the business, but to go ahead with the bidding?

Then suddenly, a deafening roar shook my eardrums, and I instinctively sat down.

Quietly, I started writing down a bidding price next to it.

But the number kept going up without stopping.

Just as the price had risen to the point where I wondered if this could really be right.

"Even if we throw out such an absurd price, they’re going to take it anyway?"

"Right. Very likely. Their goal is to acquire this place and completely dominate the Middle East."

My hand stopped.

I glanced over at CEO Kim, who was quietly waiting for me to finish reviewing.

The amount was so absurd it was almost laughable to speak it out loud.

"CEO-nim. This bid amount..."

"Ah, yeah?"

"What do you think would happen if we offered 30 trillion won?"

"W-What?! 30, 30 trillion won!?"

My instinct had stopped at 30 trillion won.

Did that mean it was the fair price?

Was this a sign that we were truly meant to acquire the place?

But then, that overwhelming, terrifying feeling from earlier...

***

CEO Kim stared at me for a long time with eyes that seemed to ask, "Are you serious?" Then he gradually regained his composure.

"30 trillion won... that’s tough. That’s not just taking a loss, that’s bleeding."

"What about the other side?"

"This isn’t a sealed bid; it’s an open auction. So if we bid 30 trillion, they’ll know immediately. And..."

CEO Kim’s eyes darted around.

"They’ll probably raise their bid just a little bit higher."

"Did CEO Jung make the final decision?"

After finishing his meeting with Jung Jin-ho, Kim Doo-young hurried back to the office.

The executives had been waiting for him, anxiously and impatiently.

"So? Did you get the number?"

"Yeah. I got the price."

“How much?”

"30 trillion won."

"!?"

The shocked executives were too stunned to even speak.

30 trillion won!

Even if it was such a critical strategic point, did they really have to pour 30 trillion won into it?

"But, still, if we spend that kind of money..."

The executives floundered, unsure what to say.

Seeing their reactions, Kim Doo-young burst out laughing.

"Calm down, everyone. Do you really think CEO Jung said 30 trillion because he actually wants us to bid that much?"

"Huh?"

"He didn’t say it directly, but from what I can tell, CEO Jung has decided to give up on Beirut. If he really planned to go for the bid, he would’ve told us to approach it strategically instead of throwing out a high number from the start."

At those words, the executives quickly began turning it over in their minds.

And they all arrived at the same conclusion.

That Jung Jin-ho’s calculation was that it wouldn’t go through anyway.

Behind them stands the solid backing of oil money. Of course, even so, 30 trillion won would be a heavy burden for them as well.

“If we’re forced to hand it over, we can’t just give it up easily. Before they spread their wings and start pressing down on us, shouldn’t we already be far ahead?”

Fine, Beirut.

You can have it all.

While you’re struggling to digest that expensive acquisition, we’ll be widening the gap even further.

“But CEO Jung is backing down more easily than I expected.”

“Even after naming 30 trillion won?”

“Yes. Normally, if he thinks something is necessary, he’s the type to get it no matter what. I wonder if he’s planning something else.”

“Don’t tell me CEO Jung is...”

“Yeah. If we can’t get it anyway, then he’s probably just making a big fuss before walking away. If we shout 30 trillion won, those bastards won’t be able to hold out and will be forced to take it. What else could it be?”

"!?"

Sure, we need the Port of Beirut too, but the other side was even more desperate.

Something else?

What else could possibly come out of this?

Even with Kim Doo-young’s mind, nothing else came to him.

But there was one thing still bothering him.

‘That look in his eyes.’

The strange look in Jung Jin-ho’s eyes while he was going over the report earlier.

Strangely, that look kept lingering in his mind.