Chapter 75

The Bear Republic is Now My Territory Chapter 75

075 Who is a Friend and Who is an Enemy? / President of Belarus

The exchange rate of the won to the US dollar in August 1997 was 900 won.

The exchange rate had not changed much.

The economic crises in Thailand and Indonesia seemed like someone else's problem.

However, the series of bankruptcies of large corporations and numerous small and medium-sized enterprises since January was enough to put the Blue House on high alert.

Nikolai had a plan to deal with the speculative forces, but he also had to consider the additional benefits he could gain from South Korea.

That's why he contacted the Blue House.

He couldn't discuss the information about the speculative forces over the phone.

"I will repay all the loans the Soviet Union borrowed."

"Send the economic vice minister to Russia."

Since the Blue House sent someone the next day, it was clear that the remaining amount was still significant.

They used this method because they couldn't discuss the information about the speculative forces over the phone.

* * *

Kim Kyung-sik, the economic vice minister and minister of finance and economy.

After getting out of the car in front of the Kremlin, he looked up.

He had seen it on TV, but this was his first time visiting in person.

The unfamiliarity of being there for the first time, combined with the grandeur and solemnity different from the Blue House, made him feel somewhat intimidated.

However, he calmed himself down, thinking that he was representing South Korea.

A young man was waiting for him in front of the building.

"Welcome, Vice Minister Kim."

"…?"

He was clearly Caucasian but spoke Korean at a native level, so he thought the man was an interpreter.

However, his face seemed familiar.

"Have we met before?"

"I appeared on South Korean TV a few times."

"…?"

"When the 'Bohai Ruins' were discovered in Ussuriysk and when the first 'World Ball' lottery winner was announced, I gave interviews."

He didn't mention that he appeared on American news when Yahoo went public, which also aired on South Korean news.

"Oh, I see. That's why."

"Let's go in. The President is waiting."

"Is he already waiting?"

The Vice Minister's eyes widened when he heard that the President was already waiting, even though there was still 30 minutes left.

"He always comes early when foreign guests visit."

President Zakhhar was not known for being late.

In 2012, he was 4 hours late for a meeting with the Ukrainian President.

In 2018, he was 2 hours and 30 minutes late for a summit with Prime Minister Shinzo Abe.

In 2019, he was 1 hour late for a meeting with Pope Francis.

He was also late for summits with South Korean presidents.

In 2016, he was 1 hour and 45 minutes late, and in 2019, he was 2 hours late.

However, even this chronic latecomer had his moments.

During a summit with former US President Trump, he was 35 minutes late, but Trump was 20 minutes later.

Nikolai arrived at the meeting place with the vice minister.

As he said, President Zakhhar was waiting.

"Nice to meet you."

"Hello."

"Since there's a 6-hour time difference, we could have met tomorrow after a day's rest, but are you okay with meeting today?"

"I got enough rest on the plane, so it's fine."

Seoul is 6 hours ahead of Moscow.

When it's 2 PM in Moscow, it's 8 PM in Seoul.

He wanted to receive the loan as soon as possible, so it wasn't the time to consider fatigue.

President Zakhhar sat in the center, Nikolai on the right, and the economic vice minister on the left.

"Did my sudden contact surprise you?"

"It was a bit surprising since it wasn't planned."

"I see."

When Nikolai said he would interpret for President Zakhhar, the President didn't ask any more questions.

He had already seen on TV that Nikolai spoke Korean fluently.

"We didn't plan this, but the situation in East Asian countries is becoming very urgent, so we asked you to come."

"…?"

"Of course, repaying the loan is the priority."

The vice minister wanted to resolve the loan issue first but couldn't bring it up in front of the Russian President.

Fortunately, Nikolai brought up the main topic first.

When Nikolai revealed that he was President Zakhhar's economic advisor, the vice minister's eyes widened again.

"There's something I need to clarify first."

"…?"

"I would like to record our conversation today because it's a very important matter for both countries."

"Record it?"

"The recordings will be kept by both sides."

"What do you mean by that?"

"To prevent any lies, which could cause problems later. Since both sides will have the recordings, they can be destroyed after everything is settled."

Despite Nikolai's explanation, the vice minister shook his head.

"Even if that's the case, recording a conversation is a serious breach of diplomatic etiquette."

"This isn't the time to worry about etiquette. If you listen to what I have to say, you'll understand. If you don't agree, you can destroy the recordings right here."

The vice minister thought deeply and slowly nodded.

"If both sides keep the recordings, it's clear that neither side can lie. I understand. If I think the recordings shouldn't be kept, I'll destroy them here. I agree."

"Let's do that, then."

Click.

Two recorders started simultaneously.

Nikolai began the main topic.

"When the two countries signed the 'Bear Republic' agreement during President Yeltsin's term, we repaid the loan with weapons and natural resources, didn't we?"

"That's correct."

In 1990, the Roh Tae-woo government agreed to provide 3 billion dollars.

The loan amount was over 10% of South Korea's foreign exchange reserves at the time.

By the end of 1991, 1.47 billion dollars had been sent, but the remaining payments were halted when the Soviet Union collapsed on December 26, 1991.

For Russia to be recognized as the successor to the Soviet Union, it had to assume the Soviet Union's treaty obligations under the Vienna Convention on Succession of States in Respect of Treaties.

This meant that Russia had to repay the debts of the Soviet Union.

The Russian government had no choice but to assume the Soviet Union's debt in 1993 and guaranteed to repay the provided loan in cash over 5 years with a 3-year grace period and to repay consumer goods in full over 2 years with a 2-year grace period.

However, due to the ongoing economic collapse after the Soviet Union's dissolution, Russia could only repay 19.1 million dollars and 12.7 million dollars worth of aluminum by June 1995.

"As you know, the collapse of the Soviet Union dealt a direct blow to the Russian economy. We tried to repay the loan as soon as possible, but it wasn't feasible. Fortunately, the situation has improved since last year, and we want to repay the loan."

"I see."

Including interest, Russia owed nearly 1.7 billion dollars.

"Of course, the loan must be repaid, but I need to talk about the situation in East Asia first. You're aware that Thailand, Indonesia, and other East Asian countries are experiencing economic crises, right?"

"Of course."

"What does the Blue House think about this?"

"What aspect are you referring to?"

"Do you think South Korea is safe?"

"We borrow dollars from various sources…."

But no country was willing to lend.

First, Japanese banks and companies recalled all short-term loans they had provided in the country, and the United States also refused.

The vice minister had been focused on how to borrow dollars.

That's when he received the welcome news that Russia would repay the loan and came here immediately.

"Is there any country willing to lend dollars?"

"…I'm sorry, but I can't discuss that here."

"We can't repay the loan unless we get an answer."

"Um…."

After a moment of thought, the vice minister slowly spoke.

"In fact, no country was willing to lend."

"South Korea and the United States have been allies for decades, but even the United States refused?"

"…Yes."

"Wow."

President Zakhhar already knew but pretended to be surprised and showed a look of concern.

Nikolai continued at President Zakhhar's nod.

"American fund companies have banded together to destroy the economies of Thailand and Indonesia. The same is happening in other East Asian countries. This is a typical move by speculative forces. Do you know that most of the funds they manage are American capital?"

"…I know."

"According to our investigation, they will definitely target South Korea. Has the Blue House not taken any measures yet?"

"…."

The vice minister felt embarrassed and hurt by hearing this from another country.

However, he needed to receive the loan, so he couldn't respond.

"From what I understand, large corporations started collapsing in January. What has the Blue House been doing for the past 8 months?"

"…I'm sorry, but let's talk about the loan."

President Zakhhar, thinking the atmosphere was set, glanced at Nikolai and spoke.

"Alright. We'll repay 1.7 billion dollars, including the interest that has accumulated so far."

"Thank you. It will be a great help."

"However, there's a condition."

"…?"

"We'll repay in rubles."

"…?"

"Let me explain."

"…Okay."

"We'll repay in rubles, and you can exchange them for dollars in the foreign exchange market."

This won't affect the Russian exchange rate at all.

"Ah!"

"Even though the won exchange rate hasn't changed much, it's a time to be cautious, which is why we suggest this method."

"I understand. There won't be any problems. Thank you."

"South Korea's foreign exchange reserves are at most 30 billion dollars, right?"

"…Yes."

The vice minister answered immediately because the foreign exchange reserves of each country were not a secret.

"Thailand had 45.9 billion dollars but still faced this situation. What can you do with just 30 billion dollars?"

"…."

"How many South Korean companies are in Russia? If something happens, it will affect those companies. I'm really frustrated because there are no measures at all."

"…."

With no response, President Zakhhar closed his eyes.

If this were Russia, what would happen?

He would have to relive the pain of the Soviet Union's collapse.

Yuri Yuspov, the chairman, had said that.

Russia was trying to avoid the same pain by making money.

President Zakhhar deeply empathized with Yuri's words and had prioritized the Russian economy.

But South Korea was facing such a crisis with no measures.

It was truly regrettable.

"We received a lot of help from South Korea in the past. That's why we want to help this time."

"Help?"

"Yes. If our government and the South Korean government work together, we can not only defeat the speculative forces but also make a significant amount of money."

"…How?"

"There's a method, but we can't act without additional compensation since we're taking a risk."

Besides the money to be made from the speculative forces and the defense of the exchange rate, there must be something else.

There's no such thing as a free lunch in the international community.

We will also sweep up the already bankrupt companies and those that will go bankrupt in the future.

At a very low price.

Moreover, we will demand things from the Blue House that are as strong as the IMF's demands, though they differ in type and nature.

"That's why. We want South Korea to import gas and crude oil from Russia."

"…Are you telling us to abandon the Middle East?"

"Not exactly. Please listen to the end."

President Zakhhar took a breath and continued.

"Explain South Korea's difficult situation to energy-importing countries and ask them to lend at least 5 billion dollars. You must clearly state that without this amount, South Korea will collapse."

"…."

"If they lend, we'll consider everything we've discussed as null and void, and we'll immediately deposit 1.7 billion dollars."

"If they don't lend, are you asking us to import Russian gas and crude oil as a condition for your help?"

"Yes. We're giving you a fair chance. From South Korea's perspective, it's a good deal to get a reason and the ability to borrow from either side, isn't it?"

"…That's true, but…."

Of course, the vice minister couldn't answer on the spot.

Knowing this, President Zakhhar decided to give him enough time.

"Go back and play the recording for the President."

"…Understood. I'll go back and play the conversation for the President."

"Please contact us within at least 15 days. We can't wait any longer. And let's decide on the loan repayment after this matter is settled."

"Understood."

The vice minister was excited about receiving the loan from Russia but now returned with a heavy heart.

* * *

The South Korean President was astonished when he heard the recording brought by the vice minister.

How could a country's president think of recording a conversation?

"Zakhhar, I didn't think he was so cunning."

But after understanding the reason, it made sense.

Since the recordings would be useless after the matter was settled and could be destroyed by both sides, he listened to the entire recording.

His conclusion was to send the vice minister to Middle Eastern countries, as President Zakhhar suggested.

The President thought this would be a win-win situation for South Korea.

He also sent someone to Japan.

However, the response was a refusal from Japan.

According to historical records, the US Clinton administration pressured the Japanese government to help South Korea. (Kim Sung-taek, Jung Goo-jae, 1998).

Vice President Al Gore.

Treasury Secretary Robert Rubin.

Commerce Secretary William M. Daley.

Considering that these people strongly opposed financial support for South Korea in the original history, it was somewhat credible.

Japan's refusal was also due to the poor relations between the two countries, including the demolition of the Government-General of Korea building and the President's strong anti-Japanese statements (aiming to correct Japan's behavior), and Japan's formalization of its claim to Dokdo from 1996.

Was it really impossible for Japan to refuse the US's request?

It was necessary to carefully examine whether Japan expected any benefits from South Korea's crisis and the subsequent IMF restructuring.

The vice minister, knowing that the US had already refused, informed several Middle Eastern countries, including Saudi Arabia, about South Korea's crisis and asked for loans.

He added that if they didn't lend, South Korea would have to import oil and gas from other countries in the future.

He didn't mention that the country was Russia.

It would be revealed later, but for now, it was kept secret.

After a while, the vice minister, who had come out, muttered with his shoulders slumped.

"Ah. Without a strong country, you end up being abandoned in the international community. What are allies, really?"

The United Arab Emirates (UAE) was the only one that said they would consider it, but it seemed to be just a formality.

Even if they lent, how could they lend 5 billion dollars from just one country?

In reality, it was almost the same as a refusal.

"Russia, which we lent money to in the past, is the only country that has offered help."

During the Korean War, Russia was an enemy, but now it was offering to help South Korea, while allies were all refusing.

"There are no permanent enemies or friends in the international community."

The vice minister sighed deeply and returned to South Korea.

* * *

At this time, Nikolai was giving other instructions to Denis.

"Buy more shares of US IT companies. And other countries' companies too."

-What? What are you saying? You know the public opinion in the US is bad, right?

"The stock prices of IT companies are rising, so we should buy more."

-That's true, but the public opinion in the US is really bad right now, so maybe it's better to stay low for a while.

"Since all the money is going into US corporations, why should we be cautious?"

After a moment of silence, Denis reluctantly replied.

-…Still, it's a bit difficult. Everyone already knows it's Russian capital.

"Just keep buying."

-Is it really okay? I heard from a senator that the sentiment towards Russia has worsened due to the NATO agreement. It's President Clinton. I'm worried that we might be causing trouble at this time.

"Then do it gradually without making it too obvious."

-I'll try to do it little by little as you said, but since we already disclosed that we own more than 5% of all stocks, we have to disclose again every time it increases by 1%. It will be obvious. I'll do my best to handle it, though.

"That's your job."

-Oh, by the way, I sent the Hollywood list I mentioned before.

"Thanks. I'll contact you again.