Golden Spoon Investment Portfolio - Chapter 469

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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469. I never intended to build apartments here from the start, so it doesn’t matter.

“All the landfill from here to that distant thermal power plant over there is the land we successfully bid on this time.”

As I listened to Jung Gyu-chul, president of Blue Hole Construction, explain, I removed my sunglasses and surveyed the vast landfill sprawling with weeds and reeds.

“In total, it’s 3.73 million pyeong in size. The government claimed it would be used as farmland, but there’s no irrigation infrastructure at all. It’s been left as wasteland all this time without a single crop planted.”
“There aren’t many flat lands this size near Seoul, so it’s a shame to leave it unused like this.”

As I spoke while looking at the map spread across the hood of the Mercedes sedan we’d arrived in, President Jung Gyu-chul nodded in agreement.

“You’re absolutely right. The government has kept this land locked up under the justification that farmland is necessary for rice self-sufficiency, but honestly, if you just visit the site once and look around, you’d immediately realize that’s complete nonsense.”
“Why is that?”

I looked at him with curiosity, and President Jung Gyu-chul explained the reason in detail.

“Rice farming requires a lot of water, and the Gongchon Stream that flows across the landfill can only supply agricultural water to an area of about one million pyeong at most.”

Since this was something I hadn’t considered, I listened with an intrigued expression.

“To farm rice beyond that, you’d have to bring water from the Han River far away, and the annual cost for that would be at least hundreds of billions of won. The tail would be bigger than the dog.”
“So that’s why the Ministry of Agriculture kept delaying the agricultural water facility construction while opposing the zoning change.”
“The Ministry of Agriculture would know the situation better than anyone else. Your thinking is probably correct.”

I spoke with a bitter expression.

“Yet they continued to oppose it because they knew it was difficult to use as farmland, and they were probably worried that if they permitted a zoning change once, they might have to grant other agricultural land as well.”
“I think so too. Because of that, only the Aptae Group, which created the landfill, got the short end of the stick.”

President Jung Gyu-chul responded with a critical tone, his eyes narrowed.
Even if I were the chairman of the Aptae Group, if the land couldn’t be used as farmland and someone stubbornly prevented development for other purposes, I would have been furious.

“On top of that, there’s one more decisive reason why it’s difficult to use as farmland, and that’s salt content.”
“Salt content?”
“Yes.”

As I turned to look, President Jung Gyu-chul raised his right arm and pointed to a spot as he spoke.

“You’ll notice white salt deposits rising up through the ground in various spots.”

Following the direction of Jung Gyu-chul’s fingertip, I could indeed see white salt crystalline formations rising through the soil.
Examining the surroundings more carefully, I realized it wasn’t just that one area—salt deposits were visible scattered throughout the entire landfill.

“More than ten years have passed since the landfill was completed, yet there’s still this much salt content. Even if we forced rice cultivation across all 3.73 million pyeong, the rice simply wouldn’t grow properly.”
“So it was land unsuitable for farming from the start.”

I narrowed my brows slightly as I spoke, and Jung Gyu-chul responded immediately.

“That’s correct.”
“Caught between a rock and a hard place, and with pressure from above, they probably approved the zoning change just to get the headache off their hands.”

Perhaps the Ministry of Agriculture officials were laughing gleefully right now, thinking they’d dumped their problem on someone else.
Jung Gyu-chul glanced cautiously at me before carefully opening his mouth.

“Even with the zoning change approved, there are still problems.”
“What do you mean?”
“As you know, the most profitable development would be building and selling apartments here.”

Real estate had always been where the real money was, and it would continue to be.

“However, to the north, the Aptae Group established a landfill and donated a garbage disposal site, and on the opposite side, high-voltage transmission towers stand, making it unsuitable for residential development. Moreover, the garbage landfill is still in active use, so the environmental conditions are quite poor.”

Even hearing that the land—purchased at a staggering cost exceeding 1.2 trillion won and painstakingly rezoned—had low development value, I showed neither anger nor surprise.
Jung Gyu-chul was actually taken aback by my composed reaction to what he’d struggled to articulate.
I put my sunglasses back on and responded casually.

“I never intended to build apartments here from the beginning, so it doesn’t matter.”
“Then what are you planning to do with it…?”

Jung Gyu-chul blinked, asking the question.
Watching the reeds sway like dancers in the refreshing breeze, I maintained a composed expression.

“I’m going to build large-scale warehouses and a logistics center.”
“Pardon?”

Unlike the startled Jung Gyu-chul, I continued speaking without hesitation.

“You must know that we acquired Korea Transport along with Gimpo Landfill.”
“So you’re planning to use this as a logistics hub?”
“That’s right. It’s close to Seoul, and with Incheon Port nearby, we can receive and ship cargo directly by sea. There’s no better location than this.”
“That may be true, but you’ve invested over a trillion won to acquire it. Isn’t it a waste to use it merely as a logistics center and warehouse?”

Bewilderment was written plainly across Jung Gyu-chul’s face.

“Didn’t you just say the surrounding environment is too poor to develop it as residential property?”
“Well, that’s… true, but…”
“The environment may be poor now, but once the current landfill stops accepting waste, conditions will improve.”

Jung Gyu-chul then searched his memory.

“If I recall correctly, the adjacent landfills 1 and 2 will stop accepting waste by the end of 2018 at the earliest.”
“So we just need to wait twenty years then.”
“But what about the annual taxes of 65 billion won?”
“That’s exactly why we’re not leaving it as empty land like now—we’re building warehouses and open-air storage yards to operate it as a logistics center.”

Aptae Group had been paying 65 billion won annually in taxes because Gimpo Landfill had been classified as non-business real estate, subjecting it to heavy corporate and comprehensive property taxes.

“…You’re right, if we use it for business purposes, the taxes would certainly be lower than now.”
“And with the revenue coming in from operating the logistics center, it’s quite a good plan, isn’t it?”

I smiled with a fresh charm that would make any woman fall for me at first sight.
Like the ancient proverb of Yu Gong Moving Mountains—where a man spent generations moving the mountain blocking his home—Jung Gyu-chul stood speechless at my apparent willingness to simply endure and wait for the day the landfill would close.
Unlike him, I remained composed.
I knew that once the landfill operations ended, what was now a pest-infested facility reeking of stench would transform completely with golf courses and eco-friendly parks being built there.
Moreover, considering the surrounding area would develop during that time and land prices would skyrocket at least four to five times, it was an extraordinarily profitable venture.
Of course, Jung Gyu-chul, unaware of my calculations, couldn’t hide his worried expression.

“We’ve already discussed this with Daeheung Group, so you work with the Korea Transport management team to develop concrete plans for the logistics center. And next week, 300 million dollars will be deposited into the corporate account. Use that for construction costs and acquire the Shinra Securities building that’s on the market.”
“Pardon?”

Jung Gyu-chul’s eyes widened at the mention of 300 million dollars coming in, and after hearing the subsequent instruction, he swallowed hard and asked urgently.

“Do you mean the Shinra Finance Building in Yeouido—the one from the bankrupt Shinra Securities?”
“That’s the one. Oh, and the Riverside Hotel in Sinsa-dong is also going up for auction. Acquire that as well.”

The Shinra Securities headquarters, built with six basement levels and twenty-two above-ground floors in the Yeouido Securities District—famous for its astronomical land prices—was a prime property valued at roughly one hundred billion won.
The Riverside Hotel located in Sinsa-dong was no different.
Due to the aftermath of the International Monetary Fund crisis that had driven the economy to rock bottom, it was real estate that would skyrocket in value the moment the property market recovered.
Jung Gyu-chul, the president, stared at Seok-won in astonishment at the casual manner in which he spoke of acquiring hundreds of billions to over a trillion won in premium real estate—as if casually picking items off a shelf at a neighborhood convenience store.

“Are you truly planning to purchase both properties?”
“This is just the beginning. Why be so surprised over something this modest?”

At that, President Jung Gyu-chul’s eyes widened as if they might split.

“Surely you’re not planning to acquire more real estate here.”
“As things stand now, the International Monetary Fund crisis will continue to flood the market with premium properties at bargain prices. I can’t possibly miss such a rare opportunity for a fire sale.”

Seok-won nodded as if it were obvious.
Then, observing the bewildered President Jung Gyu-chul, he casually dropped a remark.

“I didn’t go through the trouble of establishing a separate company just to manage a building or two.”

In that moment, President Jung Gyu-chul recalled what Seok-won had said when they first met—that Blue Hole Construction was not merely a subsidiary company for managing real estate.

“The 63 Building, Seoul’s landmark, will also be managed by Blue Hole Construction.”
“What? You’re not saying you intend to acquire the 63 Building as well?”

At President Jung Gyu-chul’s startled exclamation, Seok-won pulled one corner of his mouth upward and smiled knowingly.

“Once I acquire Mangguk Life Insurance, which is currently under court receivership, the 63 Building comes along as a bonus, doesn’t it?”
“…!”

Mangguk Life Insurance, which owned the 63 Building in Yeouido, had struggled to attract foreign investment until last month, but ultimately failed, resulting in its designation as an unsound financial institution and placement under court receivership.
With liabilities exceeding fourteen trillion seven hundred billion won—surpassing its assets—public funds were unavoidably necessary to prevent bankruptcy.
To protect the countless insurance policyholders from suffering losses, the government would first inject taxpayer money, then proceed with a sale to find a new owner.
Having witnessed Seok-won’s extraordinary financial capacity firsthand, President Jung Gyu-chul believed he was more than capable of acquiring Mangguk Life Insurance.
Feeling as though matters were spiraling far beyond his initial conception, President Jung Gyu-chul’s head spun with vertigo.
Regardless, Seok-won took one final, leisurely look around the desolate-feeling landfill before taking the lead.

“I’ve seen enough. Let’s head back now.”

Watching Seok-won settle into the rear seat of the car that Attendant Secretary Han Ji-sung held open, President Jung Gyu-chul hurriedly gathered the map spread across the hood and scrambled to follow, taking the passenger seat beside him.
The Mercedes-Benz luxury sedan carrying Seok-won soon kicked up clouds of dust as it departed the Gimpo Landfill, heading toward Seoul.

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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