[Chapter 5: The Labyrinth of Greed, The Sunyang Family]
“Then let’s build it just one floor higher than the Sunyang headquarters.”
“See? Even the chairman can’t resist that temptation, right? Haha.”
The satisfaction of looking down on a competitor—it’s all about numbers. Just one more floor, one more meter higher… It might seem like just a number, but achieving it requires astronomical sums of money.
“Anyway, once we wrap things up here, let’s get started.”
Chairman Lee turned his face away, having his inner thoughts exposed.
He wouldn’t show such an expression to the person he was meeting tomorrow evening. With nothing to hide, there’s nothing to be discovered.
“So, shall we indulge in another luxury today? At a seven-star hotel?”
“Officially, it’s five stars. It’s just that it outshines other five-star hotels.”
“The room rates are astronomical too. Over 30 million won per night.”
“That’s why they sent a limousine to pick us up, isn’t it?”
Chairman Lee tapped the roof of the limousine with his hand.
Upon arriving at the hotel, a dozen staff members lined up at the entrance, bowing as they welcomed us.
As we entered the hotel lobby, the gold-plated—real gold—interior left us speechless once again.
“Close your mouth before you start drooling. Don’t embarrass us.”
It was the epitome of opulence. Dubai’s moratorium declaration seemed inevitable.
History has shown that the end of luxury is ruin. This place was a reenactment of that history.
After a restful night, Chairman Lee quickly swallowed a piece of bread and headed out in the morning.
“I’m going to check out the site. Take it easy. I’ll contact you in the afternoon.”
I considered going with him but decided against it. It’s not ideal to divide authority.
Until Chairman Lee returned, I enjoyed the scorching heat and the blue sea at the 1.7 million square meter artificial island, Palm Jumeirah, a pinnacle of luxury.
When Chairman Lee returned late in the afternoon, his expression was grim.
“The atmosphere is a mess. Some European companies are already pulling out. I was late because I had to boost the morale of the site staff.”
“Once they realize we’re the only ones left standing, their spirits will lift.”
“We have to make it happen. Let’s go. Even if they’re not paying us, we’re still the superiors. It’s rude to keep them waiting.”
We moved to the hotel’s yacht, floating on the sea, illuminated by dazzling lights.
There’s no better place for a quiet conversation.
I expected a middle-aged man named ‘Ahmed bin Saeed Al Maktoum’ to appear in traditional Middle Eastern attire, but he showed up in a neat Western suit.
Though merely the CFO of Dubai World, his royal lineage gave him power beyond a simple executive.
Ahmed, son of Saeed of the Maktoum family. That’s what his long name means. I briefly wondered how to address him, but Chairman Lee, who had met him before, saved me the trouble.
“Good to see you again, James.”
“Pleasure to meet you, Mr. Lee. You haven’t been waiting long, have you?”
His perfect American English accent was unmistakable.
Ah, this gentleman must have been educated in the States from a young age.
When Chairman Lee introduced me, I gave my English name.
“An honor to meet you. I’m Howard Jin.”
He looked at me with slight curiosity, and Chairman Lee explained.
“Howard is the head of Miracle, the largest shareholder of our HW Construction.”
Largest shareholder and investment firm.
His eyes lit up with interest at those words.
After exchanging some formalities while keeping our true intentions hidden, Ahmed asked.
“Is HW Construction planning to withdraw as well?”
“We have no choice but to follow Sunyang Construction’s lead. If they pull out, we have to go back with them.”
“Then there’s no particular reason to meet me… You didn’t come all the way from Korea just to tell me that, did you?”
“James, the news you’ll be glad to hear will come from this friend. I’m just curious about the outcome of your conversation today. Haha.”
“Is that so? Then let’s hear it.”
When his gaze turned to me, I mentioned two numbers first.
“Eighty billion dollars. And sixty billion dollars. Are those correct?”
Both men were surprised simultaneously, but they understood what the numbers meant.
Chairman Lee was shocked by the size of the numbers, while Ahmed was surprised by their accuracy.
“Our company believes that Dubai World has already lost its ability to pay. I expect there’s a heated debate about whether to declare a moratorium.”
Ahmed’s lips tightened, and he remained silent. His expression grew increasingly rigid, perhaps due to his displeasure.
“Let me be clear, as Mr. Lee mentioned, I’m here to make a proposal. Whether Mr. Ahmed finds it welcome or not, I can’t say yet.”
“Let’s hear it, then. I hope it’s good news.”
“The total debt of Dubai is 80 billion dollars, with Dubai World’s debt at 60 billion…”
“To be precise, it’s 59 billion dollars. Of course, that’s the estimate for the end of this year.”
“Yes. Our company also expects it won’t increase further.”
It won’t increase because they’re declaring a moratorium due to their inability to handle the debt.
“Fortunately, our company still has financial capacity.”
“That’s good news. But your company… Miracle, was it? What does Miracle’s financial capacity have to do with us… Wait, are you referring to Miracle Investments in New York?”
“Yes, it’s the same company.”
Ahmed’s eyes widened in disbelief.
He had heard that Miracle was the only company to not only survive the financial crisis that devastated Wall Street but also to make astronomical profits in the hundreds of billions of dollars.
So he must have realized the extent of the financial capacity I mentioned.
“I see. Please continue.”
Now, he was leaning in, eager to hear my proposal.
“What would you do if the two Korean companies, Sunyang and Daehyun, decided to withdraw?”
“I’d have to accept it. There’s no other way.”
With a wealthy man sitting in front of him, he didn’t hesitate to express his concerns.
“The areas those two companies are handling are crucial, like Al Maktoum International Airport and Dubai World Central. There are also new residential areas.”
“Howard, are you suggesting that Miracle will provide funds to Dubai World to prevent the withdrawal of the two Korean companies? So HW Construction can continue…”
“No. I’m not generous enough to support Sunyang and Daehyun with our company’s money. I just want to know if you’d consider entrusting the ongoing projects to HW Construction if those two companies withdraw.”
“I have no reason to oppose. We’ve already seen HW Construction’s capabilities firsthand. But…”
There’s no money. The Middle Eastern royal in front of me couldn’t bring himself to say it.
“In that case, we’ll take responsibility for the ribbon-cutting at the completion ceremony. Don’t worry about the money.”
“Could you specify what you mean by ‘don’t worry about the money’?”
“We’ll give you a sufficient grace period. Isn’t Dubai World a state-owned enterprise? Moreover, it’s the jewel of the Middle East… A AAA-rated bond far more reliable than Wall Street. I believe it will be resolved in due time.”
Ahmed’s expression suddenly turned into one of relief and delight.
“If you can do that, it takes a huge worry off my shoulders. Do you know the exact amount?”
“Yes. The unpaid amount for Sunyang and Daehyun combined is a little over 7 billion dollars, as I recall.”
“You know it will exceed 10 billion dollars by completion, right?”
Chairman Lee, who had been listening quietly, interjected. Not to warn me, but to show off in front of the Middle Eastern royal.
“Of course. We have the capacity to handle it.”
It’s a sweet offer that’s hard to refuse, but one should always be cautious of unexplained generosity. Ahmed asked carefully.
“I can’t express how grateful I am for such a generous offer. But could you tell me why you’re making this proposal when everyone else is withdrawing?”
There’s no need to beat around the bush here. Knowing my intentions won’t change anything.
“Sunyang and Daehyun are competitors far ahead of HW. If we can build the new city instead of them, it will be an opportunity to surpass them. We have the financial capacity, and they don’t. Isn’t it natural to leverage our strengths to compete?”
Competition is a simple reason, but there’s nothing more compelling.
“Moreover, we hope for a strong bond between Dubai and our HW Group.”
Chairman Lee took the opportunity to boast once more.
After all, isn’t a true friend someone who helps in times of need?
The Dubai royal with the long name showed a very satisfied smile.
“To think I forgot about dinner, I’ve been quite rude to my friend from afar.”
And so, a very long meal followed.
Seo Hyung-kyun, the president of Sunyang Construction, was appointed CEO by Vice Chairman Jin Dong-ki. After taking office, he managed the largest project in Dubai without issues, but today he had to settle the biggest problem.
However, he could tell from the first impression.
He wouldn’t be able to solve the biggest problem; getting paid by Dubai World was out of the question.
The end of business is collection.
No matter how high the sales or profits, if you can’t collect the money, it’s all in vain.
Ahmed, representing Dubai World, ended the negotiation with a single sentence.
“There will be an official announcement from the Dubai government soon. Please wait until then.”
“Could you tell us what it will be about? We can’t just wait indefinitely.”
“I can’t speak on behalf of the government.”
He was firm but also exuded confidence. Seo Hyung-kyun couldn’t let go of the faint hope because of his relaxed demeanor.
The official announcement from the Dubai government that Seo Hyung-kyun didn’t hear, Daehyun Construction didn’t hear either.
They played their last card, threatening to halt all construction and withdraw unless the overdue payments were promised, but the response was the same.
“I respect your company’s decision, but please understand that at this point, we cannot make any promises.”
Unlike Sunyang, Daehyun recognized that Dubai World’s attitude wasn’t one of calm confidence, but of resignation.
It was the kind of thing someone says when they’re backed into a corner, a final act of defiance.
Daehyun heard it loud and clear.
Not long after, Dubai World declared to the world, “Do your worst,” under the guise of a moratorium announcement.
“The Collapse of the Desert Miracle”
This was the headline shared by media outlets worldwide to describe the Dubai crisis.
The miracle had crumbled, and so had the Korean stock market.
2009 was a year of many losses.
A revered cardinal passed away, and two former presidents were laid to rest with state funerals.
And a global pop icon, unlikely to be seen again, left fans in tears.
Chairman Jindonggi trembled as he held a sheet of paper filled with dense numbers. To him, those numbers felt like a death sentence.
An amount he couldn’t take responsibility for or manage. He was paralyzed with despair.
He wasn’t alone in his feelings. The chairman of Daehyun Construction felt the same way.
As time passed, they regained their composure and knew exactly who could save them. They pinned all their hopes on him.
“Call the Blue House. Tell them I need to meet him. Quietly.”