Chapter 500: Juyoung Hong (27)
In the Korean stock market at the time.
The market had yet to close, so it was still active.
Then some stocks started to surge all of a sudden.
They were the stocks of the Myongjin Group, Myongjin Oil Refinery, and other Myongjin subsidiaries.
In particular, the prices of Myongjin Oil Refinery stocks, which had dipped tremendously along with the other oil refining stocks a little while ago, reversed, and surged as high as the daily limit of 30% in only 10 minutes. The trading volumes of the Myongjin stocks were enormous because they had hit their lowest point for a few days in a row, so those who owned Myongjin stocks cashed out by selling their stocks at a high price.
Because of the surge in the prices of Myongjin stocks, many people argued over the Myongjin Group and Myongjin Oil Refinery.
“Hey, don’t you think we should also sell Myongjin stocks?”
“Hold on! ExxonMobil and Chevron executives just entered the Myongjin Group headquarters!”
“But that doesn’t guarantee that they’re going to supply oil to Korea, right? They’re going to negotiate the terms. Why would they sell crude oil at a low price? I think they will try to drag their feet in the negotiation to bargain for a higher price.”
“Anyway, the bottom line is that we can obtain crude oil from America. Besides, the Blue House has promised to offer subsidies to all the oil companies that import crude oil. This is a boon for Myongjin anyway.”
“Well, I’m still anxious, man.
“Just wait. Myongjin stocks will go even higher. I would buy more stocks. Not just Myongjin Oil Refinery stocks, but also their other subsidiary stocks.”
“Oh my God, are you crazy? You are so reckless!”
“Don’t you know the significance of their visit? They are the US Secretary of Commerce and Deputy Secretary of the Interior! Besides, US President William’s right-hand man is also with them! Do you think they’re here to conclude just a one-time deal? I don’t think so.”
“But you’re being reckless, man.”
“Alright, I won’t tell you to do the same thing as I do. But you will see I’m going to make a fortune soon! I have already sold all my other stocks including those of Mirae!”
Obviously, the visit of the US economic delegation to the Myongjin Group was a huge boon for Myongjin. So it’s no wonder that all the stocks related to Myongjin went up.
Of course, there were still lots of people who were still in doubt.
But the Myongjin stocks were actively traded within the daily upper limit price range.
Anyway, the stock market in Korea experienced an unprecedented volatility because of the Myongjin stocks.
***
In the conference room of the Myongjin Group..
“Then, the most urgent thing for you is oil, so can you talk with ExxonMobil and Chevron first?”
“Sure, that’s fine,” said Chairman Hong. freewe(b)novel
Actually, that’s what he looked forward to, so he gladly responded, nodding in
“ExxonMobil currently has 17 oil tankers full of crude oil on standby in Los Angeles, so they can start shipping it to Korea right now.”
“Chevron also has 12 oil tankers on standby in Los Angeles. So we are ready to start shipping oil to Korea right away.”
“…”
Dozens of oil tankers carrying a huge amount of crude oil were now on standby in Los Angeles. Chairman Hong was not naive enough to miss their point.
In other words, it meant that they were already ready to ship crude oil to Korea.
Then ExxonMobil Vice President Ian and Chevron Asian Manager Bakon said something that he desperately wanted to hear.
“We, ExxonMobil, do not intend to maliciously use the oil shortage situation that Korea and Myongjin are in now. So we have set the oil price as the same one before Iran blocked the Strait of Hormuz and the terrorists attacked the oil facilities in Saudi Araba.”
“We’re on the same page as ExxonMobil. Of course, I have no intention of freezing the current oil prices forever. But the current situation is absolutely not normal, so we will make the transaction at the current prices until the situation goes back to normal completely. And this is Chevron’s contract for you.”
“And this ExxonMoble’s contract for you.”
“…”
Chairman Hong just looked at the two contracts with his eyes wide open because their point was that they would supply oil to Korea immediately.
After that, he talked with the top US delegates for about 30 minutes before they left.
Of course, he didn’t forget to tell them he would reply to them as soon as possible.
After the US economic delegation left the Myeongjin Group headquarters, Chairman Hong summoned the staff of Myongjin’s Strategic Department, the President and executives of Myongjin Oil Refinery, as well as some foreign oil experts.
He handed them the contracts from ExxonMobil and Chevron for a thorough review.
Of course, Chairman Hong quickly reviewed the contracts himself.
After reading them, he could not help but be stunned because the contract clauses were so in favor of Myongjin that he felt they were supplying oil to Myongjin almost free.
About 30 minutes passed.
“Are you sure they really have given you these contracts?”
When Myongjin Oil Refinery President Jungchul Yang asked with an incredulous expression, Chairman Hong just nodded slightly because he knew why.
“I just wonder if ExxonMobil and Chevron have ever been caught short by you, Chairman. So…”
Another executive said, “Well, even if they have been caught short by our Chairman, they have given way too much. Currently crude oil prices are skyrocketing. The prevailing view is that the prices will hit $100 per barrel quite soon. Nonetheless, they promised they would supply oil to us at the price right before Iran blockaded the Strait of Hormuz and the terrorists’ attack against Saudi Arabia. Then, it’s $40 per barrel! 40 dollars!”
“That’s right. What’s more, they have promised to send us more oil after they send a total of 29 oil tankers, and $40 per barrel at that.”
“If you look at page 3 of the contract, it says the two oil companies will continue to trade even after the situation has improved, and it stipulates that they won’t increase the price by more than 10% of the crude oil price in the previous three months in order to ensure a stable supply of crude oil. In other words, if things like this happen again, we don’t have to buy crude oil at an exorbitant price in the market.”
“One more thing is that this contract expires in 10 years, and in the 10th year, if both parties agree and wish to extend the contract, they will extend the contract unconditionally for another 10 years. This looks like it is a perpetual contract!”
The participants in the meeting began to whisper among themselves in excitement.
But Chairman Hong did not stop them.
While doing business for decades, he also made tens of thousands of contracts, but this was the first time he saw such an absurd contract.
Of course, he couldn’t let them keep chatting aimlessly, so he opened his mouth quietly.
“Review the contracts very carefully. The reason I have called you here is for you to review the contracts thoroughly to check if there is any hidden clause that can harm Myongjin. So let’s start with a quick review. Only after we are done with the review will the 29 oil tankers anchored in Los Angeles depart to South Korea, or more precisely, to Myongjin Oil Refinery.” fre ewebno vel.com
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