The British economist David Ricardo advocated for comparative advantage. This theory posits that when a country trades goods where it holds a comparative advantage over another, both nations benefit.
However, there's a problem with this theory: the speed of technological accumulation varies significantly between different types of goods.
Semiconductor capacity increases exponentially, but however much agricultural technology advances, banana production increases only arithmetically. As time passes, nations exporting semiconductors gain an advantage, while those exporting bananas fall behind.
The US and Russia are resource-rich nations, abundant in oil and gas. Nevertheless, they are renowned as nuclear powerhouses and continue to build nuclear power plants domestically. Is this merely because of nuclear weapons?
Similar to the earlier point, thermal power generation and nuclear power generation have different speeds of technological accumulation. Thermal power generation fundamentally involves burning fossil fuels like coal or gas, so there are clear limits to its future technological advancement.
However, nuclear power generation has evolved through generations. If the Traveling Wave Reactor (TWR) is commercialized, it could boost generation efficiency by tens of times or more compared to current levels. Since spent fuel rods from light-water or heavy-water reactors can be recycled, fuel costs can be considered virtually zero.
There was a time when OPEC wielded oil resources as a weapon to sway the global economy. The two oil shocks caused by OPEC devastated the global economy, but orchestrating such an event has now become impossible.
"Over the past few decades, technology has advanced dazzlingly in every field, and world-class companies have emerged in developed and emerging nations. But the countries that sold oil are still just selling oil. Russia's Gazprom remains a global giant. But for how long?"
A resource-dependent economy suffers a major blow if resource prices fall or resources are depleted. Indeed, following the US shale revolution, oil and natural gas prices have been on a continuous decline. Additionally, the adoption of electric vehicles and the generation of renewable energy are rapidly expanding.
"The hegemony in energy is already shifting elsewhere. If Russia simply stands still, it will increasingly fall behind on the world stage."
President Vysotsky leaned back and clasped his hands.
"If developing the Traveling Wave Reactor is necessary, Russia is perfectly capable of funding it itself."
"Well, you are welcome to do so. Russia isn't the only country with the technology to build a Traveling Wave Reactor, after all."
This was a bluff.
The precognition I saw was that Professor Petrov's experiment would succeed. But the person opposite me didn't know this.
"Then why come to Russia first, instead of approaching them?"
"Firstly, because I empathize with Professor Petrov's vision."
"And secondly?"
"I am considering expanding into Russia, using this cooperation as a starting point."
Although OTK Company lacks nuclear power technology itself, it owns companies with top-tier technology in other fields.
"Starting with the Traveling Wave Reactor project, I hope to cooperate with Russia in various fields."
In other words, without cooperation on the TWR project, there would be no other cooperation.
"There's no guarantee when the experiment will succeed, is there?"
"Even if it fails, there's nothing to lose. But there will be much to gain in the process."
I was footing the bill anyway. And the mere fact that I, Kang Jin-hoo, invested would significantly promote Russian nuclear technology.
From Russia's perspective, it was a deal with no downside.
President Vysotsky's official assets were 'only' tens of millions of dollars. However, rumors suggested his actual wealth exceeded $200 billion.
Naturally, this wasn't wealth accumulated by diligently saving a civil servant's salary, but rather a hefty sum secured during the privatization of state-owned enterprises and the crackdown on oligarchs.
It was an open secret that he held shares in Gazprom and Rosatom under borrowed names. If the TWR development succeeded, his assets would also increase significantly.
Therefore, joining hands with me benefited both Russia and him personally. That must be why he was showing such interest.
President Vysotsky continuously scanned my expression with cold eyes.
"Do you think Russia needs help?"
"Isn't it true that it's facing difficulties due to sanctions?"
At those words, his expression hardened.
"Russia is not some laughable country that would yield to Western sanctions."
"I know that."
Indeed, sanctions against Russia were entirely different in nature from those against Iran or North Korea.
No country wants to antagonize a nation possessing nuclear weapons, ICBMs, and a permanent seat on the UN Security Council.
A strong sense of intimidation emanated from his eyes and expression. The person before me was the leader of Russia. And Russia is a superpower standing shoulder-to-shoulder with the US and China.
He could move the vast country of Russia with a flick of his finger. That was the power he possessed.
Then what was my power?
Money, of course. If I didn't have money, I wouldn't even be facing him like this in this place.
"But no citizens would welcome a falling ruble, job losses, and rising inflation, would they?"
Max Weber explained the legitimacy of rule in three ways. But however ruling power is acquired, the most important factor is the economy.
Even as a dictator, he could not ignore the economy. No, precisely because he is a dictator, he must pay even closer attention to it.
When the economy struggles, public discontent grows. Falling approval ratings inevitably become a burden for maintaining long-term rule.
President Vysotsky stared hard at me with a stiff expression, and I met his gaze as calmly as possible. Just meeting his eyes felt draining.
Someone help me.
Just as I was thinking that, Taek-gyu, who had been silent until now, spoke.
"All successful presidents succeed for similar reasons, but every unsuccessful president fails for their own unique reason."
"..."
What is he suddenly talking about?
But at that moment, President Vysotsky burst into laughter.
"Phahaha!"
He laughed so loudly that the interpreter beside him was startled.
After a moment, he stopped laughing and asked.
"Do you like Anna Karenina?"
A look of panic flickered across Taek-gyu's face.
I could read his eyes.
'Who's that?'
I shot him an intense look.
'It's a book, a book! I said it's a book!'
This guy clearly hadn't read the book and just picked up the line from anime or something.
Though he seemed clueless, Taek-gyu nodded confidently.
"Of course. I love it. Who in the world could dislike Anna Catalena?"
"..."
It's Karenina! Who the heck is Catalena?
Perhaps thinking it was a pronunciation issue, President Vysotsky didn't notice. He nodded with a satisfied expression.
"Indeed. Anna Karenina is a perfect work of art. Anyone who dislikes it doesn't understand life, I'd say."
Taek-gyu continued bluffing without changing his expression.
"That's right. Anna Catalena is life, and life is Anna Catalunya."
"..."
What's Catalunya now? Barcelona?
"A good friend."
Suddenly, the atmosphere turned amicable.
President Vysotsky asked kindly.
"Have you both had dinner?"
"We haven't even had lunch yet."
Because someone scheduled the meeting right at lunchtime and then showed up late themselves.
"Haha, my apologies then. Let's leave the practical details to the staff and have dinner together with a shot of vodka, shall we?"
***
The news that Kang Jin-hoo was meeting President Viktor Vysotsky at the Kremlin quickly spread worldwide. There was no need to dig for information, as Russian media continuously reported it as major news.
The next day, President Vysotsky and Kang Jin-hoo signed an MOU in front of assembled Russian and foreign journalists.
The scene of the two sitting side-by-side, signing documents, and then shaking hands was broadcast by media worldwide.
[Russia to Cooperate with OTK Company in Nuclear Sector]
[Kang Jin-hoo Meets with Russian Business Leaders]
[OTK Company Decides to Invest in Traveling Wave Reactor Experiment!]
[Traveling Wave Reactor: Next-Gen Nuclear Tech Improving on Existing Plant Issues...]
[Details Being Negotiated with Rosatom]
[What Impact Will Kang Jin-hoo's Investment Have on the Nuclear Industry?]
There's a term called the "OTK effect."
Coined by a Wall Street Journal (WSJ) reporter, it signifies that companies invested in by OTK Company achieve great success, exerting enormous influence across their industry.
Therefore, by watching OTK Company's investments and investing in related companies or industries, one can potentially profit. Indeed, several investment firms have employed this strategy.
Once OTK Company's investment was decided, attention instantly flooded towards the nuclear power industry and the Traveling Wave Reactor.
Other companies didn't sit idly by.
MegaPower requested permission from the US government to push ahead with experiments within the US, while Chinese and French nuclear firms announced plans to develop the technology independently or form consortia.
The repercussions also reached South Korea. Controversy immediately ignited over the government's ongoing nuclear phase-out policy.
***
OTK Company's working-level team and Golden Gate entered negotiations with the Russian Ministry of Energy and Rosatom.
Rosatom established a subsidiary, Rosatom TWR, for the development and commercialization of the Traveling Wave Reactor, and OTK Company invested $1 billion for a 36 percent stake. Furthermore, it was agreed that OTK would continuously provide separate funding depending on future additional experimental needs.
In other countries, administrative procedures like site acquisition, environmental assessments, and suppressing local opposition would likely take over a year. But in Russia, things proceeded at lightning speed.
The original TWR development plan had been scrapped just before the experimental stage, but the site's infrastructure was already completed. Even though a formal contract hadn't been finalized, construction of the experimental reactor began immediately on the site. Local opposition... was officially treated as non-existent.
I stayed in my hotel and watched the news. Reactions varied.
Russia welcomed it, attributing everything to President Vysotsky's efforts bearing fruit and crediting him entirely. The US watched the situation closely, while the EU expressed concern that sanctions might crumble.
Hyun-joo noona stayed in constant contact with the Russian branch, leading the negotiations, while Ellie handled legal matters with Russian legal experts.
I received a call from Chairman Im Jin-yong.
[You've expanded into Russia already, I see.]
"It just sort of happened that way."
[Market expansion is good, but the political atmosphere here is uneasy. It's clear that neither the Blue House nor the ruling party is pleased.]
"I've been watching the news."
Environmental groups opposing nuclear power rose up in unison, the ruling and opposition parties engaged in fierce clashes, and the National Assembly fell into paralysis once again.
Still, they'll collect their salaries regularly, I bet.
I met Professor Petrov.
He was the chief researcher for this experiment. He looked utterly exhausted from being summoned here and there by government and Rosatom officials.
Still, his expression was bright.
"Thanks to you, we can proceed with the TWR experiment. I honestly wasn't sure if you would really invest."
"What happens next depends on you, Professor."
"Haha, I'll do my very best."
Professor Petrov spoke as if reminiscing.
"As I mentioned before, my father built nuclear weapons. Some of them were dismantled and used as fuel for power plants, but others are still stored in military bases. He always said that those weapons must never be used, no matter what."
During the Cold War, scientists in the US and the Soviet Union built various weapons, including nuclear arms and missiles, under government orders. But none of them likely wished for the weapons they created to take thousands of lives.
"My father believed that the Soviet Union possessing more nuclear weapons could actually prevent war."
This might sound contradictory, but it's true.
The development of nuclear weapons enabled Mutually Assured Destruction (MAD), which became the biggest reason the superpowers avoided all-out war. And the Cold War ended naturally, without a single shot being fired.
"Another reason was his belief that the technology accumulated while developing nuclear weapons would surely prove beneficial. He believed that once peace eventually came, nuclear power would become obsolete, and the technology created to kill people would then be used for the benefit of humanity."
"Indeed, it must have been that sentiment that led him to conceive of the fast breeder reactor concept."
Professor Petrov looked at us and said.
"The Traveling Wave Reactor was my father's long-held dream. I desperately want to fulfill that dream for him."
I nodded.
"I'm sure it will happen."