Story of a Big Player from Gangnam

A female manager was in charge of the accounting team of Dyeon Korea. She had used to work at GH Mobile in its accounting department and she was promoted to a manager position as she was relocated to Dyeon Korea. Her name was Myeong-Sook Jo.

Gun-Ho made a call to Manager Jo.

“Manager Jo? It’s me, the president.”

“Yes, sir.”

“How much accounts receivable does Dyeon Korea have as of today?”

“It’s 1.8 billion won, sir.”

Accounts receivable was an amount of money that was expected to be paid by a client for the goods or services already rendered.

“What about accounts payable?”

“It’s 600 million won, sir.”

“Do we have any outstanding balance?”

“I believe we have about 100 million won. I will check the exact amount, sir.”

“That wouldn’t be necessary. I just needed a rough amount for now. I will get a report on this with details when I go to the office.”

“How much do we currently have in the bank account?”

“We have 3.2 billion won, sir.”

“Please make sure that you get the vice president—Mr. Adam Castler’s signature on the monthly profit and loss statement.”

“Of course, sir. We’ve been complying with the procedure.”

“Also, please note that since Lymondell Dyeon completed its investment in-kind as of this month, we will have to pay them for any raw materials that we need from them starting next month.”

“I’m aware of it, sir.”

“You must have a lot of work to do, Manager Jo since you have to take care of the import and export matters as well in addition to the accounting work.”

“So far so good, sir. The import and expert work has been handled by the customs agency.”

“You shouldn’t make any cash payment that exceeds 1 million won without my approval.”

“Understood, sir.”

After getting off the phone with Manager Jo, Gun-Ho was thinking,

‘It has been six months since the joint venture opened its business. All of the investment in-kind have been fulfilled and the company currently has 3.2 billion won in its bank account. After one year of business, its sales revenue would reach 30 billion won with the cash reserve of 6 billion won. That would make 20% of profit which is not bad at all. A start-up company with a certain technology should make more than that but their long term success is not guaranteed. Since Dyeon Korea is a joint venture with a stable business partner, it doesn’t have any loan and no interest to pay to a bank accordingly. The biggest portion of the expense is for the sales activities; that’s it.’

Gun-Ho continued to think while having a cup of green tea and walking around his office.

‘Next year, Lymondell Dyeon would probably suggest increasing capital without consideration after setting aside the legally required retention fund. That way, the value of the company share will increase once it goes public.’

‘And the following year, they will surely suggest forming a subsidiary company in other countries. Maybe I should ask them to merge GH Logistics into the joint venture then. GH Logistics is handling all the transportation work for Dyeon Korea so it sort of makes sense to make it a part of Dyeon Korea. If that happens, I can have my investment money back that I spent in acquiring its land. What if the land price would increase significantly by then? If so, I might get more than 2 billion won back. I will have to share the management power with them but I think it’s not a bad deal at all.’

Gun-Ho was already drawing a picture of GH Logistics’ future as the joint venture would make an M&A of it. Frankly, Gun-Ho wanted to collect his investment fund that he put into GH Logistics, not the exact same amount but as a growing piece of pie.

‘If that’s the plan, let’s acquire the farmland around that auto repair shop. I can use Jae-Sik’s name to buy them. I will pay Jae-Sik for letting me use his name in purchasing the land. We both can make money from this. I will convert the land into non-farming use.’

After the second payment was made for the auto repair shop, the demolition and cleaning job started. Director Jong-Suk Park worked on it with Team Lead Shin in the maintenance team.

“Mr. Director, do you want us to throw this refrigerator?”

“Throw all of them out. That’s what our president wants.”

“Look at all this stuff. Whoever previously used this place left everything behind. There are tons of stuff in the drawers.”

“Throw all them out. There are some blankets upstairs. Toss them out too.”

“Some of them look brand new. It’s a shame that we have to throw them out.”

“Take them to your home then.”

“Haha. Nah. I don’t want to take a blanket to my home, especially when I have no idea who previously used it….”

“I think we need one more truck. These won’t fit into the truck we have now.”

Once all the stuff inside the auto repair shop was taken out by the cleaning service, the contractors started working on the floor and bathroom along with painting jobs.

Gun-Ho stopped by the place to check the progress.

“It is empty now.”

Jong-Suk Park ran towards Gun-Ho when he saw him.

“We had to clean tons of trash here and brought one more truck to throw them out. The tent was huge once we took it down. It took a lot of time to get rid of it.”

“Did they epoxy the floor?”

“They will first waterproof the floor.”

“What about the painting job for the wall? Maybe tomorrow?”

“Everything will be completed by tomorrow. They will finish the bathroom today and the canopy and wall repairs will be done tomorrow. Oh, I was going to ask you this. I’ve noticed that there is no fence here. Do you want to build a fence?”

“Yeah. It looks weird without a fence.”

“I will install a mesh fence then. It will cost a lot though if we want to fence the entire land.”

“Also, I want a business sign that is made of copper hanging on the column at the entrance with the same company logo shown on the business card.”

“Oh, that can be handled by GH Mobile’s general affairs manager. He is good. I will ask him.”

“Sounds good.”

“Anything else you want to add?”

“Nah. It seems you are taking good care of it.”

“I’m doing my best. I feel so excited that Jae-Sik bro is going to work in this place. He has been living in a basement all the time. I want him to live a better life.”

“I know. Get him a nice desk. And add a few more desks for the future employees.”

“Okay. I have a business credit card with me. I will buy the same desk that President Song is using.”

The place was ready the following day. When Jae-Sik Moon arrived at the new GH Logistics’ basecamp in his SM5 to see his office, he was frightened by its new look.

“It looks like a totally different place.”

The first thing he noticed was the copper-made business sign at the gate. Once he passed the gate, he was standing in the front yard. It was cemented and extremely clean. A blue PVC canopy added a cool feeling to it. The office looked great too with fresh paint and new lamps. There was a separate office for the president. Once he entered his office, he saw a luxurious executive desk. He at first thought that maybe that desk was there for Gun-Ho, but it was his. There were four other empty desks placed in the office space as well.

“This is too big for just myself.”

“Why don’t you hire a staff who can take care of bookkeeping? You won’t have time to do it by yourself. You once posted a job opening when you hired truck drivers. Post another job opening for bookkeeping on WorkNet. You probably want someone who lives in this town.”

“Okay. Will do that.”