Story of a Big Player from Gangnam

It was Monday. Gun-Ho went to work in GH Mobile in Jiksan Town.

700 people were currently working at GH Mobile, but the workplace was very organized and well arranged. There was nothing found that seemed to be distracting or disordered. Thanks to President Song who established GH Mobile’s systematic work environment by implementing procedures and policies that everyone must follow.

The production manager at the production site 1 was walking around his production site when he saw Gun-Ho coming there. He went close to greet Gun-Ho.

“Is everything fine here?”

“Yes, sir. Mr. Director Park is in his office right now.”

Gun-Ho went to Director Park’s office. He was writing down something at his desk.

“What are you doing there?”

“Oh, bro. You are here.”

“I was told that you submitted your resignation letter.”

“Yeah, I did, and it has been processed. Since I’m about to quit this job, I feel like I shouldn’t walk around the production site as if I still manage the place. So, I’m just staying in this office.”

“Hmm, I see.”

“President Song told me that I can stay in this office until I find my own place to work, but I don’t know. I’m not sure how this can be perceived by the workers here.”

“You don’t have to think that way.”

“Maybe it’s better for everyone that I quit the job. The production manager at the production site 1 has been in his current position for three years now. Since I’m a director, he had to wait for his next promotion until I get promoted to a level higher in position. The thing is that I can’t be promoted to a senior director position for quite a while because it would be too quick. Moreover, the general affairs director, the director in the product quality control department, and the accounting director are in their 50s, and they need to be promoted to the senior director position before I can.”

“That doesn’t matter.”

“Of course, I can be promoted if you say so, but we don’t want people to talk behind our back that it’s not fair. Now that I think of it, it was a good decision to quit the job. Turning in my resignation letter was good, but I don’t know where I should spend my day after that.”

“That’s why you are sitting here all day long?”

“Yeah.”

“Did you start your search for a factory around here, that you can rent?”

“I saw one place, but I don’t have money now… I have to wait until I can sell my company shares. Even if I find a good place, I can’t hold it without giving them a deposit.”

“I will lend you money. You can pay me back once you sell your shares later.”

“Are you serious? It will be a significant amount of money.”

“I will lend you funds as much as you need. This is part of my investment anyway.”

Gun-Ho said as he crossed his legs sitting on the sofa in the production director’s office, “Which factory did you visit around here?”

“One of the factories is on the market for lease in the Baekseok Agricultural and Industrial Complex.”

“If it’s in an agricultural and industrial complex, it should have good infrastructure to run a factory. The environment should be good.”

“Yeah, it seemed to be good. There are many other factories there, and the roads are all paved. They have their own wastewater treatment facility inside the complex, and the electric power capacity is good too.”

“How large is it?”

“Since the factories are inside the industrial complex, many of them are large in size. The one that I am interested in renting is 1,100 pyung large. It’s a two-story building. I was told that its total floor space is 560 pyung. The Baekseok Agricultural and Industrial Complex is close to downtown, so its rent is relatively expensive. That is the one that makes me hesitate to choose the place.”

“How much are they asking?”

“The monthly rent is 5 million won with a security deposit of 50 million won.”

“Hmm, really?”

“It is expensive, isn’t it?”

“Well, if you like the place, then take it. Before you sign the lease contract, make sure that you verify whether it has a lien on it or any other encumbrances.”

“Okay, I will do that.”

“Other than the security deposit, you will need money to buy the twin screws from West Moulding in the U.S. and all other necessary parts from other companies. You also need to buy some machines, right? How much do you think you need to start the business?”

“Let me see… I believe it takes at least 50 million won to purchase the parts that are necessary to build one Dyeon Korea’s machine, including the twin screws. There are various small devices that need to be attached to the machine as well, so it’s like a big package containing the main machine; that’s why it is expensive to build. If we build five machines, it will cost 250 million won at a minimum. So, with the security deposit of 50 million won for the place and 250 million won for the parts to build 5 machines to start, I will need at least 300 million won. So, the company’s capital would be 300 million won.”

“You will need more than that. You will have to buy this and that when you open your own place. I think you will need at least 500 million won to start. How much do you think you can bring in?”

“Well, I don’t have money right now, and I’m not sure how much I can make when I sell my shares. So, I would say that I can bring in maybe 50 million won. That’s after I sell my shares.”

“50 million won is 10% of the capital of 500 million won. So, are you saying that you are going to take 10% of the ownership interest of the company?”

“Maybe I should take only 5%. What do you think? I heard that Min-Hyeok bro and Jae-Sik bro owns 5% of the companies that they are running in China.”

“You are different from them. You are not just bringing cash into this business, but you are contributing your skills in handling machines. I want you to have more ownership interest. Let’s make it 20%. What do you think?”

“20%?”

“Yeah, 20%. You will get paid a monthly salary as the president of GH Machines. After one year, you will take 20% of the profits that would be generated from the business.”

“Really?”

“Of course. Have I ever lied to you?”

“That sounds great.”

“But you have to know that you can’t expect to get paid as much as GH Mobile’s President Song gets since GH Machines is a small company. You will be paid the same amount that you are being paid now as the plant manager of GH Mobile.”

“That’s good. I get paid the same amount as I do now which is good.”

Jong-Suk Park smiled broadly in excitement, and he looked relieved as well.

“When I get back to my office, I will send you 500 million won to your bank account. Text me with your bank account number through KakaoTalk.”

“500 million won? Right now? That much?”

“Yeah, I have that much money. Once you rent the factory in the Baekseok Agricultural and Industrial Complex, I want you to establish a business entity and get the business license yourself. If you have a question, ask the certified legal consultant’s office or tax accountant’s office. You will learn a lot by going through all of the processes yourself.”

“Okay.”

“I determined your salary to the level of the president of GH Machines. You will have to determine the salary of your future workers yourself. I don’t get involved in a salary determination for the workers in GH Mobile and Dyeon Korea either. I handle things that are related to executive officers only like hiring and promoting them of those companies.”

“Hmm, I think I’ve heard about it.”

“I want you to experience running your own business. It’s not an easy job running a company. You might feel more difficult working as a president than handling machines.”

“I think I would.”

“I want you to grow to be a leader and business owner.”

“Thank you, bro.”

“Well, I will get back to my office now. Don’t forget to send me your bank account number. I will transfer 500 million won to your account right away.”

“Does that mean I can sign the lease contract for the place today?”

“It’s all up to you from now. I just want you to remember that the ownership interest is divided as I own 80% and you own 20%. Don’t forget about it.”