Story of a Big Player from Gangnam

Gun-Ho went up to his office on the second floor. Secretary Hee-Jeong Park brought a cup of green tea for him.

“Please ask Mr. President Song to come to my office.”

“Yes, sir.”

After a moment, President Song entered Gun-Ho’s office carrying a paper to be signed by Gun-Ho.

“I need your signature on this. It’s about one of our executive officers.”

“Is it about Director Jong-Suk Park’s leaving our company?”

“Yes, it is, sir.”

Gun-Ho signed the paper and asked President Song, “Did we report about Director Park’s losing his Four Major Public Insurance?”

“Not yet, sir. We will do it after we get your signature on this.”

“Please do it within today, so he could sell his company shares. He needs that money to start his business.”

“Understood, sir.”

“I just talked with Director Park before coming to my office. He wants to rent a factory in the Baekseok Agricultural and Industrial Complex.”

“An agricultural and industrial complex usually has a good infrastructure. It will be very convenient to work there. But, since the location is close to downtown, the rent must be high.”

“The factory that he wants to rent is 1,100 pyung large, and they are asking for 5 million won for a monthly rent with a security deposit of 50 million won.”

“That sounds about right given the location.”

“After Director Park leaves the company, you will need to stop by the production site more often, I guess, Mr. President Song.”

“I’m preparing to manage the production site after he leaves. I’m going to preside over the regular meeting for the management people in the production department.”

“You will have to take care of everything after he leaves, including hiring a production director if necessary, or promoting someone to the position within the company.”

“I will consider picking someone to promote to that position. We have many managers and senior managers in the production department. Bringing a new person from outside will cause more grievance among our workers. Our management workers in the production site are doing a great job. I will promote one of them to fill up Director Park’s position. It’s September now, and I will select someone before our end of year promotions in December.”

“Sounds good. Have we received the ten twin screws that we ordered from West Moulding?”

“We received a call about it. They are at the customs office now. Assistant Manager Seo at the sales department will handle the import process.”

“Once GH Machines is established, please hand over those ten twin screws to it.”

“Of course, sir. I will do that.”

“Well, when we hand over them to GH Machines, take a 10% profit from the transaction.”

“Sir, I will just ask Director Park to pay the same price that we paid for those screws. He is opening his own business, and we know it will cost him a lot of money. I want to help him. I think we shouldn’t charge him for the screws. That’s the least we can do for him. By the way, have you decided how much capital GH Machines would start with?”

“It’s going to be 500 million won.”

“That sounds reasonable. That should be enough to start.”

“I did everything I could do to help Director Park for his new business. Now, it’s up to him.”

“Haha, he will do fine. I have no doubt that he will succeed.”

After President Song left the office, Gun-Ho called for the accounting director—Ms. Director Min-Hwa Kim.

“Did you want to see me, sir?”

“How much do we have in our reserve as of today?”

“We have 9.5 billion won, sir.”

“What do you think? Do you think we are going to make net earnings of 10 billion won after paying corporate tax, at the end of this year?”

“It’s not going to be easy, sir.”

“Hmm… Please put 500 million won into my personal bank account. You can record it as a temporary receipt by the president.”

“Can I send the amount to your bank account where you receive your monthly salary, sir?”

“Yes.”

“Okay, sir.”

The accounting director pulled out a disbursement approval form from her folder and placed it on Gun-Ho’s table. Gun-Ho wrote 500 million won on the form and stated it was for a temporary receipt by an executive officer. He then signed the form.

The accounting director briefly verified the form and said, “I will send the amount to your account right away, sir.”

After the accounting director left the office, Gun-Ho received a text message on the KakaoTalk application. It was from Director Park. He sent his bank account number. Gun-Ho then transferred the 500 million won that the accounting director had just sent to his account, to Jong-Suk’s bank account.

Gun-Ho headed to Dyeon Korea in Asan City in the afternoon.

When he went up to his office on the second floor, Secretary Seon-Hye Yee brought a cup of jujube tea as usual. When Gun-Ho noticed that she was wearing light makeup, he asked her, “Ms. Seon-Hye Yee, you seem to be getting prettier every day. Are you seeing someone?”

Secretary Seon-Hye Yee’s face blushed. Her face turned as red as the jujube tea that she brought to him.

“Ms. Seon-Hye Yee, can you go to the accounting manager—Ms. Manager Myeong-Sook Jo—and ask her to come to my office now?”

“Yes, sir.”

After a moment, Manager Myeong-Sook Jo entered Gun-Ho’s office.

“Dyeon Korea’s registration with KOSDAQ will soon be determined. Once it is done, the company shares will be available to trade in the stock market. You have been trained with the requirements and the duties that a public company must fulfill, right?”

“Yes, sir. I had my training at Yeouido Island provided by KOSDAQ Listed Companies Association.”

“You know how many public notices are required to be made by a public company, right?”

“As far as I know, sir, there are 54 types of public notices that a public company must make about its management. And there are notices that could be made voluntarily as well.”

“If we don’t make the required public notices or delay the notice, a penalty will be issued. Some of the violations of this requirement are serious enough to be deemed as a criminal offense. I want you to take care of fulfilling this requirement, and when you make any public notice, get an approval from the internal auditor.”

“Understood, sir.”

“Once our company is successfully registered with KOSDAQ, disclose our second half-year’s financial document for this year, which wouldn’t be shown on the Financial Supervisor Service website—DART (Data Analysis, Retrieval, and Transfer System)—yet.”

“Yes, sir.”

“It’s September now. When we obtain our financial document for the third quarter period later, we will have to post it as well.”

“Understood, sir.”

“Your workload is about to increase a lot, Ms. Accounting Manager Jo. Share your works with others within the department.”

“Yes, sir.”

“We have someone who handles the employee stock ownership program, don’t we?”

“We do, sir.”

“Since we now have our factories in India and China, we have less export work, don’t we?”

“We don’t make an export to China as much as before, but we still send our products to India.”

“The companies in India and China are independently established business entities in their current locations. Therefore, once we receive their year-end financial statements, we will have to make consolidated financial statements.”

“I’m aware of it, sir.”

“If you feel like you need training on it, make a request to the internal auditor. Also, you can ask for help from the Anchang Accountant Office. They are working with us for our tax and others anyway.”

“Yes, sir.”

“Dyeon Korea’s accounting work would become very complicated, possibly more complicated than GH Mobile’s. Your role in this change is critical, Ms. Manager Jo.”

“Understood, sir.”

“If you handle the work well, you can be promoted to a senior manager position in the accounting department since it’s vacant now. However, if you can’t handle the work, and if we determine that we need help there, we will have to hire someone for the senior manager position in the accounting department from outside. I don’t want that to happen.”

“Understood, sir.”

“We will provide you with training as often as you need. Mr. Internal Auditor often told me how well you are handling your work at the department. I do highly expect from you.”

“Thank you, sir.”