Story of a Big Player from Gangnam

Gun-Ho reminisced about his childhood while having his coffee.

“When I lived in Juan, Bupyeong District if one of my classmates lived in a condo that was worth 300 million, everyone in the class would be envious of him. Probably that is still true nowadays. I still don’t understand why we all were so sensitive about who was poor and who was rich. If one has a poor family, he would often be bullied. In that sort of environment, how would I have had a good life during my childhood?”

Gun-Ho thought of his current self.

“Now I live in a condo that is 50 pyung large and located in Gangnam. I drive a luxurious car, and I go to a fitness center to work out. For people from my childhood, my current life would be something they are still dreaming about.”

Gun-Ho pondered over the meaning of money.

He recalled the popular saying of Chinese people that he heard when he was in China,

“Money can control even ghosts.”

Chinese people loved money. They placed a statue of the god of wealth at their house’ entrance, and whenever they went out of and came in their house, they prayed with their hands pressed together to the god.

There was a saying in the Western world, “Money talks everything.”

It was money that talked, not a person. Money also represented the person with the money. Without money, a person was considered as having low value and a shallow philosophy of life while a person who had lots of money was considered elegant and highly respected.

Mencius in the Spring and Autumn period in Chinese history said this.

“Poverty takes down manners.”

It sounded like without money a person was considered as rude while with money a person was considered as polite.

Gun-Ho was still hungry for money.

Gu Kim, a respected politician during the Provisional Government of the Republic of Korea stated that the thing he wanted to have the most was ‘the highest culture.’ The most wanted thing for Gun-Ho was money. He wanted it more and more.

Gun-Ho still wanted a job or a business that would generate income and that would cover his living expenses.

“Should I invest 5% of the 17.7 billion won that I have?”

After giving thought to it, Gun-Ho was leaning toward the OneRoom business idea, where Min-Hyeok was working at.

“OneRoom could be dingy. Maybe I should get a OneRoomTel instead, that is clean and luxurious, the one close to my home in Gangnam.”

Gun-Ho remembered that he saw a OneRoomTel for sale on the Internet that was located in Gangnam and cost about 300 million won.

“I am loaded with cash. Should I get three of those? If I do, I would have to pay high individual income tax. Maybe I should open a company that would operate OneRoomTels.”

Gun-Ho was aware that the owner of the factories, which he had worked at before, established a company and ran the factory through that company once their annual sales exceeded 100 million won.

“If I open a company and run three OneRoomTels through it, I can place the cost of my Land Rover’s maintenance and fitness center membership fee under the company’s name.”

Gun-Ho used to work in accounting at YS Tech in Asan, Chungnam Province. At that time he sometimes visited a certified legal consultant’s office when there were some changes in the structure of management of the company. Then the certified legal consultant’s office took care of it and charged a fee for the work.

“Let’s establish a company.”

Gun-Ho wanted to open a company and get a business card with a position title of CEO.

“The tax bracket for my company would not be high; it should be about 20% for the business income. I can classify my salary and some petty money I would use as a company expense. Moreover, I would look better if I’m going to run a business rather than just hanging around in a fitness center because I didn’t have to make money. I will have a business card that says CEO, which would be really nice. Okay, let’s open a company.”

Gun-Ho decided to visit a certified legal consultant’s office nearby and form a company.

“How much capital should I invest?”

Gun-Ho decided to invest 300 million won initially.

“I will need about 1 billion won to acquire three OneRoomTels. It exceeds the initial investment of 300 million won. Let’s make the remaining necessary funds I would use to buy the OneRoomTels a loan to the company.”

Gun-Ho now had to decide the name of his company. Even after giving some thought to it, Gun-Ho couldn’t come up with a good one.

“Should I ask Master Park for the name? It seems that he makes names for a newborn baby as well. Nah… he is an old man. He won’t be able to think of a sophisticated name.”

Gun-Ho received a call from Jong-Suk.

“Bro. I got promoted. I am a manager now.”

“Oh, wow. Congratulations.”

“Bro, did you buy anything at the auction yet?”

“I did.”

“What did you buy?”

“I bought a TowerPalace condo in Dogok Town.”

“TowerPalace? Isn’t it the expensive condo where only rich people are living in? You have money for that?”

“You don’t use only your money at an auction.”

“Wow, you are doing well, bro. Are you going to sell it then?”

“I will eventually have to sell it, but I am not rushing.”

“Why not?”

“I’m going to form a company first.”

“A company? Whoa, bro, you are doing really well.”

“I want to open a business entity that operates OneRoomTels, and also sells and buys properties at auction. Do you have any good name I can use for the company?”

“Umm…, what about GH Development?”

“GH Development Company?”

“Yeah, that’s your initials. Just use your name, bro.”

“Hmm, that’s a good idea.”

Gun-Ho decided to open a company with the name of ‘GH Development Company.’

Gun-Ho searched on the Internet what he had to prepare in order to form a company.

“I will need articles of corporation, a director or an internal auditor.”

Gun-Ho was thinking who would be a good candidate for the director or internal auditor position.

“Should I ask Jong-Suk? I need to get his certificate of a registered seal and the formal consent of taking the position too. Will it not cause any problem later?”

Gun-Ho thought of the people around him.

“What about Suk-Ho or Min-Hyeok?”

Gun-Ho couldn’t trust them.

“What about my sister or brother-in-law?”

That could cause a problem later too.

“Maybe my father.”

Gun-Ho thought his father would be a good candidate because he could trust him, and he knew his father wouldn’t be interested in participating in managing the company. However, he was not sure if a family member could take the position. Gun-Ho called a certified legal consultant’s office.

“Father is okay.”

Gun-Ho was ready to establish a company—GH Development Company with 300 million capital. He would appoint his father and himself as directors. For the company’s office, he purchased an office-tel close to the Gangnam Station. It was not a small office-tel like the one in Yeongdeungpo District that he used to live, but it was a 30 pyung large office-tel with two rooms.

“The office-tel is purchased under my name, and the company will rent it from me.”

Gun-Ho called his father in Incheon.

“Dad, I need a copy of your resident registration and certificate of a registered seal.”

“Why do you need them?”

“I am going to open a company—GH Development.”

“GH what?”

“Dad, I am opening a company, and you will be listed as a director of that company. I will be the CEO.”

“You are opening a company? Oh, really? What kind of company?”

“It’s a real estate development company. I will do real estate leasing as well.”

“That sounds like it will cost a lot of money to run. I don’t know. You do what you have to do, son. I will prepare the documents by tomorrow.”

Gun-Ho went to a certified legal consultant’s office in Seocho Town to request the company formation. After handing them the business name, business address, bank statements, the directors’ certificate of a registered seal and registered stamp, they told Gun-Ho that they would contact him once all the work was completed.

Gun-Ho purchased a fax machine, a computer and two more desks for his office-tel even though he didn’t have any staff yet; he just bought those things to fill the space. He also had an Internet connection.

“Let’s hang the business sign.”

Gun-Ho put an acrylic sign on the office door; it said ‘GH Development Company.’ This office-tel building had only large office-tels and maybe that was why most of the office-tels were used as an office rather than a residential unit. Gun-Ho looked at the other office’s sign. The office on Gun-Ho’s right had an office sign—’Real Estate Development,’ and on the left side was some sort of a design company.