Story of a Big Player from Gangnam

After visiting the industrial complex in Cheonan, they headed back to Seoul.

While they were still driving toward Seoul, Deputy Mayor Li was lost in thought for quite a while with his arms crossed.

“Hey, Gun-Ho. How much capital did you invest in your real estate development company?”

“Not much, 300 million won. It’s about 300,000 U.S. dollar.”

“How much gross sales do you make?”

“It’s not much either. Probably it’s about 500 million Korean won per month.”

“Can I take a look at your company’s financial statements?”

“What for?”

“I’d like to set up a joint venture with you.”

“A joint venture?”

“Yeah, if we want to enter into a joint venture, you need to prepare your company’s financial statements.”

“Umm, I just started my company. It hasn’t even a year yet.”

“December is around the corner. You will soon make a financial report on closing accounts. How much debt do you have?”

“There is none.”

“Even a penny?”

“Correct.”

“Really?”

Deputy Mayor Li smiled slightly.

Seukang Li continued to talk while looking outside the window.

“As a matter of fact, I am planning to build an industrial Park in my city. I am the one who came up with the idea, planning and leading the project. I want to invite foreign companies to take part in that industrial complex and I’m so worried if we could attract enough foreign firms.”

“Are you worried about not attracting enough foreign firms?”

“If I can’t bring enough foreign companies to join us, I, as the person who is in charge of the project, will be in trouble.”

“What if you succeeded in attracting enough foreign companies?”

“The government will recognize my ability to handle projects, and I might be promoted and go back to Shanghai. So, I was thinking of setting up a joint venture with a foreign company that can bring more foreign investors, build factories, do landscaping and managing them in the future.”

“Whew, I don’t think I can handle all those work; that’s too much for me. In addition, it sounds like it will cost a fortune.”

“We will start with 3,000,000 U.S. dollars.”

“See? 3 million dollars is a lot. I don’t have that kind of money.”

“Since it is a joint venture, China will contribute 50% and we expect a Korean company to contribute the other 50%. I already talked with several foreign companies yesterday and they all seemed to be interested. However, I prefer to work with you, President Goo because I know I can trust you. But if you are not interested, that’s a shame.”

Gun-Ho thought about it for a moment.

‘The joint venture will start with 3 million dollars of capital and 50% of 3 million dollars is 1.5 billion Korean won…’

Gun-Ho actually could handle 1.5 billion won with his personal money since he currently had 16.4 billion won in his bank and stock accounts.

“Professor Jien Wang will join us for the joint venture as a shareholder. We are not setting up the joint venture because we don’t have 3 million dollars. We want to have a co-venturer who could facilitate bringing more foreign companies to join the industrial complex. If you could be our co-venturer and attract more Korean companies to join our industrial complex, that would be really great.”

“How much will Professor Wang be involved in the project?”

“He hasn’t decided yet. I am hoping that he could bring U.S. companies into the industrial park but that probably wouldn’t be easy. I expect that many Korean companies would be more interested in joining us since we are neighboring countries.”

“Hmm… When do you plan to set up the joint venture?”

“Around April when 3-Flow work is completed.”

“What is 3-Flow work?”

“Oh, it’s about very basic infrastructure construction. We need to first build power generation plant for the electricity, then setup the water supply as the second work, and then for the third work we will have to pave the road. So the 3-Flow work is about electricity flow, water flow, and road flow. We still have time, so just think about it, okay?”

“That’s an interesting way to put it. So the Chinese co-venturer would be Kunshan City?”

“The city itself cannot directly participate. Instead, there is a construction company being run by the city’s funds and its name is Jinxi Construction Company. It’s a government-owned company and you will set up a joint venture with this company. Since it is a government-owned company, it’s safe to work with and it’s guaranteed to be able to send profits you made in China to your country.”

“Hmm.”

“Your company is not exactly the perfect candidate for a co-venturer; however since the company has no debt, it’s very doable to have your company picked up as our co-venturer. Moreover, by the time when we would complete the 3-Flow work, you will have your first-year financial statements. Jinxi Construction Company could handle building factories and doing landscaping; they have professionals and experts in the fields.”

“Hmm.”

It was a tempting offer to Gun-Ho.

It was the day when Professor Wang and Deputy Mayor would return to China.

Gun-Ho didn’t have to take them to the airport since a shuttle bus was provided by the event organizer to the group who was invited for the forum.

Gun-Ho still came to Intercontinental Hotel to say good-bye.

Professor Wang extended his hand to Gun-Ho for a handshake.

“Thank you for everything, Gun-Ho. I’ve had such a pleasant stay because of you, my friend. Come visit me to China, okay?”

“Sure. I will come after Korean Thanksgiving Day. I want to see the Jinxi Industrial Park as well.”

“There is nothing there yet. Are you interested?”

“I need to see it first. I was told that you would participate in the joint venture for building that industrial complex.”

“I haven’t decided yet but that is my current intention. If you are interested in, let’s talk more once you come to China.”

“Okay. Bye Professor Wang. Bye Seukang Li.”

Gun-Ho had a handshake with Deputy Mayor Li as well.

Gun-Ho turned on his computer to check the stocks he invested money in earlier, which was recommended by the stockbroking firm.

“3% up in price within a month.”

The stockbroking company didn’t recommend stocks that fluctuated severely in price. They always recommended blue-chip stocks that didn’t produce a price hike but instead, had steady earnings.

“But still, I made 90 million won in a month because I invested 300 million won!”

Money indeed made money. When Gun-Ho had invested 10 million won that he borrowed from the sunshine loan program and if there was a 3% increase in price, the profit would be only 300,000 won. He used that 300,000 won to pay his OneRoom rent or to repair his shabby vehicle, or buy a drink for himself. Moreover, he had to pay the interest for the loan, that would make the small profits even less. That was the case if his stock’s price went up. If his stock’s price went down, he would incur a loss in stocks; the loan interest would make the loss even bigger. He had to rob Peter to pay Paul if that happened.

“Even with only a 3% price increase with the blue-chip stocks, I made 90 million won. That’s the annual salary of the workers in a big company. Won-Chul Jo who graduated from one of the top universities and is proudly working in a big company—and my classmates’ admirer would faint if he knew this.”

Gun-Ho checked his personal bank account.

He received his wage of 4 million won plus 2 million won for the office-tel lease to his company.

“It seems like Ms. Ji-Young Jeong tried hard to send me exactly 4 million won for my wage after the tax. So she actually made my wage slightly over 4 million won.”

Gun-Ho was making money without doing much.

When he worked in a factory—he always had to spend more than he made, even just to breathe. Now, he was making a lot of money by just breathing.