Story of a Big Player from Gangnam - Chapter 350

Chapter 350: Strategic Change (1) – Part 1

The internal auditor came into Gun-Ho’s office and placed some documents on his desk, and then he said,

“GH Mobile achieved the highest sales revenue of more than 7 billion won last month. The exact amount is 7.2 billion won.”

“It would make its annual sales revenue 86.4 billion won then.”

“That’s correct, sir.”

“Even with the new product orders from the five factories of S Group which President Song brought in and our newly developed product of AM083 Assembly, we couldn’t reach 90 billion won.”

“The new product orders from S Group’s factories are gradually on the rise.”

“What about the product cost? How much profit do we make out of 7.2 billion won last month?”

“If we subtract the product cost and general administrative expenses, we are left with 800 million won. We used 200 million won out of it in order to pay for the interest on our debt. So our profit left is 600 million won.”

“We currently have about 65 billion won of debt in total, don’t we?”

“That’s correct, sir. If I may break it down, our accounts payable is 25 billion won and our debt to the financial institution is 40 billion won.”

“The interest in the financial institution for our loan amount of 40 billion won should be a bit more than 200 million won.”

“That’s right. We gained a profit of 800 million won last month, and we used 200 million won out of it to pay the interest. And as you instructed previously, we didn’t pay anything for our debt and saved that 600 million won to our bank account. The company currently has accumulated funds worth 1.2 billion won.”

“If we continue to make the same profit every month, we would be able to save 7.2 billion won yearly.”

“Right. We can pay off our short-term debt with 7.2 billion won, or we can use it to acquire another company within the same industry.”

“Let’s leave it in the bank account for now.”

“Okay, sir.”

The internal auditor said while putting the report documents back to his folder,

“Sir, if you are thinking of getting a new car, what about we lease it instead of purchasing it? If we buy a car, we will have to spend a large amount of money at once while we can use a small amount of money every month if we lease a car. We can still include the monthly lease payment at our business expense. So we get a tax benefit from it.”

“It will increase our general administrative cost though.”

“It won’t affect our 600 million won of monthly profit. President Song also thinks that you need to get a new car, sir. He said that the wages for our workers have increased pursuant to the negotiation with the labor union, and we now have a chauffeur for you. So it is natural to get you a new car with our company’s name.”

“I will think about it.”

“The choice of a car is wide. You can lease a foreign-made car too.”

“Really? Can I lease a Bentley as well?”

“Yes, sir. You can lease any foreign-made car of your choice. Bentley or Mercedes-Benz is good. After three years of use, you can even purchase it if you want.”

“I see. If you have an automobile-catalogue by any chance, please bring it to me.”

“Yes, sir.”

Gun-Ho leased a Bentley for the long term under GH Mobile’s name. The car was worth 300 million won. Gun-Ho would leave his Land Rover at his apartment parking lot during weekdays, and he would use it when he wanted to go golfing or fishing on weekends.

Gun-Ho put his condo in Buldang Town, Cheonan City on the market. Since he had his driver now, he didn’t have to stay in Cheonan City. The price of the condo in Buldang Town increased by 20 million won.

During the next regular meeting at GH Mobile, Gun-Ho announced that he would come to GH Mobile on certain days only.

“I will come here in Jiksan Town to work on Mondays and Thursdays only. You can give me reports on those days. It’s more efficient and effective that President Song runs this company without too much interruption from me.”

The executives seemed to be satisfied with the announcement.

“We like this way better, sir. So we know when to expect you to come and when you won’t be in the office, and we will be able to plan our work around that schedule.”

As Gun-Ho gave the same announcement to Dyeon Korea, they liked it too.

“So, every Monday and Thursday, you will be in GH Mobile during the morning and come to Dyeon Korea in the afternoon.”

“Correct. I will hear your report on those two days. Mr. Adam Castler and Director Dong-Chan Kim will operate the company on a daily basis. However, I will evaluate the work performance of you all based on your work’s output.”

“Understood, sir.”

Gun-Ho then told Director Kang in GH Development and President Jeong-Sook Shin in GH Media that he would be in Seoul and at work on Tuesdays, Wednesdays, and Fridays. He would be in his office on those three days in the building in Sinsa Town.

Director Kang and President Jeong-Sook Shin liked the idea as well.

“We can make our schedule more efficiently since we know when you will be in the office.”

Gun-Ho gave his schedule to Chan-Ho Eom,

“I will stay in the building in Sinsa Town, Seoul except for Monday and Thursday. I’ll go to Jiksan Town and Asan City on those two days every week. So make your schedule according to it and get ready.”

“Yes, sir.”

“If the weather doesn’t allow us to drive back to Seoul after I work here or if I have to work till late at night on Mondays or Thursdays, we don’t have to try hard to go back to Seoul. We can spend the night in Onyang Hot Spring Hotel in the area.”

“Okay.”

“And you can use the company credit card to pay for the hotel and bring the receipt to the general affairs department in GH Mobile.”

“Understood, sir.”

“How do you like the work so far?”

“I like it. I do like to drive you around, sir.”

Chan-Ho liked the fact that Gun-Ho was not arrogant and didn’t boss him around. He worked for Gun-Ho with his sincere mind and considered him as his big brother.

Gun-Ho headed to Egnopak that day with Director Kim in his new Bentley. When he arrived there in his Bentley driven by a chauffeur, the security guard at Egnopak’s front gate treated him very nicely and with respect.

“Chan-Ho, come with us to the president’s office. Do you remember Dong-Hwan Kim who we gave a lesson to the other day in a bar? We are here to meet with his father.”

When Gun-Ho’s party arrived at the president’s office, the pretty secretary who was sitting at her desk asked them,

“Do you have an appointment with our president, sir?”

“I’m the president of GH Mobile. Is the president in the office?”

Gun-Ho and Director Kim didn’t wait for the secretary’s response, but they just walked into the president’s office.

Egnopak’s president was clipping his nails on his chair. He was surprised when he saw Gun-Ho coming into his office.

“Hello, sir.”

“What brought you here today?”

“I came to thank you for using my Dyeon Korea’s raw materials.”

“Hmm.”