Story of a Big Player from Gangnam - Chapter 352
Chapter 352: Strategic Change (2) – Part 1
It was Tuesday. Gun-Ho was supposed to go to work at the office in his building in Sinsa Town, Seoul City.
When he arrived at GH Building in Seoul, he went straight up to the 18th floor where his office with GH Development was located. On the contrary, Chan-Ho Eom went down to the basement level-1. His desk was located in the maintenance office in the basement. Chan-Ho spent time there while standing by. He played some games with his smartphone and he also recorded his daily travel with Gun-Ho.
Gun-Ho was having a cup of tea that his secretary—Ms. Yeon-Soo Oh brought to him.
Director Kang was giving a report to Gun-Ho on the building’s loss and profit. When it was almost over, Gun-Ho was informed that President Jeong-Sook Shin would visit the office that day. Gun-Ho told her that,
“You don’t have to come to the office. If you have anything you want to report to me, you can do so through email.”
“No, sir. I want to make a report to you face-to-face.”
President Jeong-Sook Shin arrived at the office in GH Building.
“The art exhibition of the Chinese young artists’ avant-garde arts was a success even though I’m not 100% satisfied. The profit for us is exceeding 30 million won, won’t you?”
“You will be busy planning another exhibition for the art gallery.”
“I am actually planning to host an art exhibition of watercolor paintings of Korean painters. It won’t be a solo art exhibition, but four painters will participate in it. These artists are not very well-known though. But I see their potentials and I want to provide them a space where they get their chance to communicate with the public through their artworks.”
“Hmm.”
“Let me give you the report on GH Media’s profit and loss of last month first before I continue to explain about the plan with the art gallery.”
“Sure. I’m all ears.”
“As to our publishing business, GH Media just released the tenth book of the world-history cartoon series. It is true that the market for paper books has shrunk but children’s books are still selling well. We have published five business management books, two Chinese history books, six Japanese essay books, and two other books. So if we add the cartoon books, we have published twenty-five books so far and we made 45 million won last month.”
“Well, it’s actually more than I expected.”
“The profit is 10 million won after we deduct the labor cost and other expenses of 35 million won. We will use that 10 million won to publish our next books.”
“Hmm.”
“Fortunately, we made extra revenue by hosting an art exhibition last month. We made 34 million won in hosting Mr. Ding Feng’s art exhibition and we spent 4 million won as an expense. So the profit of last month from the art gallery alone is 30 million won.”
“So the total revenue of GH Media including publishing work and art gallery income would be 79 million won in total.”
“Right. We can’t compare GH media’s revenue with your other companies such as GH Mobile or Dyeon Korea though.”
“You did a great job, especially given the fact that you only have several workers.”
“What is the monthly sales revenue of GH Mobile, sir?”
“They made 7.2 billion won last month alone.”
“Wow. Hahaha. It’s 100 times of the GH Media’s revenue.”
“Well, you have to consider that I invested significantly more to GH Mobile than to GH Media. So, don’t worry about it. You don’t compete with them.”
“I expect that we will do better next month. All of the profits we made from the art gallery will be reinvested in the publishing work. Also, the book café started generating income as well.”
“How is the book café doing?”
“During the art exhibition period, its daily sales revenue went up to 700,000 won. Its usual daily revenue is 500,000 won though. That makes its monthly sales revenue of about 15 million won. After subtracting the rent, labor costs, and other expenses, it will leave us with seven to eight million won.”
“As long as we don’t lose money, then it’s good.”
“Let me talk to you about next month’s plan, sir.”
“Please go on.”
“Next month, I’m planning to host an art exhibition of the French master of color aesthetics. The artist’s name is Marion Kinsky.”
“Is that person famous?”
“Yes, she is. Art lovers certainly know her.”
“How did you get in contact with that artist?”
“I touch-based with a French art gallery that I worked with before when I was a curator in an art museum. I want to go on a trip to France next week.”
“Sure if that’s necessary.”
“This art exhibition will work greatly as another marketing effort for the GH Art Gallery.”
“That sounds great. I will support you.”
“During the Chinese young artists’ art exhibition, the artist—Yue Zhihong’s artworks sold the most. He donated one of his artworks to us. It will cost more than 20 million won. I will leave it with you.”
“Why are you giving it to me? Doesn’t it belong to you?”
“Hahaha. I am not the owner of GH Media, sir. You own the company 100%. That artist donated his artwork to GH Art Gallery and it surely is not mine.”
“Well, I’m not sure if I have an appropriate space to keep it.”
“It’s framed. You can take it to your home, or you can hang it on the entrance wall of GH Mobile. Or you can display it in your office or a conference room at the company. The longer you keep the artwork, the higher its value will possibly go up.”
“Hmm, are you saying the price of that artwork will go up from 20 million won to 30 million won someday?”
“That’s right. That’s why many wealthy people purchase artworks of a very famous artist for that purpose. They see it as an investment.”
“Really?”
“A painting is often used as collateral for a loan as well.”
“Really?”
“I heard that Jeong-Hui Kim’s painting from the Joseon dynasty was recognized as collateral for the loan of hundreds of million won from a bank.”
It intrigued Gun-Ho.
‘Hmm, this is a very interesting field.’
“Let me ask you this. What was the name of that French artist you talked about earlier?”
“It’s Marion Kinsky, sir.”
“That Mr. Marion Kinsky person…”
“Actually, it’s a female artist.”
“Oh, I see. My question is… Can I buy one of those Ms. Marion Kinsky’s paintings on the first day of the art exhibition with us, and then I resell it on the last day of the exhibition at a higher price?”
“Theoretically, yes, it is possible. However, that wouldn’t make our art gallery look good though.”
“Well, I’m not saying I will do it, but I’m just asking if it’s possible.”
“And, we might have another good news waiting for us next month.”
“What is it?”
“We began to print out the Japanese book—The person who wakes up in the morning’s fifth edition. There is some indication telling me that this book will be a bestseller. Once a book gets selling very well, it tends to continue to sell very well. There are some signs of it.”
“I didn’t really like that book… I found Professor Jien Wang’s book more valuable and helpful for readers.”
