Story of a Big Player from Gangnam

Chapter 926: Dissolution of GH Development (2) – Part 1

President Song asked Director Kang, “Do you have, by any chance, documents like a copy of the building’s real estate register, GH Development’s certificate of a registered seal, or a building register, with you?”

“Yes, I do have them with me.”

Director Kang showed all of the documents that he had brought to President Song. President Song said as he was thoroughly reviewing the documents, “You are very well prepared, Mr. Director Kang. Do you mind me asking where you worked when you were younger? I mean before you joined GH Development?”

“I worked in a bank as a deputy general manager. After I quit that job, I opened my own real estate office—I had my real estate license—and I met Mr. Chairman at that time.”

“Hmm, I see. That’s why you are very meticulous with the work that you are doing.”

President Song handed all the documents that Director Kang had brought to Accounting Director Min-Hwa Kim, and said to her, “Take all of these documents. And, give them to the certified legal consultant’s office that we are working with, and let them start the process with the building acquisition.”

“Yes, sir.”

President Song then called for the general affairs director.

“Mr. Director, I want you to meet Mr. Director Kang here. He is from GH Development in Seoul. As we are acquiring GH Building that GH Development is managing right now, Mr. Director Kang will be working with us.”

“Oh, really? It’s very nice to meet you. I’m General Affairs Director Joon-Young Choi.”

“I’m Seong-Il Kang. Pleasure meeting you.”

President Song looked at Director Kang and said, “You also brought us the list of GH Development’s workers, right?”

“Yes, I did. Here it is.”

President Song handed the list to the general affairs director. There were about 15 people’s names listed.

“All of these people will be GH Mobile’s employees. Their employment with GH Mobile will start April 1st.”

“Understood, sir,” said the general affairs director.

“And, for those who are holding management positions like an assistant manager or a manager, include them in our company’s salary class accordingly.”

“Yes, sir.”

“Director Kang here will join our executive meetings from now on as one of GH Mobile’s executive officers. So, whenever we have an executive meeting scheduled, inform him about it. GH Development will be dissolved, and their current office and personnel will be absorbed into GH Mobile’s new department—the building management department.”

“Yes, sir.”

“For further details and implementation, I want you to discuss them with Director Kang.”

“Understood, sir.”

President Song then took Director Kang to the production site. And, he introduced him to the product quality director, production director, and the chief research officer respectively. It was not the first time that Director Kang visited GH Mobile’s production site, but he felt like something was different from the last time.

‘I can see that the number of machines along with the number of workers in the production site has increased. This is huge. I just don’t understand how Chairman Gun-Ho Goo established this factory in only a few years. He and I used to purchase a few office-tels and manage those small residential buildings in Gangnam District. I had no idea that he was building a large business like this.’

President Song was thinking about Gun-Ho Goo at that time as well.

‘Once Chairman Goo gets 120 billion won after selling GH Building to GH Mobile, he will have cash of about 300 billion won combined with the dividend that he recently received. Wow. 300 billion won... That is an enormous amount of money. I can’t believe he is holding that much cash at his young age. He is indeed one of the big players in Gangnam District.’

The fact was that Gun-Ho would own cash of 670 billion won, not 300 billion won, after receiving the 120 billion won as a result of the GH Building acquisition. President Song had no idea about it. Well, it was not just President Song, but no one in the world knew that Gun-Ho would have 670 billion won in cash.

President Song said as he was walking in the factory yard with Director Kang, “GH Development is currently using the 18th floor of GH Building for its office space, isn’t it?”

“Yes, sir. The 18th floor is occupied by GH Development’s office, the chairman’s office, and GH Asset Management Company that was recently established.”

“I was told that GH Media has its office on the 17th floor.”

“That’s correct, sir. There are three companies sharing the 17th floor right now. There are two tenant companies and GH Media.”

“As to the two tenant companies on the 17th floor, when their lease expires, do not renew them but let them vacate the offices. And, move GH Development’s office to the 17th floor. I want the chairman’s office and a secretary’s office only on the 18th floor. GH is not yet large enough to be a group company, but Mr. Chairman Goo has 7 companies including those in China. I believe that that setting will suit his current position.”

“Understood, sir. And, I absolutely agree with you. One of the tenant companies’ leases on the 17th floor will expire this coming June. I will inform them to vacate the office space once their lease expires. As a matter of fact, GH Development’s office is usually busy with workers and visitors who are coming and going, such as security officers, cleaning crew, tenant companies, etc. We don’t want to bother Mr. Chairman Goo with those frivolous chores.”

“Mr. Chairman Goo is not an old man, but he is not a demanding person either. We should make his surroundings as comfortable as possible even though he doesn’t say anything about it.”

Director Kang thought that President Song was a very thoughtful person.

It was Friday. Gun-Ho was sitting in his office when he received a call from Director Woon-Hak Sim in China.

“It’s Woon-Hak Sim, sir. We need to determine the amount of capital for our new movie investment company here. How much do you think it should be?”

“Well, I don’t know. What do you think?”

“Huanle Shiji Production Company is suggesting that we should start a joint venture entertainment company since they will be deeply involved in the movie production as well. They said that a joint venture setting would be more beneficial since the production and distribution of the movie would be done in China.”

“That sounds reasonable.”

“Huanle Shiji Production Company suggested that they would invest 1.5 billion won since they can afford it with the revenues that they recently made with their previous movie.”

“Hmm, is that right?”

“In addition, Director Yan Wu is willing to make his own investment in this movie production as well. He wants to put the entire fund into this, which he made from the last movie, which would be 150 million won.”

“150 million won...”

“The new business entity that we are about to establish here is a movie investment company which needs to be distinguished from a movie production company for its purpose and function. So, as we work with Huanle Shiji Production Company, it would be like we outsource the movie production work to them.”

“Is it so?”

“And, once the movie production is completed, we will be the one that handles the contract with movie distributors. A movie production company’s work is limited to production only. They will have no right or authority beyond that.”

“That means that the movie distributor will send the revenue to our new company, not Huanle Shiji Production Company, right?”

“Of course, sir.”

“Hmm, in that case, I want you to make the company’s capital 10 million dollars. If you think that you need 15 million dollars for production cost, try to collect 5 million won from investors. If you need 20 million dollars of production cost, get 10 million won from investors.”

“Yes, sir.”

“I will have GH Media send you the fund right away.”

“As to the structure of the company’s ownership, the new movie investment company will be owned by three parties—Huanle Shiji Production Company owns 15%, Director Yan Wu owns 1.5%, and Mr. Chairman owns 83.5%”

“Well, I will have 80% of its ownership interest. You take 3.5%, Mr. Director Sim.”

“I will have my own portion in this, sir?”

“I previously promised to give you 2% if the movie—Menghuan Yinghua—succeeded. Giving you 3.5% of the ownership interest in the new movie investment company would do it, I believe.”

“Thank... Thank you, Mr. Chairman.”

It was Monday.

Director Woon-Hak Sim named the new movie investment company “Menghuan Entertainment.”

“Menghuan Entertainment?” Gun-Ho asked.

“Since the word ‘Entertainment’ in Chinese is Yule, I will just name the company as ‘Menghuan Yule’ and register it with the Chinese government as such.”

“Hmm, really?”

“As our previous movie—Menghuan Yinghua—was successful, I want our business name to reflect that, so the same investors, who previously invested in Menghuan Yinghua, would again make their investment in our new movie too. Menghuan is very well known anyway.”

“Alright. I will have GH Media to send you 8.35 billion won.”

“Thank you, sir.”