Story of a Big Player from Gangnam

It was Tuesday. Gun-Ho went to work at GH Mobile in Jiksan Town.

President Song brought a drawing that looked like a product drawing to Gun-Ho's office.

"Is that a new product drawing from A Electronics' research center in Suwon City?"

"No, it's the construction drawing for our new production site that we are planning to build behind our current factory. One of our workers at the quality control department made this using CAD."

"Are we building a new production site?"

"Yes, it will be a temporary worksite though. We are getting a substantial number of product orders from A Electronics. I think we need more production space. I'm thinking of building two 300 pyung large production sites."

"Hmm, really?"

"We will place prefabricated factory buildings and install the machines there that we will purchase in the near future."

"Don't bring prefabricated factory buildings, but let's build strong factories with welded H-beam. We will need to place hoist cranes anyway."

"That would be great, but it will cost a lot if we do so."

"We are now A Electronics' vendor company supplying them a high volume of products including their existing products to their factory in Dangjin City, and their newly developed products by their research center in Suwon City. We can safely assume that we will make more than 5 billion won per month. You can consider that we are reinvesting this month's sales revenue to our company in building our additional production sites. Let's build sturdy factories that will last for a long time."

"Yes, sir."

"Also, use EPS panels, and use epoxy for the floors."

"We are now looking at the cost in the range between 2.5 and 3.5 million won per pyung for the construction only."

"Please get the price quotes from several different construction companies. Once you get the price quotes, send them to Dyeon Korea's Director Yoon. He will review them."

"Oh, you are right. Director Yoon used to work in a construction company before. He must be an expert in that field. I will discuss it with him."

"He was in charge of the construction when we were building GH Mobile's factory and Dyeon Korea's factory. He is the best person to discuss the construction of our new production sites."

"Sounds great. I will definitely talk with him. Well, I will assume that I have your approval on building our construction site B, sir, and I will proceed with it."

A little while after President Song left Gun-Ho's office, Gun-Ho received a call from BM Entertainment's manager.

"Hello, sir. This is Manager Byeon from BM Entertainment."

"Oh, hi. How are you?"

"I'm calling because you have inquired about a person who is knowledgeable about the soap opera production industry. I have someone who I'd like to introduce to you."

"Oh, are you referring to the person who used to work as a PD in a broadcasting station?"

"That's right. He had worked as a PD for a long time, and also he had run his own entertainment company—W Entertainment—as well."

"When I talked with BM Entertainment's President Hyeon-Man Yee the other day, he mentioned a person named Woon-Hak Sim. Is that the person?"

"That's correct. He is actually with me right now, and we can stop by your office today."

"Oh, umm. The thing is that I'm not in Seoul City right now. I'm at the factory in Jiksan Town."

"Oh, I see. Would you give me one second, please?"

Manager Byeon seemed to talk with someone for a moment before getting back to Gun-Ho.

"Jiksan Town is only one hour away from here. He is suggesting that we can come to Jiksan Town now."

"All the way here? It takes an hour without traffic. It could take well beyond an hour… Well, the fastest route to get here is through the North Cheonan IC. I will see you soon then."

Gun-Ho was reading a monthly magazine after finishing three different newspapers when he received the visitors. The security guard contacted Gun-Ho's secretary to notify them that someone came to see Gun-Ho. Secretary Hee-Jeong Park entered Gun-Ho's office after knocking on the door.

"Sir, I just received a call from the security office saying that a manager from an entertainment company is here to see you. He said that you are expecting him."

"Please let him through."

"Yes, sir."

After a while, BM Entertainment's Manager Byeon and a man who looked like he was in his 40s came to Gun-Ho's office. The man who came with Manager Byeon looked worn out. They both were wearing an ID card around their necks, which were given by the security office.

"Hi. Please come in and have a seat. Thank you for coming all the way to Jiksan Town."

"The factory is huge and very nice, sir. I didn't expect to see this large factory."

BM Entertainment's manager smiled, and he introduced the man who was sitting next to him to Gun-Ho.

"This is Mr. Director Woon-Hak Sim who President Hyeon-Man Yee talked to you about the other day."

"Oh, I see. I'm Gun-Ho Goo. Very nice to meet you."

Gun-Ho extended his hand to the man for a handshake. He then gave his business card to the Woon-Hak Sim person. Woon-Hak Sim was actually astonished when he saw Gun-Ho. He was actually expecting to see an old man when he heard about Gun-Ho who was running a manufacturing company. Gun-Ho surely looked probably ten years younger than him. He thought that Gun-Ho would be at least in his 50s like President Hyeon-Man Yee. He couldn't believe that this 30 something years young man owned this huge factory.

"Please have a seat."

Gun-Ho called for Secretary Hee-Jeong Park and asked her to bring them three cups of green tea.

"This factory looks very big. How large is it?"

"The land is 5,000 pyung large, and the building's total floor space is about 2,000 pyung."

"Did you say 5,000 pyung? Wow. It's amazing. I had a chance to see a few workers on the way here, and they all looked very well disciplined. When we were passing the front gate, I saw truck drivers showing something to the security guard, so the security guard would open the gate for them."

"Right. All departing trucks are supposed to show a certificate of their product transportation before leaving our factory. Since we are a manufacturing company with products on site, we need to control the incoming and outgoing trucks that are carrying cargos."

Manager Byeon smiled and said, "So, how many days per week do you work at the building in Sinsa Town, Seoul?"

"I come to this location on Monday and Thursday only, and I have another factory about the same size as this one in Asan City. It's called Dyeon Korea. It's a joint venture company with an American company—Lymondell Dyeon—in Seattle, U.S."

"Oh, I see."

At the moment, Secretary Hee-Jeong Park brought green tea.

While sipping his tea, Director Woon-Hak Sim said, "I suppose that you must be busy enough to run this big manufacturing company. I wonder how you became interested in a soap opera production business."

"There is a government department in Shanghai City, China, which administers cultural affairs, radio broadcasting, film, television, and arts. As Manager Byeon already knows, that bureau's director is a friend of mine. He actually strongly recommended getting into the industry, so here I am."

"Oh, I see."

"As a matter of fact, I'm currently running a terminal business in Antang city, Guizhou Province in China. It's a joint venture with China, so I am busily occupied with the terminal business as well. But, since I was told that soap opera production is a very attractive business, I began to be interested in it."

"Usually, soap opera production companies are not big companies. It's common to see many small companies in the industry. Samhwa Networks and Pan Entertainment are the two largest companies in the field in Korea, but their annual revenues are not as high as most ordinary people would expect. Samhwa Networks that produced 'Bread, Love and Dreams' is making a little bit over 20 billion won while Pan Entertainment which made 'Winter Sonata' is generating around 40 billion won."

"I believe that those two companies are publicly traded companies registered with KOSDAQ."

"That's correct."

"Since they are registered with KOSDAQ, even though they are not large companies, they can easily get necessary funds."

"That's true, but even though you have the necessary skills and expertise, you should be extra cautious unless you don't mind losing your money and experiencing failure, like me."