Story of a Big Player from Gangnam

Chapter 677: Crowdfunding on Movie Production (1) - Part 2

It was already mid-April.

Gun-Ho started receiving the external audit reports for each GH company. The external audit reports produced by CPAs were showing the same data that was demonstrated in each of GH company's financial documents. Those documents were previously prepared by each GH company's person who was in charge of accounting and also reported to Gun-Ho in early January. Manager Hong brought the external audit reports to Gun-Ho's office.

"All of the GH companies are the business entities that close their account in December."

"Right."

"They all have reported that they paid the corporate tax completely last month."

"Hmm, I see. Paying the proper amount of tax on time is a way to contribute to the economy of our country, through the business."

Manager Hong smiled broadly as she heard Gun-Ho mentioning the contribution to the country's economy by running a business and paying the tax due.

Gun-Ho received a call from Dyeon Korea's internal auditor.

"Have you received Dyeon Korea's external audit report, sir?"

"Yes, I have."

"The president of the CPA office that we are working with wants to give you the report in person when you are available, sir."

"I'm going to Dyeon Korea tomorrow. I can see him tomorrow."

"Where do we want him to come?"

"Dyeon Korea and also GH Mobile both are working with Anchang Accountant Office in front of the Cheonan Tax Office, right?"

"That's correct, sir. The president of that office—Accountant Nak-Jong Lee—said that he wants to make his audit report directly to the major shareholder of our company in person."

"Hmm, really? Well, please tell him to meet me in my office at GH Mobile at 10 am."

"Yes, sir. I will let him know. And, one more thing…"

"Is there something else that you want to tell me?"

"Dyeon Korea successfully received the environment management system certificate—ISO 14001."

"Oh, really?"

"Also, as we obtained ISO 14001, we got the internationally recognized quality management system certificate—ISO 9001—as well."

"Are those two useful when we apply to be recognized as a start-up company with technology?"

"They certainly are, sir, especially because they both are internationally recognized certificates. It will help us in receiving the recognition as a start-up company with technology, and also the Inno-Biz certificate. The examiners will give us extra points to be added in their evaluation, considering that our facility has been certified with an environment management system and quality management system. It is definitely better to have them."

"Okay. We have to keep in mind that maintaining the system is as important as having them certified. Please make sure that our workers understand it and pay attention to maintain the system as certified status as well."

"Understood, sir."

After getting off the phone with Dyeon Korea's internal auditor, Gun-Ho received a call from Director Woon-Hak Sim in Shanghai City, China.

"I should have given you a call more often, and sorry about that, sir."

"I was told that the TV drama—Shiguang Ru Meng—achieved high view ratings."

"Yes, sir. Its ratings are exceeding 1.5%."

"I guess that the Huanle Shiji Production Company is getting enough subsidy from the broadcasting station because they haven't contacted me for the second investment funds of 1 million dollars."

"I actually called you for that, sir. Huanle Shiji's President Baogang Chen is hoping to meet with you in person, sir."

"Meet me in person? For what?"

"It's about the second investment funds."

"As to the first investment funds, did they increase the company's capital reflecting my investment funds?"

"I haven't checked on it yet; I've been busy. I will find out, sir."

"Is President Baogang Chen next to you to pick up the phone?"

"No, sir. He is in his office by himself."

"Okay. I will give him a call."

"Don't you need an interpreter to talk with him, sir? Oh, that's right. You speak Chinese fluently. Well, I'm sure he is available to pick up the call in his office."

Gun-Ho made a call to President Baogang Chen right away.

"Chen Zong Ma (President Chen)? Wo Shi Ju Gen Hao (This is Gun-Ho Goo)."

"Oh, Ju Zong! Ni Hao, Ni Hao. (Oh, President Goo, how are you?)"

"It's very nice to know that the Shiguang Ru Meng had high ratings."

"I would attribute the success to Director Woon-Hak Sim's help and his assistance. He partially modified our scenario to make it more interesting, and we received technical help from Korea because of him as well. Particularly, the female lead actress—Lia—has shown excellent acting. Lia's fans in China are continuously growing even right now."

"That's good to know."

"I actually wanted to talk with you in person about the second investment funds, and I asked Director Sim the other day if you have any plans to visit China in the near future."

"Did you increase the capital with the first investment funds? I need it to be done before I can release my second investment funds."

"According to our memorandum of understanding, the first 50,000 dollars would be sent when the vice president person, who would be sent from Korea, joined our production team, and once the production team was completely organized, the second investment funds of 1 million won would be sent. And, the third investment funds would be sent after the casting is completed. You remember that, right?"

"The organization of the production crew and the casting were completed simultaneously at that time, so I sent the first 1 million won then. If you recall it, our MOU and the actual contract clearly stated that the capital will be increased with the first investment funds of 1 million dollars. That's why I've been waiting for your notification along with the relevant document issued by the Administration for Industry and Commerce, saying that the capital increase was completed, so I could send out the second 1 million won. I need to verify the document before sending the second investment funds."

"I guess we had different views. Since we haven't received the second investment funds, the first investment funds were recorded as a short-term loan for now."

"If we don't keep our works as agreed, the trust built between us could collapse."

"Don't get me wrong, Mr. President Goo. We are grateful for your help. The first 1 million dollars that you've sent to us was like rain in the drought for us. It literally revived our business."

"Hmm."

"Mr. President Goo, your ultimate goal in this investment is to make profits, isn't it? It doesn't really matter whether the money is recorded as a short-term loan, or it is used to raise the company's capital as long as you receive your investment return."

"Could you elaborate? How would I make profits out of it?"

"As a matter of fact, our company will produce a movie. All of our staff here have direct experience in producing a movie to some extent, including me. Director Woon-Hak Kim who you sent to us also directly participated in shooting a movie before."

"Are you suggesting that I invest in a movie production? It is a highly risky industry where I have to wait at least 12 months after I put my funds in it and before I could expect to recoup my investment funds. A drama production is different. It is being produced one episode after another. However, a movie is one whole piece that needs to be made altogether. The production cost for one movie will take well more than 10 million dollars. I can't take that risk."

"Please make time to hear me out."