Story of a Big Player from Gangnam

It was Wednesday when Gun-Ho was supposed to go to work in GH Development in GH Building, Sinsa Town. The following day, on Thursday, he would go to work in GH Mobile, Jiksan Town, and Dyeon Korea, Asan City. When Gun-Ho arrived in his office in GH Building, he had his coffee that Secretary Yeon-Soo Oh brought to him. While enjoying his morning coffee reading an economic newspaper, he received a call from President Jae-Sik Moon in China.

"It's me, Jae-Sik Moon."

"Oh, President Moon. How are you?"

"They completed the terminal building up to the third floor now, and they will soon start constructing the fourth floor. The building looks already majestic."

"Really?"

"We have tons of intercity bus service companies who want to have their business in our terminal. Our income from ticket sales fees is on the rise accordingly."

"Our bus service company doesn't really get financially involved in the terminal construction, does it?"

"The terminal construction doesn't really affect our bus service business. We handle the bus service and terminal construction separately. We have a construction team though, and we pay for their wages. Other than that, all the construction cost is coming from the construction account."

"Are we still keeping the same number of bus lines as we talked about last time?"

"Yeah. We received two additional bus lines last time, so we still have nine bus lines in total. The words about our bus service are now well spread, and we have a good number of customers now. We are making from 50,000 Yuan to 60,000 Yuan per day if counting only the income from the intercity bus service business running 9 buses. This doesn't include the revenue from ticket sales fees."

"How much are we making per month then? Is it around 1.5 million Yuan to 1.8 million Yuan?"

"That's correct. It's around a bit less than 300 million Korean won per month."

"It's about the amount that we make by running that KFC restaurant, huh?"

"You need to take into account the cost of ingredients for the KFC. On the other hand, we don't spend much on the 'ingredient costs' for the bus business. We just pay for the gas, bus maintenance, and bus depreciation cost. That's all. Oh, the labor cost takes more for the bus business than the KFC."

Jae-Sik Moon continued, "Our joint venture's board chairman—President Runsheng Yan—came and talked to me yesterday. He said that the board meeting for the second half-year won't be held since according to him, it's pointless to have the board meeting when the Korean partner refuses to send the investment funds."

"Tell him that the Korean partner will send the investment funds right away once the ownership of the land is transferred to the joint venture's name."

"I know. I've been telling it to them."

"Yeah, we just need to tell them every time they bring up the issue."

"With the upcoming Thanksgiving Day, two additional bus lines connecting to Guiyang City became available, and Antang City's transportation company took them all without sharing it with us."

"Jerks!"

"By the way, GH Food company's revenue for the last month has increased. We made 900,000 Yuan in August. It's about 150 million Korean won."

"Hmm, very well done."

"Oh, GH Mobile's President Song called me the other day. He asked me about the price of training outfits in China."

"Training outfits? For what?"

"It seems that he is planning to include training outfits for Thanksgiving Day gifts to the employees, in addition to some foods. He is going to tell the workers that they should not only eat healthy food but also should exercise in order to stay healthy as he gives them training outfits."

"Hmm."

"He sent me a photo of a training outfit as a sample. The training outfit in the photo is being made in China anyway, and being sold in Korea for 40,000 won. And the same training outfit is selling here for 20,000 won. He wants me to find where he can purchase them."

"Really?"

"And, I found the place to buy those training outfits already. I ordered 600 of them for 20,000 won per piece. So, it's 12 million won in total."

"That's nice. Can you buy more? I want 200 of them. Please send them to Dyeon Korea. I will give them to Dyeon Korea's employees as well."

"Do you want me to add Dyeon Korea's logo on the outfit? Many workers don't like to have a company logo on their training outfits though."

"Well, then don't do it."

"Okie dokie. I will send 200 training outfits to Dyeon Korea. Once I ship them to Korea, you will need to pick them up at the customs office in Cheonan City after making an import report. The seller of the training outfits will be listed as GH Food Co., Ltd. since we will find the items and sell them to GH Mobile and Dyeon Korea. It will be a neat transaction."

"You know what? I want 100 more of them for GH Development as well."

"To GH Development? GH Development has less than 20 workers, doesn't it? What are you going to do with the other 80 training outfits then?"

"I'm going to give some to GH Media's workers and some to the truck drivers of GH Logistics."

"Really? Well, you will still have several outfits left. Anyway, I will send 100 to GH Development. For the items sent to GH Development, you will have to pick them up at the customs office in Seoul."

"Will the customs office call us once the shipment arrives?"

"Yeah, they will contact your office. You will probably receive a mail from them with the instruction on how to pick them up. Sometimes, you will also be contacted by some customs agencies asking if you need help with the process. Those agency companies are providing full service. They will take care of everything from reporting to delivering to your office."

"Haha, really? What a convenient world."

After getting off the phone with Jae-Sik Moon, Gun-Ho made a call to Dyeon Korea's Director Yoon.

"We are planning to give out presents to our employees for the upcoming Thanksgiving Day, aren't we? Did you decide what kind of gifts we are going to give away?"

"We haven't decided it yet, sir, but I was thinking of a gift set of some processed food like hams or cans."

"Let's add something else to that food gift set. What do you think of training outfits? GH Mobile is preparing training outfits for their employees. Dyeon Korea should do that too. You will receive 200 training outfits from China. President Jae-Sik Moon will ship them to our company."

"Mr. President Moon, sir? I guess we will have to pick them up at the customs office in Cheonan City then. I will be expecting the shipment, sir."

"Is Mr. Internal Auditor in the office now?"

"He is out to visit the stock brokerage company."

"Hmm, really? Okay."

In that afternoon, Gun-Ho received a call from the internal auditor.

"I'm at the stock brokerage company, sir. I came here to hand the report on our marketable securities to them to file."

"Good."

"There is one thing that I've noticed now though. Our company share is already split into two, so the price per share is 5,000 won. Give me one second, sir. I will have the branch manager here to explain to you about it."

"Sir, it's me, the branch manager."

"Oh, Mr. Branch Manager. How are you?"

"One of the requirements that need to be fulfilled before applying for the preliminary examination is reducing the face value of the company shares. Therefore, we, as your company's agency in this matter, already split the share into two with the price of 5,000 won. 5,000 won is the upper limit."

"Hmm, really?"

"We can split the shares to make its price 100 won, 200 won, 1,000 won, 2,500 won, or 5,000 won. We make it 5,000 won for now, and you can do a stock split later."

"A stock split…"