Story of a Big Player from Gangnam

Chapter 816: Expanding Business by Having More Subsidiary Companies Overseas - Part 1

Gun-Ho left GH Machines and headed to Dyeon Korea. When he arrived there, Director Kim was still in his office; he was usually out in a meeting with a client. So Gun-Ho decided to have an executive meeting.

All of Dyeon Korea's executive officers including Director Kim, Director Yoon, the internal auditor, Manager Yoo, and Mr. Vice President Adam Castler came to Gun-Ho's office per Gun-Ho's request.

Secretary Hee-Jeong Park prepared 7 cups of jujube tea. There were 6 executive officers including Gun-Ho, but she brought one more tea for the interpreter— Myeong-Joon Chae.

Gun-Ho was sitting in the middle at the table. He said first after sipping his tea, "I can tell that Dyeon Korea is experiencing a lot of changes ever since it became a public company. We are getting a lot of calls and visitors as well. This is a very important time for us to build up our company's public image. We will have to train and educate our employees to behave accordingly. I'm sure our sales have increased lately. Am I right? Mr. Director Kim, how are we doing with the sales?"

"We are making more than 200 million won comfortably on a monthly basis. The average daily sales revenue is a bit short of 250 million won."

"It would make our monthly sales revenue by about 7.5 billion won."

"What about our business abroad? Mr. Vice President Adam Castler, please tell us how we are doing overseas."

"Both Dyeon India and Dyeon Korea sell equally 4 tons of products per day. Each company is selling about 120 tons on a monthly basis."

"How much would that make our monthly sales revenue?"

"The monthly sales revenue is 540 million won. As you know, Dyeon India is a recently-formed company, unlike Dyeon China. Dyeon India's Mr. President Brandon Burke has been working so hard in establishing its client base by procuring businesses with mostly European companies in the Chennai area. As a result, Dyeon India is now generating about the same sales revenue as Dyeon China."

"Hmm, I see."

"As far as I know, there are a lot of Korean companies in Chennai, India, and those are certainly Dyeon India's potential clients. I mentioned it last time that if Director Kim could visit Dyeon India and help them with earning business with those Korean companies, that would be enormously helpful. I understand that Director Kim has been extremely busy with having Dyeon Korea go public successfully and that he didn't have time to go on a trip to India yet. I would like to make an official request again for Director Kim's trip to India."

Gun-Ho turned his gaze to Director Kim, and he asked, "What do you think, Mr. Director Kim? If you have time, why don't you go on a trip to India and help them out? What about next week?"

"Next week sounds good, sir. I will do that."

Mr. Vice President Adam Castler added, "And, Dyeon India and Dyeon China both requested two additional machines for each. So, we placed an order of 4 sets of machines to GH Machines, and they finished building 2 of them so far. We shipped 1 machine to each company abroad— Dyeon India and Dyeon China."

"Hmm, really?"

Gun-Ho then looked at Manager Hee-Yeol Yoo from the production department and asked him, "Director Kim stated that we are making about 250 million won per day from sales. We don't have any problems with production fulfilling the current production demand, do we?"

"We are doing fine for now, but I think we will need to hire more production workers sooner or later. I've already submitted the request to hire 30 more workers, to Mr. Director Yoon."

When Gun-Ho turned his gaze to Director Yoon to hear his response, Director Yoon straightened up his posture and cleared his throat, and said, "We had placed our job openings on WorkNet earlier per Manager Yoo's request, and we have already completed paper screen for the job applicants so far. Our first interview for those who passed the paper screen is scheduled for tomorrow."

"So, we are planning to hire all of 30 workers this time, right?"

"Yes, sir. Our company is now recognized as one of the companies that are registered with KOSDAQ, and that is clearly shown in our job postings with WorkNet. As a result, we received tons of applications, way more than before. And, one more change that I observed is that we see many young people applying for the positions."

Director Kim chipped in, "I don't think old people will even try to apply for the positions with our company because they probably assume that we wouldn't hire them because of their age. Since we are a public company now, they probably presume that the competition for the jobs would be highly competitive, and many of them would just give up applying for the job that they have a low chance to get."

Director Yoon further described the situation with hiring new workers, "We have 30 open positions, and we received 750 applications. 60 out of 750 applicants were selected during the paper screen, and we will conduct face-to-face interviews with them."

"Once we hire 30 new workers, Dyeon Korea will have 230 employees in total?"

"If we include the workers abroad in China and India locations, the total number of our workers will be around 300."

Gun-Ho affirmed, "Dyeon Korea will grow continuously, and we will grow large enough to have more than 1,000 workers within 3 years."

Director Kim nodded his head and said, "I believe so, sir."

Gun-Ho continued, "Mr. Director Yoon, I want you to make a plan to provide our management personnel with appropriate management training. As we are growing with an increased number of workers that we have to manage, the management personnel will need training to make an efficient and organized work environment."

"Understood, sir. The manager in our general affairs department is currently working on planning and scheduling the training of our workers for next year. Once it's completed, I will give you a report about it, sir. The training plan is being designed according to different levels of positions."

"Hmm, that sounds good."

"We will include job training as one of the requirements to have a chance to be promoted, so those, who didn't take relevant job training, will be excluded from the next promotion opportunities."

"Please do so."

As he was wrapping up the tentative meeting for the day, Gun-Ho asked the last question which was directed to the internal auditor, "If we combine the operating profit from our sales activities this year and the funds that we receive from the stock public offering, the amount must exceed 30 billion won. Am I right, Mr. Internal Auditor?"

"Yes, we have more than 30 billion won, sir."

When the internal auditor confirmed that the company made more than 30 billion won, the people in the office except for Gun-Ho and the internal auditor groaned with surprise.

"Wow! 30 billion won!"

Gun-Ho quickly did the math in his head.

'We initially planned to offer our stock to the public for 600,000 shares at 10,000 won, but we ended up splitting a share in half, so we actually made the public offering of 1.2 million shares at 5,000 won. 1.2 million shares were sold at 26,200 won, and we made 31.44 billion won from it. In addition, we have about 10 billion won in the reserve from our sales.

Once the meeting is over, I'm going to ask Accounting Manager Myeong-Sook Jo to bring me the statement of cash flows and bank statements.'

Gun-Ho said to all of the executive officers in the office, "The main purpose of Dyeon Korea going public was to collect necessary funds to establish more subsidiary companies overseas. As you all know well, Lymondell Dyeon gave us the exclusive right to sell in the entire Asia Market. This is clearly stipulated in our joint venture contract. We want to make the most out of it."

"That's true, sir," Mr. Adam Castler agreed.

Gun-Ho took a sip of his jujube tea before continuing to say, "Therefore, I want to have two more manufacturing facilities overseas as a start."

Everyone in the office looked at Gun-Ho's face.

"For the countries such as Indonesia, Vietnam, Uzbekistan, and the Middle East, we are not yet equipped with enough experts in our company to enter the market. Therefore, I want to have two additional factories in the northern area of India— Noida— and in the suburb of Beijing in China."

Gun-Ho could only hear dry coughs, but no reply, no opinion, nor comment.