Story of a Big Player from Gangnam

Chapter 853: Isehara Machines (2) - Part 2

Secretary Seon-Hye Yee brought another cup of jujube tea to Gun-Ho's office and served it to the internal auditor. The internal auditor took a sip of the tea and said to Gun-Ho, "Since we are now a public company, we should distribute dividends, shouldn't we, sir?"

"I think we should. How much do you think would be adequate?"

"I'm not sure, sir. We will have to see the year-end financial statement to be certain about the amount for dividends, but my guess is that each shareholder will probably get about 350 won per share."

Gun-Ho, who was always good and quick at mental computation, took out a calculator this time.

"Assuming we make net earnings of 10 billion won this year… since the total number of stocks issued is 26 million, that will make it 384.6 won to be exact."

The internal auditor took the calculator that Gun-Ho just used, and he calculated something and said, "GH Mobile owns 9 million shares, so it will receive 3.46 billion won as a dividend this year then."

"We have now a higher estimated value per share, but the dividends don't seem to be high."

"Sir, it is high enough. There are tons of companies that are suffering from loss. They can't even dream about distributing dividends. Some business owners of mid-size companies said that they want to make enough money to pay for corporate tax. Many of them don't even have to pay for corporate tax because their earnings are very low."

"Really?"

"If GH Mobile receives a dividend from Dyeon Korea this year, are you going to use it to pay for its debt?"

"I'd better pay for the debt."

"GH Mobile's debt seems to decrease a lot. I believe it has around 45 billion won of debt now. That is not bad at all. I think it can keep it as it is."

"I don't know."

"President Song told me the other day that he is anticipating that GH Mobile will make more than 180 billion won this year. If that's true, their debt of 45 billion won is nothing, sir. Assuming the loan interest is 2%, the monthly interest to pay is only a bit more than 200 million won. Moreover, half of 45 billion won of debt has zero interest rate. That means, the actual monthly loan interest is about 100 million won, which is not big enough to worry about. I think you should take your dividend from GH Mobile this time, sir."

"Well, I will think about it."

After the internal auditor left the office, Gun-Ho leaned back on the sofa and thought about it with his eyes closed.

'If GH Mobile's net profit after tax is 10 billion won, its profit for this year will be 13.4 billion won including the dividend of 3.4 billion won from Dyeon Korea. If we don't use any of those to pay for debt this year, how much will I receive for my dividend?

I own 82% of GH Mobile after subtracting the ownership interest of Minister Jin-Woo Lee's father—Mr. Beom-Sik Lee—and President Son. Then how much will I receive? Let me see…'

Gun-Ho took out the calculator again. It was 10.988 billion won.

'So, more than 10 billion won will be put in my pocket. I will have to pay tax for the amount though.'

While thinking about the dividend sitting on the sofa, Gun-Ho felt sleepy. He soon fell asleep and started snoring. After a while, he woke up to the sound of his smartphone. Someone sent him a text message. It was from SH Investment Partners' President Geun-Soo Son.

"Oh, gosh. It's already after 4 pm."

Gun-Ho read the text.

[We bought 10,200 shares today, at 5,400 won per share.]

Gun-Ho replied to the text right away.

[Well done.]

After drinking a bottle of water, Gun-Ho called for Secretary Seon-Hye Yee.

"Please have Chan-Ho Eom wait for me at the entrance. I'm going home for the day."

"Yes, sir."

On the way home in his car on the expressway, Gun-Ho made a call to SH Investment Partners' President Geun-Soo Son.

"I received your text message earlier. I want you to keep on doing the same thing tomorrow and the day after tomorrow until the funds are exhausted."

"Understood, sir."

"And, since the company is legally established, I want you to file the Four Major Public Insurance for you and Ms. Seung-Hee Park."

"The Four Major Public Insurance, sir?"

"I want everything to be done in a lawful way. You can ask Ms. Seung-Hee Park to take care of filing the Four Major Public Insurance. She used to work for an insurance company, so she should know how to handle it."

"Yes, sir. We have two empty desks here. She can use one of them. I will ask her to stop by the office to take care of it. And, sir, I know how much I get paid, but how much Ms. Seung-Hee Park will be paid?"

"Ms. Seung-Hee Park is working part-time only, so she is getting paid 1.5 million won per month, while you receive 3 million won on a monthly basis."

"Yes, sir."

Two days passed.

Gun-Ho was sitting in his office at GH Building on the 18th floor when Mr. Yoshitaka Matsui, who was working on the 17th floor at the same building, came up to see Gun-Ho.

"Sir, I'm leaving for Japan today."

"Is that about the business trip to visit Isehara Machines?"

"That's right, sir. I'm meeting Mr. President Jong-Suk Park at the Gimpo International Airport."

"I was told that Mr. Sakata Ikuzo in Yokohama City would join you for the trip."

"Not just Mr. Sakata Ikuzo, sir. But, the former Miura Machines' plant manager—Mr. Yanagi Masatoshi—is coming with us as well."

"Who are you meeting with in Isehara Machines?"

"We will meet with its president, their executive officers from the purchasing department, and also their plant manager, sir."

"I appreciate your help, Mr. Yoshitaka Matsui. Ever since you joined GH Media, you've been helping us a lot with other matters that are not directly related to GH Media's work."

"Don't mention it, sir. I'm not doing this for free, but I get paid per day as GH Machines is outsourcing the work to me."

"That pay is going to GH Media, instead of going to your pocket. You are disappointed about it, aren't you?"

"Not at all, sir. GH Media pays that amount as an expense for my business trip after deducting applicable taxes, sir."

"Well, that can be deemed as extra work for GH Media then."

"GH Media is part of GH companies. I'm just grateful that I have a job that I like at my age."

"Haha, really?"

"Well, sir, I will leave for the airport now if you don't have anything further to talk to me about."

Gun-Ho received a call from Jong-Suk Park.

"Bro? It's me."

"Yeah. I just heard about your trip to Japan from Mr. Yoshitaka Matsui. Are you leaving now?"

"Yeah. I'm on my way to the airport. I'm going with the worker who is handling trading work in GH Machines. I'm supposed to meet Mr. Yoshitaka Matsui at the Gimpo International Airport."

"Have a safe trip."

"Thank you."

"Did you prepare some gifts for the people in Isehara Machines?"

"Yeah. I thought I should bring something for them, and I bought some ceramics."

"Ceramics?"

"Yeah. I didn't know what to prepare for them. I was not sure what Korean stuff that Japanese people like, so I just bought some ceramics. I can't give them dried seaweed or Gimchi, can I? Those could look too trivial especially at the business level, don't you think?"

"Ceramics sound good."

"The thing is that they are so heavy. My arms are feeling so tired already. The worker who is handling trading work is helping me to carry them. With his help, it's much easier to carry them around. Haha."