Story of a Big Player from Gangnam

Gun-Ho verified his available cash.

"I have 16.4 billion won left. I started from 19.8 billion won that I made from the stocks related to the Four Major Rivers Project. I purchased two condos and an automobile, formed a company, and acquired three OneRoomTels. They cost me about 3.4 billion won."

As soon as Gun-Ho found out that the branch manager of the stockbroking company in Suwon moved to another branch, he moved his stock account to the branch in Gangnam. He put 6.4 billion won in his personal bank account and left the remaining 10 billion won in his stock account.

Even in Gangnam District where there were many rich people residing in, the cash amount of 10 billion seemed to be significant. When Gun-Ho visited the Gangnam branch office of the stockbroking firm in order to move his account there, the branch manager of Gangnam office ran to Gun-Ho and took him to his office.

The staff in that branch was whispering.

"Do you know the man who just entered the branch manager's office?"

"It looks like someone with substantial funds came to open an account with us."

"But he looked young."

When the branch manager in Gangnam handed his business card to Gun-Ho, Gun-Ho also gave his business card to him.

"You are the CEO of GH Development. Probably a real estate development, I suppose?"

"Haha, that's right."

The branch manager of the Gangnam office told Gun-Ho exactly the same thing as the branch manager in the Suwon office did.

"We provide a text message service to our VIP clients only."

A pretty lady staff entered the office with coffee.

"Mr. Gun-Ho Goo, do you play golf?"

"I don't."

"According to your business card, your GH Development office is around here. Would you like to join me and play a round?"

"Haha, I don't know. I will have to leave now. I have something I have to take care of."

The branch manager walked Gun-Ho out to the main entrance and gave him a 90-degree bow.

Gun-Ho started receiving a text message from the stockbroking company about information related to stocks every day. The message was usually about the stock market trend and stock recommendation. They didn't forget to add their reasons for the recommendation.

"The stocks they recommend are all blue-chip stocks. An investor with only several ten million won wouldn't make money by investing in this type of stock."

The stock brokerage firm didn't recommend stocks that were too risky to invest in such as stocks that were being manipulated or stocks that were being influenced by politics. They only recommended blue-chip stocks that had stable earnings.

"The stockbroking firm doesn't want to be blamed in the future by recommending a risky stock."

Gun-Ho invested 3 billion won in the stocks that the stock brokerage firm recommended.

Gun-Ho received a phone call from the president of the auction private institution.

"Mr. Gun-Ho Goo? How are you?"

"Oh, sir, how have you been?"

"I'm calling to invite you for a gathering. I'm inviting everyone who graduated from my auction school."

"Oh, really?"

"There are about 20 graduates, but since many of them are busy and live too far from here in a province, I guess about 10 graduates will be able to attend. I really hope that you could come to the gathering."

"When is it going to happen?"

"It will be next Friday in the afternoon at Namyeong Town, Yongsan. I will send you a text with the address and time."

"Okay. I will be there unless something comes up."

Gun-Ho went to the gathering for the auction course graduates on Friday. It was held at a Galbi-tang* restaurant. There were 11 graduates attending the gathering. Half of those people were licensed realtors.

Gun-Ho said hi to everyone. Some looked familiar and some looked like he had never seen before. The president gave a speech.

"Umm, I asked you all to come to the gathering hoping that you could get to know each other and share information about the auction."

People clapped and poured soju to each other's glass. People there started sharing various information.

"I almost bought a townhouse apartment in Jeongreung Town, and I had to give up when I realized there were so many tenants living there."

"There are several ways you could evict them."

"I tried to buy a commercial building once, and then I gave up because it was too expensive for me. It was 500 million won. I was thinking of buying it with a business partner or something."

"I earned a consultation fee by guiding two persons at an auction."

The place was filled with the clamor of people who were talking about their experiences related to the auction. The president of the institution clapped to make them quiet.

"Attention here. Mr. Gun-Ho Goo sitting next to me, he bought a TowerPalace condo at an auction."

"TowerPalace?"

People looked at Gun-Ho all together.

"TowerPalace is located in a very popular area. Its appraised value was 1.8 billion won, and he bought it for 1.5 billion won at the auction. Its current market price is 1.9 billion won. Let's give him a big round of applause for his successful auction experience."

"Whoa, 1.9 billion won! That's awesome."

People clapped. Gun-Ho stood up and thanked them.

"Are you living there?"

"Yes, I live there. I didn't buy it for investment purposes. I bought it to live there."

"Oh, I see."

What Gun-Ho said implied that he had enough money. Everyone in the gathering seemed to be envious of him; especially a woman who looked like in her late 30s and was living in Gwangmyeong City. She was looking at Gun-Ho as if she was admiring him.

The president continued to talk.

"You can participate in an auction whether you have a lot of money, or you have a small amount of money. There are people who started with only several tens of million won and ended up growing it to several billion or several tens of billion won. Let's drink to our success! For the auction!"

"For the auction!"

Gun-Ho had never heard of the saying 'drink for the auction' before. It was funny. A realtor from Junggye Town sitting next to Gun-Ho started talking after gulping his soju.

"I love soju. If I have enough funds I would get that vacant lot in Gangdong District, that just came out on the auction market!"

The president seemed to be aware of that land.

"That one is too big. The appraised value is 4.5 billion won. Moreover, it is held in tenancy in common!"

"The tenant in common is an old man, 80 years old. It is a very attractive parcel of land. But I don't have money for it. Sh*t!"

"It's doable as long as you have enough funds. Not many people would go for it since it is held in a tenancy in common. So the auction would fail at its first and second attempts. That would make the price drop to about 2 something billion won."

"That sounds about right."

"Whew. Who would have that kind of money? Moreover, once you buy that land, you will need more money to buy the other ownership interests in the land."

"Maybe a business entity would buy it. That lot is very useful. A 15-floor office-tel building or a hotel could be built in the lot."

"I don't know… A company would face a lot of restriction if it tries to buy the lot. In addition, if the land acquisition is not directly related to the company's business, they would have to pay a lot of tax."

"Well, that's a shame. We know its true value, but we can't get it."

Gun-Ho listened intently to the conversation between the realtor from Junggye Town and the auction institution president.

When Gun-Ho returned to his office, he gave a new project to Manager Kang.

"Search a vacant lot on the auction market. The lot is located in Gangdong District. Its appraised value is 4.5 billion won, and it is held in tenancy in common."

"Gangdong District… Then the Seoul Eastern District Court would handle the case. Okay, I'm on it."

After spending quite some time, Manager Kang printed out the related information and brought them to Gun-Ho.

"The land is 200 pyung. It is on the main road; it is understandable that many investors are interested in it. However, it is held in tenancy in common, so it won't sell at the first or second try at an auction. Here is the statement about the current status of the land and its cadastral map for your reference."

"Could you bring the real estate registration and the cadaster of that land? And go visit the land."

"Okay. I will take pictures of them, and will check if there is any tenant."

"It is a vacant lot. How could there be a tenant; nothing is on the land."

"It's possible. Some people would bring a tent and sell stuff there or some people would pile up their belongings on the land. As I see on the cadastral map, the land is on the main road; its location is very good. So there's a possibility that there are people currently using the land."

"Hmm, I see. Please investigate thoroughly."

Note*

Galbi-tang - Korean short rib soup