Story of a Big Player from Gangnam

Chapter 241: Egnopak’s President is Furious (3) – PART 2

“That’s why Egnopak’s president is furious because he lost the opportunity to do a joint venture with Lymondell Dyeon after all. He even called me and screamed with cursing words on the phone, then he said I was an arrogant jerk. If he wanted to vent his anger in the deal break with Lymondell Dyeon, he’d better do that with Lymondell Dyeon and not me. He was very rude and unreasonable to me first, and now he is telling people that I am the one who is arrogant and not a decent person. That’s preposterous.”

“Is that all true?”

“You can do your own investigation by quietly meeting with the workers from Egnopak and GH Mobile, and see which president is really a bad person. There is even a rumor about Egnopak’s president’s sexual misconduct.”

“Sexual misconduct?”

“I heard that when I attended the meeting for business owners in Chungnam Province the other day, held at Onyang Hot Spring Hotel. I heard his sexual misconduct was committed against a female secretary.”

“I heard you, President Goo. I will summarize what I just heard from you and make a report to our president. By the way, so you really will have a joint venture with Lymondell Dyeon? With GH Mobile?”

“We haven’t signed on a formal contract yet. We signed a letter of intent last time. They already visited our factory in Korea.”

“So, they already visited your factory and the land for a new factory is ready. I guess you will make a contract soon. GH Mobile is awesome. It is not even a big company. It is incredible that you will start a joint venture with a global enterprise like Lymondell Dyeon.”

“The economic newspaper already covered about our joint venture with Lymondell Dyeon.”

“Really? I haven’t read a newspaper for a while. Well, I do congratulate you on the joint venture. And I will give a report to our president.”

“Mandong Company and our previous company— Mulpasaneop have worked together for a long time. We do want to keep our relationship as such in the future as well. I hope you and the president of Mandong Company understand the situation fairly.”

“I heard what you said, President Goo.”

Gun-Ho received a call from Min-Hyeok Kim and he said he made a contract with a new customer— another window manufacturing company.

“Did Seukang Li introduce the company again?”

“No, actually, the president of Jinxi Construction Company— Chinkkweo Seon introduced this company to us this time. I guess the cosmetics gift you gave to him last time was effective.”

“Haha. I doubt he would do that for a gift.”

“So, I asked my mom and dad to buy some cosmetics at the airport duty-free shop when they come to China.”

“Oh, your parents are visiting you in China soon?”

“They will meet with my fiancée’s parents in Shanghai.”

“Oh, I see. That’s nice.”

“My mom and dad are studying Chinese in a learning center these days.”

“Haha. Really?”

“Oh, I was going to let you know. We already paid all the remaining balance for the storage we purchased. I haven’t hired any security guard yet since the storage is currently empty.”

“Okay. Keep up the good job.”

The internal auditor, Director Yoon, and Jong-Suk Park came back from their short trip to Seoul.

The internal auditor made a report to Gun-Ho first.

“I’ve met with President Park of RiverStart Building and also with their accounting manager. She organized all the necessary information in Excel including the liens, security deposits, rental income, etc. She said she was expecting us and prepared the file for us.”

“Given all the new information you acquired, how much do you think we need to make an offer of?”

“If we can buy that building for under 200 billion won, it is a good price. If we can do that, we will need 40 billion won in cash, since we have security deposits that we need to consider.”

“Do you think there won’t be any problem in running that building if we purchase that building for below 200 billion won?”

“The building requires loan interest, labor cost, operating cost, depreciation cost, and maintenance reserve. If we consider all of the above, the building owner will make the profit in the range of 80 and 100 million won on a monthly basis. Since you will have to use your cash of 40 billion won, it’s more like an interest income from a bank if you save that 40 billion won with a bank. It’s a bit higher than a time deposit rate with a bank.”

“So I would make more money if I run a factory that would cost me 40 billion won.”

“Well, you need to consider the value of the building and its price will increase. Also you can raise the rent next year. It’s really hard to compare with a factory considering only a few factors.”

“How much do you think the building owner will make from this sale?”

“That is the problem, sir. The seller would ask at least 210 billion won, so he could make 10 billion won.”

“What if I decline that high price?”

“Then, he wouldn’t sell it since he wouldn’t make much money out of the sale. Even though he currently doesn’t make much by running the building, he is not losing money either by keeping it.”

“Hmm.”

“I will give you a report about what I found from yesterday’s trip.”

Director Yoon said while holding a piece of paper.

“Okay, go ahead.”

“I verified the building’s design drawing with the Director Yoo person. I couldn’t take that drawing with me since the building is still theirs.”

“That makes sense.”

“I found cracks in several places. If we acquire that building, we will have to fix those areas. We also need to replace the guardrail at the emergency exit on the 4th floor. Water is leaking in the basement, and that should be addressed as well. Other than that, I haven’t seen any other problems.”

It was Jong-Suk-Park’s turn to make a report.

“The boiler room was fine. Some of alarm bells are out of order though. The machine in the basement parking lot is not working. The elevator works well and it seems that they recently fixed it. I didn’t see any other area to be fixed.”

“Okay. Thank you all.”

Gun-Ho started thinking while sitting at his office by himself after the three workers left the office.

“Should I acquire that building with my 40 billion won?”

Gun-Ho calculated with his electronic calculator.

He still couldn’t decide whether he should or he should not buy that building. He made a phone call to the bank branch manager in Gangnam.

“If I decide to acquire a building in Sinsa Town, which is priced for 200 billion won, can you support me 65% of the price?”

“I will have to discuss it with our head office first before I could give you the answer.”

“Why don’t you talk with your head office and get back to me?”

Gun-Ho made a phone call to the building owner— President Park.

“I will give you 90% of the appraised value.”

“I can’t sell you the building for that price. I have to make something out of the sale, right?”

“I can’t bring more funds on the table.”

“Then we have no deal.”

“Okay.”

Gun-Ho hung up the phone, and he hadn’t made a phone call anymore to President Park for a while. President Park hadn’t called Gun-Ho either.

Gun-Ho received a call from the bank branch manager in Gangnam.

“I talked with our head office. We can lend you 60% of the appraised value of the building.”

“That means I can’t buy that building.”

“Instead, Gangnam Capital which is one of our group will support you the other 5%. That will make 65% loan that you initially requested.”

“Capital gives a loan at a high-interest rate.”

“That... nothing much I can do about it.”

Gun-Ho made a phone call to Chairman Lee in Cheongdam Town.

“Have you met with President Park?”

“Yes. I offered him 90% of the building’s appraised value, and he rejected the offer.”

“90% should be enough. He shouldn’t ask more than that. He probably wants to take the building with him when he dies.”

“He said, he won’t make any money if he sells his building for that price.”

“Hmm, really? Let me talk with him.”

Chairman Lee hung up the phone.