Story of a Big Player from Gangnam-Chapter 888 - Selling Major Shareholder’s Stock (3) – Part 1
Chapter 888: Selling Major Shareholder’s Stock (3) – Part 1
As Gangnam Stock Brokerage Company’s branch manager predicted, Dyeon Korea’s stock price continued to drop until it reached 20,000 something won, and it was maintaining that price range. Both buy requests and sell requests had noticeably reduced, resulting in a dramatic decrease of its trading volume.
Moreover, there was no additional input to the stock market from Party Leader Jin-Woo Lee or his political party.
“It is going in the direction just like the branch manager of Gangnam Stock Brokerage Company said.”
Gun-Ho was thinking about what he would do with the funds that were accumulated in Dyeon Korea’s reserve.
‘We have 55.6 billion won in addition to the funds that we made from our sales activities. Should I distribute all of them to the shareholders as dividends? But, since it is a joint venture company, I have to share it with Lymondell Dyeon. GH Mobile and Lymondell Dyeon will receive 27.8 billion won for each.
All Lymondell Dyeon invested in Dyeon Korea are those old and rusty machines that they claimed worth 4.5 billion won. If they get 27.8 billion as their dividend this time, they are making way more than they invested. That American company will take a lot of money from Korea.
I can acquire a good business entity through M&A instead of distributing to the shareholders. 55.6 billion won is enough to do it. With 55.6 billion won, I’m sure I can acquire even a public company that is already registered with KOSDAQ. But, that I have to share with Lymodell Dyeon too. Dyeon Korea is a joint venture company where I have to share everything with Lymondell Dyeon. I will have to share the management right equally with them as well. That won’t be fun.
Maybe I should distribute 55.6 billion won as dividends, and once GH Mobile gets its dividend of 27.8 billion won, I acquire a company with that money via M&A then. Or, I can distribute that 27.8 billion won as dividends again, and I get the money to my personal account. I have 82% of GH Mobile’s ownership interest, so I will receive at least 22.8 billion won. Well, I will have to pay for corporate tax and income tax for the dividend and stuff, so the amount that will actually fall on my hand will be about 15 billion won.’
Gun-Ho was thinking about all sorts of possibilities on how to utilize that 55.6 billion won sitting in Dyeon Korea.
“It’s cumbersome to do things in a way that I want, in a joint venture setting. I can’t just take out money as I please because it is a joint venture.”
Dyeon Korea was not owned by an individual— Gun-Ho Goo, but it was owned by two major shareholders— GH Mobile and Lymondell Dyeon. Gun-Ho couldn’t just take the company’s profits as he wished. If he wanted to take the funds, he had to do it through GH Mobile, in a way that Dyeon Korea would distribute the profits to GH Mobile, and then GH Mobile would distribute to Gun-Ho.
Gun-Ho then thought about dissolving SH Investment Partners since its purpose was already served.
‘I achieved my goal with SH Investment Partners. I no longer need that company. On papers, SH Investment Partners is wholly owned by an individual— Seung-Hee Park. So, in order to retrieve the funds, the funds have to go to Seung-Hee Park first and then come to me.
SH Investment Partners is currently holding my money— 136.8 billion won. That money was made from selling my 3 million Dyeon Korea’s stock at 45,600 won per share on average. I wonder if I can just move the funds around like that; it’s a substantial amount of money. I hope it doesn’t cause any problems. Because I used someone else’s name to trade stocks and make money, if I get caught, I will be subject to a huge amount of fine.
I will have to educate Seung-Hee sister when I see her next time, so she won’t cause any problems. She will have to know what to say if someone asks her about the funds. She needs to say that those funds are from multiple investors since she is running an investment company. Let’s move the funds to my bank account as soon as possible. It is never a good idea to let my money sit in someone else’s account under their control. It usually brings a new problem. I will transfer that fund to Seung-Hee sister’s account, and then I will transfer it to my account. I will take care of the corporate tax and income tax stuff later when they are imposed next year. I’d better move the fund to my account for now.’
Gun-Ho pulled out Seung-Hee sister’s bank book from his desk drawer to verify the account number, and then he sent a message to SH Investment Partners’ President Geun-Soo Son through KakaoTalk.
[Mr. President Son, I hope you are doing well.
Since we sold all of our stock, many of our investors want to retrieve their investment profits as soon as possible. For now, I want you to transfer the entire fund that we have in our company’s business account to Ms. Seung-Hee Park’s bank account. I’m sending you her bank account information.]
Gun-Ho never said that those funds were his money. He ensured that President Son understood that money belonged to other investors.
As soon as he sent his KakaoTalk message to President Son, he received a call from him right away.
“It’s me, sir. Do you want me to transfer all of the 136.8 billion won like every penny?”
“Yes, that’s what I want you to do.”
“But, sir, SH Investment Partners needs operating funds. We are currently using the company’s business credit card, and we have to pay the rent for the office as well.”
“Well, then leave 100 million won, and transfer the remaining 136.7 million won to Ms. Seung-Hee Park’s account. Our investors want to retrieve their investment funds and profits as soon as possible.”
“Understood, sir. I will send the entire 136.7 million won to Ms. Seung-Hee Park’s bank account, leaving 100 million won in the company’s business account.”
“Do not send the fund at once, but send them through several days.”
“Yes, sir. Once the transfer is completed, I will give you a report, sir.”
“I won’t work until the end of this year, so I want you to take a rest too, reading a book or something in the office.”
“Yes, sir. But, I feel sorry that I get paid without working.”
“You don’t have to think that way. You’ve done a lot of work for SH Investment Partners already.”
It was December.
Things were quiet in GH companies. Things were quiet in politics as well as the including Party Leader Jin-Woo Lee and his political party. Party Leader Jin-Woo Lee was very careful whenever he was asked about the possibility for him to run for next President, and he was very skillful in doing so.
Senior Director Hyeong-Woo Lee found a good factory in Dongguan City next to Guangzhou City in Guangdong Province, and he made a verbal contract for it. The factory was 2,600 pyung large sitting on 5,200 pyung large land. The factory building was well equipped with good power capacity and water supply. It was located in an industrial park, so it can be assumed that its infrastructure was good as well.
Gun-Ho was looking at the pictures of the factory, that were sent by Director Hyeong-Woo Lee. There were several of them.
After reviewing them, Gun-Ho made a call to Director Hyeong-Woo Lee. Director Lee’s voice was cheerful for some reason.
Gun-Ho said, “I received the pictures of the factory that you had sent. How much are they asking for the factory?”
“They are asking for 2.8 billion Korean won, sir. Real properties in China are pricey, especially given the fact that we won’t own them, but we are just buying the right to use them. This country is a socialist country after all.”
“Well, I will send Director Kim to the location. Director Kim has extensive experience dealing with acquiring a factory building. He will be more helpful than me.”
“Yes, sir.”
“How are you doing there? You don’t have an office there, and you don’t have a car either. It must not be a comfortable setting for you.”
“It’s okay, sir. It’s not like I have to work all day long.”
