Chapter 395 - Debt Ratio (1) – Part 2
Chapter 395: Debt Ratio (1) – Part 2
Gun-Ho asked President Song, “Didn’t you previously suggest increasing our company’s capital with my dividend?”
“Yes, I did. I’ve given a lot of thought to it and came to the conclusion that it wouldn’t be enough to lower our debt ratio. That’s why I talked to you about your 30 billion won investment fund. I didn’t want to talk to you about this fund because it is probably inappropriate to even mention it to the owner-president. However, since our company is not in good shape as far as the debt ratio is concerned, I decided to tell you.”
“Well, I will have to think about it.”
“I’m sorry that I couldn’t bring you a better solution.”
President Song who was in his 50s gave a deep bow to Gun-Ho who was in his 30s before walking out of his office.
Gun-Ho started debating with himself.
‘Do I want to capitalize on my personal investment fund? It’s not a petty amount and it is precious money to me. I do have 170 billion won in my stock account which I will never touch. I understand President Song, and maybe it’s the best way to reduce the debt ratio quickly given the current situation. However, I have to consider the fact that once I do that, I might not get it back for quite a while.’
The investment fund of 3 billion won was the fund that Gun-Ho could take back at any time because it was like he lent the money to the company. However, once it became part of the company’s capital, he wouldn’t be able to take it back as he pleased. Of course, the company’s debt ratio will be diminished dramatically by doing so. Gun-Ho calculated how much it could reduce the debt ratio if he capitalized that fund and chose not to take his dividend at the end of the year. According to his calculation, the debt ratio would be reduced to 250%. The debt ratio would be even reduced more the following year assuming the company would generate earned surplus.
‘If the average debt ratio in the industry is 160%, we will have to reduce our debt ratio to 100% in order to successfully register with KOSDAQ.’
Gun-Ho felt a headache, and he was thinking of getting a massage to release stress, and then he decided not to.
‘I will have to go with Chan-Ho Eum, and I don’t want to reveal all of my personal activities to him. It’s certainly convenient to have a chauffeur but this is a problem. Hmm. Well, I will just go to Onyang Hot Spring Hotel and take a sauna instead.’
Gun-Ho called for Chan-Ho Eum.
“Chan-Ho Eum!”
“Yes, sir. I’m here.”
“Let’s go to Onyang Hot Spring Hotel.”
“To Onyang Town, sir?”
“Well, I changed my mind. Let’s go to Spavis.”
Asan Spavis was a hot spring resort located in a mountain in Eumbong Town, Asan City.
There were not many people at the spa. It was nicely quiet and serene.
Gun-Ho went into a hot sauna room and started thinking.
‘Should I capitalize on my 3 billion won? Or not? Either way, it is my money, and it would stay that way. The problem is that it would be hard for me to liquidate the fund.’
Gun-Ho kept thinking while he was in the sauna room and also after he moved to a hot tub. Chan-Ho Eum didn’t stay long in the spa and took a quick shower before leaving the place.
Gun-Ho closed his eyes to focus on his thought. President Song’s face popped up in his head.
[Sir, once we successfully register with KOSDAQ, we can procure funds easily and it wouldn’t matter whether we have a high debt ratio or low debt ratio. Please increase the capital with the fund you lent to the company.]
Gun-Ho opened his eyes.
‘Okay, I will do that. I do, in fact, have a lot of money after all.’
Gun-Ho walked out of the spa and had Bibimbap* in a hot stone bowl with Chan-Ho Eum before heading to Dyeon Korea.
When he entered his office, he found a pile of financial documents on his desk placed by Accounting Manager Jo. It took only 30 minutes for Gun-Ho to review and sign the documents. He called for Manager Jo.
“Take the documents and tell Director Yoon to come to my office.”
“Yes, sir.”
After a moment, Director Yoon came to Gun-Ho’s office.
“Did we receive the machine no. 9 and no. 10?”
“We are expecting to receive them by tomorrow.”
“Send all the products we would produce with the machines no. 9 and no. 10 to China.”
“Yes, sir.”
“If we don’t get paid within three months after we send our products to China, don’t send the products to them anymore.”
“Yes, sir.”
Director Yoon wrote down the instruction that Gun-Ho gave.
“Sir, we will need to hire ten more workers for the production site. We need more manpower once we have two additional machines.”
“Do we need ten workers right away? We don’t want to hire too many workers at a time if not necessary.”
“We do need that many workers in the production department, sir. Our current sales revenue per employee is 1.5 times higher than GH Mobile’s.”
“GH Mobile is a manufacturing company of auto parts while Dyeon Korea produces raw materials. We can’t compare revenue per employee between the two companies.”
“Well, that’s true, but even if we compare with other competitor companies, our revenue per employee is higher than the industrial average.”
“Okay. Let’s hire ten more workers.”
“Yes, sir. I will post the job opening right away.”
After Director Yoon left the office, Gun-Ho started dozing off again in his office. He woke up to the sound of a notification from his cell phone. It was a spam notification.
“Shoot. The da*n spam woke me up. I hate it. This is so annoying.”
Gun-Ho mumbled, and then he started surfing the Internet with his smartphone. One news drew his attention. It was about Egnopak.
[The passenger who caused a disturbance on Korean Air was Egnopak’s president’s son— Dong-Hwan Kim. He was taken into custody after being escorted off the plane.]
“He is still doing it.”
Gun-Ho made a call to Chan-Ho Eum.
“Hey, Dong-Hwan Kim is in trouble again. You know, the one who we gave a lesson the other day in a bar in Samsung Town. It’s all over the Internet.”
“Oh, the dude whose father is some company president?”
“Yeah, that’s him.”
“I guess we should have been tougher with him. It seems that he hasn’t learned his lesson yet.”
“I wonder if he has any criminal record.”
“I don’t know about that, but look at all the comments to the news. Everyone said that guy would be released soon since he has a father with money.”
“Well, since people already know the possible injustice that would happen, it wouldn’t be easy for the police to release him.”
“Well, who knows? The court might let him go by saying that he was drunk and was under intoxication so he couldn’t form any necessary intent or something.”
“Chan-Ho, you seem to know a lot.”
“Haha. I just heard things from here and there.”
When Gun-Ho got off the phone with Chan-Ho Eum, Director Kim entered Gun-Ho’s office.
“Director Kim, did you see the news? Egnopak’s president’s son got arrested again.”
“I actually just came back from Egnopak.”
Note*
Bibimbap – Cooked rice with various vegetables and meat mixed together with Korean red chili paste.