Chapter 700 - : Employee Stock Ownership Plan (1) – Part 1
Chapter 700: Employee Stock Ownership Plan (1) – Part 1
Gun-Ho received a call from his sister. She said that she would need to buy more trucks for GH Logistics.
“GH Mobile and Dyeon Korea, each of them requested us two additional 4-ton trucks to handle their recently increased product orders. My husband went to GH Mobile and Dyeon Korea this morning. Their general affairs directors asked him to come and visit them to discuss it.”
“Is that right?”
“So, we already took out a loan from the bank using our office building as collateral.”
“There was no problem taking out the loan?”
“Not at all. The loan process was simple and easy.”
“Are you going to buy new trucks with cash?”
“Of course not. My husband has a friend who is selling used cars. We are going to buy used trucks from him on installment.”
“That’s good. That way, you won’t have to use a large amount of money at once, huh?”
“No, we won’t.”
“How many trucks do you have now?”
“If I include those 4 trucks that we will bring in soon, it will be 31 trucks. We have 27 right now.”
“Even if you don’t make a lot of profits in running GH Logistics, as long as you don’t lose money, that’s good enough.”
“Yeah. We are actually happy with our current status. My husband is driving a nice car, and we both get paid monthly. Moreover, since we run the business, we are the boss.”
“Haha. That’s right.”
“Jeong-Ah became noticeably more active in school now, equipped with a lot of confidence. She is the class president. Her classmates and friends know now that her father is running a transportation company, and she feels so proud of it. She even spends a lot of money to buy snacks and stuff for her friends, implying that she is from a rich family or something, I guess.”
“Haha, really?”
“Oh, your child will soon be 100 days old, won’t he? Where are you going to have a party to celebrate his 100th day?”
“I was thinking of somewhere between Incheon City and Gangnam District, Seoul. Somewhere in the middle of those two areas would be great. What do you think of Yeouido Island?”
“Yeouido Island is good. If you can find a place where a subway station is close to, that would be even better.”
“I want to have a private party just between family members only, no other guests from outside family for this occasion.”
“That’s good too.”
Gun-Ho went to work in Dyeon Korea first that day. He usually went to GH Mobile in the morning and went to Dyeon Korea in the afternoon, but that day, he had to attend an executive meeting in Dyeon Korea. When Gun-Ho arrived in Dyeon Korea, there was still some time left until the meeting.
While Gun-Ho was sitting at his desk, Director Kim came into his office.
“Today is not our regular meeting day, but you are calling an executive meeting, sir. I guess that there is something very important that you want to announce or discuss, right, sir?”
“That’s right. Since we are now certified as a startup company with technology, I have a few things to go over with the executive officers and also discuss something.”
“Are we going to apply to register with KOSDAQ this year?”
“I haven’t heard anything about it from Lymondell Dyeon yet. I was thinking that maybe we should grow our company a bit more before registering with KOSDAQ.”
“Of course, that would be nice.”
“So, I’m thinking about establishing a manufacturing company in China and India since we have some extra cash in reserve that both partners recently contributed in order to increase the capital.”
Director Kim didn’t say anything, but he nodded his head.
Gun-Ho continued, “Also, I’d like to talk about dispersing the company shares. I intend to distribute only 10% of our capital to the employees.”
“Right, we will have to disperse the company stocks as part of the preparation for going public. The thing is that since many of our employees have been working with us for less than a year, we will possibly see a lot of forfeited shares. I think we should do it with GH Mobile. GH Mobile owns half of Dyeon Korea anyway.”
“That sounds good. I was thinking about the same thing as well.”
“Once the employee stock ownership plan becomes official as it will be decided during the executive meeting today, I will have an information session for our employees to help them understand what it is and how they can own a piece of our company. I will have our 150 workers gathered in the auditorium for it. I just need 30 minutes to explain it to them.”
“If you could do that, that will be great.”
While Gun-Ho and Director Kim were having a conversation, Vice President Adam Castler came to Gun-Ho’s office accompanied by the interpreter—Assistant Manager Myeong-Joon Chae.
“Sir, I brought the response from Lymondell Dyeon about the thing that you suggested to them the other day,” Mr. Adam Castler said as he placed a letter written in English, which was faxed by Lymondell Dyeon in front of Gun-Ho. He was smiling broadly.
Gun-Ho said, “Well, I can’t read it. Mr. Assistant Myeong-Joon Chae, will you translate the letter for me?”
“Here is the translated version, sir.”
“Hmm, can you read the Korean version of the letter loudly for us? Mr. Director Kim here will listen to it with me.”
“Yes, sir.”
Mr. Myeong-Joon Chae started reading the letter in Korean that he translated earlier.
“First, Lymondell Dyeon consents to the plan that Dyeon Korea suggested—establishing a manufacturing company in China and India. The only thing that we’d like to point out is that we don’t want the initial investment cost for each country to exceed 5 billion won.”
“Hmm.”
“Secondly, Lymondell Dyeon consents to the stock dispersion plan of 10% of the capital, in preparation for registering with KOSDAQ. The employees will have the priority to purchase the company shares. However, since we can’t expect all of the Dyeon Korea’s employees to be able to come up with necessary funds to purchase 10% of shares, we will allow GH Mobile’s employees to participate in purchasing the shares as well.”
Gun-Ho asked, “Is that all?”
Assistant Manager Myeong-Joon Chae continued to read the rest of the letter, “Third, we agree to bring up these two matters during our board meeting this year. Accordingly, we can have our next board meeting on paper only. April 30, 20xx. From Vice President Brandon Burke of International Business Development Department of Lymondell Dyeon in the United States.”
As soon as Mr. Chae finished reading Lymondell Dyeon’s responding letter, Director Yoon entered Gun-Ho’s office to inform that it was time for the meeting.
“It’s almost time to begin our executive meeting, sir.”
“Oh, it’s already time? Well, let’s go to the meeting room then.”
When they arrived at the meeting room, there were Manager Hee-Yeol Yoo and the internal auditor sitting at the table. They stood up from their seats when they saw Gun-Ho coming into the room.
Gun-Ho sat in the middle of the table, and Mr. Adam Caslter and Director Kim sat next to each side of Gun-Ho. And Director Yoon and Manager Yoo sat next to each of them.
“Who’s going to record our meeting today?”
“I will do it,” Director Yoon volunteered by raising his right hand and saying it. Interpreter Myeong-Joon Chae was sitting right behind Vice President Adam Castler. Director Kim turned around and said to Myeong-Joon Chae, “Hey, Mr. Assistant Manager Chae! You shouldn’t disclose what you are going to hear during this meeting with anybody outside this room. You know that, right?”
“I won’t, sir.”
Secretary Seon-Hye Yee brought seven glasses of beverage on a tray to the meeting room.
Gun-Ho spoke first, “We have been certified as a startup company with technology. It is the result of your and all of our employees’ tremendous effort and hard work. I truly appreciate your excellent work. Thank you.”
When Gun-Ho stopped briefly, Interpreter Chae quickly interpreted what Gun-Ho just said for Vice President Adam Castler.
Gun-Ho continued, “As a matter of fact, it was not easy for us to be recognized as a startup company with technology. We are supposed to be a company that primarily devotes to developing new technologies; however, we are not doing enough research work developing technology. Since we are certified as such, we will have to strive to develop technologies, producing tangible results.”