Story of a Big Player from Gangnam

Gun-Ho deposited some funds in Seung-Hee sister’s stock account again. He transferred a small amount of money to the account through several transactions rather than depositing large funds at once. He then made a call to Seung-Hee sister.

“Seung-Hee sister? It’s me, Gun-Ho Goo.”

“Oh, President Goo.”

“Did you get a call from your stock brokerage firm again, maybe last month?”

“As a matter of fact, yes, I received a call from them once.”

“What did they say?”

“They made a recommendation saying that I shouldn’t do single stock trading because that would put me at a high risk of losing money. I’ve done single stock trading before, so I knew what they were talking about. I just told them that I would keep that in mind. After the call, I haven’t received any other calls from them yet.”

“Haha, really?”

“Oh, you know what? I received another call from them once later. Their branch manager gave me a call the other day, asking why I had to withdraw all of the funds from my stock account. And, he said he had several good stocks that he is recommending for me. I told him that I had to use the funds somewhere else. I didn’t want to bother you with these trivial matters, so I didn’t call you at that time. I can handle things like this without bothering you.”

“Haha, thank you, sister. I will see how much profit I would make through the stock trading with your stock account, at the end of this year. And, I will definitely compensate you for letting me use your account.”

“You don’t have to do that, Gun-Ho. You already paid me by having GH Machines purchase a fire insurance policy from me.”

“That is that, and this is another one.”

“Well, I hope you make a lot of money by trading stock with my stock account, even though I didn’t. I’m now so sick and tired of stock trading. But you are different from me. You know things far better than me. You will be fine.”

“Thank you.”

“Since you are rich and all that, are you playing with maybe 100 million won? Don’t put too much money in the stock market. Look at me. You don’t want to lose too much money like I did.”

“I will keep that in mind, sister.”

After getting off the phone with Seung-He sister, Gun-Ho smiled.

‘If Seung-Hee sister had a chance to look at her stock account, she would have been startled. I was playing with about 10 billion won, not 100 million won. If I make profits at the end of the year, I will have to pay for tax on the realized profit. I don’t have to worry about taxes while trading stocks, but if my realized profit exceeds 2 billion won, I will have to worry about tax.

I should file the tax proactively, especially for this matter since this is Seung-Hee sister’s stock account. I don’t want her to be surprised by the amount of taxes incurred on her account. It is wise to pay my taxes on time accurately, especially when it is about a large amount of money. I was not supposed to use someone else’s account in stock trading, and I can be subject to a penalty for it. So, I’d better comply with the tax regulation without drawing any attention.

People say that Chairman Kun-Hee Lee of Samsung Group has more than 1,000 accounts with someone else’s name. That’s indeed an immensely large number of accounts. I’d better make this use of Seung-Hee sister’s stock account my last use of someone else’s name. At the end of this year, I will properly compensate Seung-Hee sister for letting me use her account. I’m sure that she would greatly appreciate it since she is in need of money.’

Gun-Ho again began to buy in Dyeon Korea’s stock; the price was around 26,000 won. When he bought 10,000 shares, the stock price started increasing. Because of the limited number of stocks available for trading, Gun-Ho didn’t have to purchase a large number of shares to affect the price.

“The price already increased to 30,000 won. This is too high. I don’t need to buy the stock at 30,000 won.”

Gun-Ho sold the 10,000 shares that he had just bought. Subsequently, the price dropped rapidly, and it eventually reached the price below 26,000 won. Gun-Ho then bought back the stock again at the decreased price.

When Gun-Ho was completely lost in stock trading, he received a call from Dyeon Korea’s Director Kim.

“Sir, it is a good time to talk? It’s Director Kim.”

“Sure. Go ahead.”

“We found a good factory in Noida, India and also in Tianjin City, China. I received a call from Manager Jong-Geun Lee earlier about the factory in India. Also, Dingding found a nice factory in China as well.”

“Oh, is that right?”

“Both factories are sitting on about 5,000 pyung large land, and both of the factory buildings are around 3,000 pyung large. The buildings are less than 10 years old, so we can just move in without conducting any major repairs. They also have enough electric power capacity for our use.”

“We haven’t signed the purchase agreement yet, right?”

“Of course not, sir. We need your approval to proceed with the acquisition. I will send you several photos of those two factories through KaTalk.”

“You haven’t been to those factories, have you?”

“I actually visited the factory in Noida, India during my last trip to India. It looks like our factory in the Chennai area. For the factory in China, I haven’t been to the factory, but I just saw its pictures with description.”

“How much are they asking for the factory in India?”

“It’s 3.2 billion won, sir.”

“Since you have already visited the factory in India, and you find it appropriate for our business, I think we can just go ahead and buy it. Please tell Manager Jong-Geun Lee to proceed with the purchase and sign the sales & purchase contract. We will take it. For the down payment, you can ask Mr. Internal Auditor to send the funds to India.”

“Sir, you don’t want to see the pictures first?”

“I don’t need to. I trust your judgment on this. You already visited the factory, and if you say it’s good, then it’s good for me.”

“What about the one in China, sir?”

“I think someone from our side has to see the factory before we make the purchase contract. Why don’t you make a trip to Tianjin, China to visit the factory, Mr. Director Kim?”

“I can certainly do that, sir, but what if we send Mr. Vice President Adam Castler to China instead this time?”

“That sounds good too. If he is okay with going on a trip to China, then I’m fine with it.”

“Okay, sir. I will let Mr. Adam Castler know.”

After getting off the phone with Director Kim, Gun-Ho turned his gaze back to the computer monitor to continue his stock trading. At that moment, his phone started ringing again, and it was from GH Media’s Mr. Yoshitaka Matsui.

“It’s Yoshitaka Matsui, sir.”

“Yes.”

“I just received a call from Japan. Miura Machines’ president wants to visit us in Korea.”

“Really?”

“He wants to visit GH Machines, and he has something that he wants to talk to you about, sir.”

“Well, if he wants to travel to Korea, that’s his decision. I don’t mind at all.”

“When he comes to Korea, he will be accompanied by Miura Machines’ plant manager— Mr. Yanagi Masatoshi.”

“Okay. Once they arrive here, I will show them GH Machines myself. In the meanwhile, Mr. Yoshitaka Matsui, please make an arrangement for their accommodations for their stay in Korea.”

“Yes, sir. I will do that.”

“When we visit GH Machines with them, you should come with us, too.”

“Of course, sir. I will adjust my schedule to it.”