Story of a Big Player from Gangnam

Several days passed by after Gun-Ho’s parents moved into the new condo.

Gun-Ho received a phone call from the consulting firm in Seocho Town.

“The first auction for the TowerPalace condo you are interested in has failed as expected, and the next auction is scheduled the day after tomorrow. Are you aware of it?”

“Yes, I already prepared the bid deposit.”

“The day before yesterday, I verified the auction documents of that condo and visited the condo as well. Its location is very nice.”

“Oh, really? Thank you for your work.”

“You don’t have to worry about the secured creditors listed in the real estate registration after you buy the property at the auction; they will be all released. I already checked the statements on the property, tenancy document, and the appraisal report. I didn’t see any problem.”

“Oh, good to know.”

“There is no tenant who could exercise any right on the property. The condo is actually occupied by the owner.”

“Oh, I see.”

“On the auction day, I will arrive at the court earlier. When you come, don’t forget to bring your ID and your stamp. Also, bring more money than the bid deposit in case there is a competitor we have to beat.”

“How much more do you think I should prepare?”

“I recommend bringing 20 million won. You possibly will not use all of them if there are not many competitors.”

“Okay, I will prepare them.”

“I will guide you through the process. I will see you then.”

“Okay, thank you.”

On the auction day, Gun-Ho went to Seoul Central District Court in Seocho Town. There were a lot of people at the court. Some people were distributing information sheet about the auction at the court entrance.

“Mr. Gun-Ho Goo, I’m here.”

Manager Oh from the consulting firm was already there waiting for Gun-Ho. He was wearing the same sports cap, and he was chewing a gum.

“Since the TowerPalace condo is an expensive property, I don’t expect many people bidding on it. Why don’t you take the bidder’s ticket and envelope over there?”

Manager Oh seemed to have another client he had to assist that day; he was waiting for someone.

“The bailiff of the court will conduct the auction. When you write your offer price, you must be very careful. If you write the wrong number, you could lose your bid deposit. Verify the case number closely.”

Manager Oh was greeting someone who he had been waiting for. It was a middle-aged woman.

“Ma’am, I think there will be quite a lot of competitors for the property you are interested in because that commercial building is making money.”

“Then what should I do? I really want that building.”

“Add two more to the price.”

A man who was passing stopped to say hi to Manager Oh.

“Hey, are you participating in the auction for this lady as well? Why don’t you skip this one?”

That man glanced at the lady and smiled.

Someone asked to be quiet and get ready for the auction. It seemed like the auction would start soon. Gun-Ho sat on a chair. The courtroom was filled with people and some people were standing at the back of the room because there was no empty seat in the room.

At the ring of the bell, the bailiff announced that the auction had started. He started off with a short introduction of guiding the participants what to expect during the auction.

Gun-Ho wrote his offer price of 1,512 million won as instructed by Manager Oh earlier, and included the bid deposit of 151.20 million won in the envelope. The bid deposit was 10% of the offer price.

“Our father in heaven, please allow me to win this time!”

Gun-Ho submitted the envelope while praying to God. It seemed like there were three people including Gun-Ho competing for the same condo.

Gun-Ho looked around.

There was no gentleman wearing a suit or a fashionable lady at the courtroom; only men and women wearing a jacket or a coat, who could ordinarily be seen in the subway station. There were some properties with a starting price of several billion won like a commercial building or a condo in Gangnam. Gun-Ho thought some of these people must have that much money to pay for those properties.

After everyone in the courtroom submitted their offer price, the bailiff announced that the bidding was over. A staff standing next to the bailiff opened each envelope for a specific real property, and he let the bailiff know who won the auction. The bailiff then announced the case number, the successful bidder’s name, and the auction price.

“Case number 000, Mr. Gun-Ho Goo who offered 1,512 million won the auction.”

“I got it!”

Gun-Ho jumped up from his seat, walked to the bailiff, showed his ID to him, and then received the successful bidder’s ticket.

After Gun-Ho walked out of the courtroom, Manager Oh was waiting for him while still chewing a gum.

“Congratulations.”

“How do you know already?”

“I heard it outside the door.”

“Then are you going to start the process?”

“No, we need to wait until the due date of the filing of the appeal. During that period, the owner or anyone who has an interest in this condo can make an appeal for the sales decision. I don’t think anything will happen, but we have to wait by then.”

“Oh, really? For how long should we wait?”

“If nothing happens in ten days, then prepare the remaining funds for the condo price.”

After ten days, Gun-Ho received a call from Manager Oh of the consulting firm.

“Ten days is up. I will start negotiating with the owner who is occupying the condo. If you want to make the process smooth, you need to pay him the moving cost. You have heard of paying the moving cost, right?”

“I learned about it during training. How much do you think would be adequate?”

“It depends on the person. Some could ask 10 million won. We never know.”

“Is it legally required?”

“No, but the occupant could refuse to move out really hard. They usually have nothing to lose at this stage, so it is really hard if they decided to resist.”

“What do we do if that happens?”

“Don’t worry about it. That’s our job. We sometimes threaten them or convince them. If they refuse to move out even after the unlawful detainer suit, we will drag them out with their belongings.”

“Oh, wow…”

Gun-Ho thought the auction sale for a residential property where a person was still living in could be really harsh to the occupants, unlike a building or a land.

“Well, do what you have to do. Please negotiate to reach a good price but do not raise your voice during the process.”

“Okay. I will let you know after I meet with the owner.”

Gun-Ho thought he made the right decision to let a consulting firm handle the whole process rather than handling it himself.

“I hope I could move in within a month.”

Gun-Ho had to withdraw money from his stock account to prepare the remaining price of his condo. He could just withdraw using an ATM if the amount was small, but he had to visit the office for a large amount of money. The branch office that was holding Gun-Ho’s account was located in Suwon City. He had to go that far.

“I have to go that far. Once I move to the TowerPalace condo, I will move my account. I went there last time when I had to pay for my parent’s condo in Guweon Town. I have to go there again. Let’s transfer around 3 billion won to my bank account this time; I might need the money later to open my own business.

When Gun-Ho requested the transfer of the funds, the staff lady at the stock branch office was astonished.

“3 billion won?!”

Gun-Ho was sitting on a chair when a middle-aged man wearing glasses came to him urgently.

“Mr. Gun-Ho Goo? Hi, I am the manager of this branch office.”

The branch manager bowed respectfully to Gun-Ho. Gun-Ho came here for his parents’ condo last time, but the branch manager was not here.

“Why don’t you come to my office and have a cup of tea?”

Gun-Ho thought it could be tiresome, but he stood up from his seat and followed the branch manager to his office.