Story of a Big Player from Gangnam

“As we discussed the other day, let’s promote the production manager in team 1 to a director position, and give a senior director position to the chief research officer here.”

“Sounds good, sir.”

“And, as of December 15th, I’m taking the chairman position of Dyeon Korea’s board of directors. That wouldn’t mean much if the acquisition goes through successfully. So, as Dyeon Korea did, I want to make the promotions in writing for now, and make it official on the 15th.”

“Okay. I will ask the general affairs director to come to the office to proceed with it.”

“There is one more thing, Mr. President Song. I want to resign from the president position in GH Mobile.”

“Huh?”

“I want to step back from the daily operations of GH Mobile and take the position of chairman. So, I want you to add my name on the promotion list saying that I am resigning from the president position and appointed to chairman.”

“That…, that…”

“It has been onerous for me to commute all the way here from my home in Seoul anyway. And, GH Mobile has you, Mr. President Song. I think you should run this company on your own.”

“The idea of running the company by myself is a bit scary, but all presidents of GH companies have been saying that you should take the chairman position overseeing all GH companies.”

“Is that right?”

“You are the owner of those companies, and we are just employees. I guess that they have been feeling a bit embarrassed when they are holding the same job title as you, sir.”

“Well, you can use my office, Mr. President Song, or you can make it a meeting room or something as you please.”

“Sir, you will probably need an office here even though you are not coming to work every day.”

“I can use the small meeting room, or I can also stay in your office whenever I have to be here. If I leave my office here, I would feel pressured to come to work often, which is not good.”

“You are not going to come here often?”

“I don’t have to since the company has you, Mr. President Song. I just need to receive profit and loss statements on a regular basis.”

“What if we form a new department— planning and coordination department— for all GH companies, in the building, Sinsa Town?”

“I will think about it. Well, let’s talk to the general affairs director now.”

“Okay, sir.”

The general affairs director entered Gun-Ho’s office.

“Please write this down. This is about this year’s promotions. This was determined by Mr. President Song here and myself after full discussion.”

The general affairs director quickly pulled out a pen and a paper.

Gun-Ho continued, “Those who will be promoted are the following two executive officers. Chief Research Officer Gil-Hoon Bang will be promoted from director to senior director.”

“Yes, sir.”

“The production manager in team 1 will be promoted to production director.”

“Yes, sir.”

“And, President Gun-Ho Goo will be removed from the president’s office.”

“I’m sorry, sir?”

“GH Mobile will be run by Mr. President Song alone.”

“Yes, sir…”

“And, Gun-Ho Goo will be appointed chairman. When you make an official announcement, include this new appointment as well. I want you to make this in writing and bring it to me. Its effective date will be December 15th.”

“Understood, sir.”

After President Song and the general affairs director left the office, Gun-Ho called for the accounting director.

“Please bring me the new bank account information that I asked you to open the other day. Also, bring me the OTP as well.”

“Yes, sir.”

After a moment, the accounting director came into Gun-Ho’s office.

Gun-Ho said to her, “From now on, we will receive the payment to this bank account, as we sell our Dyeon Korea’s stock. Once you receive the fund, inform me of the amount.”

“Yes, sir.”

Gun-Ho asked the accounting director, “The amount that we invested in Dyeon Korea was 4.5 billion won and the building. As we receive the fund in this bank account, we can classify this as investment fund retrieval, and the rest of the fund will be classified as investment profit. Is it correct?”

“Yes, sir.”

“We will have to pay transfer tax in disposing of our stock. It will be a lot, right?”

“If the period of possession is short, then yes, the transfer tax will be expensive. We can expect up to 30%, sir.”

“So, we have to pay for transfer tax, and then the rest of the fund will be subject to corporate tax, I guess.”

“As we will make it an extraordinary gain, it will change the amount of our operating income. So, yes, that amount will be subject to corporate tax.”

“I guess after we pay transfer tax and corporate tax, nothing much will be left, huh?”

“Haha. That’s how it works, sir. Nothing much we can do about it at this point. But, if we make a lot of money, then the fund after taxes will be a lot too.”

“Hmm, okay. Good job.”

Later that day, the general affairs director brought the approval paper of promotions. It was already signed by President Song.

“It’s already done, huh?”

“Heh heh. Yes, sir.”

“Since the effective date is December 15th, let’s announce it on 13th or 14th. Send it to each department then.”

“Yes, sir.”

“And, if President Song wants, let him use my office.”

“You are not coming here anymore, sir?”

“I will come from time to time. I won’t be here as often as I have been though. Why are you asking? Me coming here very often is not good, right?”

“No, no, sir. I didn’t mean that, sir.”

“How are things going with the promotions with mid-level managers? Do we have the final list?”

“Yes, sir. We just need to finalize the decision. We will announce that after we announce the promotions of executive officers.”

“How many people will be promoted?”

“25 people, sir.”

“Is the assistant manager in the production team 2 included in this year’s promotions?”

“Yes, he is, sir. We will see a lot of promotions in the production department. I guess they will have a big party celebrating it.”

“Haha, really?”

Gun-Ho made a call to Dyeon Korea’s internal auditor.

“This is how we are going to respond to the request of making a public announcement about the acquisition matters.”

“Give me one second, sir. Let me grab a pen and a paper.”

“It is true that our company discussed with W Group about the possibility of acquisition; however, there is nothing to confirm at this time.”

“Okay, sir.”

“If the situation develops, and we have a confirmed update on the said matter, we will make another public announcement. This current announcement is our response to the request of KOSDAQ Market Division of Korea Exchange dated on December 10th.”

“Done.”

“Response from President Gun-Ho Goo.”

“Got it, sir.”

“That’s it.”

Gun-Ho made a call to GH Machines’ President Jong-Suk Park.

“Hey, let’s have lunch together.”

“Bro, how come you no longer come here often?”

“Me being there is not very helpful. I don’t want to interrupt your work. But, we need to eat, right? Let’s eat together. I had a meeting in GH Mobile. We talked about the report on this year’s performance, and also next year’s business plan. I feel starved after the meeting. Why don’t you buy me lunch today?”

“No problem. Come to the Korean restaurant that we went to together last time. You know the grilled fish restaurant. I will meet you there.”

On the way to the restaurant to meet with Jong-Suk, in the car, Gun-Ho received a call from W Chemicals’ CEO.

“I’ve noticed that there was a request from KOSDAQ Market Division for Dyeon Korea, about the rumors on W Group’s acquisition of Dyeon Korea. How are you going to respond to it? It seems that you have until tomorrow to respond.”

“Since we haven’t received the payment for the acquisition yet, I’m going to tell them that we have reviewed the possibility of the acquisition, but nothing has been confirmed yet.”

“Hmm, that sounds good. I will make sure that the payment is sent on the 15th of this month as promised.”