President Song smiled and said to Gun-Ho, “That 3 billion won for transferring the ownership to Dyeon Korea as our investment in-kind is coming in at the right time.”
“How much sales revenue has increased as the volume of the product order for the factory in Dangjin City increased?”
“We made a total of 13 billion won last month.”
“Hmm, that makes our annual sales revenue of over 150 billion won.”
“That’s correct, sir. We are no longer a small and medium-sized company, but we are becoming a midsize company.”
“Hmm, is that right?”
“A company that generated more than 150 billion won for three consecutive years or that has more than 1,000 workers is considered as a midsize company.”
After President Song left the office, Gun-Ho thought about it.
‘Last year, GH Mobile didn’t even make a net income of 6%. But, this year will be different. Its sales have increased substantially, and it paid some portion of its debt. Also, they are trying to reduce the production cost. It will make 7% this year.
7% of 150 billion won is 10.5 billion won which would be its net income. Moreover, the sales keep increasing even now, so the annual sales revenue could be 160 billion won or even 170 billion won. Maybe we would be able to distribute a dividend of 10 billion won next year.
If we distribute 10 billion won as dividend next year, Minister Jin-Woo Lee’s father will receive 1.5 billion won which is 15% of it. Will it be enough to make slush funds? President Song will take 300 million won. President Song hasn’t received his dividend yet so far, but he will be happy with 300 million won next year.
I own 82% of the company, so I will receive 8.2 billion won.’
Gun-Ho went to Dyeon Korea in the afternoon.
Dyeon Korea’s production volume had increased a lot along with GH Mobile. A mountain of the finished products that were waiting to be shipped came into Gun-Ho’s view.
When Gun-Ho sat on the sofa in his office, Secretary Seon-Hye Yee brought a cup of warm jujube tea to him.
“Will you ask Accounting Manager Myeong-Sook Jo to come to my office?”
“Yes, sir.”
After a while, Secretary Seon-Hye Yee came back to Gun-Ho’s office. She was alone.
“Ms. Accounting Manager is not in her office, sir. I was told that she is in training right now.”
“Training? Training for what?”
“It’s a training provided by KOSDAQ Listed Companies Association. It’s being held in Yeouido Island, sir.”
“Hmm, really? Well, then would you ask Mr. Internal Auditor to come to my office?”
The internal auditor entered Gun-Ho’s office. He was carrying a few documents including the updated external audit report.
“Hello, sir.”
“Is that the modified external audit report that you are carrying?”
“Yes, it is, sir.”
“We have destroyed all of the previous external audit reports, right?”
“Yes, we did. We marked all of them with a large x on the front page, and discarded them all.”
Gun-Ho asked as he was reviewing the updated external audit report, “We didn’t make any change on the sales revenue and profits, did we?”
“No, sir. We just moved the research center’s workers’ wages and the cost of chemicals that we used in the research center to R&D expenses. All numbers are correct.”
After reviewing the report once again, Gun-Ho placed the report on the table, and said, “I was told that Ms. Manager Jo is in training right now. What training is that?”
“Oh, the training is about KOSDAQ requirements. In preparation for our KOSDAQ registration, she is learning what needs to be done. I’ve noticed that KOSDAQ Listed Companies Association is providing training for the future government workers about DART (Data Analysis, Retrieval, and Transfer System) in Yeouido Island, and I sent her there.”
“Do you think that we can successfully register with KOSDAQ?”
“I believe it’s very possible once we receive the certificate to be recognized as a startup company with technology.”
“How are we doing with the certificate?”
“Manager Jo already registered with the website— VertureIn, and entered all the information that they asked.”
“Were they asking a lot of things?”
“Basically, they were asking things like our business plan and financial statements.”
“I guess that she gave them the modified financial statements along with the updated external audit report.”
“Of course, sir. I was there when she entered all the information and documents.”
“Are we expecting a visit to our company for the certificate?”
“Yes, sir. They will send someone to take a look at our company.”
“They will probably want to see our research center mostly.”
“Of course, sir.”
“We will have to make sure that Manager Hee-Yeol Yoo at the research center understands what they would focus on.”
“Not just Manager Yoo, but the chief research officer must be ready for the visit as well even though he is holding a temporary position, sir.”
“Well, let’s talk to them right now.”
Gun-Ho called for Secretary Seon-Hey Yee.
“Please ask the chief research officer and the plant manager— Mr. Manager Hee-Yeol Yoo— to come to my office now.”
“Yes, sir.”
While waiting for the two workers from the research center, the internal auditor showed a document to Gun-Ho.
“What is this?”
“It’s a newly issued certified copy of corporate registration.”
“Why are you giving this to me?”
“As you instructed, the capital increase has completed, and the amount of the capital has been updated. I thought that you might want to verify the change.”
“Hmm, I see. Well, thank you.”
Gun-Ho looked at the certified copy of corporate registration.
“So, now Dyeon Korea’s capital is 19 billion won, huh?”
“That’s correct, sir. Dyeon Korea started with 10 billion won— 5 billion won from each partner. We recently added 9 billion won as we reinvested our after-tax profits into the company. It made Dyeon Korea’s current capital 19 billion won. You can verify the date of the change as well. It’s shown on the next column. As you can see, there is no change on the purpose of the company and executive officers.”
“Oh, I was going to ask this. You haven’t sent 3 billion won to GH Mobile yet, have you? Dyeon Korea is supposed to send 3 billion won to GH Mobile after GH Mobile transferred the ownership of the building to Dyeon Korea.”
“We couldn’t since you were on a trip to China. We need your signature here. I brought the form. With your signature, I will send the fund to GH Mobile by the end of today.”
Gun-Ho signed on the withdrawal form to send 3 billion won to GH Mobile.
After a while, the old chief research officer and Manager Hee-Yeol Yoo entered Gun-Ho’s office.
“You asked for us, sir?”
“Please have a seat. I just wanted to have a cup of tea with you.”
Gun-Ho called for Secretary Seon-Hye Yee and asked her to bring two more cups of warm jujube tea.
“We have received the environment management system certificate— ISO 14001, and now we officially have an in-house research center. I’m sure you now have more paperwork than before accordingly.”
“That’s correct, sir. We now have to make way more reports and paperwork, and also we even need to hold more meetings.”
“The reason that we obtained ISO 14001 and established the in-house research center is to get us the certificate to be recognized as a startup company with technology.”
“We were told about it, sir.”
“We completed our application for the certificate, and we are expecting to have a visit from their investigators soon. They will primarily look at our research center, and your roles as a chief research officer and a deputy research chief are critical during their visit.”
“Understood, sir.”
“Please check the lab equipment, and the layout of the chemicals as well. Make sure everything is very well organized.”
“Yes, sir. The product recipes with organic and inorganic compounds involved in chemical equations. We will display those recipes at the research center implying our professionalism with enough specialty. The investigators are probably not familiar with this field.”
“The investigators probably don’t have professional and specific knowledge about chemicals as you do, Mr. Chief Research Officer, since they must be young people. However, they know what to look at. They will pay attention to the research environment and systems.”
“Understood, sir. I will particularly check those areas as well.”
