<h4>Chapter 242: GH Building in Gangnam (1) – PART 1</h4>


    Gun-Ho drove to Seoul to meet with the bank branch manager in Gangnam.


    “I have 40 billion won in my ount. Please transfer all of them to the GHpany bank ount.”


    “Are you going to purchase the building with thepany’s name?”


    “I think that would be better.”


    “Once you make a sales and purchase contract for the building, please let me know right away. I will contact the branch manager of the Capital.”


    “Thank you.”


    Once he walked out of the bank in Gangnam, Gun-Ho headed to his office in the same area— GH Development. He felt that his office of GH Development was small after he spent many days in arge office in Jiksan Town. The workers of GH Media came to the office from their office next door to say hello to Gun-Ho.


    “How are you all?”


    “We are printing the third and the fourth edition of the Japanese book— the person who wakes up in the morning. The book is selling really well.”


    “That’s good to hear.”


    “The business management book that you rmended and Professor Jien Wang’s book are doing okay. One Japanese book is doing great while the other two are not good.”


    “The sales ie from the book that you are publishing 3rd and 4th edition will recover the loss we incurred from other books?”


    “We are not just recovering our loss from that book, but it will bring enough ie to sustain GH Media at least for a year. You will get the investment return from it too, sir.”


    “Haha. Everyone did a good job. You can go back to your office and keep up with your great work. I am here for an important meeting with GH Development.”


    Manager Kang and Ms. Ji-Young Jeong felt nervous when Gun-Ho said he had important things to talk about with GH Development. Once all of the workers of GH Media were dismissed, Gun-Ho asked Manager Kang and Ji-Young to sit at a table. Manager Kang and Ji-Young felt more difficult to be with Gun-Ho than before.


    Gun-Ho continued to talk while smiling and he wanted to ease his workers of GH Development.


    “Let’s have some tea while we are having our meeting.”


    Ji-Young quickly brought green tea.


    “I have the bank book of our major bank with me for the GH Development while the bank book for thepany operation expenses is here with you.”


    Manager Kang and Ji-Young were all ears.


    “I just deposited 40 billion won into the GH Development bank ount.”


    “40 billion won!?”


    Manager Kang and Ji-Young were frightened when they heard the amount of 40 billion won. They had never seen that kind of money in their entire lives.


    “I brought the ount bnce sheet with me. Manager Kang, please take this with you and increase the capital stock of GH Development as such.”


    “Huh? Did you just say 40 billion won, sir?”


    “We will acquire a 19-floor building in Sinsa Town. Its appraised value is 230 billion won and I am currently negotiating the price with the seller. We will buy the building under the GH Development’s name with this 40 billion won, and we will loan the remaining bnce from a bank. For now, increase GH Development’s capital stock for an additional 40 billion won after you talk with the certified legal consultant.”


    “Yes, sir.”


    Manager Kang and Ji-Young found themselves shaking.


    “Let’s sell our OneRoomTels.”


    “Selling the OneRoomTels?”


    “Yes, and deposit the sales proceeds into ourpany’s major bank ount.”


    “Yes, sir.”


    “Okay, that’s all I needed to talk about with you today. I am leaving for Jiksan Town in Cheonan City now.”


    When Gun-Ho had acquired Mulpasaneop, he bought thepany with their debts as well. Since Gun-Ho had enough cash in his bank ount, he could have bought thepany and paid off their debts, but he chose not to.


    “It’s not bad to have some debt for apany because the government treats the loan interest as a business expense.”


    GH Mobile paid off all of Mulpasaneop’s small debts but they still hadrge debts from raw material suppliers. Gun-Ho convinced thesepanies that GH Mobile would gradually pay the debts while still doing business with them. The creditorpanies understood the situation since they were aware that Mulpasaneop was once under court receivership.


    However, one of the creditorpanies suddenly filed awsuit against GH Mobile and it was Seongil Polymer. It was apany which usually bought raw materials from argepany and sold them to other businesses, it was more like a sales agencypany.


    The internal officer brought thewsuit document for an unpaid bill filed by Seongil Polymer and the provisional seizure of the new factory in Jiksan Town.


    “How much do we owe to Seongil Polymer?”


    “It’s 300 million won.”


    “Have you called them to talk about this?”


    “I have, and I asked them why they filed awsuit against us given our current rtionship. They said they are currently experiencing financial difficulty with the business.”


    “This is getting serious since they seized our new factory.”


    “The sales director has a close rtionship with the president of Seongil Polymer and he talked with him too. Our sales director told him that we are gradually paying off the debt and we are still doing business together, and he doesn’t understand why Seongil Polymer filed awsuit in this situation.”


    “What was his response?”


    “They said that they are not doing well financially and they haven’t paid their workers for a while, so they need the money right now.”


    “Can we pay off their 300 million won now?”


    “We can, but we will have to dy our worker’s payment. Even though we are doing better, we still don’t have enough funds yet.”


    “Hmm.”


    “We can’t borrow additional money from a bank either. Our loan with a bank reached the maximum amount they allow. The only way I can think of is getting hard money for quick temporary use, but it’s very risky.”


    “We just have to pay a bit higher interest rate for the hard money use, don’t we?”


    “That’s not the only consequence we need to concern. Once we pay off Seongil Polymer’s debt, other creditorpanies will ask the same. They will ask us to treat them equally with Seongil Polymer.”


    “What if we just let it sit?”


    “If the intiff wins, the court will make a payment order, then they will force us to pay.”


    “Does it mean that they will seize ourpany’s machines or automobiles?”


    “They will probably seize the ounts receivable such as the payment we are expecting to receive from our major customers—S Group or Mandong Company, rather than our equipment or cars. Moreover, since they already seized our factory, they can request to put it up for sale.”


    “Because of 300 million won, our factory can be put up for sale which is worth 7 billion won.”


    “That’s right. Considering the price of thend and construction cost of our new building, it will be worth at least 7 billion won. Manypanies go bankrupt because of a small amount of money that they can’t pay at a certain time.”


    “What do you suggest, Mr. Internal Auditor?”


    “I will buy some time for now.”


    “What’s your n to do that?”


    “I will file an objection to the court, and tell them that Seongil Polymer and ourpany—


    GH Mobile already agreed on an installment payment n for the existing debt, but now they are unreasonably asking us to pay the entire amount of debt by filing awsuit. That’s not fair.”


    “If we do so, the judge will determine that there is something to dispute and he will order a trial.”


    “Exactly. While we proceed with the trial and buy some time ordingly, we will keep trying to convince the president of Seongil Polymer.”


    “I see. I will talk with Seongil Polymer’s president first.”


    “That’s a good idea, sir. I think it will be more effective if you, as the owner president talk with him directly, rather than one of the directors meets him.”


    “I see what you mean. I will visit Seongil Polymer with our manager in the purchasing team.”


    “Since we need to file the objection with the court within two weeks, I will start preparing necessary documents.”


    “Sounds good.”