Chapter 105: 105
Gun-Ho received a phone call from the son of the co-owner of the land in Gangdong District .
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"Oh, you are the son of the co-owner? How are you?"
"I tried to convince my father . I told him several times already that 4 billion won is way too high for the property interest he is holding since there is a market price that says otherwise . "
"Did your father change his mind?"
"He is worried about the capital gains tax after he sells his property interest . "
"Your father has been retaining the land for an extended period of time, so he won't have to worry about the tax . It won't be much at all . "
"Right . I talked with a friend of mine who is working as a tax accountant . He said the same thing that the tax my father has to pay won't be much . "
"I think so . "
"Let's just make it 3 . 5 billion won! My father still insists on his price, but I think I can persuade him with 3 . 5 billion won . "
"3 . 5 billion won? For that price, I will have to borrow an additional amount of money from a bank . And I will have to pay more of the loan interest . "
"I can't successfully convince my father with the price any lower than that . My father's stubbornness is in his genes . He has been like that since I can remember . "
"Let me think about it and will let you know . "
Manager Kang who was standing next to Gun-Ho asked him .
"What did he say?"
"It's from the old man's son . He said his father won't go below 3 . 5 billion won . "
"What are you going to do, sir?"
"I'm not sure . It's a lot of money, but I do want that land . "
"Once you buy the old man's property interest, you will own the land with full ownership, and the land would be 6 . 5 billion won land… It is expensive, but you can hardly find a vacant lot like that in Seoul City these days . "
"What do you think I should do, Manager Kang?"
"If I had money to pay for the land, I would buy it . "
"Hmm . "
Gun-Ho wanted to have fresh air . He drove his car to Cheonggye Mountain and arrived at the entrance .
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"I feel so nice whenever I stay in a place, I could be surrounded by this green nature while getting away from the busy city . "
Gun-Ho parked his car and walked in Yetgol Village where a lot of tourists often visit .
'I purchased my property interest for 2981 million won by the auction . If I purchase the other interest at 3500 million won, how much exactly would I spend for the land?"
Gun-Ho started calculating with his calculator while sitting on a rock .
"The price for the land only is 6481 million won . "
Gun-Ho had his 10 billion won in his stock account and 6 . 4 billion won in his bank account . He started with 19 . 8 billion won that he made from the stock investment related to Four Major Rivers Project, and spent 3 . 4 billion won in purchasing condos, a vehicle and in filling his office with furniture and stuff .
After that, he divided the remaining money into two different accounts: stock and bank .
"The money in my stock account is all tied up in the stock—Kumho Chemical . "
Gun-Ho felt a bit anxious .
"I used 300 million won out of 6 . 4 billion won in my bank account to issue additional shares of my company to raise its capital . I spent another 3 billion won to purchase the 50% of the property interest of the land in Gangdong District at the auction . So I currently have 3 . 1 billion in cash in my bank account . What am I going to do? I have to come up with 3 . 5 billion won in cash to buy out the co-tenant . Okay, will have to sell some of the Kumho Chemical stock to make 400 million won .
While he was lost in thought, someone called him .
It was the branch manager of the stockbroking company .
"Sir, how are you?"
"I'm well, thank you . "
"I've been waiting for an opportunity to have a round of golf with you, but you seem to have been very busy . "
"Yes, well…"
"Are you, by any chance, interested in a corporate bond?"
"A corporate bond?"
"If you get a corporate bond issued by a large corporation and keep it until its expiration date, the interest you make from it is not bad at all . "
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"I'm not interested in it for now . Moreover, the money market rate is about to increase, right?"
"Right, once the money market rate increases, the bond price decreases; however, 2 . 8% is guaranteed for three-year bonds . "
"I'm sorry . I am not interested . "
"I just wanted to let you know since it is a very good bond . You can check the fact on Bondmall . or . kr . "
"I don't know . "
"Since you can get your principal and interest back, it is safer than investing in the stock market . "
"I'm not so sure . "
"Well, by the way, give me a chance to go and play golf with you, sir . Hahaha . "
Gun-Ho got off the phone with the branch manager .
"I'm handling so many things right now . I can't put my hand on a corporate bond . "
Gun-Ho paid 3 . 5 billion won to the old man and now he was the sole owner of the 200 pyung large vacant lot located on the main road in Gangdong District in Seoul . He spent 6 . 482 billion won in total .
Manager Kang seemed to be more excited than Gun-Ho .
"Um, sir, that land… do you have any plan to develop that vacant lot?"
"Why?"
"Do you want me to ask those tenants who are running a parking lot and tented cart to pay more for their rent?"
"Let's just leave it as it is for now . "
"Since you spent so much on acquiring that land, will we have any financial issues?"
"I don't think we will, but I won't have much money to spend now . "
"Are you planning to borrow money with the land?"
"Let me ask you a question, Manager Kang since you had worked in a bank before . If I want to borrow money from a bank with that land, how much do you think I can borrow?"
"It depends on the appraised value of the land . The appraised value we had last time from the court was 4 . 5 billion won for the 50% of property interest . "
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"Didn't they raise the value a bit higher than the actual value in order to raise the starting auction price?"
"Even so, it shouldn't be much different . "
"Then since I have full ownership now, the appraised value should be 9 billion won . "
"That's about right . "
"So, if I borrow money 60% of the appraised value of the land, then it would be 5 . 4 billion won . "
"If you have an excellent credit score, a bank will lend you up to 80% which would be 7 . 4 billion won . "
"That would be more than I actually pay for the land . Haha . "
"You will need an appraisal statement first before you could apply for a loan . It will cost you some money though to get an appraisal statement . "
"Haha . I'm not going to borrow money from a bank . I was just saying it . Let's talk more about it once I return from my trip to China . "
Gun-Ho called for the bookkeeper—Ji-Young Jeong .
"Ms . Ji-Young Jeong! Could you buy a flight ticket to Shanghai, China for next Wednesday?"
"Okay . "
Gun-Ho was standing up to leave the office to practice golf when Manager Kang talked to him .
"Um, sir . One more thing I need to talk to you…"
"What is it?"
"Mr . Min-Hyeok Kim who is working as a residential manager in the Bangbae location . "
"What about him? Did something happen? Did he quit?"
"No, it seems that he drinks way too often during his work hours . "
"He shouldn't have drunk while he is working . "
"Since he is your friend, I think you'd better talk to him rather than I do . "
"I believe he is under a lot of stress after he failed the government job exam again this time . "
"I understand that he would be stressed; however, I'm just telling you because he drinks way too frequently . "
"Really? I will talk to him . "
On the way to the office after practicing golf, Gun-Ho called Min-Hyeok .
"Min-Hyeok? It's me, Gun-Ho . How's work at the OneRoomTel?"
"Oh, Gun-Ho . I mean President Goo . It's okay . "
Min-Hyeok sounded down .
"I have something I have to do in the area, Bangbae Town today . I will stop by the OneRoomTel around 7 pm after work . Let's have dinner together . "
"Today? Okay . I will be here . "
When Gun-Ho arrived at the OneRoomTel, Min-Hyeok was sitting on his chair while looking into a blank space .
There was Min-Hyeok's room on the fourth floor near the exit . The room was assigned to a residential manager to use as an office and the manager's room . Gun-Ho, who had lived in a tiny room in a OneRoom for a long time, could understand how Min-Hyeok would feel right now . He felt sorry for Min-Hyeok .
"Hey, Min-Hyeok . How's it going?"
Gun-Ho said in a cheerful voice while extending his hand to Min-Hyeok for a handshake .
"It has been a while, Gun-Ho . "
"How are you? Are you okay?"
"It's good . I like here . "
"You look down, man . How did you do on the exam?"
"I failed again . "
"Oh, was the result already released? You will pass someday if you keep trying . "
"Whew . "
Min-Hyeok let out a deep sigh .
"Let's go and have dinner . "
Min-Hyeok hung a sign at the door which said the residential manager was not available and it had a contact number as well .
"No one would be here if I go out for dinner . "
"It's okay . If anyone needs you, they will call you . Let's go . "