Chapter 395: 395
Chapter 395: Debt Ratio (1) – Part 2
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Gun-Ho asked President Song, “Didn’t you previously suggest increasing our company’s capital with my dividend?”
“Yes, I did . I’ve given a lot of thought to it and came to the conclusion that it wouldn’t be enough to lower our debt ratio . That’s why I talked to you about your 30 billion won investment fund . I didn’t want to talk to you about this fund because it is probably inappropriate to even mention it to the owner-president . However, since our company is not in good shape as far as the debt ratio is concerned, I decided to tell you . ”
“Well, I will have to think about it . ”
“I’m sorry that I couldn’t bring you a better solution . ”
President Song who was in his 50s gave a deep bow to Gun-Ho who was in his 30s before walking out of his office .
Gun-Ho started debating with himself .
‘Do I want to capitalize on my personal investment fund? It’s not a petty amount and it is precious money to me . I do have 170 billion won in my stock account which I will never touch . I understand President Song, and maybe it’s the best way to reduce the debt ratio quickly given the current situation . However, I have to consider the fact that once I do that, I might not get it back for quite a while . ’
The investment fund of 3 billion won was the fund that Gun-Ho could take back at any time because it was like he lent the money to the company . However, once it became part of the company’s capital, he wouldn’t be able to take it back as he pleased . Of course, the company’s debt ratio will be diminished dramatically by doing so . Gun-Ho calculated how much it could reduce the debt ratio if he capitalized that fund and chose not to take his dividend at the end of the year . According to his calculation, the debt ratio would be reduced to 250% . The debt ratio would be even reduced more the following year assuming the company would generate earned surplus .
‘If the average debt ratio in the industry is 160%, we will have to reduce our debt ratio to 100% in order to successfully register with KOSDAQ . ’
Gun-Ho felt a headache, and he was thinking of getting a massage to release stress, and then he decided not to .
‘I will have to go with Chan-Ho Eum, and I don’t want to reveal all of my personal activities to him . It’s certainly convenient to have a chauffeur but this is a problem . Hmm . Well, I will just go to Onyang Hot Spring Hotel and take a sauna instead . ’
Gun-Ho called for Chan-Ho Eum .
“Chan-Ho Eum!”
“Yes, sir . I’m here . ”
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“Let’s go to Onyang Hot Spring Hotel . ”
“To Onyang Town, sir?”
“Well, I changed my mind . Let’s go to Spavis . ”
Asan Spavis was a hot spring resort located in a mountain in Eumbong Town, Asan City .
There were not many people at the spa . It was nicely quiet and serene .
Gun-Ho went into a hot sauna room and started thinking .
‘Should I capitalize on my 3 billion won? Or not? Either way, it is my money, and it would stay that way . The problem is that it would be hard for me to liquidate the fund . ’
Gun-Ho kept thinking while he was in the sauna room and also after he moved to a hot tub . Chan-Ho Eum didn’t stay long in the spa and took a quick shower before leaving the place .
Gun-Ho closed his eyes to focus on his thought . President Song’s face popped up in his head .
[Sir, once we successfully register with KOSDAQ, we can procure funds easily and it wouldn’t matter whether we have a high debt ratio or low debt ratio . Please increase the capital with the fund you lent to the company . ]
Gun-Ho opened his eyes .
‘Okay, I will do that . I do, in fact, have a lot of money after all . ’
Gun-Ho walked out of the spa and had Bibimbap* in a hot stone bowl with Chan-Ho Eum before heading to Dyeon Korea .
When he entered his office, he found a pile of financial documents on his desk placed by Accounting Manager Jo . It took only 30 minutes for Gun-Ho to review and sign the documents . He called for Manager Jo .
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“Take the documents and tell Director Yoon to come to my office . ”
“Yes, sir . ”
After a moment, Director Yoon came to Gun-Ho’s office .
“Did we receive the machine no . 9 and no . 10?”
“We are expecting to receive them by tomorrow . ”
“Send all the products we would produce with the machines no . 9 and no . 10 to China . ”
“Yes, sir . ”
“If we don’t get paid within three months after we send our products to China, don’t send the products to them anymore . ”
“Yes, sir . ”
Director Yoon wrote down the instruction that Gun-Ho gave .
“Sir, we will need to hire ten more workers for the production site . We need more manpower once we have two additional machines . ”
“Do we need ten workers right away? We don’t want to hire too many workers at a time if not necessary . ”
“We do need that many workers in the production department, sir . Our current sales revenue per employee is 1 . 5 times higher than GH Mobile’s . ”
“GH Mobile is a manufacturing company of auto parts while Dyeon Korea produces raw materials . We can’t compare revenue per employee between the two companies . ”
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“Well, that’s true, but even if we compare with other competitor companies, our revenue per employee is higher than the industrial average . ”
“Okay . Let’s hire ten more workers . ”
“Yes, sir . I will post the job opening right away . ”
After Director Yoon left the office, Gun-Ho started dozing off again in his office . He woke up to the sound of a notification from his cell phone . It was a spam notification .
“Shoot . The da*n spam woke me up . I hate it . This is so annoying . ”
Gun-Ho mumbled, and then he started surfing the Internet with his smartphone . One news drew his attention . It was about Egnopak .
[The passenger who caused a disturbance on Korean Air was Egnopak’s president’s son— Dong-Hwan Kim . He was taken into custody after being escorted off the plane . ]
“He is still doing it . ”
Gun-Ho made a call to Chan-Ho Eum .
“Hey, Dong-Hwan Kim is in trouble again . You know, the one who we gave a lesson the other day in a bar in Samsung Town . It’s all over the Internet . ”
“Oh, the dude whose father is some company president?”
“Yeah, that’s him . ”
“I guess we should have been tougher with him . It seems that he hasn’t learned his lesson yet . ”
“I wonder if he has any criminal record . ”
“I don’t know about that, but look at all the comments to the news . Everyone said that guy would be released soon since he has a father with money . ”
“Well, since people already know the possible injustice that would happen, it wouldn’t be easy for the police to release him . ”
“Well, who knows? The court might let him go by saying that he was drunk and was under intoxication so he couldn’t form any necessary intent or something . ”
“Chan-Ho, you seem to know a lot . ”
“Haha . I just heard things from here and there . ”
When Gun-Ho got off the phone with Chan-Ho Eum, Director Kim entered Gun-Ho’s office .
“Director Kim, did you see the news? Egnopak’s president’s son got arrested again . ”
“I actually just came back from Egnopak . ”
Note*
Bibimbap – Cooked rice with various vegetables and meat mixed together with Korean red chili paste .
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