Chapter 920: Gift (1) – Part 1
Gun-Ho received a call from Huanle s.h.i.+ji Production Company’s President Baogang Chen in China.
“I’m calling to inform you about the profit-sharing by Yang Guang Pictures, sir.”
“Please go on.”
“You invested 6.5 million dollars in our production company, Mr. Chairman Goo. Your investment fund was 1.5 million dollars for our TV series— s.h.i.+guang Ru Meng— and an additional 5 million dollars that you sent to us later.”
“Hmm. The amount of 6.5 million dollars sounds correct.”
In fact, Gun-Ho initially invested 1 billion won in the production of the TV series— s.h.i.+guang Ru Meng— and he was supposed to receive 1.5 billion won for his investment retrieval and profits when the TV series were aired. But, at that time, Huanle s.h.i.+ji Production Company wanted to produce a movie, and Gun-Ho let them use that 1.5 billion won for their movie production.
“We were hoping to see 20 million people coming to watch our movie— Menghuan Yinghua— but it turned out that only a little bit over 10 million people actually watched our movie. Our government liked our movie, and they promoted it, so more and more people saw the movie. However, there was another very popular movie that competed with us, and as a result, we didn’t succeed as much as we initially expected. But, you can still tell that it was successful.”
“So, how much are you saying you made with the movie production?”
“We are returning your investment return of 16.7 million dollars which includes your actual investment fund of 6.5 million dollars.”
It would be approximately 17 billion Korean won. So, with his investment fund of 6 billion won, Gun-Ho made around 10.5 billion won of profits from the production of the TV series and the movie.
“Hmm, really?”
“We will send that amount to you within 3 days, to GH Media’s business bank account that is shown in our contract.”
“Sounds good.”
“And, as for Director Woon-Hak Sim, we desire to continue to work with him, but he wants to discuss it with you, sir, before making his decision.”
“Hmm, I see.”
Gun-Ho didn’t mind Director Woon-Hak Sim continuously working with Huanle s.h.i.+ji Production Company. However, if he would work with Huanle s.h.i.+ji Production Company, and Gun-Ho no longer would have a business with them, there was no reason or justification for GH Media to continue to pay Director Woon-Hak Sim his salary in Korea. That could be one of the issues that Gun-Ho could think about from the new arrangement.
‘I’m happy for Director Woon-Hak Sim that the Chinese movie production company recognized his abilities and value, and wants to continuously work with him. But, the salary that they are paying in China alone wouldn’t be enough for Director Woon-Hak Sim once GH Media stops paying him in Korea. GH Media can’t continue to pay him 1.5 million won per month since he wouldn’t be working for us, but he would work for the Chinese movie production company. That’s probably why Director Woon-Hak Sim couldn’t yet give his answer to President Baogang Chen’s job offer.
I wonder what Director Sim wants to discuss with me about. He mentioned a historical movie that he wanted to make, last time we talked. Is he going to ask me to make my investment in that movie production? If so, my investment return of 16.7 million dollars would have to be used in China again, and that means that I won’t see my 16.7 million dollars for a long while.’
Gun-Ho asked President Jeong-Sook s.h.i.+n to come to his office.
“I just received a call from Huanle s.h.i.+ji Production Company’s president in China.”
“Oh, really?”
“We made 16.7 million dollars from our investment in the movie, including our investment fund. They will send us that amount within a few days.”
“Wow! Is that right?”
“I believed that I previously sent 6 billion won to GH Media for the TV series and movie investment.”
“That’s correct, sir. You at first transferred 1 billion won, and then an additional 5 billion won later. So, the amount of funds that you sent to GH Media was 6 billion won in total.”
“When you receive the investment return from Huanle s.h.i.+ji Production Company— they said they would send it within 3 days or so— please set aside 6 billion won of my money, and record the remaining fund as GH Media’s investment profits.”
Gun-Ho continued, “You know what? Director Sim wants to make another movie. We might have to make another investment in a movie production again.”
“Again, sir? That means that GH Media will not have any investment profits this year.”
“They will send us 16.7 million dollars, and it would be around 17 billion won. Setting aside my investment fund of 6 billion won, it will be 11 billion won which will have to be cla.s.sified as investment profits. If we decide to make another investment in a movie production, we will use that money.”
“So, for the new movie, GH Media will not borrow funds from you, sir, but it will reinvest this investment profits that it just made.”
“That’s correct.”
“Hmm.”
President Jeong-Sook s.h.i.+n seemed to have a lot going on in her mind.
Gun-Ho said, “But the thing is that I have no intention to make another investment in a movie production, at least for now. There is no guarantee that the movie will succeed. I could lose money this time— it would be the money that we just made. Investing in a movie production is tempting; I can give it that. But, it’s not an area of my expertise. My field is in the manufacturing industry.”
“If you decide not to make another investment in a movie production, what would happen to Director Sim?”
“If that happens, we will have to let him go. GH Media will terminate his employment.”
“Hmm.”
“The Chinese movie production company wants to hire Director Sim. But, as you know, the salary that they pay him is low, and Director Sim seems to hesitate to accept their job offer for that reason. If he decides to work with the Chinese movie production company, he will no longer work with us, and his employment with GH Media will be terminated.”
“Hmm, that’s right, sir.”
Dyeon Korea’s stock price skyrocketed for a while after W Chemical acquired the company, and then it started dropping as the source that made Dyeon Korea as a theme stock in the first place had depleted. Moreover, stock manipulators seem to move on from Dyeon Korea’s stock, and its trading volume became low.
Gongmyeong Party Leader Jin-Woo Lee began actively making his political activities as his slush fund was filled with the dividend money that Gun-Ho had sent.
GH a.s.set Management Company’s President Geun-Soo Son stopped by Gun-Ho’s office later that day.
“Mr. Chairman, Dyeon Korea’s stock price is currently about 20,000 won. The price was on its peak last December as W Chemicals acquired GH Mobile’s owners.h.i.+p interest in Dyeon Korea. And, then the price has been downward ever since for the past 3 months.”
“I see. I haven’t checked Dyeon Korea’s stock lately.”
“Party Leader Jin-Woo Lee’s little brother is still working for Dyeon Korea. Do you want me to make our investment in Dyeon Korea’s stock again, sir?”
“I don’t know. I don’t have any useful inside information to make our move for it.”
“If Party Leader Jin-Woo Lee mentions the possibility that he might run for President either directly or indirectly, Dyeon Korea’s stock price will increase again, but he hasn’t said anything about his next move. The trend in the stock market these days is the theme stocks of the opposing party’s politician.”
“I think we should turn our gaze to blue-chip stocks rather than clinging to theme stocks. What do you think? I want you to discuss it with your fund managers and make an investment in the stock market again.”
“We are doing it, but our profit rate is not very satisfactory.”
“But that is what we are supposed to do as an a.s.set management company, isn’t it? For now, focus on not losing any money rather than making profits. That’s more important at this point.”
“That’s exactly what I’ve been telling my workers during our daily coffee time in the morning. But the fact that our profit rate is low bothers me. I don’t want to disappoint you, sir.”
“I won’t blame you for it. Don’t worry about it. I want you to keep on doing what you are doing now with your discretion.”