One week passed. Gun-Ho received a call from the branch manager of the stock brokerage company in Gangnam District.
“I just received a confirmation from the Financial Supervisory Service that they received Dyeon Korea’s report on its marketable securities. What do you think of having the business presentation for IPO on September 10th?”
“Sounds good.”
IPO (Initial Public Offering) presentation refers to a presentation made by a company right before going public. The presentation is given to public investors to explain about their business.
“As for the venue, we probably want to hold the presentation in Yeouido Island rather than Gangnam District since many people in the financial field are found in Yeouido Island. What do you think, sir?”
“Yeouido Island sounds good to me.”
“What about the convention center in 63 Building— Grand Ballroom— in Yeouido Island?”
“63 Building? That’s fine.”
“I guess the presentation document is prepared already. The presentation itself has to be done by the president, sir.”
“Do I have to have a Q&A session after the presentation?”
“Yes, sir. I want to remind you that you chose not to sell the old shares when we offer the company shares to the public for the first time. Once the company shares become available in the stock market, you can’t sell your shares for the next 6 months. There is a 6 month IPO lock-up period. That requirement is there to prevent a company’s major shareholders from selling their shares after an IPO just because the share price went up.”
“Hmm, I have no intention to sell my shares anytime soon.”
“In order to protect Bona Fide public investors, the shares, which were distributed among the employees per their employee stock ownership program, cannot be sold for the next 1 year either. That will work as a safeguard preventing the share’s price from dropping.”
“Huh?”
Gun-Ho was dumbfounded. It was his mistake.
‘Shoot. I told Director Jong-Suk Park that he should sell his shares on the first day when the company shares become available in the stock market. What am I going to do?’
Gun-Ho asked the branch manager of the stock brokerage company, “Is there any exception to the rule, so an employee could sell his shares within a year from the date of IPO?”
“There is. If the employee’s employment is terminated with the company, he can sell his shares in the stock market since the rule no longer applies to the non-employee.”
“Hmm.”
“Also, there are very limited situations that allow an employee to sell the shares such as an act of god or illness, etc. They will have to prove the situation with supporting documents though.”
“Hmm, I see.”
After getting off the phone with the branch manager, Gun-Ho was lost in thought again. After quite a while, Gun-Ho abruptly stood up from his seat.
“My head hurts. I will go to a sauna. There won’t be many people there since it’s a weekday.”
He went to a sauna that was located inside the Education Community Center building in Yangjae Town. He was relaxing in the bath with his eyes closed while continuing to think about Director Jong-Suk Park’s shares.
‘Jong-Suk Park. What am I going to do with him? He is like my little brother. I want to look after him.’
After a while, Gun-Ho nodded his head with his lips firmly closed. It seemed that he made a decision.
The following day, Gun-Ho went to work in GH Mobile in Jiksan Town. His usual routine when he arrived in GH Mobile in the morning was to stop by the production site first. It was a natural course of action of his since he always stressed the importance of the production site in a manufacturing company. But that day, he skipped this routine.
When he came up to his office on the second floor, he received a brief report on the current status of the company from President Song. After a while of staying in his office by himself, he made a call to Director Jong-Suk Park.
“Director Park? It’s me.”
“Huh? Bro! I thought you are coming to work in GH Mobile today. I haven’t seen you on the production site this morning. Are you not here?”
“I’m in GH Mobile. I came straight to my office today. I want to have lunch with you today quietly.”
“Just you and me?”
“Yeah. Don’t tell anybody that you are having lunch with me, but just meet me outside. I have something that I want to talk to you about.”
“What is it?”
“I will tell you when I see you.”
“Where to?”
“Come to the café alley near the reservoir in front of Dankuk University. Let’s have a pork cutlet for lunch.”
“Okay.”
Gun-Ho and Jong-Suk Park were sitting at a table next to a large window in the restaurant, facing each other. The window was overlooking the view of the reservoir.
“Bro, what’s the occasion? It is unusual for you to ask me to meet at a restaurant like this.”
“I just want to talk with you in a quiet place.”
“This restaurant looks great, by the way. I like the water view from this window seat and the feeling of tranquility that this place offers. I think I’m going to take my wife here for lunch some time.”
Gun-Ho said as he was having the pork cutlet that he ordered.
“Is there anyone who is talking bad behind your back at work?”
“No. There were a lot in the beginning when I first joined the company, but now no. Since I’m very polite to the people who are older than me regardless of their positions, I haven’t seen anyone having problems with me, at least as far as I know of. I’m not sure what they think in their minds though.”
“Have you thought of running your own business?”
“Having my own business? No way. I don’t have an aptitude for it.”
“I think you do. You are overly able to run your own company.”
“I’ve seen what President Song has been doing to run the company. I don’t think I can do that. A business owner must know everything, not just certain and limited skills, right?”
“President Song had his old days when he was younger in this field. He used to be rebuked a lot by his boss as well.”
“Whatever. I don’t think I can do it. What kind of business would I open?”
“We are building the machines for Dyeon Korea using the twin screws that we bought from West Moulding Corp. in the U.S. I’m thinking of opening a new company that builds machines like that.”
“You mean a manufacturing company that builds the machines that Dyeon Korea is using?”
“Yeah.”
Jong-Suk seemed to be dumbfounded. He stared at Gun-Ho vacantly.
“We buy the twin screws from West Moulding for 20 million won. And, we build a machine using those twin screws and all other parts that we purchase from other companies. Once we completely build a machine, we sell it to Dyeon Korea for 150 million won.”
“150 million won? I didn’t know we charge them that much.”
“I’m not asking you to work for me as a CEO of my new company. I’m proposing you to work with me as a business partner.”
“A business partner?”
“Yeah. You and me work together as a partner. You are not just being paid with a monthly salary, but we will share the profits too.”
“Hmm.”
Jong-Suk Park seemed to take some time to think about it. After a while, he said, “It’s not difficult for me to build a machine for Dyeon Korea. It’s a simple task for me, and I can run a company that does that specific job.”
“That’s good enough.”
“But, it takes money to open a new business, doesn’t it? We need to buy machines, build systems, and stuff. If this is a partnership, I have to come up with some investment money as well. But I don’t have money.”
“Once you sell the company shares, you will have money.”