Story of a Big Player from Gangnam

Chapter 770: Fulfilling Preliminary Examination Requirement to Go Public (3) – Part 1

Gun-Ho replied to the internal auditor’s question while smiling, “Since this is a joint venture company, we will have to discuss it with our partner— Lymondell Dyeon. But, I’m thinking about increasing our shares by 30% in registering with KOSDAQ.”

The internal auditor nodded his head.

“30% sounds very reasonable. If we increase greatly the number of shares, the company will get more funds, but its major shareholders’ portion in the company ownership will decrease accordingly. And, if we increase the number of shares so little, what would be the point of going public?”

Gun-Ho called for Secretary Seon-Hye Yee.

“Please ask Mr. Vice President Adam Castler and the interpreter— Mr. Assistant Manager Myeong-Joon Chae— to come to my office now.”

“Yes, sir.”

After a moment, Mr. Adam Castler and Assistant Manager Myeong-Joon Chae entered Gun-Ho’s office.

“Please have a seat,” Gun-Ho told them.

Mr. Adam Castler said as he sat on the sofa, “I let the head office know that our preliminary application to go public has been approved, and we received an official letter from the head office to congratulate us. Also, they want to thank Mr. President Goo and Dyeon Korea’s executive officers. They are highly recognizing their efforts and work in this matter.”

“Really? That’s nice. Mr. Vice President Adam Castler, I asked you to come to my office, so we can discuss the increase in the company shares as we register with KOSDAQ. How many shares do you think we should offer to the public?”

“Well, I don’t know, sir. I’m sure that you— Mr. President Goo— and Mr. Internal Auditor here are the experts in that area with extensive knowledge about it. I think you should determine it, sir. Also, I will have to ask for the head office’s opinion about it as well, so, this is not where I can freely exercise my discretion. I’d like to know more about Korea’s law applying to the Securities and Exchange.”

The internal auditor said as he opened a folder that he brought with him, “In Korea, when a company goes public, it has to offer at least 30% of the company shares to the public, or it has to be more than 5 million shares which are more than 10% of the entire company shares.”

“Is it mandatory?”

“It is required in offering the company shares to the public for the first time. The purpose of this practice is that companies could receive funds by offering their shares to the public, so they could use those funds in expanding their business or production to grow.”

After sipping his jujube tea, Gun-Ho said as he crossed his legs, “I just discussed it with Mr. Internal Auditor here about it before you came to the office, it seems that due to the mandatory rules, we can’t increase our shares only by a small number, nor can we increase the number of our shares substantially because that would affect our management right. So, I think increasing the shares by 30% would be adequate.”

“30%, sir?”

“Yes. Our capital is currently 20 billion won, and we have 2 million shares in total. I want to offer 600,000 shares to the public which would be 6 billion won worth and which is 30% of our capital.”

“I see. I will let the head office know about it, and will let you know what they think about it.”

“We have the due date coming soon, so we need to make the decision as soon as possible.”

“Yes, sir.”

Gun-Ho said with a smile as he straightened his posture, “I’m about to head out to attend Maintenance Manager Ahn’s mother’s funeral. If you prepared some condolence money for him, I will deliver it to him for you, Mr. Vice President Adam Castler.”

“I actually asked Mr. Assistant Manager Myeong-Joon Chae about Korean culture with funerals, and I learned that people give condolence money to the decedent’s family. I will prepare my condolence money for Manager Ahn. Also, I’d like to visit the funeral as well. I’d like to know more about Korean culture related to funerals.”

“Well, you don’t have to be there... Your condolence money will suffice.”

“I insist, sir. I really want to attend the funeral. If you go there, sir, I will join you.”

The internal auditor who was sitting next to Mr. Adam Castler laughed and said to Gun-Ho, “Sir, why don’t you take him with you? Mr. Adam Castler seems to be curious about our funeral culture.”

Gun-Ho said to Mr. Adam Castler “Once you visit the funeral, you have to make a full bow to the decedent, and you have to eat Yukgaejang (Korean spicy beef soup) while sitting on the floor. Do you think you can handle it?”

“I can sit on the floor. I’m getting used to it now. I heard that if you are a Christian, you don’t have to make a full bow to the decedent at a funeral, but you can just give a simple bow while standing.”

“Right, you can choose to give a brief prayer to the decedent while standing, but you have to give a full bow to the first son of the decedent, and he will do the same to you. That’s our culture.”

“Oh, I will follow whatever you do, sir.”

“Okay, then. I will take you with me.”

The internal auditor asked Assistant Manager Myeong-Joon Chae, “Mr. Chae, have you been to a funeral before? Do you know how to eat a bowl of Yukgaejang?”

“I’m not sure, sir.”

Gun-Ho looked at the internal auditor’s face; he wanted to hear what the internal auditor had to say about Yukgaejang, out of curiosity.

“We used to eat a bowl of red bean porridge at a funeral in the past. We believed that the red color of it expels ghosts.”

“Oh, really?”

“Now, we replaced the food at a funeral with a bowl of Yukgaejang. It has a red color in it anyway. So, by having Yukgaejang, we can still expel ghosts, and we don’t have to cook additional soup that goes with cooked rice.”

“I didn’t know that. It’s my first time hearing about it. Thank you for the information, sir.”

Gun-Ho and Mr. Adam Castler headed to Manager Ahn’s mother’s funeral at Dankuk University Hospital. It was around 4 pm when they arrived there. Since it was before evening time, the funeral was not crowded with visitors just yet. There were a few flower wreaths standing at the entrance. The first one was from Dyeon Korea with Gun-Ho’s name. The one next to it was from GH Mobile under President Song’s name. When Gun-Ho and Mr. Adam Castler, who obviously looked different from Koreans, in a business suit entered, people in the room looked at them all together.

“Oh, sir, you came.”

“My condolences to you and your family for your loss.”

“Thank you for coming, sir.”

Manager Ahn, who was wearing a black suit with an armband indicating that he was the first son of the decedent, looked surprised when he saw Gun-Ho.

Gun-Ho picked up an incense stick and burned it, and then he placed a cluster of chrysanthemum on the altar. Mr. Adam Castler, who was standing behind Gun-Ho, watched what Gun-Ho was doing closely, and then he followed the exact same procedure when it was his turn.

Gun-Ho was not a Christian, but he gave a brief and silent prayer to the decedent instead of making a full bow because he knew Mr. Adam Castler would follow his action. And then, he exchanged a full bow on the floor with Manager Ahn. Mr. Adam Castler followed the same procedure even though the way he moved looked a bit awkward. Manager Ahn’s family stared at Mr. Adam Castler. Having a foreigner at the funeral was interesting enough to draw attention.

After exchanging the full bow, Gun-Ho asked the first son of the decedent— Manager Ahn, “I’m sorry for your loss. How old was she?”

“She was 88 years old.”

“She could have lived longer than that. It’s a shame. Which cemetery is she going to?”

“It’s in Gimcheon City, North Gyeongsan Province.”

“Oh, I see.”

Manager Ahn introduced his siblings and his wife to Gun-Ho. When his family learned that Gun-Ho and Mr. Adam Castler were the president and vice president of the company that Manager Ahn was working for, they were startled and greeted them with great respect.