Chapter 662 - Each GH Company’s Year-End Financial Report (3) – Part 1
Gun-Ho went to work in GH Building, Sinsa Town.
Director Kang and Manager Hong entered Gun-Ho’s office, carrying some documents. It seemed that they were ready to give Gun-Ho the year-end profit and loss report. Gun-Ho called for the secretary—Ms. Yeon-Soo Oh.
“Please bring us three cups of green tea.”
“Yes, sir.”
Director Kang and Manager Hong unfolded the documents that they brought.
Gun-Ho said, “GH Development has a simple profit system. So, I expect to hear a simple financial report concluding the previous year.”
“Yes, sir.”
Director Kang started the report as he handed a summary chart of GH Development’s year-end financial status to Gun-Ho.
“The sales revenue increased to 9.9 billion won. We made 100 million more than last year.”
“We don’t have any vacant space in the building, do we?”
“No, sir. The entire building is currently occupied completely.”
“If any tenant on the 17th floor and 18th floor gives a notice to vacate their office, please let me know before finding another tenant. We might have a use for those offices for ourselves.”
“Yes, sir.”
Manager Kang continued, “Our profit is 100 million won.”
“We are making a profit, huh?”
“The building maintenance reserve and the depreciation are…”
“That’s not entirely true, sir. The publishing industry has its own hardship in doing business. It’s really hard to increase sales, for example. Of course, we can produce good profits, but that’s only if we successfully sell books. If we fail to come up with a best-selling book, the company will have to close its business. It’s a very risky business. That’s why we see a lot of publishing companies opening and also closing the business within a year, just like deep-fried chicken restaurants.”
“Hmm, really?”
“That’s why the government is waving VAT on publishing companies, hoping it would promote businesses in a cultural industry.”
“Hmm, is that so?”
While President Shin was sipping her tea, Gun-Ho asked her, “So, the net profit after tax is 1.36 billion won, right?”
“Yes, sir. So, I was thinking… We want to distribute dividends for the amount of 1.2 billion won.”
“1.2 billion won?”
“Right. You will receive 1.14 billion won while I take 60 million won for my 5% share.”
“Hmm.”
“GH Media now has one more income source—the drama production. We will start making revenue from it starting next year. I’m so excited. Haha.”
“Okay. Let’s distribute the dividend as you just suggested. That’s fine with me.”
“I understand that the dividend of 1.14 billion won from GH Media is not much for you, considering that you have other companies where you make additional income from, but 60 million won is a big money for me. I’m going to pay for my debt with it. Haha.”
“Paying for your debt? I didn’t know you have a debt.”
“I have 300 million won to pay off.”
“300 million won? It’s not an insignificant amount for an individual. Did you run a business before and it went broke?”
“No, sir. I bought a condo, and that’s my mortgage loan. I now live in Nonhyeon Town. I’m a resident in Gangnam District. Hahaha.”
“Really? Congratulations. I guess you purchased a very nice condo, assuming that high amount of loan.”
“I used to live in a 25 pyung large condo in the Raemian Condo Complex in Dangsan Town. It was a lump-sum lease with 450 million won.”
“I see.”
“I had to commute all the way to Sinsa Town here from Dangsan Town, which was not easy, so I looked for a condo around here. I wanted a condo within a walking distance from my work. The condo price in Nonhyeon Town is surprisingly high even considering its location in Gangnam District.”
“Hmm.”
“My real estate agent found one condo for me. It’s the condo in Sindonga Pamillie Condo Complex. He told me that I should buy it when it was still available since it was on the market for a relatively low price. He guaranteed that its price would go up no matter what. He also connected me to a loan officer.”
“How much did you pay for the condo?”