# 470
The Legend of Return
Chapter 470. Social enterprise (2)
‘Suddenly, the land…’
Hyo-gwan Hwang looked forward to meeting today.
I was kicked out of Daewoong Construction and lost my place to go.
He devoted all his youth to Daewoong Construction, but the last thing he did was just a few pennies of severance pay.
Money wasn’t the problem.
The state-run bank that took over Daewoong indiscriminately fired executives.
All those who did not have the slightest line in the regime were cut off.
Skills and sales skills were not important and I did not look at them.
The occupying forces swung their swords indiscriminately as if sweeping the enemy.
Even Hwang Hyo-gwan could not escape the sword.
It seemed that everything in life was over.
I endured the years and consulted with him, but there was no master to call me.
All that was left was a security guard position in an apartment building that was popping up quickly.
It did not match at all with the past where he was in charge of large-scale Arab projects such as Saudi Arabia while running overseas sales.
She swallowed her tears and begged her ancestors.
He went up to the temple, raised 3,000 folds, accumulated countless meritorious deeds 108 folds, and clung to the gods.
Please help me to make my life bloom again.
I gave my whole heart.
And the sky was not indifferent.
opportunity to come again.
Hwang Hyo-gwan was called by Chairman Ha Gwan-wu, who was a motive for joining the company.
Even though the subsidiaries are different, they were close friends from the past.
However, Ha Kwan-woo, who was in a different situation than himself, became the chairman of TS Group.
Daewoong men started to join TS Group as experienced workers.
Hwang Hyo-gwan also waited for the right time.
When we were classmates, we were quite close and acknowledged each other’s skills.
The wait wasn’t as long as I thought.
Ha Gwan-wu finally called him.
I wanted to entrust the work to the construction side under the TS Group.
If I were given a position right away, I could go abroad and win large-scale construction orders.
The Arab man he had a relationship with in the past was a prince of the United Arab Emirates.
However, it was entrusted with other tasks other than construction.
Right now, he is the team leader of the Cheonil Group acquisition team, but the future chairmanship was at stake.
My heart was pounding.
It was a seat that Hwang Hyo-gwan had never sat before.
The highest rank in the workplace is the position of group chairman.
Unless you are in the direct line of the president, most of the salaryman myths in Korea have ended at the group president or vice president level.
Ha Gwan-woo received a pact of secrecy.
He himself confessed that he had risen to the chairmanship with the help of foreign and Korean investors.
It was known to the economic world to some extent, but the deep inside story was unknown.
The fact that there must be an investor with a great background behind Ha Kwan-woo.
However, I never imagined that the person in front of me would be that young man in front of me.
Ha Gwan-wu would not have believed it if he hadn’t hinted at it before he came here.
He is a talented person in his early twenties, currently studying law at Korea University, and a self-made super investor.
He said that he served as an investment advisor for Robert Ryan, who is called the rising investment god of Wall Street.
He knocked over the hugging group and the cheonil group.
It swallowed one company in the top 10 group and a group that fell short of it but was solid.
Boss Jang Tae-san mentioned buying the land.
It was different from the information Ha Gwan-woo had told us that he hired full-time employees and despised speculation.
It’s not a big deal, but I was a little disappointed.
The upper classes were well aware that Korea was on the path to ruin because of real estate.
At the same time, it is used as a means to create wealth, so no one tried to break the colic.
Rather, he took the lead in creating a real estate boom by instigating the press.
They pre-purchased land, built buildings, received monthly rent, and sold it to uninformed people.
All the construction companies dealing with apartments made money with that method.
At 150 per pyeong minus the land cost, the apartment is perfectly built.
It is different from the general construction cost.
The benefits were overflowing as much as consuming large quantities.
A tremendous benefit was obtained through the flexible shortening of the construction period.
If it was sold in Seoul, it earned at least 50% margin.
Luxurious model houses and stimulating phrases aroused people’s desires and lobbied the political world to attract favorable news such as subways and roads.
When a conglomerate brand was added to that, an apartment costing less than 100 million won instantly turned into hundreds of millions.
It was easier than swimming on land.
Of course, lobbying funds had to be scattered to the political world, the administration, and local governments, but it was a pittance compared to the future revenue.
Overseas construction funds were raised as slush funds, and money earned in Korea was used as a channel for lobbying funds for the group.
That’s why dogs and cows made companies jump into construction companies.
Since labor and other expenses can be freely inflated, there has never been a business with such high profitability in Korea.
“I am going to build a house.”
“Construction companies are still selling apartments.”
Chairman Ha Kwan-woo quietly stepped out.
He also knew very well that Jang Tae-san was not usually greedy for land.
“Not enough.”
“yes? If Cheonil and TS Construction are combined, that is about 10,000 units a year. To say that the scale is insufficient…”
‘What the hell are you thinking?’
Chairman Ha Kwan-woo could not read the thoughts of the young boss.
Clearly, the main focus of the group was not construction.
Cheonil Construction also focused on bidding for the national construction industry rather than apartments.
“So will house prices go down?”
“The house price?”
“What is that…..”
Ha Kwan-woo and Hwang Hyo-gwan were taken aback by the sudden boss counterattack question.
It was not something that would come out of the mouth of a person who would buy land and build an apartment.
“What is the unit price per pyeong of an apartment that can build a model house inexpensively and last for at least 50 years based on eco-friendly and suitable high-quality materials and non-toxic cement? Land costs are excluded for now.”
Instead of the answer he wanted to hear, the boss asked a question.
“With those specifications, 1.7 million won per pyeong is sufficient. Unlike other constructions, apartments have a great advantage of standardization and mass production. The larger the unit, the lower the investment cost.”
Hwang Hyo-gwan, who worked at Daewoong Construction, gave a cool answer.
High-quality materials and eco-friendly certification mark cost more than expected.
“Based on three 25-pyeong rooms that can accommodate one or two children for a newlywed couple… 42.5 million won. Are all fees included?”
The boss was quick to calculate.
“of course. This includes the administrative costs incurred when moving into the apartment.”
“But why are the sale prices so expensive?”
“Unlike in the past, these days most of the costs are covered by project financing. You have to share it, and the interest is… high.”
Hwang Hyo-gwan replied.
Project financing is a technique of lending money with the profitability of the business and cash inflow as collateral, rather than depending on the assets or credit of the lending company.
“You mean a real estate bubble is bound to happen.”
“you’re right. It is a method in which the developer, the sales company, the construction company, and the financial company create a paper company for profit and conduct business. It is usually used for social overhead capital such as roads or port power plants…. In Korea, however, it has been degraded to similar mortgage loans, especially for real estate. It is also actively encouraged by the state. For this reason, the profits corresponding to each share are set aside for the construction cost.”
“I don’t even know if I stole the slush fund. If the project company, which is the nominal business entity, achieves its goal, it can be dissolved.”
‘Do you even know that?’
Hwang Hyo-gwan was surprised at the words of the boss who stabbed the core.
It was a business structure that only those who majored in finance or construction companies could easily understand.
“Most do. This is a business form that emerged after many construction companies collapsed due to the foreign exchange crisis in 1997. The construction company is only in charge of construction, and the professional contractor is in charge of land purchase and sales. Banks jump into risk planning… the government’s influence tends to work a lot.”
“There are a lot of related companies.”
“It is the easiest to cash out of any business.”
Hwang Hyo-gwan could not answer for a long time.
He also worked for a construction company, but as was customary, he paid bribes.
From politicians to provincial government officials, entertainment was commonplace.
Once tasted, even government officials could not get out.
It was full of benefits that could not be compared with the low salary.
Political funds, cash, cars, women, etc. were provided indiscriminately.
“Then we make it. Project Financing.”
“???”
“Boss, what’s that…”
These were the boss’s remarks that embarrassed me several times today.
“I kind of figured it out too. As of the end of last year, about 80 trillion won was invested in real estate project financing. There are many project financings that have fallen into business sluggishness and bankruptcy due to the US financial crisis. Please accept it at once.”
“If you say reception…”
Hwang Hyo-gwan asked cautiously.
Project financing loans ranged from a few hundred billion to a trillion won.
Acquiring it would cost a lot of money.
“When the international accounting standards were introduced in 2011, I couldn’t do it even if I wanted to. Sweep it up before that. It’s a good time when real estate is frozen due to a sudden financial crisis. Identify and report the number of project financing cases scattered across the country.”
“Everything?”
Hwang Hyo-gwan was surprised and asked.
“yes. Everything~”
“Is TS construction included?”
“of course. It is difficult to build Cheonil.”
“It may require significant funding. Even in the banking sector, a change in the subject of the business will be disapproving of it.”
“The politicians behind it must be uncomfortable.”
“…As you know, the construction of the Republic of Korea is all a concession business. Even pushing the ground is a political act.”
Hwang Hyo-gwan expressed his opinion honestly.
I wanted to let people know that the construction business is not as easy as I thought.
“I take the political responsibility. Don’t worry about that. Of course, my friends will be responsible for the capital. Stop worrying about that too. The two of you only need to act according to your purpose as the chairman and representative of the construction company.”
“There are reports that housing construction is over. The upside potential is lower than in the past. Preparing for a long-term recession due to population decline, as in Japan, is the right direction for business. Real estate has no room to rise for the time being due to the global awareness following the financial crisis caused by the US real estate…” ”
CEO Hwang’s opinion is wrong.”
“yes?”
“Real estate is going up. Like crazy too.”
“boss. That’s…”
“It is a reality that the workforce in the baby boom era is retiring and the population is decreasing as in Japan. But human desire more than covers it.”
“A desire?”
Hwang Hyo-gwan fell in love with the words of the boss.
Although he was very young, his insight was so wide that it was impossible to grasp.
It was unstoppable, like knowing and foreseeing the future.
“It is human nature to want to earn more and live comfortably than others. That madness explodes when it meets a swindling government that promotes speculation. Throughout this administration, real estate will be in a frenzy. And the next government cannot quench the flames of desire. Once a bubble starts, someone has to kick it out, but politicians are afraid. No government can defeat a group steeped in the madness of lust. Then…. Naturally, the second IMF will be forced into a debt feast. If a family has more debt than assets and the profits collected from interest are sucked into the bank… it’s like it’s normal for a family to go bankrupt.”
The two people who were listening to the indifferent and indifferent boss’s words burned tightly.
A boss who sees the future with a negative gaze.
But it was never wrong.
“Of course, a more beautiful world will come to those who have it. Just as it is difficult for a bankrupt family to rise again, ordinary people who purchase real estate at bubble prices will pay off their debts for the rest of their lives and lose their assets at a bargain price. In those days, those with good credit who can get cheap interest rates and those who hoard cash will suck up all their assets. If you study a little, you can read the flow… but everyone ignores that reality. You’ll realize it only when sparks fly out in front of your feet. And all that’s left… will be disoriented resentment. It will be after experiencing the horrors of the market economy.”
“…..”
In an instant, a chilly silence swept through the space.
Because they were the people who lived in the upper class and worked in the construction industry, the boss’s words clearly drew the future.
It was exactly the same at the time of the IMF.
“I think we have about 10 years left until bankruptcy.”
“Boss… the outlook is too pessimistic…”
“It’s pessimistic, but I can’t deny it. Those who sold their souls for a few pennies will shake the world. As it has been in the past, it will not be different in the future.”
“It’s a presumptuous question, but why do you invest in real estate anyway…”
Hyo-gwan Hwang summoned courage and asked the key.
“Return.”
“yes? Return?”
“I am afraid that I will be punished for not making an effort even though I know the future. The world is not meant to be lived alone, is it?”
“???”
The boss gave an unexpected answer and smiled.
It was an enigmatic statement whose meaning I couldn’t understand.
“From now on, the two construction companies will enter the long-term rental business at 2.5 million won per pyeong.”
“A long-term rental business? There is no need to do that…”
“There is no general sale. First, rent it for 10 years to newlyweds. The deposit is about 250 per pyeong. Don’t worry about bank charges as we’ll borrow money at super-low interest rates. Please deposit after the charter is completed. Anyway, if it’s 2.5 million won, there will be a profit, so it’s enough for the land cost and corporate profit. Also, increase the rental period by 5 years for each child born in the household. At the same time, after 15 years or so, sell it at the charter price.”
“Huh!”
“!!!”
The two woke up.
It was clear that the boss’ comments were absolutely not a joke.
It is impossible for an individual, not even the government, to come out with such a big picture.
It was like charity work.
Newlyweds with children were living for free.
“It must be newlyweds. The moment a defect repair occurs….. I will ask for responsibility. At least the apartment should last 50 years or more.”
It was clear that the boss was crazy.
I was not afraid at all even though it was a project that could involve a huge initial investment.
“However, it is not the outskirts of the empty plain. In the case of the metropolitan area, places with convenient subway and transportation are the first priority. And if you buy another apartment during the rental period, evict immediately. One house per family is enough for this small country.”
Boss’s comments were clear.
“Do you want to nurture bosses… groups into social enterprises…?”
Chairman Ha Kwan-woo asked seriously.
It seemed that he now understood the meaning of the boss’ actions and the things he had been promoting so far.
The company’s extreme profits were not the goal.
So far, we have been pursuing a social enterprise that dreams of co-growth between business and society.
“If you have enough, you have to let go. Or you could be struck by lightning and die. ha ha ha.”
Pleasant and generous attitude of the boss.
Pababat.
The eyes of three people facing each other and colliding.
“I will do my best… I will assist you!”
Chairman Ha Kwan-woo and CEO Hwang Hyo-gwan got up from their seats and bowed their heads deeply toward the boss.
The utopia that Boss pursues is a beautiful picture no matter who hears it.
“I wish you better.”
A boss who gets up from his seat with his horse and bows down.
The three of them sincerely opened their hearts to each other, bowed their heads, and shared trust.
Dreaming of a world where many people live happily together, not alone…
