CH 6

Chapter 6 Step by Step (Part 2)

"I'll go first then. If I'm too late, I'll get scolded by my mom."

Min-seok, his timid partner, kept glancing at his wristwatch, worried about his parents.

Yi Geon chuckled and patted Min-seok's shoulder.

"Let's just go in together. I've already got the first business item all figured out in my head. From next week, there won't be any reason for us to stay out late anyway."

Yi Geon put his arm around Min-seok's shoulder.

"Thanks."

"Alright, everyone, let's take the subway with Min-seok. From tomorrow, he'll be busy printing papers again."

"Min-seok should listen to his mom and go to bed early."

"I have to study late because I have to, but don't you study?"

"Oh, not this talk about studying again, it gives me goosebumps."

Sang-du teased Min-seok openly, but Min-seok just ignored it and changed the subject. Although he was naïve, Min-seok didn't seem completely oblivious. 

‘He wasn't a bad guy, right? If I keep assigning him work, I'll find out if he's sharp or not.’

The next day.

"Ah, damn it. The principal scolded me harshly at the school gate for being late, Min-seok. What's this?"

"Here's what you asked for."

Min-seok placed a stack of papers on the desk, holding his sore thigh as he sat down.

"Ah, the investment proposal? Give me just one copy."

The ink on the three printed pages hadn't dried yet. The print quality looked a bit rough, probably because it was printed with a homemade stencil using a roller. Of course, Yi Geon didn't care about the minor details. The important thing was the core content.

[Hwagok-dong Local Venture Company 1st Investment Proposal (1st of 3 Phases)]

Industry: Production and Services (Start-up)

Investment Limit: Up to 20 shares (5,000 won per share)

Maturity Date: 1 year from contract date (early payment possible if target net profit is achieved)

Interest Rate: Minimum 20% of the investment amount after 1 year + additional interest linked to excess profit

Additional linked interest according to the company's internal regulations, connected to the excess profit compared to the target net profit.

Additional Benefits: Preemptive stock purchase rights for 1st investors when the company goes public (number of shares proportional to the investment amount)

Total Investment Target Amount: 10 million won (early closure of investment proposals possible if target amount is reached, according to company regulations)

[Party A and Party B agree from April 1993…]

The first page contained an abstract description of the investment proposal. The following pages were an investment contract with provisions concerning Party A and Party B.

"No typos, you did a pretty thorough job.” 

‘Min-seok did better than I expected.’

"Thank you, but isn't 1,000 copies too many? There are only about 560 students in the entire freshman class."

"What are you talking about? We have to cover all the 1st, 2nd, and 3rd-year students. The seniors haven't invested yet, right?"

"Will the seniors accept it?"

Yi Geon grabbed Min-seok's shoulder, which was full of worry, and shook it lightly.

"Hahaha, Min-seok. You're great, but you're just too timid. Stop increasing unnecessary worries and just trust me. How many copies do we have now?"

3 Bundles and around 600 copies per bundle. The rest should be done by today.

"Then bring them all during the break of the next class. We'll distribute them starting from the third-year students."

Yi Geon found it humiliating to worry about such trivial matters.

All this for merely raising 10 million won in seed money.

Even in his previous life, during his first encounter with gangsters who held sashimi knives to his throat, he had sold drugs to raise funds.

Of course, the atmosphere of 1993 was quite different from the 2020s.

But he suspected it wouldn't be all that different even now.

—---

"Hey, have you heard the news?"

"What news?"

"There's a monster-like guy in the first year. He can do ten kicks in midair."

"Wow, did he learn martial arts from some temple?"

"Seems like it, that dude must be really strong. Who would win if he fought with our captain?"

"We'd have to see them fight, but he's just a first-year."

Just like the old saying, speak of the tiger and it appears.

A knock was heard on the door of the 3-1 classroom.

A delicate and pretty first-year student entered, followed by a well-built and slightly aggressive-looking boy.

"Hello. Honorable seniors of class 3-1,

I am Yi Geon, your junior from class 1-5.

I've come to introduce a very good investment product to you, and though it's rude to intrude during your busy exam preparations, it's an honor."

"Ah, are you selling insurance?"

"Get out, you filthy first-year, we're trying to study."

"Damn it, we have to prepare for the second round of the college entrance exam and all this nonsense is distracting. It's annoying."

The third-year students didn't seem to have a good reaction, probably because they were seniors.

"Senior, please just take a look at what your cute junior is offering. If you like the product, please come to class 1-5 and we will kindly consult you."

Though annoyed, some of the third-year students chuckled at Yi Geon's ironclad sales pitch and reached out their hands.

"Fine, let's see what you've got. Just give it to me."

"Thank you. Dong-pal, please distribute one copy to each senior."

"Alright. Greetings, seniors. Thank you."

As instructed, Dong-pal bowed 90 degrees in a formal greeting to the seniors.

"Give me one too."

"Thank you, senior."

As Yi Geon and Dong-pal smoothly handed out the papers, a cunning-looking student blocked their way and started a quarrel.

"Hey? It's a venture company. How did a mere first-year like you learn about this? There's a first-year who's quite smart, huh? Hey, first-year Yi Geon, did you study abroad?"

"No, senior. I just know someone who runs various companies abroad."

Selling his connections from his first encounter, the third-year student's eyes sparkled.

"I see, you've got some windfall connections. Well, everything's fine. Everything's good, except for one thing. I guess it can't be helped since you're a first-year?"

"Yes, senior. If you tell me what's wrong, I'll do my best to fix it."

The senior licked his lips, seemingly displeased with something.

"Isn't this essentially a promissory note or short-term corporate bond with a one-year maturity? In the case of primary and secondary financial sectors, it's a matter of promissory notes. Companies usually issue promissory notes when doing business with each other. Subcontractors in need of immediate cash use their connections in the financial sector to get promissory notes. First-grade companies usually give an 8% discount, while second-grade companies offer between 12% and 15%. How much do you think they'll discount for second-grade companies using promissory notes? You know what I mean, right?"

"Yes, senior. But using promissory notes is usually for short-term operating funds, such as purchasing raw materials. Even if it's a subcontractor, I believe they'll wait until the maturity date for the remaining 95% of the promissory notes. Moreover, it's difficult to find a first-grade company's promissory notes in the market unless it's with a major bank."

At his response, the senior gave Yi Geon a sharp glare.

Most people think that promissory notes are usually handled by secondary financial institutions.

However, as Yi Geon mentioned, due to the relationship with the main contractor, most prefer to use primary financial institutions, giving them rebates and requesting card loans.

If promissory notes are handled by secondary financial institutions, it could affect the company's credit evaluation within the bank.

Knowing such intricate details is nearly impossible unless one has run a business themselves.

"Wow, this freshman is something else."

The senior smiled as he briefly placed his hand on Yi Geon's shoulder.

"Hey! You're quite something. Did you really not learn from American or Japanese sources? It's suspicious how well you understand the flow of funds."

Just as the senior was surprised, Yi Geon felt a strong sense of caution for the first time in his second life.

In this era, when the concept of JIT supply chain and stable cash transactions are underdeveloped, promissory notes and credit transactions are actively conducted in the B to B sector.

However, it's practically impossible to understand the intricate flow of promissory notes without experiencing an actual business, even if one learns about them through books.

The senior had seen through Yi Geon's understanding and ability to explain the process.

That's why Yi Geon felt cautious.

"Thank you for your high praise, but it's not like that."

"You're also cunning, pretending to be innocent. But the important thing is that you understand what I'm saying, Yi Geon."

"Are you saying it's difficult for a venture with no collateral or credit rating to get a one-year loan at a 20% interest rate?"

The senior seemed pleased with the response and let out a hearty laugh.

"Hahaha, well, at first glance, these terms might seem favorable, but upon closer examination, they appear to be shallow tricks to easily obtain seed money. There's no collateral or credit whatsoever. So it's essentially a kind of exaggerated advertisement."

Yi Geon was starting to get annoyed by the senior who kept going around in circles, attacking his weak points. It infuriated him even more because it was an outright attempt to extort what he wanted through hitting him hard.

'Ah, I can't bury myself in work like in my first life, and I'm going crazy. Why is there so much conflict? Starting from the first class.'

Yi Geon clenched his teeth and opened his mouth.

"Seeing how much you care about this despite being busy, it seems like you have something else you want, senior. If you tell me, I'll listen attentively as your junior."

"Alright, let's stop beating around the bush. I'll be honest about my dissatisfaction. Why did you block it at 20 shares? If you had released the account, it would have been much easier to raise funds."

Yi Geon smirked.

The senior seemed to know quite a bit about business but was still a novice. It was understandable that he couldn't grasp the future limited-edition marketing strategy due to the times.

"You probably know better than me, senior."

"Hmm... So, in the end, you're trying to make a fortune among yourselves, first-year students, according to the contract. We'll only make a small 20% profit. And if there are any complaints later on, we'll have to face difficulties, so you added a fair amount of profit sharing."

"..."

Yi Geon's eyes carried a sharp warning.

'Who is this senior, really?'

The senior, who seemed to have confirmed his suspicion, showed a mysterious smile.

"Perhaps you have a solid business model, so you don't want to waste time collecting seed money. And you don't want to lose control by borrowing money from big players and resorting to a me-too strategy. Yi Geon, you're quite the greedy one. Or should I call you an ambitious person?"

He regretted letting his guard down and relaxing his vigilance.

'What is this person? Is he really a senior in high school? Why is he here?'

The tail of questions that arose in sequence. The senior had seen through most of them at once, displaying quick wit. It was rare even in his first life to encounter someone so perceptive.

It felt like he had been exposed completely. He forced a big laugh as cold sweat ran down his back.

"Hahaha, senior, I'm not some big shot like Chairman Jung Joo-young of Hyundai. We're just a small shop run by a few people. Thank you for thinking so highly of me."

"No, I don't know what you're hiding, junior. But it seems like it won't even take two or three months to repay early according to these conditions. So that's why I'm dissatisfied. Is there no way for me to invest more? If you want, I can invest 10 million won all by myself."

"Senior, if you do that, it would cause strife with other seniors."

"Ahh~ Hahaha, right, there was that. My father would have been delighted to see you Geon. Then let me propose a condition. Since Geon would also hate to waste time, I'll help you save time in exchange for the equivalent profit."

The senior had started calling him Geon, as if talking to a familiar junior.

"I'll consider it, senior. But there's one thing I'm curious about - your name."

He asked for the senior's name since he wasn't wearing a name tag.

"I'm Gu Ja-hoon."

"Ah, Gu... Ah!"

Only then did Yi Geon realize the identity of the third-year senior.

No wonder his face looked strangely familiar.

And the way he spoke didn't seem like an ordinary high school student. He appeared to have received proper practical financial education at home.

If he was at a level that made Yi Geon feel guarded, then the age of being a high school senior was just a number.

As it turned out, he was Gu Ja-hoon, who was said to be frighteningly formidable in Yeouido, like a natural disaster.

That's right, it would take someone of this caliber to make Yi Geon feel tense.

This person.

He was a much more extraordinary figure than expected.

He was the third generation of a financial quasi-chaebol family.