Story of a Big Player from Gangnam

Chapter 862: Antang Transportation Company’s Board Meeting (3) – Part 1

President Runsheng Yan, who was speaking while representing the interest of the Chinese partners of GH Antang Transportation Company, sounded a bit upset.

“The reason why we decided to work with a foreign business partner in the form of a joint venture in the first place was to use their advanced management skills and methods in running the transportation business and constructing the terminal. However, nothing seems to be achieved here. Korean business partners didn’t even keep their promise, by refusing to send the second investment funds. As a result, we are having difficult times.”

“Please go on.”

“The terminal that we are constructing right now is there to serve the public interest, meaning that we can’t buy or sell the property without limitations or restrictions. Antang City’s municipal government already ratified its construction and its use for the terminal, and they approved that the project would be done by the joint venture with Korean partners. However, our Korean partners have kept asking to change the status of the property to Zhuanrang land, and I don’t understand why this is so important for them. I can’t think of any other reasons for their request on this than intending to transfer the land to someone else, or taking out a loan using the land as collateral.”

Gun-Ho replied, “We are still keeping our stance on it. We want the land to become Zhuanrang land. Whether we are going to use the land to take out a loan or not is not the issue here. We want that to happen before we send our second investment funds.”

“Korean partners are so ignorant about the law and systems in China.”

“We are not talking about Korean or Chinese law or systems, but we need to comply with international custom and practice.”

“Please direct me to a relevant international law that states that the Chinese land has to be transferred to Zhuanrang land to continue the business.”

“It is common sense in business. You have to own the land in order to do something with it, don’t you think?”

Gun-Ho and President Runsheng Yan raised their voices, and that created an intimidating atmosphere in the meeting room. The other attendees at the meeting didn’t say a word.

President Runsheng Yan finally said, “We can’t continue our joint venture like this. I will let the Chinese partners finish constructing the terminal, and once the terminal is completed, I will dissolve Jianshe Xiaozu (construction team) within Antang City’s intercity bus company. At the same time, I intend to make a request to the municipal government that we will terminate the joint venture.”

“Terminating the joint venture? That’s fine. We just need the investment funds of 3 million dollars back, that we have invested in it so far.”

“We don’t have to give the funds back to the Korean partners because it is the Korean partners that breached the joint venture contract. The Korean partners didn’t have the intent or will to continue the joint venture in the first place anyway, did you?”

“Look, which contractual duty did the Korean partners breach? It was actually the Chinese partners that breach the contract. I had my investment funds ready, and I was going to send the second investment funds, and then I used those funds in purchasing five condos in the area instead because I couldn’t trust the Chinese partners. Are you still accusing me that I had no intent or will to continue the joint venture?”

As Gun-Ho and President Runsheng Yan raised their voices and continued to argue fiercely, the joint venture’s Vice President Chun Chang requested to take a break.

“You two need to take a break to calm down. Let’s take a ten-minute break and resume the meeting.”

“Okay. Sounds good.”

The Chinese partners walked out of the meeting room, and they seemed to have their own private meeting outside the room. The Korean partners, that stayed in the meeting room, looked dead serious with their arms crossed. The interpreter—Ms. Eun-Hwa Jo—seemed to feel very uncomfortable.

She asked, “What would happen to us if the joint venture is terminated?”

“Sons of bi*ches, do they think we can’t make a living without this joint venture business?”

As Gun-Ho blurted, Ms. Eun-Hwa Jo seemed to feel more uncomfortable.

Eun-Hwa Jo eventually walked out of the room. At that moment, Vice President Chun Chang asked Eun-Hwa Jo to talk with him.

“Hey, what did the Korean partners say about the situation?”

“They said that they can still make a living without the joint venture, and also said Wangba Dan (sons of b*tches).”

Vice President Chun Chang looked uneasy as he was hearing what Eun-Hwa Jo said. President Runsheng Yan, on the other hand, who was standing next to Vice President Chun Chang, smiled slightly in a way that no one would notice his smile.

President Runsheng Yan was currently running a group of Antang City’s transportation companies that had 10,000 workers. Many related businesses belong to those companies, such as an intercity bus business including passenger transportation and also cargo transportation, a terminal business, gas stations, etc.

Bus terminal businesses and bus businesses in China were ordinarily owned by the government. Therefore, President Runsheng Yan was a government worker. He had worked as the chief officer of the transportation department in Antang City before, and he was an expert in the field.

The board meeting continued.

President Runsheng Yan said with a smile, “Mr. President Goo, with all due respect, I’m asking this to you for one last time. I was told that you own several companies, and one of them became a public company very recently. You are a progressive businessman. Are you going to send the second investment funds?”

“I said this several times already. When two business partners with two different cultural backgrounds work together in the form of a joint venture, we need to comply with the basic common sense, and have the same goal and interest.”

“Can I take it as you agree to dissolve this joint venture?”

Vice President Chun Chang, who was sitting next to President Runsheng Yan, said, “The joint venture has more than 100 workers now. These people don’t want to terminate the joint venture. Even if the Korean partners give up on the terminal project, I think we should keep the intercity bus business.”

President Runsheng Yan crossed his arms in front of his chest, pretending that he was thinking about what Vice President Chun Chang just said.

“Hmm, even if they don’t work with us for the terminal project, we should let the intercity bus business go on?”

President Runsheng Yan released his arms and looked at Gun-Ho. He then said, “What do you think, Mr. President Goo? I mean what do you think about the suggestion that Vice President Chun Chang just made? You can take your hands off the terminal project, but you can keep the intercity bus business and not ask for the 3 million dollars back. The joint venture will continue then to the extent of the intercity bus business only.”

“Well... If that’s not what President Runsheng Yan insists as an individual, but that’s what those 100 workers want, I will have to think about it favorably for them.”

When President Runsheng Yan and Gun-Ho mentioned what the 100 workers wanted, it was just an excuse for them to achieve what they really wanted. They both were serving their own interests inside their heads. The two men pretended to start thinking hard with their arms crossed.

As Gun-Ho and President Runsheng Yan were seemingly lost in thought with their eyes closed, the other attendees in the meeting room kept staring at them vacantly without saying a word.

Finally, Gun-Ho opened his eyes as he released his arms.

“So, the joint venture for the intercity bus business will last 20 years?”

“The joint venture has run the business for a year now, so we have 19 more years left.”

“How many Xianlu Pai (bus lines) are you going to give us?”

“We will let you run 20 buses. It’s not what I decided, but it was a decision made by the city’s transportation department, meaning that there is nothing much I can do about it.”

“So, you are saying that instead of taking our 3 million dollars back, which we initially invested in the joint venture, we can keep the intercity bus business for the next 19 years by running 20 buses even though we don’t get involved in the terminal project.”

“That’s correct.”

“If we don’t make enough money by running 20 buses, I will lose my 3 million dollar investment funds.”