Chapter 151
Chapter 151
151.
Amidst Shifting Accounts
Joo Ho-yeon of Kwangho, the accounting firm that handled MH Distribution's accounting audit, reviewed the financial statements of a company called White Rise Studio.
This was because they were proceeding with a case for an M&A with a company named BNS Studio, under the direction of its CEO, Im Yugwang.
Of course, the person in charge of this case was Baek Juseon, an SM from another team.
“Senior! What are you thinking about so intently?”
Seeing Joo Ho-yeon staring intently at the documents without saying a word, she asked.
“Hm? Ah, it’s just that the details of BNS Studio’s liquid assets that I saw earlier are a bit concerning.”
“Which part?”
Baek Juseon, her bobbed hair swinging, leaned in close beside him.
“Cough—! Unlike typical companies, it seems their inventory assets are recorded as produced content. Since there’s no physical object, it seems they couldn’t estimate it accurately.”
“Looking here, the amount for the 12 items recorded as physical inventory is 2.2 billion won.”
“Did you confirm how this inventory value was calculated?”
“BNS Studio said they produced it and are currently checking the release schedule. They explained it was calculated based on production costs per episode and labor costs.”
Joo Ho-yeon’s expression turned a little perplexed.
“The amount BNS wants is a bit higher than the amount White Rise independently assessed, isn’t it?”
“It’s about 3 billion won higher. The physical inventory data I’m looking at now is the supporting evidence for that.”
Up to this point, it was something Joo Ho-yeon hadn’t fully considered.
However, Shinwoo’s advice echoed in his ears, making it impossible to overlook.
【…In asset valuation, I’d advise you to be cautious about the liquidity ratio, content assets, and physical inventory checks.】
It was information he couldn’t have known without knowing something.
“It seems we need to verify if the inventory value is solid.”
“Are you saying there’s a problem?”
“BNS would want to sell it for as much as possible, in any way they can. White Rise is looking to expand its company size through this opportunity.”
“That’s only natural, isn’t it?”
For any company, the best way to grow was not to create everything from scratch, but to swallow another company that already possessed the entire foundation.
“Our job is to confirm if the company to be acquired has that much value.”
“Why are you stating the obvious so much?”
“Let’s go to your office for a moment.”
At Joo Ho-yeon’s request, Baek Juseon left the conference room with him and entered his office.
“What’s wrong?”
“It’s not anything else, it’s about the physical inventory in the BNS data I mentioned earlier. It’s a bit strange.”
“Are you saying there might be inflated figures in the inventory details?”
“The calculation method was based on what BNS said. And in the entertainment industry, there have been cases of inflated inventory due to production costs for albums and films.”
At this, Baek Juseon also showed a slightly uneasy expression.
“It’s definitely easier to conduct physical inspections for places like electronics stores or luxury boutiques… So, what exactly is your thought, Senior?”
“We’ll only know after re-evaluating the physical inventory. Not just looking at production costs and labor costs, but also bringing in an expert related to the sales of this kind of content.”
Joo Ho-yeon himself lacked the knowledge to determine the presence or absence of inventory issues immediately.
“Where can we find such an expert?”
“We should ask the people who sell the produced content. Even if they don’t know the exact value, they might be able to infer it.”
“Oh—! As expected, Senior! You’re truly Kwangho’s ace.”
Honestly, Joo Ho-yeon didn’t feel like he had found the answer solely through his own thoughts; he felt uneasy.
Then, his eyes fell on the photos displayed on Baek Juseon’s office shelf.
There was a photo of a young Baek Juseon, in elementary school, being hugged tightly by a man. They looked so close that anyone might mistake them for siblings.
However, knowing that Baek Juseon was an only child, he became curious.
“Ace, what are you talking about… Huh? I haven’t seen this photo before. Who is next to you?”
“It’s the last photo I took with Jeong-hoon oppa.”
At that explanation, Joo Ho-yeon tilted his head.
“…Oppa?”
“He’s my cousin from my father’s side. I found this photo recently while moving.”
“He’s handsome. What does he do now?”
Joo Ho-yeon and Baek Juseon had been seniors and juniors since high school. Despite knowing each other for quite a long time, this was the first time he had heard this story, so he was interested.
However, Baek Juseon hesitated for a moment before speaking carefully.
“…He went to heaven. If he were alive now, he might have become a pediatrician.”
“Ah… he passed away? I’m sorry. I shouldn’t have asked.”
“It’s okay. I was in the third grade of elementary school, I think? He was in America, and they said he died in a traffic accident.”
“What was he doing in America?”
“For college. He got into Harvard Medical School. He was incredibly smart, and when we were young, he used to teach me often.”
Baek Juseon’s eyes were filled with longing.
Joo Ho-yeon felt a bit awkward and scratched the back of his head.
“He was really good at studying.”
“He was the pride of our family. So, when he suddenly passed away, my uncle’s family was also very worried.”
“The fact that you still remember him means you were quite close.”
Joo Ho-yeon lightly touched the photo on the shelf as if stroking it.
“My parents were so busy that I often played at my uncle’s house. He was practically like an older brother.”
“But… he looks a bit like someone.”
“Who?”
At that moment, a face flashed through Joo Ho-yeon’s mind. The man in the photo had quite similar features.
Of course, in terms of demeanor, Baek Shin-woo was several times heavier and sharper.
“…CEO Baek Shin-woo?”
“Are you talking about CEO Baek Shin-woo of MH Distribution, whose accounting audit you just conducted?”
“Yes. He looks a bit alike.”
“Really? I’ve never seen him in person. There are hardly any photos of CEO Baek Shin-woo online. And Jeong-hoon oppa isn’t uniquely built, so there could be people who resemble him.”
At her explanation, Joo Ho-yeon let it go, thinking it was plausible.
Soon after, Baek Juseon, feeling restless, cast her gaze towards the frame Joo Ho-yeon’s hand had touched.
* * *
A few days later.
Joo Ho-yeon sat at his desk, working on other tasks after providing sufficient consultation for White Rise’s M&A case with BNS Studio.
Just then, Baek Juseon rushed in from outside, looking urgent.
“Senior! Senior!”
“What’s wrong?”
“We found the problematic inventory items from BNS!”
Startled, just like her, Joo Ho-yeon jumped up from his seat.
“Really?”
“As you advised, Senior, we consulted with content platforms, and it turns out many of the works had issues.”
“What kind of issues?”
“First, there was a work that faced plagiarism accusations for its original novel, and there were quite a few items where the completed episodes were significantly fewer than what was listed as inventory.”
“How big is the discrepancy?”
At this, Baek Juseon handed over the documents she had been holding from the beginning.
“Out of the 2.2 billion won, about 1.9 billion is inflated. The actual asset-based inventory, even generously estimated, is only 300 million won. Besides that, there were also issues with contracts that were supposed to be for project investments.”
“So the projected revenue figures are also incorrect. How much is that?”
“1.5 billion won. I went to BNS Studio because of that earlier, and the CEO was on his knees, making a scene.”
Hearing that, Joo Ho-yeon let out a sigh.
“At that rate, you’ll be able to negotiate the price down even further than White Rise originally wanted.”
“It’s definitely possible. BNS will have no choice but to accept, though. Truly… I’m saved thanks to you, Senior. If you hadn’t given me that advice, I might have missed it entirely.”
Joo Ho-yeon felt a little awkward at the praise.
Meanwhile, Baek Juseon looked around the office with relief.
During that time, Joo Ho-yeon mentally reviewed the events that had unfolded at BNS Studio.
‘How did CEO Baek Shin-woo know about these things in advance? I heard he has a substantial information network… Is it extending into Kwangho as well?’
While looking through the bookshelves, Baek Juseon asked Joo Ho-yeon.
“When are you planning to transfer, Senior?”
“Hm? Transfer what?”
“To the National Tax Service. You said you were preparing for the Grade 5 civil service exam, right? Weren’t you planning to take it this year? The announcement for the National Tax Service is already up.”
She was referring to the open competitive recruitment exam. Of course, it was considered one of the most difficult exams in Korea, given that it allowed one to rise to Grade 5 civil servant status at once.
“Ah, that.”
“What’s wrong? Is something up?”
Seeing his hesitant answer and expression, Baek Juseon tilted her head.
Joo Ho-yeon thought for a moment before speaking.
“I’m still contemplating the exam.”
“You’ll continue working at Kwangho? Well, I’d be happy about that.”
“More importantly, Juseon, do you think there’s a company that is 100% problem-free?”
At the sudden question, Baek Juseon tilted her head the other way.
“Why such an out-of-the-blue question? Is it because of MH Distribution?”
MH Distribution’s voluntary investigation by the prosecution and its accounting audit were so widely reported in the news that no one could be unaware of it.
“That’s right. Actually, they offered me the positions of Chief Financial Officer for both MH Future Security and MH Distribution.”
“What?! Chief Financial Officer? Are they crazy? They must know better than anyone what kind of person you are, having had you conduct their accounting audit.”
At her exclamation, Joo Ho-yeon’s eyes widened slightly.
“You’re complimenting me with an insult.”
“Hey! It’s a compliment that you’re more thorough than any corporate accountant. So, are you planning to go? Rather than the National Tax Service?”
After a moment of hesitation, Joo Ho-yeon smiled and replied.
“I didn’t have much interest at first, but after helping you with your work this time, I’ve started to reconsider.”
“The BNS Studio M&A case I’m handling? Why is that?”
“CEO Baek Shin-woo seemed to know from the beginning that case would come to us. Besides that, he advised me on content assets and physical inventory checks.”
“Is that true?!”
This BNS Studio M&A case was among the smaller cases handled by the accounting firm Kwangho.
In contrast, the investments managed by MH Future Security were tens of times larger, so it wasn’t a case that would typically garner much attention.
“It’s true.”
“So, are you going to accept the CFO position?”
“I’m thinking about it.”
Baek Juseon stared at Joo Ho-yeon with a surprised expression.
“That much? But you don’t usually take long to decide, Senior.”
“How would you know that?”
They had known each other as seniors and juniors for 17 years. Given how much they knew about each other, Baek Juseon spoke with confidence.
“I’ve known you for so many years, how could I not know? Honestly, aren’t you already decided and just asking?”
“……”
Joo Ho-yeon didn’t answer, but Baek Juseon’s eyes conveyed that she already knew.
“The CEO must be disappointed. I thought you were going to the National Tax Service, but to MH Future Security, of all places.”
“I haven’t made up my mind yet.”
“Yes, yes! Think it over carefully. I’ll go finish up my work.”
Saying that, Baek Juseon left.
Joo Ho-yeon, sitting at his desk, let out a hollow laugh as he watched her go.
“Haa—!”
With a sigh, he opened the top drawer. Inside was an envelope labeled ‘Resignation Letter.’
He had prepared it in advance to submit for the Grade 5 civil service exam for the National Tax Service.
After a moment of contemplation, Joo Ho-yeon made a decision and stood up from his seat.