Episode 290 It can’t go on like this
[Korea Exchange “Royal Healthcare cannot ignore the possibility of suspension of stock trading and delisting.]
“huh?”
I went to work early in the morning and was reading today’s business newspaper as usual, when a familiar company name caught my eye.
At first, I thought it was a place with a similar name, but after rubbing my eyes, it was clearly the ‘Royal Healthcare’ I had visited a few days ago.
“what?”
For a moment, it seemed as if the thought had stopped and my head did not turn.
At the same time, Choi Won-woo’s voice passes through my head.
[I have never made a joke before.]
“Just kidding… Wasn’t it?”
I never thought that the company would really go bankrupt.
Should I say that there is something unrealistic about the fact that it is not just a paper company that is just a business, but a listed company that is actually listed on the KOSDAQ and has gone to the abyss so vainly?
“I wonder what happened…”
First, I looked into why the transaction was suspended.
[Royal Healthcare receives ‘refusal of opinion’ in accounting audit]
“It’s a rejection of the audit opinion…”
Stock companies that meet certain size requirements are required to undergo an audit by a certified public accountant to determine whether the financial statements properly reflect the company’s financial status and management performance, and express an audit opinion.
There are four types of audit opinions: ‘unqualified opinion’, ‘qualified opinion’, ‘negative opinion’, and ‘disclaimer of opinion’. A disclaimer of opinion means that the opinion on the entire financial statements cannot be expressed because the evidence necessary to prepare the audit report was not obtained. This meant that it was an impossible case.
In short, it meant that the company’s financial and accounting status was a mess.
“what···? “The third son of Seonmu Group is the CEO, but the company is going to fail like this?”
I burst out laughing, leaned back against the backrest, and thought about it.
“Have you made your final struggle?”
Since the company looked like it was about to go bankrupt, did they try to survive somehow by copying startup items?
But I immediately shook my head.
“no. I didn’t feel that way. Even the employees.”
If there had been such a sign in the first place, it would have inevitably been revealed in the atmosphere.
However, when I visited, the atmosphere was not dark because the company had gone bankrupt.
If you just think of Choi Won-woo’s face, is that the face of the CEO of a failing company?
My face was filled with pride that I had achieved this much without the help of my wealthy parents.
“But why…?”
There was no answer at all, so I had no choice but to pick up the phone.
“If you can’t do it with one head, you have to do it with four.”
***
After a while, three people, Seongi Kim, Matthew, and Stephanie, entered the representative office.
“Welcome.”
When the pillars of our company came in, I felt like my pounding headache was relieved.
This is why two people are better than one person, and three people are better than two people.
“Everyone saw the article I sent, right?”
“Yes, I saw it. “What on earth is going on?”
Stephanie also looked embarrassed.
“You said you met CEO Wonwoo Choi a few days ago, right? “Did you get any sense?”
Everyone’s eyes were on me, but I just shrugged my shoulders.
“Not at all. Although he was a sly character with a very thick mask, he was very proud of himself, and when I looked around the company, there seemed to be no problem at all.”
“Hmm… “Even if the CEO is good at hiding his true feelings, there is only one answer if there is no problem with the employees’ atmosphere.”
“What is that?”
Matthew adjusted his glasses and began to express his thoughts.
“First of all, the fact is that KOSDAQ trading was suspended due to an ‘audit rejection opinion.’ This means that the accountant was unable to obtain information about the company’s profits, losses, bond issuance, etc. This is clear evidence that there has been a problem with the company. And the employees don’t seem to have any inkling about it.”
“What do you mean…?”
“It would mean that a person named Choi Won-woo controlled and swayed all information within the company. “I don’t know what he did or how he did it, but it means that he controlled the exchange of information between employees and made sure that all information flowed through him.”
At Matthew’s words, I stroked my chin and drooled.
“Hmm… Wow. The more you know, the weirder he really is. Even when we were face to face, it was difficult to understand what was going on…”
“Anyway, didn’t it work out well? If this happens, the service that used Once Doctor has also been in vain.”
“Of course it has to be that way, but…”
I feel uncomfortable.
I felt so uncomfortable, as if I had gone somewhere and just left without cleaning up after myself.
No matter how many times I thought about it, Choi Won-woo’s last words clearly had the nuance of knowing that the company would end up like that.
No, it felt like he was bragging about it.
‘You’re bragging to me that your company went bankrupt?’
What kind of crazy person would brag to others that his company went bankrupt?
My mind became more and more confused as I felt like I was falling further into the labyrinth.
“CEO Wonwoo Choi must have known. The fact that the company is at a crossroads of delisting. “Nevertheless, why did they rush to launch, even taking the irrational step of stealing?”
Stephanie snorted in response to Seongi Kim’s question.
“joy! Because they were cornered, they probably rushed in at all costs, including stealing. It’s absurd. What is this mindset that says they can avoid others if they are in a hurry? “a selfish concern!”
“what···. You might think so, but it’s full of strange things anyway. A person named Choi Won-woo, wasn’t he said to be the third son of the Seonmu Group? “Is it possible for a company like that to fail so vainly?”
“I found out that it was a company that was completely unrelated to Sunmu Group in terms of its shares. “Most people probably don’t even know that Wonwoo Choi is from the Seonmu Group.”
At that time, Seongi Kim took out his cell phone and showed us something.
“Is this the ‘homedoc’ that everyone said was launched by Royal Healthcare? “You’ve never used that properly, have you?”
“Yes···? “I just checked the UI/UX and immediately deleted it because I felt bad.”
“This is a completely stupid app.”
“A tin can app?”
“After work that day, I took a quick look at the app at home to see how well it was made, and it was a really bright piece of work. Almost no functions were implemented properly, and the app kept crashing due to whatever was done to the server. “Take a look at the reviews posted here on the App Store.”
[and. Why on earth did they make this trash app? Nothing is working properly.] [Is this an app created by the CEO alone as a hobby? Even if it were made by a college student, it would be better than this.]
In fact, the app’s rating plummeted, and the reviews were nothing but scathing.
“There is a reason for everything.”
“Why?”
This time Matthew held out his cell phone.
“These are announcements and news posted by Royal Healthcare since last year.”
[“Market size in 5 years will be KRW 826 trillion” Royal Healthcare enters new business to dominate digital healthcare] [Royal Healthcare receives investment offer from a large Japanese company…] [Royal Healthcare Kenya Guri Capital increase to purchase mine…]
Everyone was speechless and just stared at Matthew’s phone.
“what? “What about this chaotic combination of type that has no trace of harmony?”
“Nothing matches the context. Just talking about healthcare, what is this… “There is no other hybrid like this.”
“Please take a look at this chart too.”
Next, Matthew showed a chart.
“omg···.”
Kim Seon-gi, who has always been interested in stocks, burst into laughter.
Two years ago, metallurgical trading volume began to flow into Royal Healthcare stock, which had been dead without any movement, and the stock price, which was in the 1,000 won range, reached the 15,000 won range.
And a few days before the trading suspension was imposed, the chart was in the form of a series of long black bars reminiscent of Niagara Falls.
“This is clearly a strategy chart, right?”
“It’s so explicit that it’s surprising.”
Seongi Kim, who has deep knowledge of stocks, continued his explanation while looking at the charts.
“If you look here, you can clearly see that the powers that be have made a deal to tempt the ants.
“Total transaction?”
“To put it simply, A, who owns stocks, transfers 10,000 won worth of stock per share to B for 11,000 won. Then, B hands it over to C for 12,000 won, and C hands it back to A for 13,000 won, so the stock is back in A’s hands. In that case, a stock worth 10,000 won will return to 13,000 won. Because the forces coordinate and attack each other at a set time, there is no time for the ants to get on board. The ants who see this start shaking their butts. If you look here, you can see that the transaction amount only occurred at a certain time, right?”
“This is something out of the ordinary. To summarize, Wonwoo Choi is… “So you said you had a huge meal through Royal Healthcare?”
“That’s how it should be interpreted.”
“why···.”
A question mark appeared in everyone’s head.
His true identity was the third son of a chaebol family, an enviable status.
Even if Seonmu Group inherited just one small subsidiary, it would be much larger than Royal Healthcare, so I was wondering why they did such a thing.
“But if I do this, won’t I get hit with a fine or something like that?”
Kim Seon-gi shook his head in response to Stephanie’s question.
“Those people don’t even care about fines, right? Even if you go to trial, it will be enough for you to rot for about two years. “Even that mostly ends in probation.”
“Holly! Really? “It must have caused tens of billions of billions of losses to shareholders, and that’s the only punishment?”
“What about America?”
“In the United States, there are many people who committed large-scale financial fraud and were sentenced to hundreds of years in prison. “The capital market itself is relatively free, but once you break the law, your life is completely over.”
“Hundreds of years in prison? Huh… “It’s a completely different class.”
Matthew, who had been listening silently, added.
“To add, in the United States, the ‘multiple sentences (倂科)’ principle is applied to calculating sentences. For example, if you commit 10 crimes punishable by 10 years in prison, you can be sentenced to 100 years in prison. However, in Korea, the aggravation principle applies. The principle is that if a person commits multiple crimes, the sentence is increased by 50% for the charge with the highest sentence. “Even if you commit the same 10-year crime 10 times, the maximum sentence is 15 years.”
Kim Seon-gi joined the conversation as if he would not give up.
“In Korea, it is difficult to expect astronomical fines. Legally, it is not much, about 3 to 5 times the amount of unfair profits, but if it is difficult to calculate unfair profits, the upper limit is only 500 million won. On the other hand, in the United States, up to four times the amount of illegal profits can be collected as a ‘penalty’ rather than a ‘fine’, making it relatively easy to recover illegal profits. “This needs to be revised quickly.”
I definitely thought that the United States was doing a good job when it came to dealing with criminals.
Since the punishment is minimal, wouldn’t they install it like that without fear?
If there was a possibility that someone could end up in prison for the rest of their life for playing around with stock prices, it certainly seemed like the number would be smaller than it is now.
“I don’t know what this person named Choi Won-woo’s intentions are.”
Stephanie shrugged her shoulders in response to Seongi Kim’s question.
“There’s no need to know anything anymore, right? “Now it’s like a failed company and there’s nothing to do with it.”
Seongi Kim and Matthew nodded in agreement at Stephanie’s words.
‘I can’t let it go like this.’
I was also concerned about the blue color of Elder Han Myeong-hoe, and personally, I still felt uncomfortable.
I felt the need to dig a little deeper into Choi Won-woo.
***
About two weeks later, for the first time in a while, I met someone I was happy to meet.
“Howdy! “You stupid little brother, but you have a lot of money and love!”
When I saw Sangcheol, the self-proclaimed Seoul Sherlock Holmes, waving happily from afar, I couldn’t help but smile.
