Gary owes the factories money that he was doing business with. So they refuse to do business with him anymore until he pays up his debts with them. He's done quite a bit of "factory jumping". The word is spreading in China. However, there are so many factories, you can keep doing the factory jumping for quite a few years before the word spreads about your unpaid debts to factories!

The Korean is new to hair piece manufacturing and needs business, so he will accept Gary's business, even if he screws him over eventually.