MIRA INFORM REPORT

Report Date :

01.08.2012

IDENTIFICATION DETAILS

Name :	NATIONAL AGRICULTURAL COOPERATIVE FEDERATION(NACF, NONGHYUP)
Registered Office :	75, Chungjeongno 1-ga, Jung-gu, Seoul, Korea, Zip Code 100-707
Country :	South Korea
Financials (as on) :	31.12.2011
Date of Incorporation :	01.07.2000
Com. Reg. No.:	104-82-07072
Legal Form :	Cooperative Federation
Line of Business :	Domestic Commercial Banking
No. of Employees :	13,676

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Exists

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
South Korea	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Basic

Company Name	NATIONAL AGRICULTURAL COOPERATIVE FEDERATION(NACF, NONGHYUP) (Korean Company Name : “농업협동조합중앙회”)
Registered Address	75, Chungjeongno 1-ga, Jung-gu, Seoul, Korea
Zip Code	100-707
Tel	+82-2-2080-5114
Fax	+82-2-2080-6016
E-mail	idinuse@nonghyup.com;nacfico@nonghyup.com
Website	www.nonghyup.com
Trading Address	75, Chungjeongno 1-ga, Jung-gu, Seoul, Korea
Tel	+ 82-2-2080-6120
Fax	+ 82-2-2080-6130
Other Address	165-1, Donggyo-dong, Mapo-gu, Seoul, Korea
Tel	+82-2-325-2516
Fax	+82-2-324-7884
Other Address	2nd FI., KCC Bldg., 96-2, Usan-dong, Wonju-si, Gangwon-do, Korea
Tel	+82-33-747-8621
Fax	+82-33-747-8620
Other Address-Daein Branch	311-5, Daein-dong, Dong-gu, Gwangju, Korea
Tel	+82-62-223-3216~7
Fax	+82-62-225-3801
Other Address	354-1, Bongyang-ri, Jeongseon-eup, Jeongseon-gun, Gangwon-do, Korea
Tel	+82-33-563-2570
Fax	+82-33-562-1530
Other Address	438, Gogok-ri, Hyoryeong-myeon, Gunwi-gun, Gyeongsangbuk-do, Korea
Tel	+82-54-380-5000
Other Address	452-1, Hangi-ri, Ungyang-myeon, Geochang-gun, Gyeongsangnam-do, Korea
Tel	+82-55-944-9900
Fax	+82-55-944-9904
Other Address	5, Changpyeong-dong, Mokpo-si, Jeollanam-do, Korea
Tel	+82-61-244-1131
Fax	+82-61-242-7972
Other Address	607-73, Miseong-dong, Gwanak-gu, Seoul, Korea
Tel	+82-2-863-4665
Fax	+82-2-852-9153
Other Address	623, Buwon-dong, Gimhae-si, Gyeongsangnam-do, Korea
Tel	+82-55-337-6501
Fax	+82-55-337-6035
Other Address	664, Seoksa-dong, Chuncheon-si, Gangwon-do, Korea
Tel	+82-33-262-0011
Fax	+82-32-262-8808
Other Address	73, Jungangro 1-ga, Chuncheon-si, Gangwon-do, Korea
Tel	+82-33-254-4491
Other Address	83-2, Sinjangdae-ri, Hongcheon-eup, Hongcheon-gun, Gangwon-do, Korea
Tel	+82-33-434-3380
Fax	+82-33-434-8808
Other Address	97-4, Cheongdam 2-dong, Gangnam-gu, Seoul, Korea
Tel	+82-2-543-8493
Fax
Other Address	9th FI., Imgwang Bldg., 267, Migeun-dong, Seodaemun-gu, Seoul, Korea
Tel	+82-2-2014-4630
Fax	+82-2-737-2813
Other Address-Daein Branch	Gyeongsin Bldg., 3-1, Sa-dong, Jung-gu, Incheon, Korea
Tel	+82-32-763-9001~5
Fax	+82-32-765-5922
Other Address-Nonghyun Logistics	603-1, Yeongcheon-ri, Dongtan-myeon, Hwaseong-si, Gyeonggi-do, Korea
Tel	+82-31-370-5800
Type	Export/Import
Industry	Domestic Commercial Banking
Main Business	Financial Services, Agricultural Products
Established (mm/dd/yyyy)	07/01/2000

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Distribution(80141700)
Sell	Agricultural commercial banking services(93141901)
Sell	Fruits and vegetables processing(73131700)
Sell	Agriculture and forestry and other natural resources training services(86101500)
Sell	Animal husbandry(70121604)
Sell	Culture(93141700)

CEO’s

Name	Choi Won-Byung
Address	351-8, Angang-ri, Angang-eup, Gyeongju-si, Gyeongbuk, Korea
Date of Birth	07/01/1946
Title	Chairman
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)	4,659,637,340,000
Employees	13,676
Formation	Cooperative Federation
Bank Details	Nonghyup Bank
Corporate Registered No.	110136-0027690
Business Registered No.	104-82-07072
Permit & Licenses	01/10/2000 ISO 9001
Shareholder Position	Member cooperatives The Agricultural Cooperative Law and the articles of incorporation of NACF stipulate regional cooperatives, commodity cooperatives and commodity cooperative association as members of NACF. Each member should invest at least 100 shares (￦10,000 par value per share) with ownership of each member restricted to less than 10%. These shares cannot be transferred to other members without the resolution of the representative assembly. Each representative has one vote regardless of the number of shares held.
Company History	In accordance with the new Agricultural Cooperative Law designed to integrate separate cooperative federations, which was approved by the National Assembly on December 7, 1999, the former National Agricultural Cooperative Federation, National Livestock Cooperative Federation and National Ginseng Cooperative Federation merged into the new National Agricultural Cooperative Federation (“NACF”) effective July 1, 2000.

Management

Job Description	Title	Name	Sex	Nationality	Date of Birth
Chairman	Mr.	Choi Won-Byung	Male	Korean	1946.07.01
President & CEO of Agricultural & Economy Div.	Mr.	Kim Soo-Kong	Male	Korean	1954.10.01
President & CEO of Credit Div.	Mr.	Choi Jong-Hyun	Male	Korean	1953.03.13
President & CEO of Livestock Div.	Mr.	Nam Sung-Woo	Male	Korean	1951.11.28
Sr. Executive Director	Mr.	Yoon Jong-Il	Male	Korean	1952.12.15
Director	Mr.	Kang Won-Koo	Male	Korean	1959.11.02
Director	Mr.	Kim Kyu-Hwan	Male	Korean	1957.02.26
Director	Mr.	Kwon Tae-Shin	Male	Korean	1949.10.15
Director	Mr.	Kim Moon-Kyu	Male	Korean	1947.08.15
Director	Mr.	Kim Moon-Sub	Male	Korean	1956.10.20
Director	Mr.	Kim Hyung-Rae	Male	Korean	1957/02/06
Director	Mr.	Kim Young-Ki	Male	Korean	1941.08.16
Director	Mr.	Kim Woon-Yong	Male	Korean	1956.05.11
Director	Mr.	Kim Jae-Ok	Male	Korean	1946.04.28
Director	Mr.	Park Jong-Soo	Male	Korean	1948/09/20
Director	Mr.	Park Young-Hoon	Male	Korean	1951.01.25
Director	Mr.	Park Jong-Woon	Male	Korean	1942.07.18
Director	Mr.	Park Chul-Sun	Male	Korean	1952.01.28
Director	Mr.	Park Tae-Joon	Male	Korean	1952.06.26
Director	Mr.	Bu In-Ha	Male	Korean	1960.08.05
Director	Mr.	Seo Jung-Eui	Male	Korean	1958/10/01
Director	Mr.	Ahn Myung-Soo	Male	Korean	1942.10.04
Director	Mr.	Oh Jung-Kil	Male	Korean	1949.05.17
Director	Mr.	You Kwan-Woo	Male	Korean	1954.02.15
Director	Mr.	Lee Myung-Soo	Male	Korean	1951.02.08
Director	Mr.	Lee Sang-Moon	Male	Korean	1945.07.28
Director	Mr.	Lee Ju-Sun	Male	Korean	1951.07.11
Director	Mr.	Lee Chang-Lim	Male	Korean	1948.06.16
Director	Mr.	Jung Se-Hoon	Male	Korean	1944.12.09
Director	Mr.	Jung Yeon-Kyu	Male	Korean	1955.01.07
Director	Mr.	Choi Yoon-Yong	Male	Korean	1961.06.12
Director	Mr.	Hong Eun-Soo	Male	Korean	1948.11.03
Director	Mr.	Jang Jong-Soo	Male	Korean	1952.03.16
Auditor	Mr.	Moon Byung-Wan	Male	Korean	1958.10.05
Auditor	Mr.	Seo Ki-Won	Male	Korean	1953.04.12
Auditor	Mr.	Lee Sung-Hee	Male	Korean	1949.08.01
Auditor	Mr.	Lee Jong-Baik	Male	Korean	1950.08.08
Auditor	Mr.	Cho Dae-Kwon	Male	Korean	1946.08.03

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011	36,288,775,000,000	305,270,506,000,000	702,985,000,000
2010	39,419,743,000,000	286,970,734,000,000	704,727,000,000
2009	45,549,321,000,000	271,405,727,000,000	445,083,000,000
2008	40,978,530,000,000	260,380,572,000,000	240,251,000,000
2007	27,351,826,000,000	240,441,482,000,000	1,235,181,000,000
2006	24,143,083,000,000	229,088,507,000,000	1,051,856,000,000
2005	24,985,964,000,000	202,204,961,000,000	796,837,000,000
2004	23,531,096,000,000	184,698,118,000,000	654,091,000,000

Financial Description

Authorized Capital(KRW)	Not Applicable to the Cooperative Federation
Paid-Up Capital(KRW)	4,659,637,340,000
Total Issues Shares	465,963,734 (Common:442,511,912, Preferable:23,451,822)

Balance Sheet
Unit : Million Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
TOTAL ASSETS	305,270,506	286,960,564	271,405,727
Total assets of Credit and Banking Business	187,628,151	177,040,360	178,894,003
Total assets of Agricultural Marketing and Supply Business	5,151,461	6,062,469	5,590,352
Total current assets	2,357,519	3,195,250	2,622,956
Total assets of Livestock Marketing and Supply Business	896,032	560,555	483,444
Total current assets	445,033	141,487	144,696
Total assets of Administrative	1,543,080	1,505,276	1,591,909
Total current assets	8,124	6,993	55,706
ASSETS OF SPECIAL ACCOUNTING UNITS	110,051,782	101,791,904	84,846,019
Total liabilities	290,107,362	272,381,056	259,145,093
Total liabilities of Credit and Banking Business	182,012,369	171,736,769	174,674,126
Total liabilities of Agricultural Marketing and Supply Business	2,634,304	2,794,194	2,793,258
Total current liabilities	1,426,766	1,939,682	1,348,385
Total liabilities of Livestock Marketing and Supply Business	325,450	135,342	103,258
Total current liabilities	311,762	129,081	96,318
Total liabilities of Administrative	162,489	107,010	83,516
Total current liabilities	149,760	95,214	74,182
LIABILITIESS OF SPECIAL ACCOUNTING UNITS	104,972,750	97,607,741	81,490,935
Capital fund	7,937,285	7,321,173	6,051,730
Capital surplus	48,506	47,495	47,634
Retained earnings	6,597,661	6,203,763	5,747,912
Accumulated other comprehensive income (loss)	583,361	1,007,077	413,358
Total equity	15,163,144	14,579,508	12,260,634
TOTAL LIABILITIES AND EQUITY	305,270,506	286,960,564	271,405,727

Income Statement
Unit : Million Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Revenue	36,288,775	39,419,743	45,549,321
Operating Expenses	31,773,071	35,217,501	41,966,060
Selling & Admin. Expenses	3,551,450	3,174,772	2,843,822
Operating Income	964,254	1,027,470	739,439
Education & Assisting Expenses	240,000	228,246	248,261
Non-Operating Income	69,411	96,741	277,546
Non-Operating expenses		-	-
Income Before Taxes	759,041	898,958	768,724
Income Taxes Expenses	56,056	193,572	323,641
Net Income	702,985	704,727	445,083

Cash Flows
Unit : Million Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	-4,783,428	-11,502,523	8,153,388
-Net Income	702,985	702,393	445,083
Cash Flows from Investing	1,682,902	738,013	1,340,097
Cash Flows from Financing	10,314,603	11,346,704	9,538,668
Increase/Decrease in Cash	-253,668	582,194	45,183
Cash at the Beginning of Year	7,075,870	6,493,676	6,448,493
Cash at the End of Year	6,822,202	7,075,870	6,493,676

Products, Technologies, Services Description

Main Products & Services

The major services of NACF, which are available to member cooperatives, member farmers and customers, include marketing and supply services that support farmers from the field to the market during the production and processing activities along with banking and insurance services that include banking business of NACF, the mutual credit of members, the insurance and credit card businesses, and credit guarantee. It also includes guidance and extension services, which include training to improve farming skills, provision of welfare facilities and guidance for specialized need, in addition to promoting the farming industry and the cooperative movement. As NACF performs diversified businesses as mentioned above, it has divided its accounting units into general accounting units and special accounting units. General accounting units consist of Credit and Banking Business Accounting (“Credit and Banking”), Agricultural Marketing and Supply Business Accounting (“Agricultural Marketing and Supply”), Livestock Marketing and Supply Business Accounting (“Livestock Marketing and Supply”) and Administrative Accounting (“Administrative”). Special accounting units consist of Cooperative Insurance Business Accounting (“Cooperative Insurance”), Mutual Credit Business Accounting (“Mutual Credit”), Education and Support Service Accounting (“Education and Support”), and Crops Insurance Business Accounting (“Crops Insurance”). AGRICULTURAL MARKETING Grains Fruits Vegetables Livestock & others SUPPLIES Fertilizer Agricultural chemicals Machinery Fuel & other farm supplies Retail business LIVESTOCK Marketing Farm extension & consulting service Feedstuff BANKING (NACF) Deposits Loans COOPERATIVE BANKING Deposits Loans CREDIT CARD Insurance (*)As of December 31, 2011, NACF has 16 regional headquarters, 158 county offices, 1,120 banking branches and sub-branches, and 1,167 member cooperatives.

Trade Partners & Competitors

Competitors

NATIONAL FEDERATION OF FISHERIES COOPERATIVES 11-6, SINCHEON-DONG, SONGPA-GU, SEOUL, KOREA TEL:+82-2-2240-2114 FAX:+82-2-2240-3044 KOREAN FEDERATION OF COMMUNITY CREDIT COOPERATIVES KOREAN FEDERATION OF COMMUNITY CREDIT COOPERATIVES, 164, SAMSEONG 1-DONG, GANGNAM-GU, SEOUL, KOREA TEL:+82-2-3459-9114 FAX:+82-2-3459-9241 NATIONAL FORESTRY COOPERATIVE FEDERATION 111-5, SAMJEON-DONG, SONGPA-GU, SEOUL, KOREA TEL:+82-2-3434-7114 FAX:+82-2-3434-7169

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates	THE FARMER’S NEWSPAPER The Farmers' Newspaper, the only national farm newspaper in Korea, has been providing comprehensive coverage of agricultural issues affecting Korean farmers since 1964. It reaches 300,000 farmers and a variety of agribusinesses every other day. In addition, two monthly magazines 'Rural Lives' and 'Children's Garden' as well as various other farm publications are disseminated throughout the country. Address: 36, 1-ga, Jongno-gu, Seoul110-121, Korea Tel: +82-2-3703-6114 / Fax: +82-2-3703-6012 Website: www.nongmin.com AGRICULTURAL COOPERATIVE COLLEGE The Agricultural Cooperative College was established in 1962 and has remained at the center of cooperative education in Korea. The goal of the college has been to provide quality education and training to members of the agricultural cooperatives and the rural community. It offers training courses for staff of the NACF and member cooperatives on subjects such as finance, management and computer training. The college offers a two-year diploma for students interested in agricultural marketing and finance. Approximately 130 students are selected each year for the program. Address: San 38-27, Wondang-dong, Dukyang-gu, Koyang-si, Kyunggi-do, 412-707 Korea Tel: +82-31-960-4000 / Fax: +82-31-960-4119 Website: www.nonghyup.ac.kr NONGHYUP CULTURE & WELFARE FOUNDATION The Nonghyup Culture & Welfare Foundation was established in 2004 to develop Korean rural culture and promote the balanced development between urban and rural areas. It contributes to enhancing the welfare and living standards of the farmers. It is also committed to preserving and developing rural communities. Address: 18th Fl, Nonghyup Culture & Welfare Foundation Bldg, 34-7, Ouidodong, Yeongdeungpo-gu, Seoul, Korea Tel: +82-2-768-5078 / Fax: +82-2-768-5080 Website: http://jaedan.nonghyup.com/
Overseas Office	CHINA REPRESENTATIVE OFFICE ROOM A-907, HUIBIN OFFICE BUILDING, NO. 8, BEICHENDONG ST., CHAOYONG DISTRICT, BEIJING 100101, CHINA TEL:+86-10-8498-4188 FAX:+86-10-8498-4186 E.U. REPRESENTATIVE OFFICE RUE DE TREVES 59-61, 1040 BRUSSELS, BELGIUM TEL:+32-2-231-1527 FAX:+32-2-231-1486 USA REPRESENTATIVE OFFICE (NONGHYUP AMERICA CO.) 41 SYLVAN AVE #4, ENGLEWOOD CLIFFS, NEW JERSEY 07632, USA TEL:+1-201-585-0700 FAX:+1-201-585-0790 NEW YORK REPRESENTATIVE OFFICE 650 FIFTH AVE.(52ND ST.) 24TH FLOOR, NEW YORK, NY 10019, USA TEL : +1-212-262-2333 FAX : +1-212-262-2334 JAPAN REPRESENTATIVE OFFICE (NONGHYUP INTERNATIONAL CO.) MINAMISHINJUKU BLDG. 8TH FLOOR, 2-10-12 YOYOGI, SHIBUYA-KU, TOKYO, JAPAN TEL:+81-3-5351-5631 FAX:+81-3-5351-5633
Subsidiary	NAMHAE CHEMICAL CORPORATION Namhae Chemical Corporation is the biggest fertilizer manufacturer in Korea with a share of more than 40% of national demand. The NACF is the dominant shareholder with a 56% share majority. The plant produces approximately 1.3 million tons of fertilizer and 0.6 million tons of chemical products annually. Address: 343, Nakpo-dong, Yeosu-si, Jeollanam-do 555-250, Korea Tel: +82-61-688-5500 / Fax: +82-61-686-3060 Website: www.namhaechem.com KOREA AGRICULTURAL COOPERATIVE TRADING CO., LTD. The KACT was established in 1990 to promote the export of agricultural goods produced by member farmers. The company is exporting to 30 countries such as Japan and the US. Exports totaled USD 45 million in 2006. The company also imports farm inputs for member cooperatives. Address: 553, Seongnae-dong, Gangdong-gu, Seoul 134-851, Korea Tel: +82-2-2225-2300 / Fax: +82-2-470-1972 Website: www.kact.net KOREA AGRICULTURAL COOPERATIVE MARKETING, INC. Established in 1995, Korea Agricultural Cooperative Marketing (KACM) serves both consumers and farmers. The mission of KACM is to give the lowest price possible to consumers and the best farm gate price for farmers by creating marketing channels that directly link the two groups. The KACM currently operates three agricultural wholesale distribution centers and 26 supermarkets across the country. Address: 230, Yangjae-dong, Seocho-gu, Seoul, 137-893, Korea Tel: +82-2-3498-1000 / Fax: +82-2-3461-7945 Website: www.kacm.co.kr DAEJEON AGRICULTURAL PRODUCTS MARKETING CENTER, CO., LTD. The Center was established in 1998 to promote the trade of agricultural and livestock products in the Daejeon-Chungnam province. It is involved in agricultural and livestock products and services, including storage, delivery, processing. Address: 301-703, Ahnyoung-dong, Jung-gu, Daejeon 301-213, Korea Tel: +82-42-580-5000 / Fax: +82-42-580-5082 Website: www.daejeon-utong.com AGRICULTURAL COOPERATIVE DAEGU GYEONGBUK MARKETING CO., LTD. Established in 1997 to create innovation in agricultural marketing in the Gyeongbuk area, the company engages in the marketing, purchasing and development of agricultural and livestock products. Address: 438, Gogok-ri, Hyoryeong-myeon, Gunwi-gun, Gyeongbuk, 716-822, Korea Tel: +82-54-380-5500 / Fax: +82-54-380-5599 Website: www.jang365.co.kr AGRICULTURAL COOPERATIVE PUSAN KYONGNAM MARKETING, INC. Established in 1997 to create innovation in agricultural marketing in Pusan and Kyong-nam area, the company engages in the marketing, purchasing and development of agricultural and livestock products. Address: 1874-3, Geumgok-dong, Buk-gu, Busan, Korea 616-813, Korea Tel: +82-51-330-9000 / Fax: +82-51-330-9140 Website: www.nonghyupshop.com
Subsidiary	AGRICULTURAL COOPERATIVE CHUNGBUK MARKETING CO., LTD. Established in 1998 to create innovation in agricultural marketing Chung-buk in area, the company engages in the marketing, purchasing and development of agricultural and livestock products. Address: 118 Bangseo-dong, Sangdang-gu, Cheongju-si, Chungbuk, 360-183, Korea Tel: +82-43-290-0114 / Fax: +82-43-290-0297 Website: www.hanaroutong.co.kr NONGHYUP KOREA INSAM COMPANY., LTD. Nonghyup Insam began operations in 2002 and has quickly become a leader in the ginseng industry. It has developed strong relations with the ginseng cooperatives and through innovative marketing has increased the quality and variety of ginseng products for sale. Address: 71-16 Ogeum-dong, Songpa-gu, Seoul 138-857, Korea Tel: +82-2- 2201-3304 / Fax: +82-2-458-7942 Website: www.hansamin.com NONGHYUP-AGRO INC. Since 1995, Nonghyup-agro has been manufacturing boxes, wrapping paper and other packaging material for agricultural products. As a subsidiary of the NACF, it works closely with member cooperatives ensuring that these cooperatives have a stable supply of packaging at reasonable prices. Address: 29-134, Bonri-ri, Nongong-eup, Dalseong-gun, Daegu, 711-855, Korea Tel: +82-53-615-0341 / Fax: +82-53-615-0840 Website: www.agro.nonghyup.com SAMHYUP NONGSAN CO., LTD. Samhyup Nongsan Co. was established through a joint venture between the NACF and the Insam (Ginseng) Cooperatives to produce quality organic fertilizers and other agricultural inputs for ginseng producers. Address: 234 Joongheung-ri, Sari-myun, Geosan-kun Chungbuk 367-821 Korea Tel: +82-43-836-8627 / Fax: +82-43-838-1003 NONGHYUP LOGISTICS SERVICE INC. Nonghyup Logistics Service Inc. was founded on July 7, 2004 to establish an effective logistic system in Korea. Korean agriculture is suffering from unreasonably high transportation costs, which account for as much as 22% of the total production costs. Reducing the transportation costs is believed to be one of the key elements to improve the competitiveness of the Korean agricultural industry. The Nonghyup Logistics Service Inc. is committed to bringing innovation into the agricultural/livestock logistic business, and efficiently links rural producers with urban consumers. Address: 8th Floor, 60-1 Keukdong bldg, Chungmuro 3-ga, Jung-gu, Seoul 100-705, Korea Tel: +82-2-2264-7104 / Fax: +82-2-2269-7606 Website: www.nonghyuplogis.com YOUNG IL CHEMICAL CO., LTD. Young Il chemical co. was incorporated to a subsidiary of NACF in 2007. It provides eco-friendly, stable and convenient quality agricultural chemicals to Korean farmers. As a market leader in agricultural chemicals market, Young Il chemical Co. contributes to stable chemical supply to Korean farmers. Address: 2F, Onse Bulilding, 192-9, Kumi-dong, Bundang-gu, Seongnam-si, 463- 500 Kyunggi-do, Korea Tel: +82-31-738-5200 / Fax: +82-31-738-5255 Website: www.youngilchem.com
Subsidiary	NONGHYUP FEED, INC. The NACF became the sole investor in Nonghyup Feed Inc. in 2002. It produces high quality feed for chicken, pigs, dairy cows and beef cattle. The company produced 2.1 million tons of feedstuff in 2004, accounting for 28.0% of the domestic market. Address: 451 Seongnae-dong, Kangdong-gu, Seoul 134-763, Korea Tel: 82-2-2224-8500 / Fax: 82-2-2224-8519 Website: www.nonghyupsaryo.com NONGHYUP MOGUCHON., INC. The Nonghyup Moguchon Inc. was established in August 2006 as one of NACF's subsidiaries with ambitious goal to be the top meat meal integration company in Korea. The Moguchon would like to be the real defender of domestic food market in Korea, and the company has expanded its product line from previously sole livestock products further to dining-out market and agricultural/fishery processing businesses. The Moguchon now has various product lines including ham, bacon, chicken and frozen foods. The products are known to have high quality and safety, and most importantly are made from domestically-grown livestock. Address: 14F, 7-11, Sincheon-dong, Songpa-gu, Seoul, Korea Tel: +82-2-2144-0600 / Fax: +82-2-2144-0670 Website: www.moguchon.co.kr NH INVESTMENT & FUTURES CO., LTD. In 1997, NH Investment & Futures began overseas and domestic futures trading as a wholly owned subsidiary of the NACF. It also handles foreign exchange trading and offers consulting services and training. One of its primary goals is to stabilize prices of agricultural products in the domestic market. Address: Allianz Bldg. 16th Fl. Yeouido-dong, Yeongdeungpo-gu, Seoul 150-010, Korea Tel: +82-2-3787-8200 / Fax: +82-2-3787-8240 Website: www.nhfutures.com NH-CA ASSET MANAGEMENT CO. LTD NH-CA Asset Management is our most recent venture. It was established in January 2003 as a joint venture company between the NACF and Credit Agricole Asset Management, France's leading investment product provider. This company looks for synergy effects between local market distribution and global investment expertise. It is an integral part of CA Asset Management's global network in all major financial markets. Address: 5th Floor HP Bldg. 23-3 Yeouido-dong, Yeongdeungpo-gu, Seoul, 150-724, Korea Tel: +82-2-368-3600 / Fax: +82-2-368-3700 Website: www.nh-ca.com NH INVESTMENT & SECURITIES CO., LTD. NACF merged former Sejong Securities co., Ltd. in February 2006 and launched NH Investment & Securities Co., Ltd. Along with the largest financial network of NACF in Korea, NHIS shows the synergy effect in providing one-stop service to customers. NHIS develops new financial products and derivatives customized to various customers' needs and contribute to customers' property increase. Address: 891 Daechi-dong, Kangnam-gu, Seoul, Korea Tel: +82-2-2004-4114 / Fax: +82-2-3454-0496 Website: www.nhis.co.kr
Subsidiary	AGRICULTURAL COOPERATIVE ASSET MANAGEMENT CO., LTD. The Agricultural Cooperative Asset Management Co., Ltd. established in 2002 assists in the restructuring of Agricultural Cooperatives, the NACF and its subsidiary companies. The company offers support in selling their non-performing loans and non-operating assets. Address: 451 Seongnae-dong, Kangdong-gu, Seoul 134-763, Korea Tel: +82-2-2224-8600 / Fax: +82-2-487-3691 Website: www.acamco.co.kr NH TOURS CO., LTD. Nonghyup Tours operates 11 branches in Korea and 3 overseas offices in Tokyo, Osaka and Beijing. Farmers have the opportunity to attend overseas training programs and tours offered by the agency. These programs are held to facilitate the advancement of agricultural technology in Korea. In addition, Nonghyup Tours produces audio-visual educational materials to assist in the training of member farmers. Address: 553, Seongnae-dong, Kangdong-gu, Seoul 134-851, Korea Tel: +82-2-2140-5000 / Fax: +82-2-2140-5120 Website: www.nhtour.co.kr THE NH INFORMATION SYSTEM CO., LTD. The NH Information System was established in August 2006 with a professional IT staff and know-how with specialty in the banking and agricultural marketing businesses. The company would like to strengthen the IT competitiveness of the Nonghyup group, and also contribute to development of the IT industry in Korean agriculture and rural communities. Newly established, the company also would like to be the best IT service company in Korea through the progressive young spirit. Address: 7F, 1009-1 Daechi-dong, Kangnam-gu, Seoul Tel: +82-3497-2004 / Fax: +82-3497-2199 Website: www.nonghyupit.com NONGHYUP ECONOMIC RESEARCH INSTITUTE, INC. Established in 2006 with the vision of "a center of community knowledge for the future of agriculture and rural area," Nonghyup Economic Research Institute(NHERI) offers management consulting services to regional agricultural cooperatives, and researches policy issues on agriculture and agricultural finance. Address: 10F, Vavien 3, Soonhwa-dong, Jung-gu, Korea Tel: +82-2-6399-5900 / Fax: +82-26399-5991 Website: www.nheri.re.kr NH DEVELOPMENT COMPANY LTD. NH development was founded in 1991 with its businesses including developing/distributing farmers' education & training supplies, and working on improving Nonghyup's Corporate Identity (CI). The company also involved in PR activities, leasing cars, tours, and maintenance services. Address: 553, Seongnae-dong, Kangdong-gu, Seoul, Korea Tel: +82-2-2140-5113 / Fax: +82-2140-5060 Website: www.nhd.co.kr
Cooperative Enterprise	-Insured Company KOREAN REINSURANCE COMPANY

Sales by Region

(Activity & Markets)

The Subject deals with the companies in USA, Japan, France, UK and Hong Kong.

Court Action

The Subject is involved in various legal actions arising from normal business activities. As of December 31, 2008, the NACF is named as a plaintiff in 435 cases with related aggregate claims amounting to ￦26,524 million, and as a defendant in 40 cases with related aggregate claims amounting to ￦43,560 million. The Subject believes that although the outcome of these cases is uncertain, some of them would result in a loss for the Subject. The Subject provided allowance of ￦87,932 million for probable loss arising from these cases.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.81
UK Pound	1	Rs.87.67
Euro	1	Rs.68.45

INFORMATION DETAILS

Report Prepared by :

MNL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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