MIRA INFORM REPORT

 

 

Report Date :

11.09.2012

 

IDENTIFICATION DETAILS

 

Name :

KOREA RAILROAD CORPORATION

 

 

Registered Office :

293-74, Soje-dong, Dong-gu, Daejeon, Korea, Korea Railroad Corp., Zip Code 300-720

 

 

Country :

South korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

31.12.2004

 

 

Com. Reg. No.:

314-82-10024

 

 

Legal Form :

Governmental Corporation

 

 

Line of Business :

Railway Transportation Services, Train Maintenance, Train Leasing Services

 

 

No. of Employees :

29,148

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

Regular

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 31st, 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

 

South korea - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

 

Source : CIA

 

 


Basic

 

Company Name

KOREA RAILROAD CORPORATION

(Korean Company Name : “한국철도공사”)

Registered Address

293-74, Soje-dong, Dong-gu, Daejeon, Korea

Building

Korea Railroad Corp.

Zip Code

300-720

Tel                                    

+82-1544-7788

Fax

+82-42-259-2197

E-mail

leeyoungju@korail.com

Website

www.korail.go.kr

Trading Address

Korea Railroad, 293-74, Soje-dong, Dong-gu, Daejeon, Korea

(New Address System : 240, 240, Jungang-ro, Dong-gu, Daejeon, Korea)

Tel

+82-1544-7788

Fax

+82-42-259-2197

Other Address-Seoul Branch

432, Cheongpa-ro, Jung-gu, Seoul, Korea

Tel

+82-2-3149-2224

Fax

+82-2-3149-2860

Other Address-Dongbu Branch

472, Hancheon-ro, Dongdaemun-gu, Seoul, Korea

Tel

+82-2-3299-7869

Fax

+82-2-3299-7981

Other Address-Seobu Branch

32-6, Yeongdeungpoyeok-gil, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-2639-3201

Fax

+82-2-361-8410

Other Address-Gwangju Branch

611, Jungheung 1-dong, Buk-gu, Gwangju, Korea

Tel

+82-62-605-2153

Fax

+82-62-528-9168

Other Address-Busan Branch

Korea Railroad Busan Office, 1187-1, Choryang 3-dong, Dong-gu, Busan, Korea

Tel

+82-51-464-2150

Fax

+82-51-466-8047

Type

Services

Industry

Interurban Rail Transportation

  Main Business

Railway Transportation Services, Train Maintenance, Train Leasing Services

Established (mm/dd/yyyy)

12/31/2004

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Railway Transportation Services

Sell

Train Maintenance

Sell

Train Leasing Services

CEO’s

 

Name

Chung Chang-Young

Address

Suite 33-1601, 32, Dasan-ro, Jung-gu, Seoul, Korea

Date of Birth

08/29/1954

Title

President

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

9,576,562,811,563

Employees

29,148

Formation

Governmental Corporation

Bank Details

Woori Bank

Corporate Registered No.

160171-0004321

Business Registered No.

314-82-10024

Permit & Licenses

N/A

Shareholder Position

The Republic of Korea has 100% shares.

Company History

12/31/2004 Incorporated as the present name

09/01/2009 Moved to the pres3nt HQ address from 920, Dunsan-dong, Seo-gu, Daejeon, Korea

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President

Mr.

Chung Chang-Young

Male

Korean

02/06/2012

Director

Mr.

Lee Geon-Tae

Male

Korean

06/17/2010

Director

Mr.

Kim Young-Seob

Male

Korean

02/10/2011

Director

Mr.

Kim Joo-Seob

Male

Korean

02/10/2011

Director

Mr.

Han Myung-Cheol

Male

Korean

02/10/2011

Director

Mr.

Shin Seung-Chang

Male

Korean

04/18/2011

Director

Mr.

Kim Bok-Hwan

Male

Korean

08/05/2011

Director

Mr.

Paeng Jung-Kwang

Male

Korean

08/10/2011

Director

Mr.

Ham Dae-Young

Male

Korean

10/25/2011

Director

Mr.

Kim Hee-Joong

Male

Korean

02/06/2012

Director

Mr.

You Jae-Heung

Male

Korean

02/06/2012

Director

Mr.

Chae Han-Cheol

Male

Korean

04/16/2012

Director

Mr.

Kim Hyun-Cheol

Male

Korean

08/16/2012

Auditor

Mr.

Sohn Chang-Wan

Male

Korean

08/20/2012

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

3,974,484,925,378

19,118,269,139,486

312,332,686,492

2010

3,666,038,215,024

18,210,321,190,487

411,697,934,101

2009

3,528,828,000,000

3,528,828,000,000

648,621,000,000

2008

3,631,442,000,000

3,631,442,000,000

514,007,000,000

2007

3,570,285,000,000

3,570,285,000,000

133,287,000,000

2006

3,530,207,000,000

3,530,207,000,000

-525,976,000,000

 

 

Financial Description

 

Authorized Capital(KRW)

22,000,000,000,000

Paid-Up Capital(KRW)

9,576,562,811,563

Total Issues Shares

N/A

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

19,118,269,139,486

18,210,321,190,487

 

Current Assets

1,063,768,239,926

1,775,983,355,077

 

Cash & Cash Equivalents

141,950,710,717

389,077,107,985

 

Current Financial Instruments

78,791,426,747

102,672,758,178

 

Trade Receivables & Other Receivables

256,767,414,245

736,384,847,881

 

Inventories

281,343,974,784

249,423,681,461

 

Current Non-Financial Instruments

296,673,434,158

105,542,196,819

 

Assets to be Sold

8,241,279,275

192,882,762,753

 

Non-Current Assets

18,054,500,899,560

16,434,337,835,410

 

Non-Current Financial Instruments

797,667,590,045

177,465,889,103

 

Long-Term Trade Receivables & Other Receivables

5,183,721,898,750

3,779,342,225,023

 

Tangibles

10,768,946,170,863

10,553,584,806,885

 

Investment_Real Estates

380,983,101,396

331,124,170,684

 

Intangibles

39,238,517,874

34,329,290,575

 

Investment_Subsidiaries

691,211,824,224

1,278,179,824,224

 

Investment_Related Companies

179,715,313,328

179,401,369,093

 

Deferred Income Tax Assets

 

87,554,602,219

 

Non-Current Non-Financial Instruments

13,016,483,080

13,355,657,604

 

Total Liabilities

10,806,810,480,467

10,134,638,462,644

 

Current Liabilities

2,507,507,896,255

2,377,465,486,731

 

Trade Payables & Other Payables

648,579,487,389

681,177,406,383

 

Current Financial Debts

1,243,381,957,478

1,172,653,367,455

 

Deferred Income Tax Credit

215,950,063,064

196,419,650,129

 

Current Non-Financial Debts

399,596,388,324

327,215,062,764

 

Non-Current Liabilities

8,299,302,584,212

7,757,172,975,913

 

Long-Term Trade Payables & Other Payables

1,891,197,744

1,888,332,324

 

Non-Current Financial Debts

7,563,223,519,639

7,122,495,212,908

 

Non-Current Non-Financial Debts

17,802,962,828

15,379,469,665

 

Confirmed Salaries

643,025,720,801

568,390,706,895

 

Non-Current Provisions

73,359,183,200

49,019,254,121

 

Capital Stock

9,576,562,811,563

9,575,110,811,563

 

Profit Surplus

-1,290,175,735,893

-1,522,230,643,810

 

Others

25,071,583,349

22,802,560,090

 

Total Equity

8,311,458,659,019

8,075,682,727,843

 

Liab. & Shareholder’s Equity

19,118,269,139,486

18,210,321,190,487

 

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

3,974,484,925,378

3,666,038,215,024

 

Cost of Sold Goods

4,320,295,795,111

4,091,543,210,861

 

Gross Profit

-345,810,869,733

-425,504,995,837

 

Other Income

7,730,629,750

34,171,409,530

 

Selling & Admin. Expenses

176,594,678,944

164,086,076,107

 

Other Expenses

61,056,480,309

37,237,445,938

 

Other Profits

1,317,898,256,385

1,461,926,973,991

 

Operating Income

742,166,857,149

869,269,865,639

 

Finance Income

355,068,715,194

254,081,327,169

 

Finance Expenses

463,033,168,270

489,845,724,077

 

Profits from Disposal of Invested Equity on Related Companies

313,944,235

-3,836,014,744

 

Income Before Taxes

634,516,348,308

629,669,453,987

 

Income Taxes Expenses

322,183,661,816

217,971,519,886

 

Net Income

312,332,686,492

411,697,934,101

 

 

 

Products, Technologies, Services Description

 

Main Products & Services

Railway Transportation Services, Train Maintenance, Train Leasing Services

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KORAIL RETAIL CO., ,LTD.(110111-3125500)

KORAIL NETWORKS CO., LTD.(110111-3088344)

KORAIL LOGIS CO., LTD.(135211-0013400)

KORAIL TECH CO., LTD.(160111-0182397)

KORAIL TOURISM DEVELOPMENT CO., LTD.(110111-3068601)

KIB CO., LTD.(110111-3297870)

 

Sales by Region

(Activity & Markets)

 

Not Available.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Thousand KRW)

Status

 

Daegu District Court

Korea Rail Network Authority

The Subject Company

Cancellation on Imposed Compensation

1,123,459

Partially the subject has been defeated..

 

Daegu District Court

Surprime Florence

The Subject Company

Claim for Compensation from Damages

1,209,924

The Subject has been defeated.

 

Supreme Court

Oh Mi-Sun & Others(33)

The Subject Company

Confirmation on the position of Employees

2,390,880

The Subject has been defeated.

 

Seoul Central District Court

Lim Jong-Min & Others(4)

The Subject Company

Cancellation of Firing

656,799

Partially the subject has been defeated..

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.34

UK Pound

1

Rs.88.50

Euro

1

Rs.70.74

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.