MIRA INFORM REPORT

 

 

Report Date :

20.04.2013

 

IDENTIFICATION DETAILS

 

Name :

JEONJU PAPER CORPORATION

 

 

Registered Office :

180, Palbokdong 2-ga, Deokjin-gu, Jeonju-si, Jeollabuk-do, Korea 561-843

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

10.12.1998

 

 

Com. Reg. No.:

418-81-17792

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Newsprint

 

 

No. of Employees :

720

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No Complaints

Litigation :

Clear

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

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 is currently the world's 12th largest economy. 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. Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. 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

JEONJU PAPER CORPORATION

(Korean Company Name : “()전주페이퍼”)

Registered Address

180, Palbokdong 2-ga, Deokjin-gu, Jeonju-si, Jeollabuk-do, Korea

Zip Code

561-843

Tel

+82-63-210-8114

Fax

+82-63-212-8513

E-mail

youngsun@jeonjupaper.com

Website

www.norskeskog.co.kr

Trading Address

6th Fl., Korea Chamber of Commerce & Industry, 45, Namdaemunno 4-ga, Jung-gu, Seoul, Korea

Tel

+82-2-6050-2600

Fax

+82-2-6050-2659

Other Address-Cheongwon Factory

60-1, Hogye-ri, Gangoe-myeon, Cheongwon-gun, Chungbuk, Korea

Tel

+82-43-249-3300

Fax

+82-43-249-3309

Type

Export/Import

Industry

Manufacture of Newsprint

  Main Business

Newsprint Paper, Middle Grade Printing Paper, Book Paper

Established (mm/dd/yyyy)

12/10/1998

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Newsprint and offset papers(14121900)

Sell

Printing and writing paper(14111500)

Sell

Coated papers(14121800)

Sell

Educational or vocational textbooks(55101509)

Buy

Paper pulp(14101501)

Buy

Additives(12160000)

Buy

Chemicals including Bio Chemicals and Gas Materials(12000000)

Buy

Inorganic peroxides(12352304)

Buy

Inorganic metal salts(12352302)

Buy

Bleaches(47131807)

Buy

Flocculents(47101608)

Buy

Surfactants(12161900)

Buy

Standard newsprint(14121901)

Buy

Wood pulp(11121607)

 

 

CEO’s

 

Name

Han In-Su

Address

Suite 203-601, 159, Singongdeok-dong, Mapo-gu, Seoul, Korea

Date of Birth

03/15/1957

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

100,000,000,000

Employees

720

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank

Kookmin Bank

Hana Bank

Corporate Registered No.

210111-0022435

Business Registered No.

418-81-17792

Permit & Licenses

Int’l Trade No.: 11586605

Shareholder Position

Name

Shares

%

MSPE TATTOO HOLDINGS AB

5,800,000

58.00

SHPE HOLDINGS ONE LLC.(210114-0065869)

4,200,000

42.00

TOTAL

10,000,000

100.00

Company History

10/01/1965 Established as SAEHAN PAPER CO.

08/1968 Changed company name to JEONJU PAPER CO.

10/1992 Changed company name to PAPCO CO.

12/10/1998 Incorporated as POPCO JEONJU CO., LTD.

12/22/1999 Changed company name to PAN ASIA PAPER KOREA CO., LTD.

12/31/2003 Acquired PAN ASIA PAPER CHEONGWON CO., LTD.

11/18/2005 Changed company name to NORSKE SKOG KOREA CO., LTD.

09/2008 Changed company name to the present name

09/11/2008 Increased the authorized shares to 100,000,000 shares from 50,000,000 shares

10/31/2008 Acquired MSP INVESTMENT HOLDING CO., LTD. and SHPE HOLDINGS CO., LTD.

10/31/2008 Increased capital to 100,000,000,000 KRW from 561,441,300,000 KRW

11/05/2008 Registered as a Foreign Direct Investment Corporation

12/2011 awarded US$ 300 Million Export Top Prize

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Han In-Su

Male

Korean

09/11/2008

Director

Mr.

Lee Sang-Hoon

Male

Korean

11/21/1971

Director

Mr.

Choi Sung-Min

Male

USA

09/11/2008

Director

Mr.

Jung Hoi-Hoon

Male

Korean

09/11/2008

Director

Mr.

Yang Ki-Seok

Male

Korean

09/11/2008

Director

Mr.

Kim Jong-Kyu

Male

Korean

09/11/2008

Director

Mr.

Nam Hyung-Kwon

Male

Korean

01/31/2011

Director

Mr.

Lee Jung-Woo

Male

Korean

01/31/2011

Outside Director

Mr.

Kang Bong-Kyun

Male

Korean

-

Auditor

Mr.

Lee Hyo-Il

Male

Korean

03/25/2011

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

751,617,161,725

763,744,941,786

8,408,501,409

2011

792,900,174,180

792,482,484,310

-7,177,115,330

2010

741,536,565,202

829,948,924,570

5,321,064,585

2009

666,123,452,891

846,887,891,489

1,569,376,808

2008

130,359,699,438

889,184,411,159

7,469,704,374

2007

610,061,139,557

687,137,408,111

-24,973,606,648

 

 

Financial Description

 

Authorized Capital(KRW)

1,000,000,000,000

Paid-Up Capital(KRW)

100,000,000,000

Total Issues Shares

10,000,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

763,744,941,786

792,482,484,310

829,948,924,570

Current Assets

191,858,471,432

195,561,905,260

204,238,022,263

-Quick Assets

111,084,497,099

107,190,831,635

115,387,993,494

-Inventories

80,773,974,333

88,371,073,625

88,850,028,769

Fixed Assets

571,886,470,354

596,920,579,050

625,710,902,307

-Investment

7,317,613,753

6,944,841,096

4,228,058,592

-Tangibles

509,706,955,359

526,863,270,448

547,350,178,226

-Intangibles

51,868,007,832

60,886,476,524

69,994,528,710

-Others

2,993,893,410

2,225,990,982

4,138,136,779

Total Liabilities

513,696,476,333

553,726,471,136

580,841,593,883

Current Liabilities

163,987,989,763

124,734,730,423

127,819,015,327

Fixed Liabilities

349,708,486,570

428,991,740,713

453,022,578,556

Capital Stock

100,000,000,000

100,000,000,000

100,000,000,000

Capital Surplus

133,328,676,012

133,328,676,012

133,328,676,012

Profit Surplus

13,490,382,890

7,183,030,437

14,360,145,767

Capital Adjustment

3,229,406,551

-1,755,693,275

1,418,508,908

Total Equity

250,048,465,453

238,756,013,174

249,107,330,687

Liab. & Shareholder’s Equity

763,744,941,786

792,482,484,310

829,948,924,570

 

Current Liabilities

163,987,989,763

124,734,730,423

127,819,015,327

Trade Payables

43,178,612,519

50,009,156,589

86,824,804,641

Short-Term Borrowings

45,700,493,306

45,457,812,772

7,000,000,000

 

50,000,000,000

-

-

Current Portion of Long-Term Debts

 

-

8,454,400,000

Account Payables

20,737,190,631

20,880,940,654

18,425,947,644

Advance Receipts

167,931,823

5,762,034

1,869,457,404

Withholdings

715,329,590

1,007,542,556

980,897,062

Accrued Expenses

3,827,602,588

4,534,277,737

1,622,386,053

Guarantee Deposit Withhold

9,092,090

54,050,000

19,050,000

Unearned Income

5,486,575

2,502,739

249,315

Derivatives

-

3,278,793,081

2,061,289,071

Interest Rate Swap

-

-

1,293,426,997

Fixed Liabilities

349,708,486,570

428,991,740,713

453,022,578,556

Debentures

100,000,000,000

150,000,000,000

-

Long-Term Borrowings

222,522,000,000

256,550,000,000

417,550,000,000

Long-Term Account Payables

7,077,602,433

13,492,642,950

22,148,538,550

Derivatives

-

52,146,170

80,519,233

Non-Current Portion of Deferred Income Tax Credit

16,612,986,356

6,379,924,380

4,771,676,337

Provision for Severance & Retirement

19,676,962,700

16,769,571,470

20,424,591,680

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

751,617,161,725

792,900,174,180

741,536,565,202

Cost of Sold Goods

629,285,676,138

676,585,127,052

604,822,495,770

Gross Profit

122,331,485,587

116,315,047,128

136,714,069,432

Selling & Admin. Expenses

85,101,451,544

89,755,052,912

90,412,464,208

Operating Income

37,230,034,043

26,559,994,216

46,301,605,224

Non-Operating Income

6,619,172,722

8,048,275,816

8,227,016,630

Non-Operating Expenses

29,882,938,637

39,494,319,078

47,042,457,417

Income Before Taxes

13,966,268,128

-4,886,049,046

7,486,164,437

Income Taxes Expenses

5,557,766,719

2,291,066,284

2,165,099,852

Net Income

8,408,501,409

-7,177,115,330

5,321,064,585

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

76,666,553,944

-15,656,307,645

90,743,162,503

-Net Income

8,408,501,409

-7,177,115,330

5,321,064,585

-Exp. without Cash Outflow

60,741,773,290

64,395,712,625

61,135,387,517

-Revenue without Cash Inflows

-1,738,095,255

-183,042,583

-401,418,206

-Changes in Asset/ & Liability

9,254,374,500

-72,691,862,357

24,688,128,607

Cash Flows from Investing

-28,409,589,659

-29,648,186,078

-23,327,435,496

-Cash Inflow from Investing

1,703,618,636

595,454,546

699,589,084

-Cash Outflows for Investing

-30,113,208,295

-30,243,640,624

-24,027,024,580

Cash Flows from Financing

-33,212,784,430

18,492,492,446

-47,995,600,000

-Cash Inflows from Financing

23,337,215,570

437,946,892,446

13,550,000,000

-Cash Outflows from Financing

-56,550,000,000

-419,454,400,000

-61,545,600,000

Increase/Decrease in Cash

15,044,179,855

-26,812,001,277

19,420,127,007

Cash at the Beginning of Year

2,040,243,735

28,852,245,012

9,432,118,005

Cash at the End of Year

17,084,423,590

2,040,243,735

28,852,245,012

 

 

Products, Technologies, Services Description

 

Main Products & Services

Newsprint Paper, Middle Grade Printing Paper, Book Paper

 

 

Trade Partners & Competitors

 

Suppliers

HANSOL CSN CO., LTD.(110111-0150659) provides raw material handing equipments leasing services to the subject company.

Competitors

PAPER COREA INC.

2, JOCHON-DONG, GUNSAN-SI, JEOLLABUK-DO, KOREA

TEL:+82-63-440-5000  FAX:+82-63-440-5050

 

SEOUL PAPER CO., LTD.

5TH FL., GAEPUNG BLDG., 656-766, SEONGSU 2-GA 1-DONG, SEONGDONG-GU, SEOUL, KOREA

TEL:+82-2-2205-0301~5  FAX:+82-2-2205-0505~6

 

FOCUS CORPORATION

RM. 1607, SUNHWA BLDG., 5-2, SUNHWA-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-753-0218~9  FAX:+82-2-754-3253

 

 

Related Parties

 (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

JEONJU ENERGY CO., LTD.(205911-0015978)

(100.0% held by the subject company)

 

HANVIT GREEN ENVIRONMENT CO., LTD.(150111-0046181)

(100.0% held by the subject company)

Cooperative Enterprise

-Insured Company

SAMSUNG FIRE & MARINE INSURANCE CO., LTD(110111-0005078)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

2012

2011

2010

Export

388,589

401,584

362,115

Domestic

363,028

391,316

379,422

Total

751,617

792,900

741,537

The Subject deals with the companies in Australia, Hong Kong and USA.

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.03

UK Pound

1

Rs.82.43

Euro

1

Rs.70.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.