|
Report Date : |
19.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
LG FASHION CORP. |
|
|
|
|
Registered Office : |
637-1, Sinsa-dong, Gangnam-gu, Seoul, Korea 135-896 |
|
|
|
|
Country : |
South Korea |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
01.11.2006 |
|
|
|
|
Com. Reg. No.: |
211-87-87724 |
|
|
|
|
Legal Form : |
Listed Company |
|
|
|
|
Line of Business : |
Manufacture of Women's Suits and Coats |
|
|
|
|
No. of Employees : |
954 |
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 : |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
|
Company Name |
LG FASHION CORP. (Korean Company Name : “(주)LG패션”) |
|
Registered Address |
637-1, Sinsa-dong, Gangnam-gu, Seoul,
Korea |
|
Zip Code |
135-896 |
|
Tel |
+82-2-3441-8114 |
|
Fax |
+82-2-3441-6672 |
|
E-mail |
fashionmaster@lgfashoin.co.kr;sejoonlee@lgfashion.co.kr;dhseo@lgfashion.co.kr |
|
Website |
www.lgfashion.co.kr |
|
Trading Address |
637-1, Sinsa-dong, Gangnam-gu, Seoul,
Korea |
|
Tel |
+82-2-3441-8114 |
|
Fax |
+82-2-3441-6672 |
|
Other Address-Bundang Direct Shop |
14, Sunae-dong, Bundang-gu, Seongnam-si,
Gyeonggi-do, Korea |
|
Tel |
+82-31-714-1033 |
|
Other Address-Yangsan Factory |
19, Yusan-dong, Yangsan-si,
Gyeongsangnam-do, Korea |
|
Tel |
+82-55-371-7812 |
|
Fax |
+82-55-387-9937 |
|
Type |
Import/Export |
|
Industry |
Manufacture of Men's Suits and Coats |
|
Main Business |
Suits, Womens Suits, Wallets, Belts, Bags |
|
Sub
Business |
Manufacture of Women's Suits and Coats |
|
Established (mm/dd/yyyy) |
11/01/2006 |
The Subject owns
the premises of registered address.
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Mens coats or jackets(53101802) |
|
Sell |
Womens slacks or trousers or
shorts(53101504) |
|
Name |
Koo Bon-Keul |
|
Date of Birth |
08/02/1957 |
|
Title |
President & CEO |
|
Sex |
Male |
|
Nationality |
Korean |
|
Capital (KRW) |
146,200,000,000 |
|||||||||||||||||||||||||||
|
Employees |
954 |
|||||||||||||||||||||||||||
|
Formation |
Listed Company (Korea Stock Exchange: 093050) as of 12/01/2006 A Company of LG FASHION CORP. |
|||||||||||||||||||||||||||
|
Bank Details |
Korea Exchange Bank-Apgujung Branch |
|||||||||||||||||||||||||||
|
Corporate Registered No. |
110111-3555187 |
|||||||||||||||||||||||||||
|
Business Registered No. |
211-87-87724 |
|||||||||||||||||||||||||||
|
Permit & Licenses |
Int’l Trade No.: 3050512 |
|||||||||||||||||||||||||||
|
Shareholder Position |
|
|||||||||||||||||||||||||||
|
Company History |
11/01/2006
Incorporated as the present name by spinning off from LG INTERNATIONAL
CORP.(110111-0004632) 12/03/2007
Separated from LG GROUP of Company |
|||||||||||||||||||||||||||
|
|
|
|
Job Description |
Title |
Name |
Nationality |
Date of Birth |
Education |
|
President & CEO |
Mr. |
Koo Bon-Keul |
Korean |
1957. 08. 02 |
Pennsylvania University |
|
Director & COO |
Mr. |
Oh Kyu-Shik |
Korean |
1958. 06.23 |
Seogang University |
|
Director |
Mr. |
Koo Bon-Jin |
Korean |
1964.11. |
Carnegie Mellon University, USA |
|
Director |
Mr. |
Cho Kyu-Won |
Korean |
1958.01. |
University of Pennsylvania, USA |
|
Outside Director |
Mr. |
Kim Yong-Joon |
Korean |
1959.12. |
Northwestern University, USA |
|
Outside Director |
Mr. |
Lee Won-Pyung |
Korean |
1946.08.20 |
- |
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
360,991,068,127 |
1,209,562,012,745 |
17,767,185,037 |
|
|
(*)2012 |
1,389,652,917,559 |
1,202,450,421,042 |
80,671,390,399 |
|
(*)2011 |
1,410,925,337,917 |
1,152,310,780,261 |
108,090,535,803 |
|
(*)2010 |
1,108,720,444,675 |
970,269,916,807 |
99,253,014,288 |
|
2009 |
922,152,767,297 |
756,486,823,254 |
71,536,518,501 |
|
2008 |
790,803,082,983 |
633,794,119,282 |
72,681,054,510 |
|
2007 |
738,083,812,690 |
566,627,834,415 |
65,736,458,793 |
|
2006 |
151,000,271,487 |
493,485,293,939 |
15,681,337,637 |
(*)Figures are based
on the K-IFRS Accounting System.
|
Authorized Capital(KRW) |
400,000,000,000 |
|
Paid-Up Capital(KRW) |
146,200,000,000 |
|
Total Issued Shares |
29,240,000 |
Balance
Sheet
|
|||
|
Unit : Korean Won |
01/01/2013~03/31/2013 |
As of 12/31/2012 |
As of 12/31/2011 |
|
Total Assets |
1,209,562,012,745 |
1,202,450,421,042 |
1,152,310,780,261 |
|
Current
Assets |
609,821,968,889 |
600,985,604,114 |
569,949,090,255 |
|
Inventories |
285,638,578,991 |
321,041,438,489 |
412,570,404,497 |
|
Trade Receivables |
119,136,071,285 |
110,818,025,428 |
127,125,596,103 |
|
Other Receivables |
1,862,175,544 |
2,163,225,680 |
1,396,440,199 |
|
Current
Financial Instruments |
70,000,000,000 |
70,000,000,000 |
0 |
|
Other
Finance Assets |
|
0 |
13,291,276 |
|
Other
Current Assets |
17,459,974,008 |
20,047,744,538 |
21,685,836,424 |
|
Cash
& Cash Equivalents |
115,725,169,061 |
76,915,169,979 |
7,157,521,756 |
|
Non-Current Assets |
599,740,043,856 |
601,464,816,928 |
582,361,690,006 |
|
Tangibles |
336,164,071,560 |
338,118,488,535 |
342,450,036,872 |
|
Intangibles |
53,406,526,555 |
53,642,903,693 |
56,621,252,681 |
|
Investment_Real
Estates |
5,973,514,696 |
5,981,835,531 |
6,015,118,869 |
|
Investment_Related
Companies |
8,725,700,578 |
8,725,700,578 |
8,725,700,578 |
|
Investment_Subsidiaries |
69,038,079,998 |
65,572,403,888 |
42,205,748,755 |
|
Long-Term
Financial Instruments |
8,500,000 |
8,500,000 |
8,500,000 |
|
Other Long-Term Debts |
113,761,660,256 |
115,003,145,146 |
107,751,202,560 |
|
Other
Non-Current Assets |
12,661,990,213 |
14,411,839,557 |
18,584,129,691 |
|
Total Liabilities |
298,619,076,059 |
297,571,746,413 |
316,165,797,592 |
|
Current Liabilities |
174,427,477,400 |
167,574,275,386 |
235,192,349,504 |
|
Trade Payables |
76,858,941,646 |
75,565,352,352 |
87,684,649,508 |
|
Account Payables |
49,128,601,215 |
59,178,112,750 |
73,636,325,822 |
|
Other
Current Financial Debts |
201,786,368 |
234,005,890 |
32,048,807,976 |
|
Merchandise Coupon |
1,392,507,923 |
1,440,654,013 |
1,568,545,482 |
|
Other
Current Liabilities |
7,373,969,818 |
5,564,037,921 |
5,800,375,500 |
|
Deferred
Income Tax Credit |
10,023,243,145 |
10,312,899,767 |
10,857,350,090 |
|
Accrued Income Tax |
17,752,427,285 |
15,279,212,693 |
23,596,295,126 |
|
Accrued
Dividends |
11,696,000,000 |
|
|
|
Non-Current
Liabilities |
124,191,598,659 |
129,997,471,027 |
80,973,448,088 |
|
Confirmed Salaries |
10,081,114,532 |
8,805,981,386 |
7,828,715,865 |
|
Long-Term Guarantee Deposit Withhold |
9,125,710,021 |
9,424,987,134 |
9,369,628,746 |
|
Other Long-Term Finance Debts |
99,700,818,593 |
109,583,466,956 |
60,275,384,660 |
|
Other
Non-Current Liabilities |
164,259,686 |
211,390,189 |
340,576,214 |
|
Deferred
Income Tax Credit |
5,119,695,827 |
1,971,645,362 |
3,159,142,603 |
|
Capital Stock |
146,200,000,000 |
146,200,000,000 |
146,200,000,000 |
|
Capital
Surplus |
213,189,089,156 |
213,189,089,156 |
213,189,089,156 |
|
Profit
Surplus |
551,553,847,530 |
545,489,585,473 |
476,755,893,513 |
|
Total
Equity |
910,942,936,686 |
904,878,674,629 |
836,144,982,669 |
|
Liab.
& Shareholder’s Equity |
1,209,562,012,745 |
1,202,450,421,042 |
1,152,310,780,261 |
Income
Statement
|
|||
|
Unit : Korean Won |
01/01/2013~03/31/2013 |
As of 12/31/2012 |
As of 12/31/2011 |
|
Sales |
360,991,068,127 |
1,389,652,917,559 |
1,410,925,337,917 |
|
Cost of Sold Goods |
147,778,451,801 |
542,488,356,359 |
537,818,908,764 |
|
Gross Profit |
213,212,616,326 |
847,164,561,200 |
873,106,429,153 |
|
Selling
& Admin. Expenses |
188,542,932,372 |
745,564,522,449 |
731,832,728,564 |
|
Operating
Income |
24,669,683,954 |
101,600,038,751 |
141,273,700,589 |
|
Finance
Profits |
1,458,749,973 |
1,503,265,518 |
4,187,224,303 |
|
Finance
Income |
2,578,135,498 |
6,437,577,516 |
8,930,338,727 |
|
Finance
Expenses |
-1,119,385,525 |
-4,934,311,998 |
-4,743,114,424 |
|
Other
Non-OperatingProfits |
-2,868,043,452 |
51,899,057 |
1,571,453,492 |
|
Other
Non-Operating Expenses |
2,226,735,892 |
10,899,491,910 |
13,526,028,731 |
|
Other
Non-Operating Income |
-5,094,779,344 |
-10,847,592,853 |
-11,954,575,239 |
|
Income
Before Taxes |
23,260,390,475 |
103,155,203,326 |
147,032,378,384 |
|
Income
Taxes Expenses |
5,493,205,438 |
22,483,812,927 |
38,941,842,581 |
|
Net
Income |
17,767,185,037 |
80,671,390,399 |
108,090,535,803 |
Cash
Flows
|
|||
|
Unit :
Korean Won |
01/01/2013~03/31/2013 |
As of 12/31/2012 |
As of 12/31/2011 |
|
Operating Activities Cash Flows |
61,173,866,630 |
200,162,015,233 |
-37,925,930,898 |
|
Net
Income |
17,767,185,037 |
80,671,390,399 |
108,090,535,803 |
|
Adjustment |
43,091,157,931 |
154,207,457,620 |
-111,909,206,032 |
|
Cash Flows from Operating |
315,523,662 |
-34,716,832,786 |
-34,107,260,669 |
|
Interests Received |
1,223,712,760 |
1,422,627,248 |
3,502,340,108 |
|
Interests Paid |
-1,038,458,956 |
-4,527,301,209 |
-3,438,523,591 |
|
Dividends Received |
|
299,068,839 |
1,530,955,502 |
|
Income Taxes |
130,269,858 |
-31,911,227,664 |
-35,702,032,688 |
|
Cash Flows from Investing |
-12,136,831,119 |
-136,404,315,476 |
-38,105,010,403 |
|
Cash Flows from Financing |
-10,263,820,000 |
6,094,490,459 |
51,314,003,544 |
|
Increase/Decrease in Cash |
38,773,215,511 |
69,852,190,216 |
-24,716,937,757 |
|
Cash at the Beginning of Year |
76,915,169,979 |
7,157,521,756 |
31,874,459,513 |
|
Cash at the End of Year |
115,725,169,061 |
76,915,169,979 |
7,157,521,756 |
|
Main Products & Services |
Suits, Womens Suits, Wallets, Belts, Bags (*) The Subject is supplied 100% from other producers, and has 480
shops domestically. Brand Name: HAZZYS, DARKS, MAESTRO, TNGT, LAFUMA, ZEOEN, MOGG,
TOWNGENT, ASHWORTH, ANNA MOLINARI |
|
Competitors |
CHEIL INDUSTRIES INC.(170111-0000076) KOLON FASHION CORPORATION(110111-2127292) CAMBRIDGE MEMBERS CO.,LTD.(134111-0000517) WONPUNG MULSAN CO., LTD. DONG SAN DEVELOPMENT CO., LTD. PAN PACIFIC CO., LTD. |
(Subsidiaries, Joint-Venture & Affiliates)
|
Overseas Office |
LG FASHION TRADING (SHANGHAI) CO., LTD. (100.0% held by the subject company) LUCKY UNION FOODS CO., LTD. (30.0% held by the subject company) LG FASHION TRADING(SHANGHAI) CO., LTD (100.0% held by the subject company) LG FASHION SHANGHAI BUSINESS CENTER BLDG,
1004, 1005 ZHONGBANG MOHO NO.999 WANGQIAO ROAD PUDONG SHANGHAI, 201201 CHINA LAFUMA (BEIJING) CO., LTD. (51.00% held by the
subject company) UNIT07. 19TH FLOOR. EAST TOWER. LG TWIN
TOWER, B-12 OF JIANGUOMENWAI AVENUE. CHAOYANG DISTRICT BEIJING. 100022 LGF EUROPE S.A.R.L (100.0% held by the subject company) 9 RABATT, L-6475 ECHTERNACH, GRAND DUCHY OF
LUXEMBOURG POLARIS S.R.L (100.0% held by the subject company) VIA ALESSANDRO MANZONI 40, 20121 MILANO,
ITALY ALLEGRI S.R.L (100.0% held by the subject company) VIA ALESSANDRO MANZONI 40, 20121 MILANO,
ITALY PT. JAVA SEAFOOD(INDONESIA) (75.0% held by the subject company) |
|
Subsidiary |
LF FOOD CO., LTD.(110111-3782087) (100.0% held by the subject company) LF FASHION CO., LTD.(110111-3782285) (100.0% held by the subject company) LF CORP.(110111-3782558) (100.0% held by the subject company) INTER SPORTS KOREA CO., LTD.(110111-4191162) (100.0% held by the subject company) LAFUMA KOREA CO., LTD.(110111-4172790) (100.0% held by the subject company) LEBENUS CO., LTD.(110111-4637801) (100.0% held by the subject company) MAXKOR CO., LTD.(110111-4649971) (90.0% held by the subject company) LG FASHION TRADING(SHANGHAI) CO., LTD (100.0% held by the subject company) LG FASHION SHANGHAI BUSINESS CENTER BLDG,
1004, 1005 ZHONGBANG MOHO NO.999 WANGQIAO ROAD PUDONG SHANGHAI, 201201 CHINA LAFUMA (BEIJING) CO., LTD. (51.00% held by the
subject company) UNIT07. 19TH FLOOR. EAST TOWER. LG TWIN
TOWER, B-12 OF JIANGUOMENWAI AVENUE. CHAOYANG DISTRICT BEIJING. 100022 LGF EUROPE S.A.R.L (100.0% held by the subject company) 9 RABATT, L-6475 ECHTERNACH, GRAND DUCHY OF
LUXEMBOURG POLARIS S.R.L (100.0% held by the subject company) VIA ALESSANDRO MANZONI 40, 20121 MILANO,
ITALY ALLEGRI S.R.L (100.0% held by the subject company) VIA ALESSANDRO MANZONI 40, 20121 MILANO,
ITALY PT. JAVA SEAFOOD GEDUNG PATRA JASA, LANTAI 18 RUANG 1820, JL. JEND. GATOT SUBROTO KAV.
32-34, KEI. KUNINGAN TIMUR, KEC. SETIABUDI, KOTA ADMINISTRASI JAKARTA SELETAN
12950 ALLEGRI USA, LLC 7 SUTTON PLACE, BREWSTER, NEW YORK 10509, STATE OF NEW YORK, USA LGF HKG CO., LTD. RM1502, 15/F YUE XIU BLDG 160-174 LOCKHART RD HONG KONG |
|
Cooperative Enterprise |
LG CORP.(110111-0003543) is licensing “LG”
to the Subject Company. DAKS SIMPSON GROUP |
(Activity &
Markets)
|
Sales/ Unit :Mil KRW |
09/2011 |
2010 |
2009 |
|
Export |
21,274 |
21,438 |
23,518 |
|
Domestic |
938,148 |
1,099,788 |
898,635 |
|
Total |
959,422 |
1,121,226 |
922,153 |
The Subject imports from Europe including UK.
|
Case No. |
Court |
Plaintiff(s)/
Creditor(s)/ Applicant(s) |
Defendant(s)/
Debtor(s)/ Respondent(s) |
Cause |
Amount (Million KRW) |
Status |
|
|
Seoul Central District Court |
Burberry Limited |
The Subject Company |
Violation of Infringement of Brands Right |
50 |
1st Round is proceeding |
--
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.82 |
|
|
1 |
Rs.96.57 |
|
Euro |
1 |
Rs.82.45 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.