MIRA INFORM REPORT

 

 

Report Date :

28.08.2013

 

IDENTIFICATION DETAILS

 

Name :

KUMCHON CORPORATION

 

 

Registered Office :

16-4, Seongsu 1-ga 2-dong, Seongdong-gu, Seoul, Korea, Rm. 201, SK Bldg, Zip Code 133-710

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

20.07.1992

 

 

Com. Reg. No.:

201-81-46345

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Wholesale of Leather and Fur Products such as Shoes Leathers, Handbag Leathers, Shoe & Handbag Materials, Components & Leather goods Making Machinery, CAD/CAM Software

 

 

No. of Employees :

18

 

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 :

Slow but Correct 

 

 

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

 

 

 


Basic

 

Company Name

KUMCHON CORPORATION

(Korean Company Name : “()금천코퍼레이션”)

Registered Address

16-4, Seongsu 1-ga 2-dong, Seongdong-gu, Seoul, Korea

Building

Rm. 201, SK Bldg.

Zip Code

133-710

Tel

+82-2-497-1900

Fax

+82-2-497-1800

E-mail

kccsel@kccse.com

Website

www.kccsel.com

Trading Address

Rm. 201, SK Bldg., 16-4, Seongsu 1-ga 2-dong, Seongdong-gu, Seoul, Korea

Tel

+82-2-497-1900

Fax

+82-2-497-1800

Type

Export/Import

Industry

Wholesale of Leather and Fur Products

  Main Business

Shoes Leathers, Handbag Leathers, Shoe & Handbag Materials, Components & Leather goods Making Machinery, CAD/CAM Software

Established (mm/dd/yyyy)

07/20/1992

 

The subject occupies the premises of the registered address by leasing.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Leathers(11162300)

Sell

Fabrics and leather materials

Sell

Leather goods Making Machinery

 

CEO’s

 

Name

Kang Yeon-Koo

Address

11, Neungchon 2-gil, Gwangmyeong-si, Gyeonggi-do, Korea

Date of Birth

02/15/1942

Title

Representative Director

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

350,000,000

Employees

18

Formation

Co., Ltd by shares

Bank Details

Industrial Bank of Korea

Woori Bank-Susoo Dong Branch

Kookmin Bank-Sungsoo Dong Branch

Corporate Registered No.

110111-0870760

Business Registered No.

201-81-46345

Permit & Licenses

04/2011 ISO 9001

 

Int’l Trade No.: 947620

Shareholder Position

Name

Shares

%

KANG YEON-KOO

42,000

60.00

KIM WAN-KYU

14,000

20.00

KIM YOUNG-KYU

14,000

20.00

TOTAL

70,000

100.00

Company History

12/26/1983 Established KUMCHON CORPORATION CO.(Sole Proprietorship)

06/24/1992 Incorporated as the present name

04/28/1999 Moved to the present address

12/06/2000 Increased the authorized shares to 300,000 shares from 40,000 shares

12/22/2000 Increased capital to 350,000,000 KRW from 200,000,000 KRW

06/2003 Established KCC STUDIO in China

11/2010 Designated as an INNO-BIZ Company

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Representative Director

Mr.

Kang Yeon-Koo

Male

Korean

06/24/1995

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

3,549,615,000

4,130,745,000

227,285,000

2011

4,114,064,000

4,354,876,000

233,893,000

2010

4,013,395,000

4,621,667,000

234,800,000

2009

4,513,000,000

4,166,000,000

168,000,000

2008

5,065,915,000

4,493,422,000

12,154,000

2007

6,290,778,000

4,799,555,000

188,215,000

2006

6,300,000,000

N/A

N/A

2005

6,200,000,000

N/A

N/A

2004

6,145,000,000

3,704,000,000

195,000,000

2003

7,409,000,000

3,562,000,000

115,000,000

 


Financial Description

 

Authorized Capital(KRW)

1,500,000,000

Paid-Up Capital(KRW)

350,000,000

Total Issued Shares

70,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

4,130,745,000

4,354,876,000

4,621,667,000

Current Assets

3,699,763,000

3,919,662,000

4,168,086,000

-Quick Assets

-

-

-

-Inventories

-

-

-

Fixed Assets

430,982,000

435,214,000

453,581,000

-Investment

-

-

-

-Tangibles

-

-

-

-Intangibles

-

-

-

Total Liabilities

2,747,109,000

2,798,844,000

3,134,878,000

Current Liabilities

2,596,664,000

2,778,329,000

3,127,810,000

Fixed Liabilities

150,445,000

20,515,000

7,068,000

Capital Stock

350,000,000

350,000,000

350,000,000

Capital Surplus

-

-

-

Profit Surplus

1,033,636,000

1,203,732,000

1,136,789,000

Capital Adjustment

-

-

-

Total Equity

1,383,636,000

1,553,732,000

1,486,789,000

Liab. & Shareholder’s Equity

4,130,745,000

4,352,576,000

4,621,667,000

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

3,549,615,000

4,114,064,000

4,013,395,000

Cost of Sold Goods

2,544,873,000

2,890,808,000

2,805,653,000

Gross Profit

1,004,742,000

1,223,256,000

1,207,742,000

Selling & Admin. Expenses

649,915,000

922,744,000

924,853,000

Operating Income

354,827,000

300,512,000

282,889,000

Non-Operating Income

150,445,000

20,815,000

7,068,000

Non-Operating Expenses

169,746,000

150,399,000

137,931,000

Income Before Taxes

227,285,000

233,893,000

234,800,000

Income Taxes Expenses

-

-

-

Net Income

227,285,000

233,893,000

234,800,000

 

 

Products, Technologies, Services Description

 

Main Products & Services

The Subject imports and exports the raw materials, manufacturing machinery and software for making shoes.

 

 

Trade Partners & Competitors

 

Suppliers

TORIELLI SPA-ITALY

Customers

 

Competitors

DAE IL LEATHER CO., LTD.

1086-1, JANGNIM 1-DONG, SAHA-GU, BUSAN, KOREA

TEL:+82-51-262-9191~4  FAX:+82-51-262-9195

 

SEONG WON LEATHER IND. CO., LTD.

18B-45, BANWOL INDUSTRIAL COMPLEX, 617-7, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-491-0212~3  FAX:+82-31-491-0504

 

YONG SHIN LEATHER CO., LTD.

100, SAMBANG-DONG, GIMHAE-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-329-0871  FAX:+82-55-329-0874

 

 

Sales by Region

(Activity & Markets)

 

The Subject deals with the companies in China, Taiwan, France, Germany, India, Indonesia, Italy, Japan, Pakistan and Spain. The Subject develops the new materials for making women’s shoes domestically and from other countries, and exports them to India, Italy, Japan and Indonesia, and imports the raw materials from France, Italy, Spain, China and Brazil.

 

Not Available.

 

 

News Clipping

 

---


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.67

UK Pound

1

Rs.102.20

Euro

1

Rs.87.75

 

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.