MIRA INFORM REPORT

 

 

Report Date :

25.01.2013

 

IDENTIFICATION DETAILS

 

Name :

LEVI STRAUSS KOREA LTD.

 

 

Registered Office :

38th Fl., ASEM Tower 159-1, Samseong 1-dong, Gangnam-gu, Seoul, Korea

135-798

 

 

Country :

South Korea

 

 

Financials (as on) :

30.11.2011

 

 

Date of Incorporation :

16.02.1993

 

 

Com. Reg. No.:

120-81-00074

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Wholesale of Shirts and Outer Garments

 

 

No. of Employees :

60

 

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

Litigation :

--

 

 

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 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 Information

 

Company Name

LEVI STRAUSS KOREA LTD.

(Korean Company Name : “리바이스트라우스코리아()”)

Registered Address

159-1, Samseong 1-dong, Gangnam-gu, Seoul, Korea

Building

38th Fl., ASEM Tower

Zip Code

135-798

Tel

+82-2-528-8800

Fax

+82-2-555-8725

E-mail

kjung@levi.com;ayoon@levi.com

Website

www.levi.co.kr

Trading Address

38th Fl., ASEM Tower, 159-1, Samseong 1-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-528-8800

Fax

+82-2-555-8725

Other Address-Icheon Branch

Rm.2318, San 15-1, Sanggeo-ri, Yeoju-eup, Yeoju-gun, Gyeonggi-do, Korea

Other Address-Homeplus Worldcup Branch

515, Seongsan-dong, Mapo-gu, Seoul, Korea

Other Address-Lotte Department Store, Gimhae Branch

1B-4Lot, Sinmun-ri, Jangyu-myeon, Gimhae-si, Gyeongsangnam-do, Korea

Other Address-Ulsan Branch

Rm. 115~117, 285-6, Jinjang-dong, Buk-gu, Ulsan, Korea

Other Address-Shingal Branch

261-1, Sangha-dong, Giheung-gu, Yongin-si, Gyeonggi-do, Korea

Other Address-Myeong Branch

54-20, Myeong-dong 2-ga, Jung-gu, Seoul, Korea

Type

Export/Import

Industry

Wholesale of Shirts and Outer Garments

  Main Business

Jeans

Established (mm/dd/yyyy)

02/16/1993

The Subject Company occupies the premises of registered HQ address by leasing base.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Womens dresses or skirts or saris or kimonos(53102002)

Sell

Clothing(53100000)

Sell

Slacks and trousers and shorts(53101500)

Sell

Shirts and blouses(53101600)

Sell

Dresses and skirts and saris and kimonos(53102000)

Sell

Coats and jackets(53101800)

Buy

Synthetic fabrics(11161800)

Buy

Miscellaneous sewing supplies(53141600)

Buy

Clasps(53141507)

Buy

Snaps(53141506)

Buy

Cotton fabrics(11161700)

Buy

Labels(55121600)

Buy

Hook and loop fabrics or tapes(11162114)

Buy

Zippers(53141503)

Buy

Threads(11151600)

Buy

Buttons(53141505)

 

 

CEO’s

 

Name

Andrew Martin

Address

Singapore 018986, Marina Bulevard 4, Tower 1 14-4, The Sale

Date of Birth

05/23/1961

Title

President & CEO

Sex

Male

Nationality

Singaporean

 

 

Profiles

 

Capital (KRW)

2,400,000,000

Employees

60

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Citibank, Korea-HQ

Corporate Registered No.

110111-0920804

Business Registered No.

120-81-00074

Permit & Licenses

Int’l Trade No.: 53000952

Shareholder Position

Name

Shares

%

LEVI STRAUSS INTERNATIONAL(USA)

240,000

100.00

TOTAL

240,000

100.00

Company History

02/16/1993 Incorporated as the present name

03/17/2003 Moved to the present HQ address from 113, Samseong-dong, Gangnam-gu, Seoul, Korea

03/11/1993 Registered as a Foreign Direct Investment Corporation

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Andrew Martin

Male

Australian

11/20/2012

Director

Mr.

Kang Moon-Jong

Male

Korean

11/20/2012

Director

Mr.

Surid Dave Sharma

Male

Indian

11/20/2012

Auditor

Mr.

Parti Maryong

Male

Canadian

11/20/2008

 


Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

11/2011

104,039,188,063

51,726,551,094

-371,960,282

11/2010

97,966,702,449

47,425,738,619

-455,121,500

11/2009

107,405,131,186

46,595,452,143

-3,011,798,875

11/2008

99,100,342,689

51,137,106,491

5,663,357,183

11/2007

99,233,347,882

10,495,298,739

5,007,933,191

11/2006

109,909,950,925

43,294,681,263

12,436,655,554

11/2005

106,767,151,546

28,154,624,494

10,418,839,380

11/2004

89,312,972,720

25,962,602,442

11,017,762,334

 

 

Financial Description

 

Authorized Capital(KRW)

2,400,000,000

Paid-Up Capital(KRW)

2,400,000,000

Total Issued Shares

240,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 11/30/2011

As of 11/30/2010

As of 11/30/2009

Total Assets

51,726,551,094

47,425,738,619

46,595,452,143

Current Assets

48,302,010,437

44,088,464,279

43,024,597,225

-Quick Assets

33,032,832,562

29,057,799,201

30,484,125,600

-Inventories

15,269,177,875

15,030,665,078

12,540,471,625

Fixed Assets

3,424,540,657

3,337,274,340

3,570,854,918

-Investment

1,010,370,133

1,019,949,664

1,410,605,219

-Tangibles

 

 

 

-Intangibles

2,414,170,524

2,317,324,676

2,160,249,699

Total Liabilities

19,012,705,376

14,339,932,619

13,054,524,643

Current Liabilities

18,180,045,546

13,216,016,349

11,960,050,623

Fixed Liabilities

832,659,830

1,123,916,270

1,094,474,020

Capital Stock

2,400,000,000

2,400,000,000

2,400,000,000

Capital Surplus

 

 

 

Profit Surplus

30,313,845,718

30,685,806,000

31,140,927,500

Capital Adjustment

 

 

 

Total Equity

32,713,845,718

33,085,806,000

33,540,927,500

Liab. & Shareholder’s Equity

51,726,551,094

47,425,738,619

46,595,452,143

 

Current Liabilities

18,180,045,546

13,216,016,349

11,960,050,623

Trade Payables

9,469,880,082

6,311,842,130

2,692,802,527

Advance Receipts

1,472,859,954

1,170,711,413

1,097,225,991

Account Payables

1,558,440,024

1,457,138,309

2,351,740,149

Account Payables

4,102,106,050

3,288,477,895

4,740,438,860

Accrued Income Tax

472,126,638

41,549,966

-

Provision for Refund

413,477,232

276,540,734

243,963,895

Provision for Mileage

- 

- 

38,350,823

Provision for Loss Compensation

278,150,730

222,118,562

225,606,280

Withholdings

279,643,236

314,275,740

436,560,498

Provision for Repairing

133,361,600

133,361,600

133,361,600

Fixed Liabilities

832,659,830

1,123,916,270

1,094,474,020

Provision for Severance & Retirement

726,716,830

1,064,773,270

1,047,331,020

Provision for Repairing

109,900,000

63,100,000

51,100,000

 

 

Income Statement

 

Unit : Korean Won

As of 11/30/2011

As of 11/30/2010

As of 11/30/2009

Sales

104,039,188,063

97,966,702,449

107,405,131,186

Cost of Sold Goods

42,516,200,889

39,094,837,199

47,316,736,396

Gross Profit

61,522,987,174

58,871,865,250

60,088,394,790

Selling & Admin. Expenses

62,792,062,800

60,758,327,548

62,717,288,595

Operating Income

-1,269,075,626

-1,886,462,298

-2,628,893,805

Non-Operating Income

1,488,743,176

2,399,564,427

3,461,062,998

Non-Operating Expenses

733,359,629

2,821,546,748

2,177,217,857

Income Before Taxes

-513,692,079

-2,308,444,619

-1,345,048,664

Income Taxes Expenses

-141,731,797

-1,853,323,119

1,666,750,211

Net Income

-371,960,282

-455,121,500

-3,011,798,875

 

 

Cash Flows

 

Unit : Korean Won

As of 11/30/2011

As of 11/30/2010

As of 11/30/2009

Cash Flows from Operating

5,554,085,258

-2,454,351,787

497,830,894

-Net Income

-371,960,282

-455,121,500

-3,011,798,875

-Exp. without Cash Outflow

2,614,158,592

1,953,830,902

784,666,207

-Revenue without Cash Inflows

-431,822,364

-57,415,923

-233,915,299

-Changes in Asset/ & Liability

3,743,709,312

-3,895,645,266

2,958,878,861

Cash Flows from Investing

-4,850,943,151

-9,043,199,285

10,522,035,928

-Cash Inflow from Investing

4,516,700,000

7,827,273

12,286,574,900

-Cash Outflows for Investing

-9,367,643,151

-9,051,026,558

-1,764,538,972

Cash Flows from Financing

-

-

-

-Cash Inflows from Financing

-

-

-

-Cash Outflows from Financing

-

-

-

Increase/Decrease in Cash

703,142,107

-11,497,551,072

11,019,866,822

Cash at the Beginning of Year

3,784,054,976

15,281,606,048

4,261,739,226

Cash at the End of Year

4,487,197,083

3,784,054,976

15,281,606,048

 

 

Products, Technologies, Services Description

 

Main Products & Services

Jeans Products

 

(*) The Subject imports from the related companies in overseas and domestic, and sells through domestic 106 directly owned shops and 48 agent shops.

 

 

Trade Partners & Competitors

 

Competitors

BANGBANG APPAREL CO., LTD.

BANGBANG BLDG., 943-1, DOGOK 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-576-0505  FAX:+82-2-578-2242~3

 

CALVIN KLEIN JEANSWEAR KOREA LTD.

5TH FL., DAEYONG BLDG., 90, NONHYEON 2-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-516-1811  FAX:+82-2-516-2811

 

UNITED THREE CO., LTD.

10TH FL., DAERUNG TECHNO TOWER 13-CHA, 664, GASAN-DONG, GEUMCHEON-GU, SEOUL, KOREA

TEL:+82-2-3452-8005  FAX:+82-2-3452-7115

 

 

Related Parties

 (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

LEVI STRAUSS & COMPANY

LEVI STRAUSS ASIA PACIFIC DIVISION PTE LTD.

LEVI STRAUSS USA LLC TAIWAN

LEVI STRAUSS PHILIPPINES, INC.

LEVI STRAUSS JAPAN KK

LEVI STRAUSS PAKISTAN LIMITED

LEVI STRAUSS EMEA

LEVI STRAUSS AUSTRALIA PTY. LTD.

LEVI STRAUSS HONGKONG LIMITED

LEVI STRAUSS BELGIUM

LEVI STRAUSS GSO HOLDINGS

LEVI STRAUSS MALAYSIA SDN BHD

LEVI STRAUSS DO BRASIL INDUSTRIA E COMMERCIO LIMITADA

LEVI STRAUSS EUROPE & CO.

LEVI STRAUSS INTERNATIONAL GROUP FINANCE COORDINATOR SERVICES COMM. V.A.(LSIFCS)

Corporate Ownership

LEVI STRAUSS & COMPANY(USA)

LEVI STRAUSS INTERNATIONAL(USA)

Major Shareholders

LEVI STRAUSS INTERNATIONAL(USA)

Cooperative Enterprise

-Insured Company

LIG INSURANCE CO., LTD.(110111-0017859)

ACE AMERICAN FIRE & MARINE INSURANCE CO., LTD.(110181-0007423)

 

-Technology Support Agreement from

LEVI STRAUSS & COMPANY(USA)

 

 

Sales by Region

 (Activity & Markets)

 

The Subject imports from Asian, Europe and USA.

 

 

Court Action

 

The Subject has been investigated by National Tax Services on Technology Support fee with LEVI STRAUSS & COMPANY(USA), but it is under pending procedure of notice.

 

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.85

UK Pound

1

Rs.85.25

Euro

1

Rs.71.72

 

 

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%)

 

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