MIRA INFORM REPORT

 

 

Report Date :

16.07.2013

 

IDENTIFICATION DETAILS

 

Name :

E-MART CO., LTD.

 

 

Registered Office :

333-16, Seongsu 2-ga 1-dong, Seongdong-gu, Seoul, Korea, Zip Code 133-827

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

01.05.2011

 

 

Com. Reg. No.:

206-86-50913

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Retail Sale in other non-specialized large stores

 

 

No. of Employees :

16186

 

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 :

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 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

E-MART CO., LTD.

(Korean Company Name : “()이마트”)

Registered Address

333-16, Seongsu 2-ga 1-dong, Seongdong-gu, Seoul, Korea

Zip Code

133-827

Tel

+82-2-380-9243

Fax

+82-2-380-9339

E-mail

pluto@shinsegae.com

Website

www.emart.com

Trading Address

333-16, Seongsu 2-ga 1-dong, Seongdong-gu, Seoul, Korea

Tel

+82-2-380-9238

Fax

+82-2-380-9339

Type

Export/Import

Industry

Retail Sale in Other Non-Specialized Large Stores

  Main Business

Retail Sales Large Stores

Established (mm/dd/yyyy)

05/01/2011

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Distribution(80141700)

Sell

World wide web WWW site operation host services(81112105)

 

 

CEO’s

 

Name

Hur In-Cheol

Date of Birth

03/26/1960

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

139,379,095,000

Employees

16,186

Formation

Listed Company (Korea stock Exchange : 139480) as of 06/10/2011

A Company of SHINSEGAE GROUP

Bank Details

Woori Bank

Corporate Registered No.

110111-4594952

Business Registered No.

206-86-50913

Permit & Licenses

Int’l Trade No.: 30693692

Shareholder Position

Name

Shares

%

LEE MYUNG-HEE

4,821,595

17.30

JUNG YONG-JIN

2,039,196

7.32

ABERDEEN ASSET MANAGEMENT ASIA LIMITED

5,242,056

18.81

FIRST STATE INVESTMENT MANAGEMENT (UK) LIMITED

734,119

2.63

OPPENHEIMERFUNDS, INC.(OFI)

1,580,195

5.67

OTHERS

13,458,658

48.28

TOTAL

27,875,819

100.00

Company History

05/01/2011 Incorporated after spin off from SHINSEGAE CO., LTD.(110111-0028848)

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Hur In-Cheol

Korean

1960.03.26

Yonsei University, Korea

Director

Mr.

Kim Hae-Sung

Korean

1958.12

Sungkyunkan University, Korea

Director

Mr.

Park Ju-Hyung

Korean

1959.12

Dongkuk University, Korea

Outside Director

Mr.

Jeon Hyung-Soo

Korean

1953.04.27

Yonsei University, Korea

Outside Director

Mr.

Moon Chang-Jin

Korean

1953.03.02

Seoul National University, korea

Outside Director

Mr.

Park Young-Ryeol

Korean

1956.11.06

Seoul National University, korea

Outside Director

Mr.

Park Jong-Ku

Korean

1952.05.10

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

03/2013

2,690,020,424,142

11,607,323,507,382

130,458,419,356

2012

10,939,021,197,282

11,343,053,804,455

306,668,576,217

2011

7,220,977,362,236

10,621,015,792,034

247,595,480,264

 

 

Financial Description

 

Authorized Capital(KRW)

400,000,000,000

Paid-Up Capital(KRW)

139,379,095,000

Total Issued Shares

27,875,819

 


Balance Sheet

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

11,607,323,507,382

11,343,053,804,455

10,621,015,792,034

Current Assets

966,149,902,901

876,406,936,315

798,273,669,693

Cash & Cash Equivalents

20,080,987,631

15,441,276,856

23,402,140,451

Trade Receivables & Other Receivables

252,812,954,801

246,425,034,508

214,992,591,007

Inventories

577,747,574,305

530,007,804,598

479,217,927,560

Current Financial Instruments

58,000,000,000

58,000,000,000

39,800,000,000

Other Current Assets

57,508,386,164

26,532,820,353

40,861,010,675

Non-Current Assets

10,641,173,604,481

10,466,646,868,140

9,822,742,122,341

Tangibles

7,521,127,173,677

7,508,479,477,921

7,066,968,733,300

Investment_Real Estates

175,170,202,385

176,260,272,234

188,719,777,230

Intangibles

32,565,882,406

34,207,973,448

31,029,629,407

Investment_Related Companies

752,592,953,286

739,871,837,300

711,196,747,235

Marketable Financial Instruments

1,566,218,704,019

1,415,639,500,619

1,214,910,175,886

Long-Term Derivatives

3,968,514,577

 

24,518,101,774

Long-Term Current Financial Instruments

333,783,486,775

333,590,485,428

331,097,810,055

Other Non-Current Assets

255,746,687,356

258,597,321,190

254,301,147,454

Total Liabilities

5,469,442,767,729

5,407,563,415,327

5,115,005,687,516

Current Liabilities

3,197,819,051,242

2,901,631,733,795

2,698,775,855,039

Trade Payables & Other Payables

1,220,710,602,548

958,099,119,911

982,827,924,346

Short-Term Borrowings

1,254,065,142,218

1,240,884,848,090

1,112,682,876,858

Short-Term Derivatives

10,618,115,339

35,400,607,693

9,482,119,467

Merchandise Coupon

358,315,143,000

319,985,405,000

280,776,324,000

Accrued Income Tax

115,562,771,010

79,730,481,640

104,815,923,266

Other Current Financial Debts

172,898,166,865

207,914,059,936

193,435,059,071

Other Current Liabilities

65,649,110,262

59,617,211,525

14,755,628,031

Non-Current Liabilities

2,271,623,716,487

2,505,931,681,532

2,416,229,832,477

Long-Term Borrowings

1,515,250,327,353

1,768,697,067,769

1,753,128,055,009

Long-Term Derivatives

 

30,120,713,674

7,298,976,572

Provision for Severance & Retirement

82,845,548,142

70,382,976,618

67,751,902,484

Deferred Income Tax Credit

492,342,940,799

453,952,823,705

402,380,524,919

Long-Term Finance Debts

134,306,313,229

134,400,576,709

131,780,508,199

Other Non-Current Liabilities

46,878,586,964

48,377,523,057

53,889,865,294

Capital Stock

139,379,095,000

139,379,095,000

139,379,095,000

Capital Surplus

4,193,533,807,329

4,193,533,807,329

4,193,533,807,329

Profit Surplus

590,115,443,057

501,459,902,929

238,275,808,021

Others

1,214,852,394,267

1,101,117,583,870

934,821,394,168

Total Equity

6,137,880,739,653

5,935,490,389,128

5,506,010,104,518

Liab. & Shareholder’s Equity

11,607,323,507,382

11,343,053,804,455

10,621,015,792,034

 

 

Income Statement

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

2,690,020,424,142

10,939,021,197,282

7,220,977,362,236

Cost of Sold Goods

1,903,754,670,335

7,782,434,274,923

5,153,351,289,253

Gross Profit

786,265,753,807

3,156,586,922,359

2,067,626,072,983

Selling & Admin. Expenses

597,232,352,560

2,381,524,589,884

1,474,492,880,631

Operating Income

189,033,401,247

775,062,332,475

593,133,192,352

Other Operating Income

3,521,790,217

14,930,833,009

11,663,995,138

Other Operating Expenses

2,764,398,477

23,040,656,888

9,455,601,035

Finance Income

54,851,003,355

162,870,181,803

149,955,024,940

Finance Expenses

76,269,911,589

245,338,581,926

199,875,404,784

Other Profits

 

219,296,769,312

182,568,314,551

Income Before Taxes

168,371,884,753

465,187,339,161

362,852,892,060

Income Taxes Expenses

37,913,465,397

158,518,762,944

115,257,411,796

Net Income

130,458,419,356

306,668,576,217

247,595,480,264

 

 

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

406,870,821,873

727,972,387,518

630,346,006,526

Cash Flows from Operating

430,033,660,425

983,957,799,105

684,455,089,365

Interests Paid

-23,762,865,660

-111,114,834,210

-84,211,073,019

Interests Received

101,090,058

1,679,223,990

609,992,554

Dividends Received

499,000,000

31,363,297,750

29,525,334,000

Income Taxes

-62,950

-177,913,099,117

-33,336,374

Cash Flows from Investing

-104,906,601,868

-932,691,783,176

-622,453,617,524

Cash Flows from Financing

-297,324,509,230

196,758,532,063

-3,132,654,723

Increase/Decrease in Cash

4,639,710,775

-7,960,863,595

4,759,734,279

Cash at the Beginning of Year

15,441,276,856

23,402,140,451

18,642,406,172

Cash at the End of Year

20,080,987,631

15,441,276,856

23,402,140,451

 

 

Products, Technologies, Services Description

 

Main Products & Services

Distribution Services, Retail Store Services

 

(*)The Subject operates 136 domestic marts.

 

Trade Partners & Competitors

 

Competitors

HOMEPLUS TESCO CO., LTD.

592, TANBANG-DONG, SEO-GU, DAEJEON, KOREA

TEL:+82-42-488-8351~6  FAX:+82-42-488-8360

 

COSTCO WHOLESALE KOREA, INC.

COSTCO KOREA BLDG., 65, YANGPYEONGDONG 3-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2679-1234  FAX:+82-2-2630-2633

 

E-LAND WORLD CO., LTD.

E-LAND BLDG., 19-8, CHANGJEON-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-323-0456  FAX:+82-2-332-6445

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SHINSEGAE CO., LTD.(110111-0028848)

52-5, CHUNGMURO 1-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-727-1234  FAX:+82-2-727-1180

 

THE CHOSUN HOTEL CO., LTD.

(98.0% held by the subject company)

87 SOGONG-DONG, JUNG-GU, SEOUL, KOREA

HOMEPAGE:WWW.ECHOSUNHOTEL.COM

TEL:+82-2-772-0500 FAX:+82-2-753-6370

 

SHINSEGAE ENGINEERING & CONSTRUCTION CO., LTD.

(32.4%

 

56-85 JANGCHUNG-DONG1-GA,JUNG-GU,SEOUL, KOREA

HOMEPAGE:WWW.SHINSEGAE-CON.CO.KR

TEL:+82-2-3406-6620 FAX:+82-2-3406-6666

 

SHINSEGAE INTERNATIONAL CO., LTD.

79-17, CHEONG-DAM DONG, KANG-NAM GU, SEOUL, KOREA

HOMEPAGE:WWW.SIKOREA.CO.KR

TEL:+82-2-3440-1234 FAX:+82-2-3440-1011

 

SHINSEGAE FOOD CO., LTD.

(52.1% held by the subject company)

SHINSEGAE DIGITAL CENTER 6F 197-12 GURO-DONG, GURO-GU, SEOUL, KOREA

HOMEPAGE:WWW.SFS.CO.KR

TEL:+82-2-3397-6000 FAX:+82-2-3397-6199

 

SHINSEGAE I&C CO., LTD.

(29.0% held by the subject company)

SHINSEGAE DIGITAL CENTER 197-12 GURO-DONG, GURO-GU, SEOUL, KOREA

HOMEPAGE:WWW.SINC.CO.KR

TEL:+82-2-3397-1234 FAX:+82-2-3397-1111

 

STARBUCKS COFFEE KOREA CO., LTD.

(50.0% held by the subject company)

87-10 SOGONG-DONG, JUNG-GU, SEOUL, KOREA

HOMEPAGE:WWW.ISTARBUCKS.CO.KR

TEL:+ 82-2-3015-1700 FAX:+ 82-2-3015-1106

 

SHINSEGAE L&B CO., LTD.(110111-4015338)

(100.0% held by the subject company)

Subsidiary

SHANGHAI E-MART CO., LTD.(CHINA)

(98.9% held by the subject company)

 

TIANJIN E-MART CO., LTD.(CHINA)

(83.0% held by the subject company)

 

SHANGHAI SHINSEGAE DEPARTMENT STORE CO., LTD.(CHINA)

(100.0% held by the subject company)

 

MUSUCK E-MART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

BEIJING E-MART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

KONSAN E-MART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

YOUNGPA EMART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

HANGZHOU E-MART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

SANGJU SHINSEGAE E-MART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

TAEJU SHINSEGAE COMMERCIAL CO., LTD.(CHINA)

(100.0% held by the subject company)

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2012

2011

2010

Export

35

468

 

Domestic

2,849,870

7,200,325

 

Total

2,849,905

7,200,793

 

 

The Subject deals with the companies in China.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

Supreme Court of Korea

TAEKWANG INDUSTRIAL CO., LTD.(110111-0185276)

The Subject Company

 

 123

3rd round is proceeding

 

Supreme Court of Korea

The Subject Company

Mayor of Sunchon City

 

 20

3rd round is proceeding

 

Sungnam District Court

Jang Soon-Duck

The Subject Company

Claim for Compensation form Damages

    257

1st round is proceeding

 

 

Lee Seok-Hyun

The Subject Company & Others(1)

Claim for Compensation form Damages

1,145

2nd round is proceeding

 

Seoul District Court

Chae Soo-Im & Others(1)

The Subject Company

Claim for Compensation form Damages

36

 

 

Seoul High Court

Dongwon D&C Co., Ltd.

The Subject Company

Receivables

14,600

2nd round is proceeding

 

Seoul Administrative Court

The Subject Company

Sung Doo-Hyung & Others(1)

Claim for Compensation form Damages

 20

2nd round is proceeding

 

Seoul High Court

The Subject Company

Songpa-Gu Office

Cancellation on Imposed taxes

3,325

2nd round is proceeding

 

Seoul District Court

Kim Min-Soo

The Subject Company

Compensation

 59

1st round is proceeding

 

News Clipping

 

---

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.05

UK Pound

1

Rs.90.71

Euro

1

Rs.78.47

 

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.