MIRA INFORM REPORT

 

 

Report Date :

11.10.2013

 

IDENTIFICATION DETAILS

 

Name :

DONG KYUNG PHARM CO., LTD.

 

 

Registered Office :

813-1, Jegi-dong, Dongdaemun-gu, Seoul, Korea, Daeheung Bldg., Zip Code 130-864

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

13.08.1992

 

 

Com. Reg. No.:

204-81-23491

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Wholesaler of Other Agricultural Raw Materials and Live Animals

 

 

No. of Employees :

89

 

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

 

 

 

 


Basic

 

Company Name

DONG KYUNG PHARM CO., LTD.

(Korean Company Name : “동경종합상사()”)

Registered Address

813-1, Jegi-dong, Dongdaemun-gu, Seoul, Korea

Building

Daeheung Bldg.

Zip Code

130-864

Tel

+82-2-963-1441

Fax

+82-2-959-3131

Trading Address

Daeheung Bldg., 813-1, Jegi-dong, Dongdaemun-gu, Seoul, Korea

Tel

+82-2-963-1441

Fax

+82-2-959-3131

Other Address-Factory

331-13, Maehwaguin-ro, Boeun-eup, Boeun-gun, Chungcheongbuk-do, Korea

Tel

+82-43-543-1176

Type

Import

Industry

Wholesale of Other Agricultural Raw Materials and Live Animals

  Main Business

Oriental Herb

Established (mm/dd/yyyy)

08/13/1992

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Herbal drugs(51212000)

 

CEO’s

 

Name

Kim Dong-Rak

Address

Suite 101-1901, 46-73, Hawolgok-dong, Seongbuk-gu, Seoul, Korea

Date of Birth

09/20/1958

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,990,000,000

Employees

89

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea

Shinhan Bank-Jegi Dong Branch

Woori Bank

Corporate Registered No.

110111-0884696

Business Registered No.

204-81-23491

Permit & Licenses

Int’l Trade No.: 11030869

Shareholder Position

Name

Shares

%

KIM DONG-RAK

245,049

61.57

OTHERS(2)

152,951

38.43

TOTAL

398,000

100.00

Company History

08/13/1992 Incorporated as the present name

03/02/2006 Increased the authorized shares to 1,000,000 shares from 40,000 shares

06/15/2012 Increased capital to 1,990,000,000 KRW from 940,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Chairman & CEO

Mr.

Kim Dong-Rak

Male

Korean

02/23/2009

President & CEO

Mr.

Lee Joon-Hyup

Male

Korean

03/09/2002

Director

Mr.

Kim Joon-Dong

Male

Korean

02/07/1996

Auditor

M/S.

Lee Mi-Hyang

Female

Korean

02/16/2012

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

27,962,754,208

19,195,895,473

1,363,062,208

2011

23,197,323,409

15,458,117,126

277,276,812

2010

24,302,764,348

14,617,627,400

397,805,187

 

 

Financial Description

 

Authorized Capital(KRW)

5,000,000,000

Paid-Up Capital(KRW)

1,990,000,000

Total Issued Shares

398,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

19,195,895,473

15,458,117,126

14,617,627,400

Current Assets

15,135,374,233

12,040,323,074

10,946,155,819

-Quick Assets

5,714,445,923

4,591,192,849

4,929,934,701

-Inventories

9,420,928,310

7,449,130,225

6,016,221,118

Fixed Assets

4,060,521,240

3,417,794,052

3,671,471,581

-Investment

60,000,000

-

 

-Tangibles

3,980,071,240

3,397,344,052

3,651,021,581

-Intangibles

20,450,000

20,450,000

20,450,000

Total Liabilities

13,078,837,415

12,445,822,676

11,882,609,762

Current Liabilities

7,989,480,804

9,476,127,216

8,678,415,848

Fixed Liabilities

5,089,356,611

2,969,695,460

3,204,193,914

Capital Stock

1,990,000,000

540,000,000

540,000,000

Capital Surplus

 

 

 

Profit Surplus

4,135,356,658

2,472,294,450

2,195,017,638

Capital Adjustment

-8,298,600

-

 

Total Equity

6,117,058,058

3,012,294,450

2,735,017,638

Liab. & Shareholder’s Equity

19,195,895,473

15,458,117,126

14,617,627,400

 

Current Liabilities

7,989,480,804

9,476,127,216

8,678,415,848

Short-Term Borrowings

5,199,508,093

7,881,661,007

5,919,131,188

Trade Payables

932,469,441

1,033,513,992

2,299,013,615

Accrued Income Tax

521,215,049

-

172,490,021

VAT Withhold

-

82,864,870

7,292,180

Account Payables

388,526,277

382,516,176

188,982,709

Advance Receipts

85,634,205

59,311,871

66,838,067

Withholdings

42,140,777

36,259,300

24,668,068

Accrued Expenses

25,546,962

-

 

Current Portion of Long-Term Debts

794,440,000

-

 

Fixed Liabilities

5,089,356,611

2,969,695,460

3,204,193,914

Long-Term Borrowings

4,097,740,000

1,895,400,000

2,221,720,000

Provision for Severance & Retirement

1,087,807,280

822,994,810

729,634,930

Other Non-Current Liabilities

-

300,000,000

300,000,000

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

27,962,754,208

23,197,323,409

24,302,764,348

Cost of Sold Goods

21,491,655,516

18,796,832,300

19,017,691,477

Gross Profit

6,471,098,692

4,400,491,109

5,285,072,871

Selling & Admin. Expenses

3,909,142,116

3,577,364,942

4,427,879,689

Operating Income

2,561,956,576

823,126,167

857,193,182

Non-Operating Income

176,931,761

380,771,638

389,163,845

Non-Operating Expenses

1,034,395,862

882,881,634

785,793,921

Income Before Taxes

1,704,492,475

321,016,171

460,563,106

Income Taxes Expenses

341,430,267

43,739,359

62,757,919

Net Income

1,363,062,208

277,276,812

397,805,187

 


 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

-901,705,908

-1,252,510,128

-1,715,396,919

-Net Income

1,363,062,208

277,276,812

397,805,187

-Exp. without Cash Outflow

629,764,598

656,320,161

1,130,262,344

-Sale without Cash Inflows

-3,432,603

-65,289,210

-3,290,414

-Changes in Asset/ & Liability

-2,891,100,111

-2,120,817,891

-3,240,174,036

Cash Flows from Investing

-844,162,079

-427,557,904

-643,854,901

-Cash Inflow from Investing

429,329,790

265,958,175

145,438,593

-Cash Outflows for Investing

-1,273,491,869

-693,516,079

-789,293,494

Cash Flows from Financing

1,696,328,486

1,636,209,819

2,555,892,559

-Cash Inflows from Financing

6,943,635,856

15,083,267,460

2,705,892,559

-Cash Outflows from Financing

-5,247,307,370

-13,447,057,641

-150,000,000

Increase/Decrease in Cash

-49,539,501

-43,858,213

196,640,739

Cash at the Beginning of Year

394,266,384

438,124,597

241,483,858

Cash at the End of Year

344,726,883

394,266,384

438,124,597

 

 

Products, Technologies, Services Description

 

Main Products & Services

Oriental Herb

 

 

Trade Partners & Competitors

 

Competitors

BN HERB CO., LTD.

2241-2, SONGJEONG 1-RI, JINBU-MYEON, PYEONGCHANG-GUN, GANGWON-DO, KOREA

TEL:+82-33-333-2018  FAX:+82-33-334-2018

 

GBM CO., LTD.

417-11, PAJANG-DONG, JANGAN-GU, SUWON-SI, GYEONGGI-DO, KOREA

TEL:+82-31-246-1327  FAX:+82-505-245-1327

 

OMNI HERB CO., LTD.

RM. 101, ORIENTAL MEDICINE INDUSTRY SUPPORT CENTER, 162-4, SANG-DONG, SUSEONG-GU, DAEGU, KOREA

TEL:+82-53-781-4888  FAX:+82-53-781-5114

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Cooperative Enterprise

-Insured Company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

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

 

 

Sales by Region

(Activity & Markets)

 

The Subject imports from North Korea and China.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.99.02

Euro

1

Rs.83.87

 

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.