MIRA INFORM REPORT

 

 

Report Date :

21.10.2013

 

IDENTIFICATION DETAILS

 

Name :

COSTCO WHOLESALE KOREA, LTD.

 

 

Registered Office :

163-3, Iljik-dong, Gwangmyeong-si, Gyeonggi-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.08.2012

 

 

Date of Incorporation :

26.05.1998

 

 

Com. Reg. No.:

107-81-63829

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Subject is engaged in Retail sale in other non-specialized large stores.

 

 

No. of Employees :

3,461

 

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 Information

 

Basic

 

Company Name

COSTCO WHOLESALE KOREA, LTD.

(Korean Company Name : “()코스트코코리아”)

Registered Address

163-3, Iljik-dong, Gwangmyeong-si, Gyeonggi-do, Korea

Zip Code

423-090

Tel

+82-2-2630-2800

Fax

+82-2-2630-2633

E-mail

djjoo@costcokr.com

Website

www.costco.co.kr

Trading Address

163-3, Iljik-dong, Gwangmyeong-si, Gyeonggi-do, Korea

(New Address System : 40, Iljik-ro, Gwangmyeong-si, Gyeonggi-do, Korea)

Tel

+82-2-2679-1234

Fax

+82-2-2630-2633

Other Address-Daejeon Branch

116-3, Oryu-dong, Jung-gu, Daejeon, Korea

Tel

+82-42-539-1234

Fax

+82-2-539-1090

Other Address-Daegu Branch

1817, Sangyeok 2-dong, Buk-gu, Daegu, Korea

Tel

+82-53-380-1234

Fax

+82-53-380-1090

Other Address-Yangje Branch

217, Yangjae 2-dong, Seocho-gu, , Seoul, Korea

Tel

+82-2-572-5959

Fax

 

Other Address-Sangbong Branch

81, Sangbong 2-dong, Jungnang-gu, , Seoul, Korea

Tel

+82-2-439-1144

Fax

+82-2-439-1188

Other Address-Ilsan Branch

1312, Baekseok-dong, Ilsandong-gu, Goyang-si, Gyeonggi-do, Korea

Tel

+82-31-904-3300

Fax

 

Type

Export/Import

Industry

Retail Sale in Other Non-Specialized Large Stores

  Main Business

Large Sized Discount Store Operation

  Sub Business

 

Established (mm/dd/yyyy)

05/26/1998

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Distribution(80141700)

Sell

Furniture(56101500)

Sell

Food Beverage and Tobacco Products(50000000)

Sell

Domestic Appliances and Supplies and Consumer Electronic Products(52000000)

 

CEO’s

 

Name

Preston Clark Draper

Address

65, Yangpyeong-dong 3-ga, Yeongdeungpo-gu, Seoul, Korea

Date of Birth

09/19/1951

Title

President & CEO

Sex

Male

Nationality

USA

 

Profiles

 

Capital (KRW)

264,115,000,000

Employees

3,461

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Citibank, Korea- Yeongdeungpo Branch

Corporate Registered No.

110111-1549728

Business Registered No.

107-81-63829

Permit & Licenses

Int’l Trade No.: 11528515

Shareholder Position

Name

Shares

%

COSTCO WHOLESALE INTERNATIONAL INC.

2,553,992

96.70

E-MART CO., LTD.(110111-4594952)

87,158

3.30

TOTAL

2,641,150

100.00

Company History

05/26/1998 Incorporated as the present name

11/20/2000 Increased the authorized shares to 5,000,000 shares from 2,400,000 shares

08/11/2001 Increased capital to 264,115,000,000 KRW from 249,115,000,000 KRW

06/18/1998 Registered as a Foreign Direct Investment Corporation

01/02/2013 Moved to the present HQ address from 65, Yangpyeongdong 3-ga, Yeongdeungpo-gu, Seoul, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Preston Clark Draper

Male

USA

10/05/2006

Director

Mr.

James P. Murphy

Male

USA

09/03/2004

Director

Mr.

W Klaig Jellinek

Male

USA

06/16/2010

Director

Mr.

Kimberly L. Showmel

Male

USA

11/28/2007

Director

Mr.

Hur In-Cheol

Male

USA

06/13/2008

Auditor

Mr.

Delani Fregnoli

Male

USA

11/24/2006

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

08/2012

2,289,957,575,315

925,899,623,374

110,153,089,518

08/2011

2,086,307,233,417

 792,965,729,428

103,406,309,252

08/2010

 1,578,845,947,220

 639,389,968,500

 68,566,493,211

08/2009

1,217,267,591,985

523,847,112,642

41,312,784,056

08/2008

1,015,686,954,447

470,665,262,360

  37,314,691,919

08/2007

767,308,481,467

405,498,195,828

27,081,253,135

08/2006

621,677,116,349

357,619,279,234

18,550,183,414

08/2005

511,378,614,467

321,926,683,676

10,161,353,218

08/2004

447,976,758,722

301,711,456,400

7,061,013,312

 

Financial Description

 

Authorized Capital(KRW)

500,000,000,000

Paid-Up Capital(KRW)

264,115,000,000

Total Issued Shares

2,641,150

 

 

Balance Sheet

 

Unit : Korean Won

As of 08/31/2012

As of 08/31/2011

As of 0831/2010

Total Assets

925,899,623,374

792,965,729,428

639,389,968,500

Current Assets

579,834,293,925

493,271,838,914

341,659,571,708

-Quick Assets

392,396,498,800

345,617,253,255

211,116,077,864

-Inventories

187,437,795,125

147,654,585,659

130,543,493,844

Fixed Assets

346,065,329,449

299,693,890,514

297,730,396,792

-Investment

2,856,751,546

-

 

-Tangibles

228,386,202,932

187,527,992,533

185,774,222,023

-Intangibles

114,822,374,971

112,165,897,981

111,956,174,769

Total Liabilities

249,618,407,063

226,837,602,635

176,668,150,959

Current Liabilities

247,132,077,155

225,356,047,415

175,234,371,685

Fixed Liabilities

2,486,329,908

1,481,555,220

1,433,779,274

Capital Stock

264,115,000,000

264,115,000,000

264,115,000,000

Capital Surplus

 

 

 

Profit Surplus

412,166,216,311

302,013,126,793

198,606,817,541

Capital Adjustment

 

 

 

Total Equity

676,281,216,311

566,128,126,793

462,721,817,541

Liab. & Shareholder’s Equity

925,899,623,374

792,965,729,428

639,389,968,500

 

Current Liabilities

247,132,077,155

 225,356,047,415

 175,234,371,685

Trade Payables

165,517,914,962

 148,881,457,150

 115,632,976,812

Account Payables

13,391,451,412

 4,606,494,575

 3,789,099,653

Accrued Expenses

24,415,060,705

 23,869,998,346

19,254,975,337

Advance Receipts

896,473,641

 914,446,895

 750,171,351

Unearned Income

17,836,453,595

 16,246,686,990

 13,254,585,733

Withholdings

694,991,273

 851,568,737

 628,521,582

Withholdings-Merchandise Coupon

2,572,610,000

 1,813,720,000

 1,105,710,000

VAT Withhold

                 -

 4,446,055,597

 3,018,112,888

Derivatives

1,124,879,095

 319,861,397

 549,728,810

Provisions for Refund

1,245,579,758

 800,465,061

 592,957,407

Accrued Income Tax

19,436,662,714

 22,605,292,667

 16,657,532,112

Fixed Liabilities

2,486,329,908

 1,481,555,220

 1,433,779,274

Guarantee Deposit Withhold

40,000,000

 40,000,000

 40,000,000

Provision for Repairing

2,446,329,908

 1,441,555,220

 1,393,779,274

 

 

Income Statement

 

Unit : Korean Won

As of 08/31/2012

As of 08/31/2011

As of 0831/2010

Sales

2,289,957,575,315

2,086,307,233,417

 1,578,845,947,220

Cost of Sold Goods

1,994,883,149,259

 1,814,493,530,095

 1,370,837,736,679

Gross Profit

295,074,426,056

271,813,703,322

 208,008,210,541

Selling & Admin. Expenses

158,565,146,676

140,994,030,830

 121,593,839,458

Operating Income

136,509,279,380

130,819,672,492

 86,414,371,083

Non-Operating Income

27,660,432,417

22,417,457,904

 15,304,292,315

Non-Operating Expenses

19,023,017,226

16,847,777,093

 11,525,068,328

Income Before Taxes

145,146,694,571

136,389,353,303

 90,193,595,070

Income Taxes Expenses

34,993,605,053

32,983,044,051

 21,627,101,859

Net Income

110,153,089,518

103,406,309,252

 68,566,493,211

 

 

Cash Flows

 

Unit : Korean Won

As of 08/31/2012

As of 08/31/2011

As of 0831/2010

Cash Flows from Operating

102,535,068,821

139,283,209,087

102,709,362,930

-Net Income

110,153,089,518

103,406,309,252

68,566,493,211

-Exp. without Cash Outflow

14,213,695,706

10,708,058,592

19,153,101,380

-Revenue without Cash Inflows

-4,460,228,727

-3,927,542,855

-2,485,946,794

-Changes in Asset/ & Liability

-17,371,487,676

29,096,384,098

17,475,715,133

Cash Flows from Investing

107,941,798,048

-130,232,373,647

-148,687,430,576

-Cash Inflow from Investing

597,042,546,968

152,034,645,000

57,555,280,362

-Cash Outflows for Investing

-489,100,748,920

-282,267,018,647

-206,242,710,938

Cash Flows from Financing

-

-

-

-Cash Inflows from Financing

-

-

-

-Cash Outflows from Financing

-

-

-

Increase/Decrease in Cash

210,476,866,869

9,050,835,440

-45,978,067,646

Cash at the Beginning of Year

53,150,662,556

44,099,827,116

90,077,894,762

Cash at the End of Year

263,627,529,425

53,150,662,556

44,099,827,116

 

Products, Technologies, Services Description

 

Main Products & Services

Large Sized Discount Store Operation

 

There are 8 branches in Korea.

 

Trade Partners & Competitors

 

Suppliers

COSTCO WHOLESALE INTERNATIONAL INC.

Customers

COSTCO WHOLESALE JAPAN

COSTCO WHOLESALE TAIWAN

Competitors

HOMEPLUS TESCO CO., LTD.

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

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

 

E-MART CO., LTD.

333-16, SEONGSU 2-GA 1-DONG, SEONGDONG-GU, SEOUL, KOREA

TEL:+82-2-380-9238  FAX:+82-2-380-9339

 

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

COSTCO WHOLESALE CORPORATION

COSTCO WHOLESALE INTERNATIONAL INC.

COSTCO WHOLESALE UK LTD.

COSTCO WHOLESALE JAPAN LTD.

COSTCO WHOLESALE TAIWAN LTD.

COSTCO WHOLESALE AUSTRALIA PTY LTD.

Corporate Ownership

COSTCO WHOLESALE CORPORATION

COSTCO WHOLESALE INTERNATIONAL INC.

Major Shareholders

COSTCO WHOLESALE INTERNATIONAL INC.

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO., LTD(110111-0095285)

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 

- License and Training Agreement with

COSTCO WHOLESALE INTERNATIONAL INC.

 

 

News Clipping

 --


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.28

UK Pound

1

Rs.99.03

Euro

1

Rs.83.80

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.