MIRA INFORM REPORT

 

 

Report Date :

06.04.2014

 

IDENTIFICATION DETAILS

 

Name :

PHILIP MORRIS KOREA INC.

 

 

Registered Office :

10, Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul, Korea, 25th Fl., One IFC Bldg., Zip Code 100-768

 

 

Country :

South korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

29.03.1989

 

 

Com. Reg. No.:

110-81-20980

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacturer of Tobacco Products

 

 

No. of Employees

647

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge 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 about half of GDP.

 

Source : CIA

 

 

 


Basic

 

Company Name

PHILIP MORRIS KOREA INC.

(Korean Company Name : “한국필립모리스()”)

Registered Address

10, Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul, Korea

Building

25th Fl., One IFC Bldg.

Zip Code

100-768

Tel

+82-2-3707-0700

Fax

+82-2- 775 -9780

E-mail

seongmin.lim@pmintl.com

Website

www.philipmorrisinternational.com

Trading Address

25th Fl., One IFC Bldg., 10, Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul, Korea

(Old Address System : 25th Fl., One IFC Bldg., 23, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea)

Tel

+82-2-3707-0700

Fax

+82-2- 775 -9780

Other Address-Yangsan Factory

467-5, Yusan-dong, Yangsan-si, Gyeongsangnam-do, Korea

Tel

+82-55-380-6700

Fax

+82-55-372-7033

Type

Import/Export

Industry

Manufacturer of Tobacco Products

  Sub Business

Wholesale of Tobacco

Main Business

Tobacco, Ash Tray & Lighter

Established (mm/dd/yyyy)

03/29/1989

 

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

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Tobacco and substitutes(50211500)

 

CEO’s

 

Name

Jung Il-Woo

Address

Suite 401, 74, Sapyeong-daero 6-gil, Seocho-gu, Seoul, Korea

Date of Birth

12/20/1962

Title

President & CEO

Sex

Male

Nationality

Russian

 

Profiles

 

Capital (KRW)

30,204,000,000

Employees

647

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Citibank, Korea-Seoul Branch

SC First Bank of Korea

Corporate Registered No.

110111-0620470

Business Registered No.

110-81-20980

Permit & Licenses

Int’l Trade No.: 897275

Shareholder Position

Name

Shares

%

PHILIP MORRIS BRANDS SARL(SWISS)

3,020,400

100.00

TOTAL

3,020,400

100.00

Company History

03/29/1989 Incorporated as the present name(“필립모리스코리아()”)

05/11/2001Moved to the present HQ address from 84, Taepyeongno 1-ga, Jung-gu, Seoul, Korea

10/08/2001 Increased the authorized shares to 5,000,000 shares from 20,400 shares

05/09/2002 Increased capital to 30,204,000,000 KRW from 204,000,000 KRW

07/31/2002 Changed Korean company name to the present name(“한국필립모리스()”)

01/19/1990 Registered as a Foreign Direct Investment Corporation

2007 Busan Custom Office has investigated the subject for the fiscal years(2003~2007)’ custom affairs.

07/18/2012 Moved to the present HQ address from 24th Fl., Seoul Finance Bldg., 84, Taepyeongno 1-ga, Jung-gu, Seoul, Korea

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Jung Il-Woo

Male

Korean

06/20/2011

Director

Mr.

Kuali Andrea Frentz

Male

German

09/03/2012

Director

Mr.

Sauman Anzela Luke

Male

UK

05/14/2013

Auditor

Mr.

Kim Byung-Cheol

Male

Korean

03/27/2008

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

644,907,541,406

624,968,765,646

157,086,834,826

2012

579,040,821,261

485,910,822,608

118,818,368,077

2011

489,534,343,791

387,017,621,588

94,001,280,103

2010

489,534,343,791

387,017,621,588

94,001,280,103

2009

433,463,242,921

303,758,646,334

74,779,920,270

2008

356,578,630,856

258,690,547,183

61,094,097,616

2007

278,589,438,964

166,839,315,910

31,724,233,991

2006

223,466,545,238

172,212,071,315

10,635,110,740

2005

232,622,581,973

158,867,765,098

15,251,128,969

2004

245,702,476,003

226,319,259,676

15,104,588,829

2003

196,936,822,182

147,474,576,090

1,758,351,733

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

30,204,000,000

Total Issues Shares

3,020,400

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

624,968,765,646

485,910,822,608

387,017,621,588

Current Assets

338,229,604,455

284,204,886,337

288,428,945,507

-Quick Assets

242,047,199,995

233,680,072,374

248,096,593,328

-Inventories

96,182,404,460

50,524,813,963

40,332,352,179

Fixed Assets

286,739,161,191

201,705,936,271

98,588,676,081

-Investment

136,696,168

229,743,391

232,293,558

-Tangibles

248,982,861,280

166,776,165,660

89,197,171,477

-Intangibles

37,619,603,743

34,700,027,220

9,159,211,046

Total Liabilities

422,575,930,820

321,786,454,531

247,524,874,787

Current Liabilities

400,640,348,026

304,107,075,120

233,310,944,478

Fixed Liabilities

21,935,582,794

17,679,379,411

14,213,930,309

Capital Stock

30,204,000,000

30,204,000,000

30,204,000,000

Capital Surplus

 

 

 

Profit Surplus

172,188,834,826

133,920,368,077

109,288,746,801

Capital Adjustment

 

 

 

Total Equity

202,392,834,826

164,124,368,077

139,492,746,801

Liab. & Shareholder’s Equity

624,968,765,646

485,910,822,608

387,017,621,588

 

Current Liabilities

400,640,348,026

304,107,075,120

233,310,944,478

Trade Payables

47,398,856,961

23,910,499,465

18,501,201,071

Short-Term Borrowings

94,098,768,826

-

 

Account Payables

36,828,050,355

26,754,883,003

20,066,706,788

Withholdings

1,695,197,469

1,457,448,975

777,046,575

VAT Withhold

25,155,367,681

34,286,353,113

30,421,688,567

Accrued Expenses

19,214,644,221

10,573,824,812

5,637,352,756

Accrued Tabaco Taxes

66,947,473,917

102,041,431,000

57,690,121,790

Accrued Education Taxes

33,473,736,958

51,020,715,500

28,845,060,895

Accrued Wastes Imposition

7,354,028,366

6,395,165,801

5,966,873,425

Accrued Nation Health Promotion Fund

36,972,551,898

26,587,878,000

31,860,067,260

Accrued Income Tax

31,397,184,377

21,078,875,451

33,544,825,351

Derivatives

104,486,997

-

 

Fixed Liabilities

21,935,582,794

17,679,379,411

14,213,930,309

Provision for Severance & Retirement

21,174,615,041

16,875,043,121

13,750,348,991

Long-Term Accrued Expenses

1,192,055,564

1,216,470,931

868,188,321

 

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

644,907,541,406

579,040,821,261

489,534,343,791

Cost of Sold Goods

244,356,721,107

221,863,945,575

180,904,144,694

Gross Profit

400,550,820,299

357,176,875,686

308,630,199,097

Selling & Admin. Expenses

203,014,046,670

203,651,451,159

175,368,235,370

Operating Income

197,536,773,629

153,525,424,527

133,261,963,727

Non-Operating Income

13,303,287,244

12,955,971,566

9,713,469,048

Non-Operating Expenses

6,233,549,448

9,749,651,571

4,035,095,615

Income Before Taxes

204,606,511,425

156,731,744,522

138,940,337,160

Income Taxes Expenses

47,519,676,599

37,913,376,445

44,939,057,057

Net Income

157,086,834,826

118,818,368,077

94,001,280,103

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

23,515,402,746

216,063,342,305

74,005,755,780

-Net Income

157,086,834,826

118,818,368,077

94,001,280,103

-Exp. without Cash Outflow

19,251,675,852

12,908,630,287

9,478,093,686

-Revenue without Cash Inflows

-3,372,106

-73,945,069

-63,255,198

-Changes in Asset/ & Liability

-152,819,735,826

84,410,289,010

-29,410,362,811

Cash Flows from Investing

-95,252,508,112

-81,809,274,308

-63,835,471,413

-Cash Inflow from Investing

3,741,627,663

4,500,361,269

1,598,669,208

-Cash Outflows for Investing

-98,994,135,775

-86,309,635,577

-65,434,140,621

Cash Flows from Financing

-24,719,599,251

-94,186,746,801

-72,884,035,568

-Cash Inflows from Financing

94,098,768,826

                   -

                   -

-Cash Outflows from Financing

-118,818,368,077

-94,186,746,801

-72,884,035,568

Increase/Decrease in Cash

-96,456,704,617

40,067,321,196

-62,713,751,201

Cash at the Beginning of Year

96,681,289,755

56,613,968,559

119,327,719,760

Cash at the End of Year

224,585,138

96,681,289,755

56,613,968,559

 

 

Products, Technologies, Services Description

 

Main Products & Services

Tobacco, Ash Tray & Lighter

 

 

Trade Partners & Competitors

 

Suppliers

PHILIP MORRIS PRODUCTS S. A.

PHILIP MORRIS LIMITED

PHILIP MORRIS PHILIPPINES MANUFACTURING INC.

Customers

SAMYANG INT'L CO., LTD.(110111-0424848)

OKSAN DISTRIBUTION CO., LTD.(110111-1426108)

YOUNG DISTRIBUTION CO., LTD.(110111-0213530)

HANMI COMMERCIAL CO., LTD.(180111-0078203 )

Competitors

BRITISH AMERICAN TOBACCO KOREA MANUFACTURING LTD.

4-1B, JINSA LOCAL INDUSTRIAL COMPLEX, 889, YUCHEON-RI, SANAM-MYEON, SACHEON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-851-7500  FAX:+82-55-851-7699

 

WOORI TOBACCO CORPORATION

11-1, SEULHANG-RI, GODAE-MYEON, DANGJIN-GUN, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-355-6565  FAX:+82-41-355-7447

 

OCSAN DISTRIBUTION CO., LTD.

B1, BOHEON BLDG., 84-2, JAE-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-901-2701~2  FAX:+82-2-744-8113

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Corporate Ownership

PHILIP MORRIS INTERNATIONAL INC.(USA)

PHILIP MORRIS BRANDS SARL(SWISS)

Major Shareholders

PHILIP MORRIS BRANDS SARL(SWISS)

Cooperative Enterprise

-Brand Agreement

PHILIP MORRIS PRODUCTS S.A.

PHILIP MORRIS GLOBAL BRANDS INC

CTPM INTERNATIONAL S.A.

 

-Supply Agreement

PHILIP MORRIS PRODUCTS S. A.

PHILIP MORRIS LIMITED

PHILIP MORRIS PHILIPPINES MANUFACTURING INC.

 

-Contract Manufacturing Agreement

PHILIP MORRIS PRODUCTS S.A.

 

-Service Agreement

PHILIP MORRIS INTERNATIONAL MANAGEMENT SA

 

-Display Place Leasing

KOREA SEVEN CO., LTD.(110111-0899976)

 

-Transportation Service

KCTC.(110111-0149446)

 

-Insured Company

HYUNDAI MARINE & FIREINSURANCE CO., LTD.(110111-0035893)

 

 

Sales by Region

(Activity & Markets)

 

The Subject imports from USA.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

Tax Tribunal

The Subject Company

National Tax Service

Applied for Reviewing

-

Proceeding

 

Busan District Court

The Subject Company

National Custom Service

Cancellation on Imposed penalties

-

Proceeding

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.32

UK Pound

1

Rs.100.04

Euro

1

Rs.82.65

                

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.