MIRA INFORM REPORT

 

 

Report Date :

22.04.2014              

 

IDENTIFICATION DETAILS

 

Name :

FORESCO CO., LTD.

 

 

Registered Office :

6, Hakdong-ro 8-gil, Gangnam-gu, Seoul, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

02.02.2007

 

 

Com. Reg. No.:

107-86-87340

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Densified and Reconstituted Wood

 

 

No. of Employees

107

 

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 :

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 Information

 

Basic

 

Company Name

FORESCO CO., LTD.

(Korean Company Name : “()포레스코”)

Registered Address

6, Hakdong-ro 8-gil, Gangnam-gu, Seoul, Korea

Building

 

Zip Code

135-822

Tel

+82-2-783-7545

Fax

+82-32-584-4900

E-mail

mdf@foresco.co.kr

Website

www.foresco.co.kr

Trading Address

6, Hakdong-ro 8-gil, Gangnam-gu, Seoul, Korea

(Old Address System : 123-3, Nonhyeon 1-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-783-7545

Fax

+82-32-584-4900

Other Address-Incheon Branch

212, Bongsu-daero, Seo-gu, Incheon, Korea

(Old Address System : 173-43, Gajwa 1-dong, Seo-gu, Incheon, Korea)

Tel

+82-32-584-9800

Fax

+82-32-584-4900

Other Address-Branch

71-8, Pyeongchang 30-gil, Jongno-gu, Seoul, Korea

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Densified and Reconstituted Wood

  Main Business

Medium Density Fiberboard

  Sub Business

 

Established (mm/dd/yyyy)

02/02/2007

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Plywood(11121609)

 

CEO’s

 

Name

Seung Hyon-Jun

Address

Suite 5, 71-8, Pyeongchang 30-gil, Jongno-gu, Seoul, Korea

Date of Birth

08/08/1972

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

2,000,000,000

Employees

107

Formation

Co., Ltd by Shares

Venture Business

Bank Details

Korea Exchange Bank

Woori Bank

Corporate Registered No.

110111-3614082

Business Registered No.

107-86-87340

Permit & Licenses

Int’l Trade No.: 45305786

Shareholder Position

Name

Shares

%

SEUNG HYON-JUN

4,000,000

100.00

TOTAL

4,000,000

100.00

Company History

02/02/2007 Incorporated as the present name after split off from SOLAR & TECH CO., LTD.(110111-0191900)

03/30/2009 Designated as a Venture Business

03/27/2012 Designated as a Venture Business again

09/01/2013 Moved to the present HQ address from 6th Fl., Wonchang Bldg., 26-3, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Seung Hyon-Jun

Male

Korean

03/29/2013

Director

Mr.

Jung Yeon-Won

Male

Korean

02/14/2013

Director

Mr.

Choi Sang-Kil

Male

Korean

03/27/2009

Director

Mr.

Hwang Sung-Sik

Male

Korean

03/26/2010

Auditor

Mr.

Kim Se-Sik

Male

Korean

03/18/2011

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

    66,753,696,821

124,446,912,735

-2,629,951,996

2012

73,273,377,518

105,396,812,493

965,878,489

2011

    70,312,148,864

114,141,445,275

36,988,569

2010

  71,929,515,203

114,006,088,201

208,765,390

2009

 61,998,219,684

98,471,198,367

1,005,167,420

 

Financial Description

 

Authorized Capital(KRW)

7,500,000,000

Paid-Up Capital(KRW)

2,000,000,000

Total Issued Shares

4,000,000

 


 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

124,446,912,735

105,396,812,493

114,141,445,275

Current Assets

28,601,658,456

23,925,387,227

31,535,591,272

-Quick Assets

15,949,411,664

15,425,599,609

20,195,935,776

-Inventories

12,652,246,792

8,499,787,618

11,339,655,496

Fixed Assets

95,845,254,279

81,471,425,266

82,605,854,003

-Investment

157,776,022

357,376,022

1,020,256,022

-Tangibles

93,842,934,934

79,787,828,972

80,020,671,619

-Intangibles

258,470,646

93,000,852

124,854,052

-Others

1,586,072,677

1,233,219,420

1,440,072,310

Total Liabilities

78,069,719,901

67,974,676,211

77,578,830,538

Current Liabilities

65,439,261,143

57,460,327,787

67,528,892,688

Fixed Liabilities

12,630,458,758

10,514,348,424

10,049,937,850

Capital Stock

2,000,000,000

2,000,000,000

2,000,000,000

Capital Surplus

8,044,289,621

8,044,289,621

8,044,289,621

Profit Surplus

203,229,065

2,833,181,061

1,973,659,516

Capital Adjustment

36,129,674,148

24,544,665,600

24,544,665,600

Total Equity

46,377,192,834

37,422,136,282

36,562,614,737

Liab. & Shareholder’s Equity

124,446,912,735

105,396,812,493

114,141,445,275

 

Current Liabilities

65,439,261,143

57,460,327,787

67,528,892,688

Trade Payables

3,633,001,658

2,291,397,001

2,934,215,028

Short-Term Borrowings to Shareholders/ Executives/ Employees

     1,397,500,000

        380,000,000

-

Short-Term Borrowings

52,427,922,116

47,270,699,288

56,184,550,822

Current Portion of Long-Term Debts

1,013,500,000

895,300,000

906,600,000

Account Payables

5,305,633,146

4,946,011,947

5,446,132,417

Advance Receipts

74,291,557

30,542,720

81,568,274

Withholdings

67,535,450

53,055,590

41,816,221

Accrued Expenses

1,434,597,579

1,242,171,904

1,454,372,619

Unearned Income

 

 

        129,483,871

VAT Withhold

          85,279,637

351,149,337

        350,153,436

Fixed Liabilities

12,630,458,758

10,514,348,424

10,049,937,850

Long-Term Borrowings

1,554,100,000

1,867,600,000

1,362,900,000

Guarantee Deposit Withhold

1,017,730,000

1,181,100,000

1,462,170,000

Non-Current Portion of Deferred Income Tax Credit

9,480,986,175

6,911,891,786

6,922,854,400

Provision for Severance & Retirement

3,628,832,975

3,121,609,924

2,485,149,256

 


 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

    66,753,696,821

73,273,377,518

    70,312,148,864

Cost of Sold Goods

    59,897,987,405

63,804,546,431

    61,695,595,764

Gross Profit

6,855,709,416

9,468,831,087

      8,616,553,100

Selling & Admin. Expenses

8,471,716,487

6,672,075,711

      6,204,655,970

Operating Income

-1,616,007,071

2,796,755,376

      2,411,897,130

Non-Operating Income

          851,646,430

1,339,170,456

      1,204,329,150

Non-Operating Expenses

      2,756,437,451

3,119,107,432

      3,729,737,041

Income Before Taxes

-3,520,798,092

1,016,818,400

-113,510,761

Income Taxes Expenses

-890,846,096

50,939,911

-150,499,330

Net Income

-2,629,951,996

965,878,489

36,988,569

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

-2,978,739,955

7,543,107,090

-554,641,148

-Net Income

-2,629,951,996

965,878,489

36,988,569

-Exp. without Cash Outflow

3,318,975,387

2,566,780,744

2,669,547,495

-Revenue without Cash Inflows

-315,182,076

-381,218,411

-109,079,986

-Changes in Asset/ & Liability

-3,352,581,270

4,391,666,268

-3,152,097,226

Cash Flows from Investing

-2,996,692,056

-1,083,661,332

8,902,482

-Cash Inflow from Investing

1,786,393,158

1,382,412,880

2,377,873,402

-Cash Outflows for Investing

-4,783,085,214

-2,466,074,212

-2,368,970,920

Cash Flows from Financing

6,106,856,945

-8,045,931,103

1,397,523,630

-Cash Inflows from Financing

53,894,503,270

2,109,150,000

2,364,123,630

-Cash Outflows from Financing

-47,787,646,325

-10,155,081,103

-966,600,000

Increase/Decrease in Cash

131,424,934

-1,586,485,345

851,784,964

Cash at the Beginning of Year

3,671,954,230

5,258,439,575

4,406,654,611

Cash at the End of Year

3,803,379,164

3,671,954,230

5,258,439,575

 

Products, Technologies, Services Description

 

Main Products & Services

Medium Density Fiberboard

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

SHINHWA INTERNATIONAL INC.

A-511, JEONGGWANG SEA PALACE, 7-308, SINHEUNGDONG 3-GA, JUNG-GU, INCHEON, KOREA

TEL:+82-32-256-7600  FAX:+82-32-256-7603

 

PEOPLE & FLOORING CO., LTD.

2ND FL., SUNHO BLDG., 283, SANGIL-DONG, GANGDONG-GU, SEOUL, KOREA

TEL:+82-2-3391-0444  FAX:+82-2-3391-0231

 

STAR WOOD CO., LTD.

202-801, WE`VE THE STATE, 1107, JUNG 2-DONG, WONMI-GU, BUCHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-32-620-5871  FAX:+82-32-620-5870

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SEOIN TONGSANG CO., LTD.(120111-0319188)

H&J CO.(KOREA)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

 

Sales by Region (Activity & Markets)

 

Not Available.

 

Court Action

 

No.

 

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.34

UK Pound

1

Rs.101.41

Euro

1

Rs.83.38

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.