MIRA INFORM REPORT

Report Date :

31.08.2014

IDENTIFICATION DETAILS

Name :	APACK CO., LTD.

Formerly Known As :	SEORYUNG INDUSTRIES CO., LTD.

Registered Office :	12, Sanmakgongdannam 5-gil, Yangsan-si, Gyeongsangnam-do, Korea

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	01.08.1973

Com. Reg. No.:	621-81-02798

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Corrugated Cardboard and Cardboard Boxes.

No of Employees :	191

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Slow But Correct

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Korea

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. South 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. South 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-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, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP

Source : CIA

Basic Information

Company Name	APACK CO., LTD. (Korean Company Name : “(주)에이팩”)
Registered Address	12, Sanmakgongdannam 5-gil, Yangsan-si, Gyeongsangnam-do, Korea
Zip Code	626-110
Tel	+82-55-371-0646~51
Fax	+82-55-387-5679
E-mail	apack@a-pack.co.kr
Website	www.a-pack.co.kr
Trading Address	12, Sanmakgongdannam 5-gil, Yangsan-si, Gyeongsangnam-do, Korea (Old Address System : 8, Bukjeong-dong, Yangsan-si, Gyeongsangnam-do, Korea)
Tel	+82-55-371-0646~51
Fax	+82-55-387-5679
Type	Export/Import
Industry	Manufacture of Corrugated Cardboard and Cardboard Boxes
Main Business	Corrugated Cardboard Box, Corrugated Cardboard
Established (mm/dd/yyyy)	08/01/1973

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Cardboard(14121503)
Sell	Packaging boxes(24121503)
Buy	Machine finished or glazed kraft paper(14122102)

CEO’s

Name	Hong Geon-Je
Address	Suite 403-1202, 95, Tancheon-ro, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea
Date of Birth	09/11/1958
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

32,000,000,000

Employees

191

Formation

Co., Ltd by Shares

Bank Details

Gyungnam Bank-Yangsan Branch

Corporate Registered No.

184511-0000684

Business Registered No.

621-81-02798

Permit & Licenses

03/1997 ISO 9002

07/2008 ISO 14001

Int’l Trade No.: 389659

Shareholder Position

Name	Shares	%
ASIA PAPER MANUFACTURING CO., LTD.(110111-0006274)	6,400,000	100.00
TOTAL	6,400,000	100.00

Company History

08/01/1973 Incorporated as Seoryung Industries Co., Ltd.

06/25/1998 Decided to start Corporate Clearing Procedure

05/16/2002 Finished Corporate Clearing Procedure

06/10/2002 Changed company name to the present name

10/09/2007 Increased the authorized shares to 8,000,000 shares from 6,000,000 shares

10/10/2007 Increased capital to 32,000,000,000 KRW from 25,000,000,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Hong Geon-Je	Male	Korean	01/01/2013
Director	Mr.	Ahn Seung-Ryeol	Male	Korean	07/31/2013
Director	Mr.	Choi Sang-Kil	Male	Korean	03/27/2014
Auditor	Mr.	You Seung-Hwan	Male	Korean	12/21/2012
Supervisor	Mr.	Kim Jung-Dae	Male	Korean	03/20/2008

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	86,243,031,951	72,427,218,602	-1,802,763,208
2012	93,235,691,899	75,710,569,008	1,394,972,634
2011	96,075,961,084	69,745,692,332	1,555,883,532
2010	83,313,513,529	65,173,521,603	541,295,608
2009	65,945,017,028	65,650,033,323	99,924,488

Financial Description

Authorized Capital(KRW)	40,000,000,000
Paid-Up Capital(KRW)	32,000,000,000
Total Issued Shares	6,400,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	72,427,218,602	75,710,569,008	69,745,692,332
Current Assets	23,101,263,406	24,581,538,465	27,466,926,785
Cash & Cash Equivalents	413,042,491	584,335,156	1,167,447,828
Trade Receivables	16,880,011,039	17,370,736,615	19,801,861,605
Held-to-Maturity Financial Assets	-	6,605,000	200,000
Short-Term Receivables	691,397	68,019,841	4,857,824
Inventories	5,665,173,954	6,365,278,709	6,172,430,500
Deferred Income Tax Assets	810,950	565,410	488,900
Other Current Assets	141,533,575	185,997,734	319,640,128
Non-Current Assets	49,325,955,196	51,129,030,543	42,278,765,547
Non-Current Financial Instruments	2,000,000	2,000,000	3,000,000
Long-Term Trade Receivables & Other Receivables	88,460,000	122,942,237	60,000,000
Marketable Financial Instruments	206,800,000	206,800,000	206,800,000
Held-to-Maturity Financial Assets			6,605,000
Tangibles	46,738,235,004	48,449,509,534	39,597,263,195
Investment_Real Estates	2,040,460,192	2,097,778,772	2,155,097,352
Intangibles	250,000,000	250,000,000	250,000,000
Total Liabilities	29,428,251,428	31,115,612,858	26,415,265,342
Current Liabilities	25,512,114,447	26,921,103,126	22,212,083,639
Trade Payables	6,242,773,406	8,452,093,624	7,557,597,951
Short-Term Borrowings	16,939,877,612	16,182,264,071	12,414,006,670
Other Current Financial Debts	1,880,845,632	2,104,396,008	1,883,482,667
Other Current Liabilities	448,617,797	182,349,423	356,996,351
Non-Current Liabilities	3,916,136,981	4,194,509,732	4,203,181,703
Long-Term Borrowings	106,800,000	219,766,000	344,458,000
Confirmed Salaries	663,913,741	819,398,228	684,773,063
Other Non-Current Financial Debts	691,297,100	701,219,364	719,824,500
Deferred Income Tax Credit	2,454,126,140	2,454,126,140	2,454,126,140
Capital Surplus	32,000,000,000	32,000,000,000	32,000,000,000
Profit Surplus	2,097,974,494	3,693,963,470	2,429,434,310
Others	8,900,992,680	8,900,992,680	8,900,992,680
Total Equity	42,998,967,174	44,594,956,150	43,330,426,990
Liab. & Shareholder’s Equity	72,427,218,602	75,710,569,008	69,745,692,332

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	86,243,031,951	93,235,691,899	96,075,961,084
Cost of Sold Goods	77,466,367,320	82,084,419,324	86,046,869,329
Gross Profit	8,776,664,631	11,151,272,575	10,029,091,755
Selling & Admin. Expenses	-9,859,648,497	-9,258,332,176	8,332,912,424
Operating Income	-1,082,983,866	1,892,940,399	1,696,179,331
Non-Operating Income	154,468,032	126,746,729	388,371,948
Non-Operating Expenses	-108,683,001	-141,790,710	-130,772,395
Finance Income	30,258,182	77,280,683	21,081,842
Finance Expenses	-640,279,419	-560,204,467	-418,977,194
Income Before Taxes	-1,647,220,072	1,394,972,634	1,555,883,532
Income Taxes Expenses	-155,543,136	-	-
Net Income	-1,802,763,208	1,394,972,634	1,555,883,532

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Operating Activities Cash Flows	523,658,805	7,172,966,601	-344,981,632
Cash Flows from Operating	1,135,330,875	7,713,490,204	59,325,522
Net Income	-1,802,763,208	1,394,972,634	1,555,883,532
Adjustment	4,596,854,602	3,659,961,569	2,731,772,249
Changes in Asset/ & Liability	-1,658,760,519	2,658,556,001	-4,228,330,259
Interests Received	6,030,467	4,232,008	3,871,213
Interests Paid	-617,456,997	-544,679,101	-408,104,607
Income Taxes	-245,540	-76,510	-73,760
Cash Flows from Investing	-1,358,052,770	-11,409,831,176	-2,225,246,786
Cash Inflow from Investing	104,754,446	78,250,035	40,655,455
Cash Outflows for Investing	-1,462,807,216	-11,488,081,211	-2,265,902,241
Cash Flows from Financing	663,101,300	3,653,751,903	2,395,004,758
Cash Inflows from Financing	41,141,954,134	46,526,044,415	34,664,449,092
Cash Outflows from Financing	-40,478,852,834	-42,872,292,512	-32,269,444,334
Increase/Decrease in Cash	-171,292,665	-583,112,672	-175,223,660
Cash at the Beginning of Year	584,335,156	1,167,447,828	1,342,671,488
Cash at the End of Year	413,042,491	584,335,156	1,167,447,828

Products, Technologies, Services Description

Main Products & Services

Corrugated Cardboard Box, Corrugated Cardboard

Trade Partners & Competitors

Competitors

SAM BO CORRUGATED BOARD CO., LTD.

195, CHUNUI-DONG, WONMI-GU, BUCHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-32-662-2227 FAX:+82-32-653-4300

KWANG SIN PANJI CO., LTD.

23B-10L, 770, WONSI-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-490-7514 FAX:+82-31-492-6676

YU JIN FIBRE BOARD IND. CO., LTD.

4NA-201, SIHWA INDUSTRIAL COMPLEX, 1293, JEONGWANG 1-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-488-7000 FAX:+82-31-488-7029

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	ASIA HOLDINGS CO.,LTD.(110111-0030710) ASIA CEMENT CO.,LTD.(110111-5238096) ASIA PAPER MANUFACTURING CO.,LTD.(110111-0006274) AP RECYCLING CO., LTD.(164811-0045810) KYUNGSAN PAPER CO., LTD.(174811-0003486) CHEIL INDUSTRIAL CO., LTD.(134511-0004256) YU JIN FIBRE BOARD IND. CO., LTD.(124311-0001878) SAMSUNG EXPORT PACKING CO., LTD.(211111-0016859)
Corporate Ownership	ASIA HOLDINGS CO.,LTD.(110111-0030710) ASIA PAPER MANUFACTURING CO.,LTD.(110111-0006274)
Major Shareholders	ASIA PAPER MANUFACTURING CO.,LTD.(110111-0006274)
Cooperative Enterprise	-Insured Company DONGBU INSURANCE CO., LTD.(110111-0095285) MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

Sales by Region

(Activity & Markets)

Not Available.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.47
UK Pound	1	Rs.100.35
Euro	1	Rs.79.86

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	SHG

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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