MIRA INFORM REPORT

Report Date :

31.08.2014

IDENTIFICATION DETAILS

Name :	KOREA AGRO-FISHERIES & FOOD TRADE CORPORATION

Formerly Known As :	KOREA AGRO-FISHERIES TRADE CORPORATION

Registered Office :	27, Gangnam-daero, Seocho-gu, Seoul, Korea AT Center 137-130

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	16.01.1980

Com. Reg. No.:	106-82-00944

Legal Form :	Corporation established by the government

Line of Business :	Subject is engaged in administration of agricultural, forestry, fishing and hunting affairs

No. of Employees	570

RATING & COMMENTS

MIRA’s Rating :

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 – 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

Basic

Company Name	KOREA AGRO-FISHERIES & FOOD TRADE CORPORATION (Trade Name : AT) (Ex. Company Name : KOREA AGRO-FISHERIES TRADE CORPORATION, “농수산물유통공사”) (Korean Company Name : “농수산식품유통공사”)
Registered Address	27, Gangnam-daero, Seocho-gu, Seoul, Korea
Building	AT Center
Zip Code	137-130
Tel	+82-2-6300-1114
Fax	+82-2-6300-1608
E-mail	outreach@kati.net; yihjoo@kati.net
Website	www.at.or.kr
Trading Address	AT Center, 232, 27, Gangnam-daero, Seocho-gu, Seoul, Korea (Old Address System : AT Center, 232, Yangjae-dong, Seocho-gu, Seoul, Korea (P.O.BOX 3212))
Tel	+82-2-6300-1114
Fax	+82-2-6300-1608
Other Address-Agricultural Marketing Training Institute	148-1, Dangsu-dong, Kweunsun-gu, Suwon, Gyeonggi, Korea
Tel	+82-31-4003512
Fax
Other Address-Gyeonggi Branch	13-6, Noryangjin-dong, Dongjak-gu, Seoul, Korea
Tel	+82-2-813-9340
Fax
Other Address-Incheon Branch	7-241, Shinheung-dong, Joong-gu, Incheon, Korea
Tel	+82-32-888-6161
Fax
Other Address-Gangwon Branch	370-7 Okcheon-dong, Gangrung, Gangwon-do, Korea
Tel	+82-33-647-0061
Fax
Other Address-Chungnam Branch	942, Dunsan-dong, So-gu, Daejeon, Korea
Tel	+82-42-488-8542
Fax
Other Address-Chungbuk Branch	211-5, Songjeong-dong, Heungdeok-gu, Cheongju-si, Chungcheongbuk-do, Korea
Tel	+82-43-273-4556
Fax	+82-43-266-2458
Other Address-Jeonnam Branch	1607-1, Woosan-dong, Gwangsan-gu, Gwangju, Korea
Tel	+82-62-944-2621
Fax
Other Address-Jeonbuk Branch	249-10, Palbok-dong, Deokjin-gu, Cheonju, Jeonbuk, Korea
Tel	+82-63-211-6178
Fax
Other Address-Gyungbuk Branch	126-4, Shincheon-dong, Dong-gu, Daegu, Korea
Tel	+82-63-741-5220
Fax
Other Address-Gyungnam Branch	815, Munhyun-dong, Nam-gu, Busan, Korea
Tel	+82-51-632-1282
Fax
Other Address-Jeju Branch	977-1, Nohyong-dong, Jeju, Korea
Tel	+82-64-746-9472
Fax
Type	Export/Import
Industry	Administration of Agricultural, Forestry, Fishing and Hunting Affairs
Main Business	Agricultural & Fishery Products, Administration of Agricultural, Forestry, Fishing and Hunting Affairs
Sub Business
Established (mm/dd/yyyy)	01/16/1980

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Public administration(93151500) -Public Administration Services Agricultural and fishery products price stabilization support services
Sell	Trade shows and exhibits(80141900)
Sell	Aid financing(84101600)
Sell	National food intervention policy or programs(85151704)
Sell	Commodity policy or projections services(80151501)
Sell	Distribution(80141700)
Sell	Development assistance(84101500)
Sell	Commercial sector manpower development(86101804)
Sell	World wide web WWW site operation host services(81112105)

CEO’s

Name	Kim Jae-Soo
Address	Suite 104-201, 86, Seongbok 2-ro, Suji-gu, Yongin-si, Gyeonggi-do, Korea
Date of Birth	02/20/1957
Title	President
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)	130,440,000,000
Employees	570
Formation	Corporation established by the government
Bank Details	The National Agricultural Cooperative Federation (Nonghyup Bank)-aT Center Branch Korea Exchange Bank
Corporate Registered No.	114271-0001826
Business Registered No.	106-82-00944
Permit & Licenses	Int’l Trade No.: 871002
Shareholder Position	The Ministry of Finance & Economy(The Republic of Korea) has 100% shares.
Company History	11/30/1967:Founded as Agriculture & Fishery Development Corporation (AFDC) according to the “Law of Agriculture & Fishery Development Corporation” 08/1978:Implemented Price Stabilization Program 01/16/1980: Incorporated as the present name 03/1984:Initiated Marketing Promotion Program 04/1985:Established Training Institute for Agricultural Marketing 12/31/1986:Reborn as Agricultural and Fishery Marketing Corporation (AFMC) for the Settlement of Marketing & Promotional Functions 06/1991:Opened Flower Marketing Center 01/1992:Expanded Export Promotion Program 10/2002:Opened Agro-Trade & Exhibition Center, Seoul and moved to the present address 05/2005:Company name changed to Korea Agro-Fisheries Trade Corporation(aT) 02/25/2011 Increased capital to 86,200,000,000 KRW from 66,200,000,000 KRW 01/26/2012 Changed company name to the present name 03/31/2012 Increased capital to 108,320,000,000 KRW from 86,200,000,000 KRW 06/30/2012 Increased capital to 130,440,000,000 KRW from 108,320,000,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Date of Birth
President	Mr.	Kim Jae-Soo	Male	Korean	10/24/2011
Director	Mr.	Hur Hoon-Moo	Male	Korean	12/08/2011
Director	Mr.	Yoon Jung-In	Male	Korean	09/12/2012
Director	M/S.	Jang Jung-Ok	Female	Korean	10/09/2012
Director	Mr.	Jung Jong-Soo	Male	Korean	10/09/2012
Director	Mr.	Moon Jin-Young	Male	Korean	11/02/2012
Director	Mr.	Kang Sang-Jo	Male	Korean	01/12/2013
Director	Mr.	Park Chul-Soo	Male	Korean	11/04/2013
Director	Mr.	You Choong-Sik	Male	Korean	08/08/2014
Auditor	Mr.	Jung Sang-Bok	Male	Korean	01/20/2014

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)2013	288,404,992,063	1,335,263,417,637	11,578,197,601
(*)2012	251,032,928,019	1,296,348,612,279	12,032,638,989
2011	220,779,776,245	1,168,803,059,362	11,195,408,437
2010	217,700,902,183	1,055,032,399,256	10,259,456,674
2009	190,037,253,406	1,000,646,528,868	5,115,849,961
2008	158,863,677,483	909,595,008,406	8,595,614,573
2007	239,421,402,739	865,089,245,149	5,612,702,268
2006	139,257,975,630	893,802,764,371	4,963,820,829
2005	230,179,988,391	845,018,486,995	2,040,501,551
2004	200,182,813,925	875,117,428,640	2,023,936,612

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	300,000,000,000
Paid-Up Capital(KRW)	130,440,000,000
Total Issued Shares	Not Applicable to the entity

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	1,335,263,417,637	1,296,348,612,279
Current Assets	793,706,953,090	790,247,265,042
Cash & Cash Equivalents	145,194,259,808	105,486,380,671
Current Financial Instruments	610,486,227,817	647,786,801,583
Trade Receivables & Other Receivables	34,308,455,480	32,118,787,769
Inventories	1,485,208,599	1,639,915,000
Current Non-Financial Instruments	2,232,801,386	3,215,380,019
Non-Current Assets	541,556,464,547	506,101,347,237
Non-Current Financial Instruments	344,057,664,739	334,345,415,258
Long-Term Trade Receivables & Other Receivables	3,352,950,282	2,858,789,001
Tangibles	130,016,198,553	116,482,851,343
Investment_Related Companies	22,336,013,950	14,016,122,250
Deferred Income Tax Assets	5,842,604,448	7,007,805,354
Non-Current Non-Financial Instruments	35,951,032,575	31,390,364,031
Total Liabilities	1,103,962,077,638	1,075,894,572,414
Current Liabilities	686,474,897,047	666,352,838,701
Trade Payables & Other Payables	37,946,890,716	34,144,732,924
Other Current Financial Debts	633,232,905,819	614,391,632,241
Deferred Income Tax Credit	435,316,064	3,014,781,411
Other Current Non-Financial Debts	5,986,490,528	6,381,050,841
Current Portion of Provisions	8,873,293,920	8,420,641,284
Non-Current Liabilities	417,487,180,591	409,541,733,713
Long-Term Trade Payables & Other Payables	18,532,959,807	18,438,991,407
Other Non-Current Financial Debts	397,491,952,981	387,781,604,419
Confirmed Salaries	1,462,267,803	3,321,137,887
Capital Stock	130,440,000,000	130,440,000,000
Profit Surplus	101,427,993,258	90,494,590,744
Others	-566,653,259	-480,550,879
Total Equity	231,301,339,999	220,454,039,865
Liab. & Shareholder’s Equity	1,335,263,417,637	1,296,348,612,279

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	288,404,992,063	251,032,928,019
Cost of Sold Goods	263,494,614,215	226,134,944,042
Gross Profit	24,910,377,848	24,897,983,977
Selling & Admin. Expenses	13,925,040,541	14,754,818,555
Operating Income	10,985,337,307	10,143,165,422
Other Income	350,962,298	1,270,173,087
Other Expenses	415,308,035	607,236,110
Other Profits	-832,155,244	-200,256,618
Finance Income	6,231,114,564	6,275,213,542
Finance Expenses	431,263,793	163,888,057
Income Before Taxes	15,888,687,097	16,717,171,266
Income Taxes Expenses	-4,310,489,496	-4,684,532,277
Net Income	11,578,197,601	12,032,638,989

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Operating Activities Cash Flows	14,183,063,485	16,076,324,339
Cash Flows from Operating	5,044,257,630	2,391,065,250
Net Income	11,578,197,601	12,032,638,989
-Exp. without Cash Outflow	67,707,654,507	56,290,927,985
-Revenue without Cash Inflows	-61,024,403,089	-50,191,104,671
Changes in Asset/ & Liability	-13,217,191,389	-15,741,397,053
Interests Received	34,484,737,926	36,907,800,863
Interests Paid	-17,450,307,171	-16,832,502,504
Dividends Received	-1,835,134,270	-1,556,168,600
Income Taxes	-6,060,490,630	-4,833,870,670
Cash Flows from Investing	-3,026,806,488	-114,698,106,978
Cash Inflow from Investing	778,455,146,909	730,993,921,932
Cash Outflows for Investing	-781,481,953,397	-845,692,028,910
Cash Flows from Financing	28,551,622,140	112,033,699,249
Cash Inflows from Financing	719,030,200,000	765,190,000,000
Cash Outflows from Financing	-690,478,577,860	-653,156,300,751
Increase/Decrease in Cash	39,707,879,137	13,411,916,610
Cash at the Beginning of Year	105,486,380,671	92,074,464,061
Cash at the End of Year	145,194,259,808	105,486,380,671

Products, Technologies, Services Description

Main Products & Services	aT(Korea Agro-Fisheries Trade Corp.) is a wholly government-invested enterprise responsible for agricultural marketing services and international trade. aT provides publicly-profitable support services in agricultural marketing sector. The Subject has performed its own export sales as well as undertaking export agent functions for a large number of small and medium size agro-processors.
Main Products & Services	-Price Stabilization Financial Support Method : Provision of raw material procurement loans Beneficiaries : Companies in the private agro-processing industry who purchase, store, and process designated items Direct Procurement Items : Red pepper, garlic, onion, seaweed, anchovies, and other staples Method : Disbursement of the agricultural product price stabilization fund during peak harvest seasons Storage Facilities : 20 aT warehouses located in Seoul, Busan, Daegu, Gwangju, Jeonju, Incheon, Daejon, and I-Cheon Capacity : 60,000 M/T per shift Release Methods : Auction, direct sale, and wholesale market distribution Period : When prices are rising in the off season Beneficiaries : Wholesalers, retailers, and bulk consumers Import Items : Products with poor harvests or weak domestic production bases (e.g., sesame seed, red bean, soybean) and MMA/CMA imports such as red pepper, garlic, and onion Period : Year-round, according to each item's domestic market situation -Foreign Trade Promotion Operation of Overseas Agri-Trade Center Locations : Japan (Tokyo, Osaka), Netherlands (Rotterdam), U.S.A. (New York, LA), Russia (Moscow), Singapore, and China (Beijing, Shanghai) Roles : Collection of agricultural & fishery trade information, promotion of sales, and public relations development in overseas markets Methods : Participating in major international exhibitions, improving packaging design, operating Korean traditional food exhibitions and temporary overseas exhibitions, advertising in popular foreign food magazines, and installing export public relation towers in important partner trading countries Effects : Developing overseas markets and improving the image of Korean agricultural & fishery products Development of Marketable Item Method : Testing Korean foods in overseas markets and modifying their taste and quality to meet consumer preferences Items : Competitive export products such as fruits (apples, pears), vegetables (egg plants, cucumbers), flowers (lilies, roses), and processed foods (kimchi, ginseng-chicken soup) Collection & Dissemination of Trade Information Data collected : Domestic and overseas production levels, prices, and import/export market situations for each prospective foreign trade item Publishing Methods : Korea Agricultural Trade Information (KATI) network Korea Agriculture and Food Monthly Magazine Operation of Agro-Trade & Exhibition Center Location : Yang Jae-dong (Seoul) Function : Promotion of foreign trade in the agro-fishery industry Launch Year : 2001 Major Facilities : Exhibition halls, Conference rooms, Agro-Trade information center, Agro-Trade office building, Export Publicity Pavilion
Main Products & Services	-Marketing Support Wholesale Market Guidance & Support Financial Assistance : Wholesale market construction loans, advanced payment loans, and shipping promotion loans Market Support : Farm products collection and distribution activities (in respect of fair trading practices) Auctioneer Management : Education and qualifying examinations for auctioneers Personnel Training Training Organization : Agricultural Marketing Training Institute (Est. 1985) Trainees : Government officials, auctioneers, jobbers, and marketing personnel in the field of production Collection & Dissemination of market Information Scope of Enumeration: Cultivation areas, crop situations, supply levels, and shipping trends of 20 major agricultural and fishery products Distribution channels and wholesale/retail prices of 70 selected items Standardization of Physical Distribution Standardized Practices : Transportation, storage, loading, unloading, packaging, and marketing Flower Marketing Center Location : Yang Jae-dong (Seoul) Functions : Providing flower marketing loans and price information, holding flower fairs and exhibitions, ensuring the fair trade of flowers by competitive auction and improvement of the marketing system, and providing an export base for prospective items such as lilies and roses Main Facilities : Auction hall, jobber shops, cut flower sales space, green houses, and ornamental gardens -Food Industry Support Supporting Food Processing Companies in Rural Industrial Complex Selection of Qualified Firms : Based on business feasibility of food processing companies who apply to set up plants in rural industrial complexes Supporting Methods : Provision of facility investment loans, business management and technology information services, and sales promotion Development of Food processing Companies in Production Areas Selection of Qualified Firms : Based on business feasibility of applicants Supporting Methods : Provision of financial support, managerial guidance, sales promotion, personnel training, information services, and operation of consultation councils
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers

Customers

Competitors

NATIONAL AGRICULTURAL COOPERATIVE FEDERATION

75, CHUNGJEONGNO 1-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2080-5114 FAX:+82-2-2080-6016

KOREA AGRICULTURAL COOPERATIVE MARKETING, INC.

NONGHYUP HANARO CLUB, 230, YANGJAE 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3498-1000 FAX:+82-2-3498-1210

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates
Overseas Office	KOREA AGRO-TRADE CENTER, ROTTERDAM VARESEWEG 1, 3047 AT ROTTERDAM, THE NETHERLANDS TEL : 001-31-10-415-1091 KOREA AGRO-TRADE CENTER, NEW YORK 107 NORTHERN BLVD. SUITE 405 GREAT NECK, NY 11021, USA TEL : 001-1-516-829-1633 KOREA AGRO-TRADE CENTER, SINGAPORE 101 CECIL ST., #22-10,11,12 TONG ENG B/D SINGAPORE 069533 TEL : 001-65-324-0402 KOREA AGRO-TRADE CENTER, BEIJING BEIJING SILVER TOWER ROOM 1506, #2, NORTH DONGSANHUAN RD, BEIJING, 100027, CHINA TEL : 001-86-10-6410-6120 KOREA AGRO-TRADE CENTER, SHANGHAI ROOM 3112, NEW TOWN CENTER NO.83, #2, LOU SHAN GUAN RD., CHANGNING DISTRICT, SHANGHAI, 200336, CHINA TEL : 86-21-6236-8341-2 KOREA AGRO-TRADE CENTER, TOKYO 5F, DAVINCI SHINJUKU GYOEN, 1-5-1, SHINJUKU, SHINJUKU-KU, TOKYO, 160-0022, JAPAN TEL : 001-81-3-5367-6656 KOREA AGRO-TRADE CENTER, OSAKA 6F, NOMURA FUDOUSAN OSAKA BLDG. 1-8-15, AZUCHIMACHI, CHUOU-KU, OSAKA, JAPAN TEL : 001-81-6-6260-7661 KOREA AGRO-TRADE CENTER, L.A. HUNTINGTON PLAZA, 5762 BOLSA AVE. #101 HUNTINGTON BEACH CA 92649, USA TEL : 001-1-714-901-7717 KOREA AGRO-TRADE CENTER, MOSCOW KRASNOPRESNENSKAYA NAB., 12, ENT.B, #1002, MOSCOW, RUSSIA, 123610 TEL : 7-095-258-1397
Liaison Office
Overseas Branch
Joint Venture
Subsidiary	KOREA AGRO-TRADE CENTER, SINGAPORE (100.0% held by the subject company) KOREA AGRO-TRADE CENTER, ROTTERDAM (100.0% held by the subject company) QINGDAO AGRO-TRADE LOGISTICS CO., LTD.(CHINA) (100.0% held by the subject company) USA GRAIN COMPANY (55.0% held by the subject company)
Corporate Ownership	The Ministry of Finance & Economy(The Republic of Korea)
Major Shareholders	The Ministry of Finance & Economy(The Republic of Korea)
Cooperative Enterprise	-Insured Company HYUNDAIMARINE&FIREINSURANCECO., LTD.(110111-0035893)

Sales by Region (Activity & Markets)

The Subject deals with the companies in China, Taiwan, France, Hong Kong, Japan and USA.

Court Action

Not Available.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.48
UK Pound	1	Rs.100.35
Euro	1	Rs.79.86

INFORMATION DETAILS

Analysis Done by :	SUM

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.