MIRA INFORM REPORT

 

 

Report Date :

02.09.2014

 

IDENTIFICATION DETAILS

 

Name :

E-MART CO., LTD.

 

 

Registered Office :

377, Ttukseom-ro, Seongdong-gu, Seoul, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

01.05.2011

 

 

Com. Reg. No.:

206-86-50913

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Retail Sale in Other Non-Specialized Large Stores

 

[We tried to confirm / obtain the detailed activity but the same is not available from any sources]

 

 

No of Employees :

27,938

 

 

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 :

Exist

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

E-MART CO., LTD.

(Korean Company Name : “(주)이마트”)

Registered Address

377, Ttukseom-ro, Seongdong-gu, Seoul, Korea

Building

 

Zip Code

133-827

Tel

+82-2-380-9243

Fax

+82-2-380-9339

E-mail

pluto@shinsegae.com

Website

www.emart.com;www.emartcompany.com

Trading Address

377, Ttukseom-ro, Seongdong-gu, Seoul, Korea

(Old Address System : 333-16, Seongsu 2-ga 1-dong, Seongdong-gu, Seoul, Korea)

Tel

+82-2-380-9238 +82-2-380-9233

Fax

+82-2-380-9339

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Retail Sale in Other Non-Specialized Large Stores

  Main Business

Retail Sales Large Stores

  Sub Business

 

Established (mm/dd/yyyy)

05/01/2011

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Distribution(80141700)

Sell

World wide web WWW site operation host services(81112105)

 

 

CEO’s

 

Name

Kim Hae-Sung

Address

 

Date of Birth

12/1958

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

139,379,095,000

Employees

27,938

Formation

Listed Company (Korea stock Exchange : 139480) as of 06/10/2011

A Company of SHINSEGAE GROUP

Bank Details

Woori Bank

Corporate Registered No.

110111-4594952

Business Registered No.

206-86-50913

Permit & Licenses

Int’l Trade No.: 30693692

Shareholder Position

Name

Shares

%

LEE MYUNG-HEE

4,821,595

17.30

JUNG YONG-JIN

2,039,196

7.32

ABERDEEN ASSET MANAGEMENT ASIA LIMITED

4,264,475

15.30

NATIONAL PENSION SERVICE(110171-0007134)

1,676,313

6.01

OTHERS

15,074,240

54.08

TOTAL

27,875,819

100.00

Company History

05/01/2011 Incorporated after spin off from SHINSEGAE CO., LTD.(110111-0028848)

 

 

 

 

Detailed Information

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Co-President & CEO

Mr.

Kim Hae-Sung

Korean

1958.12

Sungkyunkan University, Korea

Co-President & CEO

Mr.

Lee Kap-Soo

Korean

1957.02

Kyunghee University, Korea

Director

Mr.

Yang Choon-Man

Korean

1963.02

Korea University, Korea

Outside Director

Mr.

Jeon Hyung-Soo

Korean

1953.04.27

Yonsei University, Korea

Outside Director

Mr.

Moon Chang-Jin

Korean

1953.03.02

Seoul National University, korea

Outside Director

Mr.

Park Young-Ryeol

Korean

1956.11.06

Seoul National University, korea

Outside Director

Mr.

Park Jong-Ku

Korean

1952.05.10

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

5,243,017,728,483

12,385,651,926,813

210,969,835,106

(*)2013

10,780,080,908,863

12,031,101,222,598

483,323,098,642

(*)2012

10,939,021,197,282

11,343,053,804,455

306,668,576,217

(*)2011

7,220,977,362,236

10,621,015,792,034

247,595,480,264

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

 

 

Financial Description

 

Authorized Capital(KRW)

400,000,000,000

Paid-Up Capital(KRW)

139,379,095,000

Total Issued Shares

27,875,819

 

Balance Sheet

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

12,385,651,926,813

12,031,101,222,598

11,343,053,804,455

Current Assets

984,802,983,211

883,506,200,303

876,406,936,315

Cash & Cash Equivalents

11,797,749,540

15,174,596,378

15,441,276,856

Trade Receivables & Other Receivables

222,972,551,711

209,895,458,401

246,425,034,508

Inventories

647,300,291,682

553,586,526,346

530,007,804,598

Current Financial Instruments

72,397,488,155

72,755,619,362

58,000,000,000

Other Current Assets

30,334,902,123

32,093,999,816

26,532,820,353

Non-Current Assets

11,400,848,943,602

11,147,595,022,295

10,466,646,868,140

Tangibles

8,130,928,906,393

7,863,966,545,810

7,508,479,477,921

Investment_Real Estates

169,849,172,294

172,035,641,346

176,260,272,234

Intangibles

55,187,953,259

51,088,587,798

34,207,973,448

Investment_Related Companies

912,535,316,171

904,178,351,171

739,871,837,300

Marketable Financial Instruments

1,533,562,107,562

1,563,085,441,562

1,415,639,500,619

Long-Term Current Financial Instruments

358,861,171,945

342,655,776,717

333,590,485,428

Other Non-Current Assets

239,924,315,978

250,584,677,891

258,597,321,190

Total Liabilities

5,733,419,973,068

5,521,917,665,309

5,407,563,415,327

Current Liabilities

2,680,244,836,898

2,795,969,814,265

2,901,631,733,795

Trade Payables & Other Payables

959,474,230,950

951,452,075,499

958,099,119,911

Short-Term Borrowings

1,064,002,674,546

1,080,041,489,553

1,240,884,848,090

Short-Term Derivatives

 

32,271,690,366

35,400,607,693

Merchandise Coupon

375,017,221,000

381,115,207,000

319,985,405,000

Accrued Income Tax

58,417,884,172

103,211,095,900

79,730,481,640

Other Current Financial Debts

156,433,834,642

177,819,138,656

207,914,059,936

Other Current Liabilities

66,898,991,588

70,059,117,291

59,617,211,525

Non-Current Liabilities

3,053,175,136,170

2,725,947,851,044

2,505,931,681,532

Long-Term Borrowings

2,173,410,240,248

1,896,399,009,128

1,768,697,067,769

Long-Term Derivatives

71,358,933,332

45,219,600,331

30,120,713,674

Provision for Severance & Retirement

75,663,904,314

44,274,590,481

70,382,976,618

Deferred Income Tax Credit

488,781,643,795

496,209,226,586

453,952,823,705

Long-Term Finance Debts

204,421,998,495

201,405,880,473

134,400,576,709

Other Non-Current Liabilities

39,538,415,986

42,439,544,045

48,377,523,057

Capital Stock

139,379,095,000

139,379,095,000

139,379,095,000

Capital Surplus

4,193,533,807,329

4,193,533,807,329

4,193,533,807,329

Profit Surplus

1,125,092,935,511

957,526,591,965

501,459,902,929

Others

1,194,226,115,905

1,218,744,062,995

1,101,117,583,870

Total Equity

6,652,231,953,745

6,509,183,557,289

5,935,490,389,128

Liab. & Shareholder’s Equity

12,385,651,926,813

12,031,101,222,598

11,343,053,804,455

 

Income Statement

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

5,243,017,728,483

10,780,080,908,863

10,939,021,197,282

Cost of Sold Goods

3,694,386,991,138

7,606,623,091,431

7,782,434,274,923

Gross Profit

1,548,630,737,345

3,173,457,817,432

3,156,586,922,359

Selling & Admin. Expenses

1,245,824,582,951

2,414,238,087,475

2,381,524,589,884

Operating Income

302,806,154,394

759,219,729,957

775,062,332,475

Other Operating Income

8,235,196,842

12,491,251,655

14,930,833,009

Other Operating Expenses

8,773,897,611

13,177,455,772

23,040,656,888

Finance Income

54,159,132,389

101,043,393,476

162,870,181,803

Finance Expenses

82,802,275,479

167,116,021,926

245,338,581,926

Other Profits

 

-46,895,741,319

-219,296,769,312

Income Before Taxes

273,624,310,535

645,565,156,071

465,187,339,161

Income Taxes Expenses

62,654,475,429

162,242,057,429

158,518,762,944

Net Income

210,969,835,106

483,323,098,642

306,668,576,217

 

Cash Flows

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

200,918,417,995

884,349,744,245

727,972,387,518

Cash Flows from Operating

335,034,127,186

1,086,327,268,580

983,957,799,105

Interests Paid

-43,168,872,008

-91,344,199,552

-111,114,834,210

Interests Received

1,007,440,424

4,085,337,699

1,679,223,990

Dividends Received

14,386,230,700

23,981,964,250

31,363,297,750

Income Taxes

-106,340,508,307

-138,700,626,732

-177,913,099,117

Cash Flows from Investing

-409,477,189,102

-830,162,451,383

-932,691,783,176

Cash Flows from Financing

205,181,924,269

-54,453,973,340

196,758,532,063

Increase/Decrease in Cash

-3,376,846,838

-266,680,478

-7,960,863,595

Cash at the Beginning of Year

15,174,596,378

15,441,276,856

23,402,140,451

Cash at the End of Year

11,797,749,540

15,174,596,378

15,441,276,856

 

 

Products, Technologies, Services Description

 

Main Products & Services

Distribution Services, Retail Store Services

 

(*)The Subject operates 136 domestic marts.

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

HOMEPLUS TESCO CO., LTD.

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

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

 

COSTCO WHOLESALE KOREA, INC.

COSTCO KOREA BLDG., 65, YANGPYEONGDONG 3-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2679-1234  FAX:+82-2-2630-2633

 

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

SHINSEGAE CO., LTD.(110111-0028848)

52-5, CHUNGMURO 1-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-727-1234  FAX:+82-2-727-1180

 

THE CHOSUN HOTEL CO., LTD.

(98.0% held by the subject company)

87 SOGONG-DONG, JUNG-GU, SEOUL, KOREA

HOMEPAGE:WWW.ECHOSUNHOTEL.COM

TEL:+82-2-772-0500 FAX:+82-2-753-6370

 

SHINSEGAE ENGINEERING & CONSTRUCTION CO., LTD.

(32.4%

 

56-85 JANGCHUNG-DONG1-GA,JUNG-GU,SEOUL, KOREA

HOMEPAGE:WWW.SHINSEGAE-CON.CO.KR

TEL:+82-2-3406-6620 FAX:+82-2-3406-6666

 

SHINSEGAE INTERNATIONAL CO., LTD.

79-17, CHEONG-DAM DONG, KANG-NAM GU, SEOUL, KOREA

HOMEPAGE:WWW.SIKOREA.CO.KR

TEL:+82-2-3440-1234 FAX:+82-2-3440-1011

 

SHINSEGAE FOOD CO., LTD.

(52.1% held by the subject company)

SHINSEGAE DIGITAL CENTER 6F 197-12 GURO-DONG, GURO-GU, SEOUL, KOREA

HOMEPAGE:WWW.SFS.CO.KR

TEL:+82-2-3397-6000 FAX:+82-2-3397-6199

 

SHINSEGAE I&C CO., LTD.

(29.0% held by the subject company)

SHINSEGAE DIGITAL CENTER 197-12 GURO-DONG, GURO-GU, SEOUL, KOREA

HOMEPAGE:WWW.SINC.CO.KR

TEL:+82-2-3397-1234 FAX:+82-2-3397-1111

 

STARBUCKS COFFEE KOREA CO., LTD.

(50.0% held by the subject company)

87-10 SOGONG-DONG, JUNG-GU, SEOUL, KOREA

HOMEPAGE:WWW.ISTARBUCKS.CO.KR

TEL:+ 82-2-3015-1700 FAX:+ 82-2-3015-1106

 

SHINSEGAE L&B CO., LTD.(110111-4015338)

(100.0% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

SHANGHAI E-MART CO., LTD.(CHINA)

(98.9% held by the subject company)

 

TIANJIN E-MART CO., LTD.(CHINA)

(83.0% held by the subject company)

 

SHANGHAI SHINSEGAE DEPARTMENT STORE CO., LTD.(CHINA)

(100.0% held by the subject company)

 

MUSUCK E-MART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

BEIJING E-MART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

KONSAN E-MART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

YOUNGPA EMART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

HANGZHOU E-MART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

SANGJU SHINSEGAE E-MART CO., LTD.(CHINA)

(100.0% held by the subject company)

 

TAEJU SHINSEGAE COMMERCIAL CO., LTD.(CHINA)

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2012

2011

2010

Export

35

468

 

Domestic

2,849,870

7,200,325

 

Total

2,849,905

7,200,793

 

The Subject deals with the companies in China.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

Supreme Court of Korea

TAEKWANG INDUSTRIAL CO., LTD.(110111-0185276)

The Subject Company

 

 123

3rd round is proceeding

 

Supreme Court of Korea

The Subject Company

Mayor of Sunchon City

 

 20

3rd round is proceeding

 

Sungnam District Court

Jang Soon-Duck

The Subject Company

Claim for Compensation form Damages

    257

1st round is proceeding

 

 

Lee Seok-Hyun

The Subject Company & Others(1)

Claim for Compensation form Damages

1,145

2nd round is proceeding

 

Seoul District Court

Chae Soo-Im & Others(1)

The Subject Company

Claim for Compensation form Damages

36

 

 

Seoul High Court

Dongwon D&C Co., Ltd.

The Subject Company

Receivables

14,600

2nd round is proceeding

 

Seoul Administrative Court

The Subject Company

Sung Doo-Hyung & Others(1)

Claim for Compensation form Damages

 20

2nd round is proceeding

 

Seoul High Court

The Subject Company

Songpa-Gu Office

Cancellation on Imposed taxes

3,325

2nd round is proceeding

 

Seoul District Court

Kim Min-Soo

The Subject Company

Compensation

 59

1st round is proceeding

 

 

News Clipping

 

-----

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.47

UK Pound

1

Rs.100.43

Euro

1

Rs.79.40

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

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.