MIRA INFORM REPORT

 

 

Report No. :

316905

Report Date :

09.04.2015

 

IDENTIFICATION DETAILS

 

Name :

KOREAN AIR LINES CO., LTD.

 

 

Registered Office :

260, Haneul-gil, Gangseo-gu, Seoul, Korea, Korean Air Operations Center 157-712

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

19.06.1962

 

 

Com. Reg. No.:

110-81-14794

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Airline Transportation Services, Airline Freight Transportation Services

 

 

No. of Employees :

18,224

 

 

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 :

Slow but correct

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. 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

KOREAN AIR LINES CO., LTD.

(Trade Name : KAL)

(Korean Company Name : “()대한항공”)

Registered Address

260, Haneul-gil, Gangseo-gu, Seoul, Korea

Building

Korean Air Operations Center

Zip Code

157-712

Tel

+82-2-2656-7114

Fax

+82-2-2656-7169

E-mail

cyberdesk@koreanair.com

Website

www.koreanair.co.kr

Trading Address

260, Haneul-gil, Gangseo-gu, Seoul, Korea

(Old Address System : 1370, Gonghang-dong, Gangseo-gu, Seoul, Korea)

Tel

+82-2-2656-7114

Fax

+82-2-2656-7169

Other Address

Korean Air Bldg., 360-1, Gonghang-dong, Gangseo-gu, Seoul, Korea

Tel

 

Fax

 

Other Address

103, Daejeo 2-dong, Gangseo-gu, Busan, Korea

Tel

+82-51-972-6219

Fax

 

Other Address

1116-6, Ponam-dong, Gangneung-si, Gangwon-do, Korea

Tel

+82-33-651-1699

Fax

+82-33-652-4916

Other Address

1690-8, Ido 1-dong, Jeju-si, Jeju-do, Korea

Tel

+82-64-750-8212

Fax

+82-64-750-8797

Other Address-Jinju Branch

1720-1, Guam-ri, Sacheon-eup, Sacheon-si, Gyeongsangnam-do, Korea

Tel

+82-55-853-5014

Fax

+82-55-852-3375

Other Address

1st FI., Jeongseok Bldg. Annex, 7-241, Jeongseok Bldg., 7-241, Sinheungdong 3-ga, Jung-gu, Incheon, Korea

Tel

+82-32-882-2008

Fax

+82-32-885-6649

Other Address-Gimpo International Freight Branch

274, Gwahae-dong, Gangseo-gu, Seoul, Korea

Tel

+82-2-2656-5032

Fax

 

Other Address

2840, Unseo-dong, Jung-gu, Incheon, Korea

Tel

+82-32-742-5567

Fax

+82-32-742-5678

Other Address

400-1, Jijeo-dong, Dong-gu, Daegu, Korea

Tel

+82-53-984-0111

Fax

+82-53-982-4878

Pohang Branch

402-1, Dogu 1-ri, Donghae-myeon, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-284-6722

Fax

+82-54-284-5350

Seoul Passenger Branch

41-3, Seosomun-dong, Jung-gu, Seoul, Korea

Tel

+82-2-751-7622

Fax

 

Other Address

486-3, Topyeong-dong, Seogwipo-si, Jeju-do, Korea

Tel

+82-64-733-2001

Fax

+82-64-733-9377

Other Address

567, Wondang-dong, Seo-gu, Incheon, Korea

Tel

+82-2-2656-7180

Fax

 

Other Address

568-148, Seonosong-dong, Wansan-gu, Jeonju-si, Jeollabuk-do, Korea

Tel

+82-63-287-0353

Fax

 

Other Address-Daegu Branch

5th FI., Dongyang Fire Bldg., 40, Pojeong-dong, Jung-gu, Daegu, Korea

Tel

+82-53-606-2055

Fax

+82-53-606-2099

Other Address

7, Geumnamno 2-ga, Dong-gu, Gwangju, Korea

Tel

+82-62-227-8775

Fax

 

Other Address

700-3, Sinjeong 1-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-271-2122

Fax

 

Other Address

77-1, Jungangdong 4-ga, Jung-gu, Busan, Korea

Tel

+82-51-461-7102

Fax

 

Other Address

931, Dunsan-dong, Seo-gu, Daejeon, Korea

Tel

+82-42-862-2001

Fax

 

Suwon Branch

942-9, Ingye-dong, Paldal-gu, Suwon-si, Gyeonggi-do, Korea

Tel

+82-31-239-3539

Fax

+82-31-232-3532

Other Address

Incheon International Airport Passenger Terminal, Unseo-dong, Jung-gu, Incheon, Korea

Tel

+82-32-742-5694

Fax

+82-32-742-5695

Other Address

Incheon International Airport Passenger Terminal, Unseo-dong, Jung-gu, Incheon, Korea

Tel

+82-32-742-5694

Fax

 

Other Address

Incheon International Airport Passenger Terminal, Unseo-dong, Jung-gu, Incheon, Korea

Tel

+82-32-742-5144

Fax

 

Other Address

Korea Airlines. Inc., 1370, Gonghang-dong, Gangseo-gu, Seoul, Korea

Tel

+82-2-2656-6572

Fax

 

Other Address

San 5-1, Ipsang-ri, Naesu-eup, Cheongwon-gun, Chungcheongbuk-do, Korea

Tel

+82-43 214-6222

Fax

+82-43-211-0051

Other Address

Wonju Airport , 111-1, Gokgyo-ri, Hoengseong-eup, Hoengseong-gun, Gangwon-do, Korea

Tel

+82-33-345-2041

Fax

+82-33-344-0165

Type

Import/Export

Industry

Scheduled Air Transport

  Main Business

Airline Transportation Services, Airline Freight Transportation Services

  Sub Business

Manufacture of Aircrafts, Maintenance & Repairing Services, Food Catering Service

Established (mm/dd/yyyy)

06/19/1962

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Airline Transportation Services

Sell

Scheduled Air Transport

Sell

Banquet and catering services(90101600)

Sell

Packaged combination meals(50192700)

 

 

CEO’s

 

Name

Ji Chang-Hoon

Address

 

Date of Birth

01/03/1953

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

298,931,160,000

Employees

18,224

Formation

Listed Company (Korea Stock Exchange : 003490) as of 03/19/1966

A Company of HANJIN GROUP

Foreign Direct Investment Corporation

Bank Details

Kookmin Bank

Woori Bank

Corporate Registered No.

110111-0108484

Business Registered No.

110-81-14794

Permit & Licenses

Awards

9/2000 ‘Business Traveller’ No.1 Frequent Flyer Program, Economy Class

2/1998 Mercury Award : Bibimbab (mixed vegetable and rice)

2/2008 Awarded the gold medal in the corporate category at the “2008 Advertisement Awards” hosted by ATW.

2/2008 Awarded the “6th Best HRD” for human resource development in Korea.

3/2008 Awarded the “Advertisement of the Year” hosted by KOADS in the magazine category.

3/2008 Received the Excellent Advertisement award from the Korean AD Association in the magazine category.

4/2008 Korean Air wins two major honors at the 20th annual Freddie awards that celebrate the best frequent flyer programs.

4/2008 - Best frequent flyer member communications in the Japan/Pacific/Asia/Australia region

4/2008 - Best Customer Service in the Japan/Pacific/Asia/Australia region

6/2008 Awarded the Best Brand by Dongah.com / Hankyung.com / IMBC.

6/2008 Awarded the Best Brand by Hankyung Daily.

6/2008 Certified for “Global Customer Satisfaction” by JMAC, Korean Air placed first in air passenger transport service for the 4th consecutive year.

6/2008 Ranked first in international freight transport for the 4th consecutive year.

7/2008 Awarded the Best Trusted Management by Kyunghyang Daily.

10/2008 Awarded the 2008 Best Sustainable Management by Hankyung Daily.

1/2007 Business Traveler USA ‘Best Business Class to Asia/Trans-Pacific’

2/2007 Business Traveller (UK) ‘Cellars in the Sky’ Best Business Class White Wine

3/2007 Mercury Awards: Gold Medal for On-Board Service Air

4/2007 U.K. OAG ‘Airline of the Year’: Best Economy Class Award

4/2007 U.S. Boeing Company: ‘Best Business Partner’ Award

7/2007 Skytrax World Airline Awards : Best Economy Class

9/2007 World Airline Entertainment Association’s (WAEA) 2007 Avion Awards ‘Best Achievement In Flight Entertainment’ Top 3

9/2007 ‘Best in Region – Asia & Australasia’ Top 3

12/2007 2007 Readers’ Choice Travel Survey : ‘Best Airline in Asia’ and ‘Best Transpacific Business Class’

2/2006 ATW Phoenix Award

Permit & Licenses

2/2006 ‘PAX International’ : Asia's top airline for ‘Outstanding Food Service by a Carrier’ and ‘Best New Product Launch’

3/2006 A330 Operational Excellence Award

3/2006 Mercury Award : Bibimguksoo (Spicy Korean Noodles)

6/2006 UK’s Priority Pass : Korean Air Lounge at Incheon Airport No.1 in Asia Pacific

6/2006 World’s top commercial airline cargo operation (IATA ranking, 2nd year)

9/2006 ‘Overhaul and Maintenance’ MRO Asia Awards

: Asia-Pacific Airline of the Year

10/2006 Time Readers’ Travel Choice Awards 2006

: No. 1 for Best First/Business Class and Best Frequent Flyer Program

: No. 2 for Preferred Airline

11/2006 ‘PAX International’ : Airline of the Year Food Services for 2006

1/2005 IOSA Certification

6/2005 World’s top commercial airline cargo operation(IATA ranking, 1st year)

10/2005 Airbus : ‘Operational Excellence’ Award

10/2005 Boeing : ‘Outstanding Dispatch Reliability’ Award

11/2005 TIME Readers’ Travel Choice Awards 2005

11/2005 : No. 2 for Best First/Business Class, Best Economy Class, Best Service, etc.

11/2005 : No. 5 for Preferred Airline

11/2004 Business Traveller 2004 Cellars in the Sky

: Best Business and First Class Wine

2/2003 ATW Cargo Airline of the Year

7/2003 ‘Business Traveller’ Best Cellar in the Sky (2nd consecutive year)

11/2002 Flight Safety Foundation’s Safety Award to President Y.T. Shim

Shareholder Position

Name

Shares

%

HANJIN TRANSPORTATION CO., LTD.(110111-0003668)

5,792,627

9.69

HANJINKAL CO., LTD.(110111-5197193)

22,927,239

38.35

NATIONAL PENSION SERVICE(110171-0007134)

4,463,655

7.47

OTHERS

26,602,711

44.50

TOTAL

59,786,232

100.00

Company History

06/19/1962 Incorporated as KOREAN AIR LINES CORPORATION operated by the Korea Government

03/1969 Changed company name to the present name

04/2005 Moved to the present HQ address from 41-3, Seosomun-dong, Jung-gu, Seoul, Korea

02/01/2013 Acquired Investment Business from HANJIN TRAVEL SERVICE CO., LTD.(110111-5059533)

08/01/2013 Split off the existing company, and newly established company, HANJIN KAL CO., LTD.(110111-5197193)

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Cho Yang-Ho

Korean

1949.03.08

University of Southern California

President & CEO

Mr.

Ji Chang-Hoon

Korean

1953.01.03

Seoul National University, Korea

Vice President & CFO

Mr.

Lee Sang-Kyun

Korean

1948.10.

Dankuk University, Korea

Vice President & CMO

Mr.

Cho Won-Tae

Korean

1976.01.

-

Advisor

Mr.

Lee Tae-Hee

Korean

1940.05.09

Harvard University, Korea

Outside Director

Mr.

Park Oh-Soo

Korean

1952.12.24

Seoul National University, Korea

Outside Director

Mr.

Lee Seok-Woo

Korean

1949.01.20

Seoul National University, Korea

Outside Director

Mr.

Lee Yoon-Woo

Korean

1943.08.19

Korea University, Korea

Outside Director

Mr.

Hyun Jung-Taik

Korean

1953.05.05

Seoul National University, Korea

Outside Director

Mr.

Kim Seung-Yu

Korean

1943.08

Korea University, Korea

Outside Director

Mr.

Bahn Jang-Sik

Korean

1956.06

Korea University, Korea

Outside Director

Mr.

Ahn Yong-Seok

Korean

1962.01

Seoul National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2014

11,680,398,139,595

21,420,446,969,171

-205,476,811,352

(*)2013

11,712,354,061,563

20,964,254,228,282

-290,459,634,454

(*)2012

12,261,681,009,551

20,678,036,299,113

259,596,526,787

(*)2011

11,803,067,820,557

20,222,503,362,678

-301,090,815,517

2010

11,460,521,559,526

17,814,309,253,916

461,700,871,765

2009

9,393,703,224,239

16,919,272,442,513

-98,895,975,758

2008

10,212,578,077,486

15,867,628,167,525

-1,942,429,962,956

2007

8,811,989,415,822

15,143,703,774,181

12,892,856,749

2006

8,077,871,280,841

13,584,705,242,346

383,011,754,266

2005

 7,584,221,229,919

13,568,643,867,523

 200,376,091,666

2004

 7,210,859,204,373

13,738,958,567,741

 519,492,139,397

2003

6,177,150,161,580

14,021,111,953,641

-238,284,405,689

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

 

 

Financial Description

 

Authorized Capital(KRW)

1,250,000,000,000

Paid-Up Capital(KRW)

298,931,160,000

Total Issues Shares

59,786,232

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

21,420,446,969,171

20,964,254,228,282

20,678,036,299,113

Current Assets

2,392,891,900,448

2,925,306,869,481

2,973,522,131,906

Cash & Cash Equivalents

410,108,319,781

1,002,505,201,107

1,250,002,489,928

Current Financial Instruments

9,167,908,506

10,462,460,264

10,895,036,361

Current Portion of Finance Lease Receivables

13,013,899,577

7,729,710,511

 

Trade Receivables & Other Receivables

938,812,237,523

981,945,338,451

762,947,190,416

Other Receivables-Construction

130,209,450,666

145,744,700,506

122,821,657,586

Marketable Financial Instruments

 

3,000,000,000

 

Held-to-Maturity Financial Assets

1,105,000

9,356,265,000

857,120,000

Inventories

416,668,674,377

452,041,733,752

481,642,183,611

Deferred Income Tax Assets

5,388,879,891

3,418,817,705

6,476,768,086

Derivatives

 

4,892,921,329

45,593,410,167

Other Current Assets

469,521,425,127

304,209,720,856

292,286,275,751

Non-Current Assets

19,027,555,068,723

18,038,947,358,801

17,704,514,167,207

Non-Current Financial Instruments

55,327,073,278

349,647,381

340,993,465

Marketable Financial Instruments

188,449,047,952

191,925,517,631

127,654,040,931

Held-to-Maturity Financial Assets

848,280,000

846,590,000

10,078,850,000

Finance Lease Assets

72,341,278,762

72,422,458,453

29,741,295,717

Investment_Related Companies

444,829,453,400

42,310,851,150

50,537,001,905

Investment_Subsidiaries

1,347,657,971,739

1,127,226,522,855

1,459,482,680,202

Tangibles

15,120,651,951,272

15,049,842,766,284

14,404,533,768,024

Investment_Real Estates

59,185,408,918

58,922,021,232

84,931,781,633

Intangibles

320,606,330,736

342,223,279,064

299,444,523,108

Derivatives

5,736,332,000

 

 

Other Financial Assets

254,105,340,810

250,497,081,323

265,267,466,093

Deferred Income Tax Assets

813,738,926,681

657,901,438,931

657,254,393,089

Other Non-Current Assets

344,077,673,175

244,479,184,497

315,247,373,040

Total Liabilities

19,440,734,673,957

18,693,690,565,414

18,304,367,770,708

Current Liabilities

6,350,692,460,258

6,688,805,989,480

6,072,874,978,896

Trade Payables & Other Payables

699,169,000,794

851,330,852,058

940,948,344,465

Short-Term Borrowings

563,314,898,879

786,019,892,419

1,234,048,224,167

Current Portion of Long-Term Debts

2,748,856,818,480

3,039,516,584,822

1,916,009,267,719

Finance Lease Debts

957,217,663,156

871,447,394,762

918,147,365,877

Derivatives

205,204,168,184

27,640,334,423

22,749,839,570

Current Portion of Finance Guarantee Debts

7,618,090,474

2,863,401,580

 

Other Payables-Construction

148,133,974,278

124,474,881,732

63,526,173,818

Other Current Liabilities

1,021,177,846,013

985,512,647,684

977,445,763,280

Non-Current Liabilities

13,090,042,213,699

12,004,884,575,934

12,231,492,791,812

Long-Term Trade Payables & Other Payables

120,129,727,048

174,124,500,000

133,887,500,000

Long-Term Borrowings

1,518,031,924,554

1,146,645,013,048

876,411,290,657

Debentures

1,854,847,024,327

2,140,274,937,785

3,480,280,050,871

ABS Borrowings

1,388,446,547,197

916,114,340,798

587,479,130,222

Other Long-Term Borrowings

17,220,876,334

24,667,319,668

31,432,508,479

Finance Lease Debts

5,547,250,641,619

5,019,925,370,004

4,709,966,822,298

Confirmed Salaries

820,532,382,231

849,572,806,537

823,463,599,825

Other Provisions

136,434,485,691

135,186,764,519

82,462,345,259

Deferred Income Tax Credit

1,633,782,108,041

1,558,786,680,190

1,476,694,786,664

Derivatives

476,353,085

399,012,068

 

Finance Guarantee

15,672,190,602

9,643,663,612

 

Other Non-Current Liabilities

37,217,952,970

29,544,167,705

29,414,757,537

Capital Stock

298,931,160,000

298,931,160,000

366,754,040,000

Capital Surplus

11,247,795,884

11,247,795,884

125,677,716,255

Others

206,894,490,766

368,227,493,156

33,636,163,407

Profit Surplus

1,462,638,848,564

1,592,157,213,828

1,847,600,608,743

Total Equity

1,979,712,295,214

2,270,563,662,868

2,373,668,528,405

Liab. & Shareholder’s Equity

21,420,446,969,171

20,964,254,228,282

20,678,036,299,113

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

11,680,398,139,595

11,712,354,061,563

12,261,681,009,551

Cost of Sold Goods

10,171,067,806,857

10,606,443,605,306

10,865,704,485,679

Gross Profit

1,509,330,332,738

1,105,910,456,257

1,395,976,523,872

Selling & Admin. Expenses

1,136,822,618,201

1,123,911,311,952

1,118,395,060,965

Operating Income

372,507,714,537

-18,000,855,695

277,581,462,907

Finance Income

54,003,032,644

107,709,479,916

112,529,289,614

Finance Expenses

422,315,468,996

465,668,127,601

518,294,681,301

Other Non-Operating Income

442,999,789,808

731,637,700,949

1,163,260,181,115

Other Non-Operating Expenses

784,079,983,241

756,813,272,025

638,713,390,302

Income Before Taxes

-336,884,915,248

-401,135,074,456

396,362,862,033

Income Taxes Expenses

-131,408,103,896

-106,837,499,247

135,894,332,579

Income from Continuous Business

-205,476,811,352

-294,297,575,209

260,468,529,454

Income from Stopped Business

 

3,837,940,755

-872,002,667

Net Income

-205,476,811,352

-290,459,634,454

259,596,526,787

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

1,840,787,052,820

1,762,075,443,840

2,065,535,824,923

Cash Flows from Operating

1,803,558,558,280

1,721,616,248,410

2,014,269,901,991

Net Income

-205,476,811,352

-290,459,634,454

259,596,526,787

Exp. without Cash Outflow

2,666,067,438,632

2,716,571,282,011

2,648,546,597,895

Revenue without Cash Inflows

-381,727,999,098

-674,348,376,670

-957,387,900,092

Changes in Asset/ & Liability

-275,304,069,902

-30,147,022,477

63,514,677,401

Interests Received

37,496,462,159

29,758,126,774

40,969,091,104

Dividends Received

3,176,950,907

10,253,311,022

10,318,307,872

Income Taxes

-3,444,918,526

447,757,634

-21,476,044

Cash Flows from Investing

-799,623,157,251

-1,128,164,875,689

-480,475,883,649

Cash Flows from Financing

-1,629,505,784,220

-871,682,970,401

-1,697,954,616,509

Increase/Decrease in Cash

-588,341,888,651

-237,772,402,250

-112,894,675,235

Cash at the Beginning of Year

1,002,505,201,107

1,250,002,489,928

1,381,684,677,018

Cash at the End of Year

410,108,319,781

1,002,505,201,107

1,250,002,489,928

 

 

Products, Technologies, Services Description

 

Main Products & Services

Air Transportation-Passenger, Cargo, Maintenance service, Training service, building lease etc

Other Business -Aerospace, Catering, Hotel & In-Flight Sales

 

Brand Name : KAL

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

THE BOEING COMPANY(USA)

S-OIL CORPORATION(110111-0189955)

GS-CALTEX CORPORATION(110111-0078819)

Customers

THE BOEING COMPANY

AIRBUS (FRANCE)

FISC(FLEET INDUSTRY SUPPLY CENTER : JAPAN)

SINGAPORE AIRLINES, AIR FRANCE, UNITED AIRLINE, CATHAY PACIFIC AIRLINE AND TOTAL 28 FOREIGN AIRLINE COMPANIES

DEFENSE ACQUISITION PROGRAM ADMINISTRATION, KOREA

LIG NEX1 CO., LTD.(110111-1516933)

Competitors

ASIANA AIRLINES INC.(110111-0562804)

47, OSOE-DONG, GANGSEO-GU, SEOUL, KOREA

TEL:+82-2-2669-3114  FAX:+82-2-2669-3170

 

CATHAY PACIFIC AIRWAYS LIMITED

35TH FLOOR TWO PACIFIC PLACE 88 QUEENSWAY, HONG KONG

TEL:+85227475210 FAX:+85228106563

 

DEUTSCHE LUFTHANSA AG

VON-GABLENZ-STRASSE 2-6 COLOGNE, 50679 GERMANY

TEL:+49-69-6960 FAX:+49-69-69633022

 


Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

HANJIN TRANSPORTATION CO., LTD.(110111-0003668)

KOREANAIRLINESCO.,LTD.(110111-0108484)

HANJIN SHIPPING CO., LTD.(110111-0003262)

KOREAN AIR TERMINAL SERVICE CO., LTD.(110111-0003692)

HANJIN TRAVEL SERVICE CO., LTD.(110111-0219405)

HANJIN SHIP MANAGEMENT CO., LTD.(180111-0566133)

HANJIN PACIFIC CORPORATION(110111-3535064)

AIR TOTAL SERVICE CO., LTD.(110111-2204024)

BUSAN TUREE PIER OPERATON COMPANY(180111-0289933)

THE THIRD TERMINAL OF INCHEON PORT OPERATING CO., LTD.(120111-0194861)

POHANG PORT 7TH TERMINAL OPERATING CO., LTD.(171711-1136797)

PYONGTAEK CONTAINER TERMINAL CO., LTD.(131311-0054589)

GWANGYANG INTERNATIONAL CONTAINER TERMINAL CO., LTD.(204611-0022029)

BUSAN INTERNATIONAL CONTAINER TERMINAL CO., LTD.(180111-0525858)

HANJIN NEWPORT CO., LTD.(194111-0012875)

HJLK CO., LTD.(110111-384917)

HANJIN INCHEON NORTH PORT OPERATION CO., LTD.(120111-0460014)

AIR TOP SERVICE CO., LTD.(110111-3896325)

HANJIN CARRY LOGISTICS CO., LTD.(194111-0013948)

HANJIN DREAM EXPRESS CO., LTD.(110111-1956692)

JUNGSEOK ENTERPRISE CO., LTD.(110111-0026397)

HANJIN INFORMATION SYSTEMS & TELECOMMUNICATION CO., LTD(110111-0657259)

TOPAS CO., LTD.(110111-1674864)

GLOBAL LOGISTICS SYSTEM KOREA CO., LTD.(110111-1814105)

CYBER LOGITEC CO., LTD.(110111-1922750)

UNICONVERSE CO., LTD.(110111-3596454)

KAL HOTEL NETWORK CO., LTD.(110111-2240169)

CYBER SKY CO., LTD.(110111-1993397)

JEDONG LEISURE CO., INC.(220111-0042077)

HANJIN ENERGY CO., LTD.(180111-0584903)

HOMEO THERAPY CO., LTD.(120111-0473546)

SAMOUL.CO., LTD.(110111-3669912)

IAT CO., LTD.(KOREA)

Affiliates-Overseas

HANJIN INT'L CORP

TIANJIN HANJIN-SINO TRANS AIR CARGO TERMINAL CO., LTD.

HANJIN CENTRAL ASIA

HIJC

TOMI

KALF

GLSAP

US CARGO SALES JOINT VENTURE, LLC

GRANDSTAR CARGO INT'L AIRLINES CO., LTD.

WAIKIKI RESORT HOTEL, INC.,

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

US CARGO SALES JOINT VENTURE,LLC.

(33.33% held by the subject company)

Subsidiary

KOREAN AIR TERMINAL SERVICE CO., LTD.(110111-0003692)

(59.54% held by the subject company)

 

HANJIN TRAVEL SERVICE CO., LTD.(110111-0219405)

(55.82% held by the subject company)

 

JUNGSEOK ENTERPRISE CO., LTD.(110111-0026397)

(24.0% held by the subject company)

 

HANJIN INFORMATION SYSTEMS & TELECOMMUNICATION CO., LTD.(110111-0657259)

(99.35% held by the subject company)

 

TOPAS CO., LTD.(110111-1674864)

(67.35% held by the subject company)

 

KAL HOTEL NETWORK CO., LTD.(110111-2240169)

(100.0% held by the subject company)

 

AIR TOTAL SERVICE CO., LTD.(110111-2204024)

(100.0% held by the subject company)

 

KOREAN AIR LEASE & FINANCE CO., LTD.

(100.0% held by the subject company)

 

HANJIN INT'L CORP.,

(100.0% held by the subject company)

 

JEDONG LEISURE CO., INC.(220111-0042077)

(100.0% held by the subject company)

 

HANJIN ENERGY CO., LTD.(180111-0584903)

(82.52% held by the subject company)

 

GLSAP

(31.50% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

AMLIN-UK

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

LIG INSURANCE CO., LTD.(110111-0017859)

 

-Leasing Agreement

NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY(IDA) for using JFK Airport Freight Terminal

KALF & GECAS TECHNICAL SERVICES LTD., for airplane and components

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2010

2009

2008

Export

10,143,341

8,218,737

8,967,582

Domestic

1,317,181

1,174,966

1,244,996

Total

11,460,522

9,393,703

10,212,578

The Subject provides the services through 38 countries 115cities.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

 

Gong Keun-Hye

The Subject Company

Infringement of Copyright

-

Proceeding

 

 

Eom Tae-Hyung

The Subject Company

Refund on Inappropriate Profits

109,032,830

Proceeding

 

 

The Subject Company & Others(19)

SFO(San Francisco) City

Refund of Occupancy TAX USD533,084

USD533,084

proceeding

 

Seoul Nambu District Court

Kim Kyung-A & Others(4)

The Subject Company

Claim for Compensation form Damages

USD 400,000

The Subject won.

 

US District Court for the Central District of California

Bruce Lee

The Subject Company

Claim for Compensation form Damages

USD 1,000,000

Proceeding

 

Le Tribunal de Commerce(France)

SAMSUNG FIRE & MARINE INSURANCE CO.,LTD., & Samsung Electronics Co., Ltd.(France)

The Subject Company & Air France

Claim for Compensation form Damages

USD 12,938

The subject was defeated as of 01/26/2011.

 

Court of Haarlem(Netherlands) & Dusseldorf District Court(Germany)

Jan De Rijk(Contracting Trucking Company) & Nico Haven (Actual Trucker)

The Subject Company

Claim for Compensation form Damages

USD 940,000

1st round is proceeding.

 

U.S. District Court, Southern District of New York

DHL Global Forwarding

The Subject Company

Claim for Compensation form Damages

USD 267,000

Proceeding

 

Seoul Central District Court, Korea

DHL Global Forwarding Korea

The Subject Company

Claim for Compensation form Damages

USD 129,200

Proceeding

 

United States District Court, Eastern District of New York

The Subject Company

The Port Authority of NY & NJ et al

Claim for Compensation form Damages

USD 2,160,000 & USD 560,000

Proceeding

 

U.S. District Court Eastern District of New York

The Ministry of Justice, USA

The Subject Company & Other Air Lines

ANTITRUST

-

Proceeding

 

U.S. District Court Central District of California

Multiple Purchasers

The Subject Company & Asiana Air Lines

 

-

Proceeding

There are several cases filed as Plaintiff(s)/ Creditor(s)/ Applicant(s) for claims for freight related losses and the subject expects they will win in most of cases, and for the contingency cases the insurance will cover for the losses. And there are also several cases filed Plaintiff(s)/ Creditor(s)/ Applicant(s) in USA and Canada.

 

 

News Clipping

 

------

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.33

UK Pound

1

Rs.92.53

Euro

1

Rs.67.60

 

 

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.