MIRA INFORM REPORT

 

 

Report No. :

355108

Report Date :

18.12.2015

 

IDENTIFICATION DETAILS

 

Name :

MOORIM PAPER CO., LTD.

 

 

Registered Office :

1003, Namgang-ro, Jinju-si, Gyeongsangnam-do

 

 

Country :

South Korea

 

 

Financials (as on) :

09.30.2015

 

 

Date of Incorporation :

29.08.1973

 

 

Com. Reg. No.:

613-81-00289

 

 

Legal Form :

Listed Company

 

 

Line of Business :

  • Manufacture of Printing and Writing Paper
  • Uncoated Wood Free Paper, Wood Free Paper, Printer Paper, Paper Board

 

 

No. of Employee :

499

 

 

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 :

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 economic 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. A system of close government and business ties, including directed credit and import restrictions, initially 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 7% 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 over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced slow growth due to sluggish domestic consumption and investment. The administration in 2015 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 the heavy reliance on exports, which comprise about half of GDP. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

 

Source : CIA

 

Basic Information

 

Basic

 

Company Name

MOORIM PAPER CO., LTD.

(Trade Name : MP)

(Korean Company Name : “무림페이퍼()”)

Registered Address

1003, Namgang-ro, Jinju-si, Gyeongsangnam-do, Korea

(Old Address System : 281-1, Sangpyeong-dong, Jinju-si, Gyeongsangnam-do, Korea)

Building

 

Zip Code

52809

Tel

+82-55-751-1234

Fax

+82-55-751-1235

E-mail

jrkim@moorim.co.kr

Website

www.moorim.co.kr

Trading Address

Songpa Bldg., 656, Gangnam-daero, Gangnam-gu, Seoul, Korea

(Old Address System : Songpa Bldg., 505, Sinsa-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-3485-1500

Fax

+82-2-511-4040

Other Address-Daegu Factory

550, Chimsan-dong, Buk-gu, Daegu, Korea

Tel

+82-53-351-8111

Fax

+82-53-351-8120

Other Address-Logistics Center

315, Suyang-ri, Silchon-eup, Gwangju-si, Gyeonggi-do, Korea

Tel

+82-31-769-2223~8

Fax

+82-31-769-229

Other Address-Logistics Center

508, Sangam-dong, Mapo-gu, Seoul, Korea

Tel

+82-2-3158-5401

Fax

+82-2-3158-5403

Type

Export

Industry

Manufacture of Printing and Writing Paper

  Main Business

Uncoated Wood Free Paper, Wood Free Paper, Printer Paper, Paper Board

  Sub Business

 

Established (mm/dd/yyyy)

08/29/1973

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Art or craft paper(14111606)

Sell

Coated papers(14121800)

Sell

Novelty paper(14111600)

Sell

Printing and writing paper(14111500)

Sell

Silicone coated papers(14121804)

Sell

Printer or copier paper(14111507)

Sell

Gift wrapping paper or bags or boxes(14111601)

Sell

Computer printout paper(14111506)

Sell

Raw materials(14101500)

Buy

Additives(12160000)

Buy

Cereal flour(50221102)

Buy

Talc(11101518)

Buy

Preservatives(12164501)

Buy

Dyes(12171500)

Buy

Wood pulp(11121607)

Buy

Latex rubber(13101501)

 

 

CEO’s

 

Name

Kim Seok-Man

Address

27, Chojang-ro 14beon-gil, Jinju-si, Gyeongsangnam-do, Korea

Date of Birth

10/21/1948

Title

President & CEO

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

104,023,275,000

Employees

499

Formation

Listed Company (Korea Stock Exchange : 009200) as of 06/09/1990

Foreign Direct Investment Corporation

A Company of MOORIM GROUP

Bank Details

KEB Hana Bank

Shinhan Bank

Daegu Bank

Corporate Registered No.

191111-0000782

Business Registered No.

613-81-00289

Permit & Licenses

11/09/1995 ISO 9002

05/13/1997 ISO 14001

12/13/2003 ISO 9001

 

Int’l Trade No.: 811165

Shareholder Position

Name

Shares

%

MOORIM SP CO., LTD.(170111-0001082)

8,177,996

19.65

LEE DONG-WOOK

7,877,646

18.93

LEE DO-KYUN

5,122,966

12.31

OTHERS

20,430,702

49.10

TOTAL

41,609,310

100.00

Company History

04/22/2011 Split off the par value to 2,500 KRW from 5,000 KRW

11/2008 MOORIM SP, Received FSC Certification

04/2008 Moorim Paper, succeeded Donghae Pulp''s M&A

12/2007 Moorim Paper, chosen as an exclusive negotiating party for Donghae Pulp

11/2007 Decide and agree to Purchase Environment-friendly Products

03/2007 MOORIM PAPER, Received FSC Certification

03/2007 Ranked first in productivity for six consecutive years by Metso Paper

12/2006 MOORIM SP, Received 2006 Korea Best Labor-Management Culture Enterprise Awards

08/01/2006 Changed company name to the present name

07/2006 PI-ERP Go-Live

07/2006 Celebrated 50th anniversary, new CI launched

05/2005 Concluded Voluntary Agreement for energy conservation

04/2005 Obtained Korea Eco-Label certificate

12/2004 Inaugurated Mr. Kim, In-Jung as a president

12/2004 Agreed with China's Chenming Paper on joint venture plant

05/2004 Received 2004 Korea Marketing Awards for the second consecutive year

03/2004 Established subsidiary company 'Moorim UK' in the UK

03/2003 Signed M.O.U. with Chenming Paper in China

11/2001 Established Moorim Chemical Technology Co., Ltd.

06/2001 Signed on M.O.U. Moorim Paper and Huludao city about plantation and environmental business

11/1999 Shinmoorim Paper completed PM#3 & CM#3

10/1998 Raised $88.7 million from an overseas investment institution IFC/AIG FUND/FMO

08/1998 Completed construction of logistics center in Gonjiam, Korea

11/1996 Established Officeway Co., Ltd.

07/1996 Celebrated 40th anniversary

03/1995 Established Shindong Energy Co., Ltd.

10/1992 Opened the branch office in Hongkong

10/1991 Shinmoorim Paper completed installation of PM #2 & CM #2

06/1989 Inaugurated Mr. Lee, Dong-Wook as a chairman

11/1987 Established subsidiary company 'Moorim USA' in the USA

12/1986 Established Shinmoorim Paper Research Institute

11/12/1979 Changed company name to Shinmoorim Paper Mfg. Co., Ltd

12/18/1975 Chnaged company name to Daelim Pulp Co., Ltd.

08/29/1973 Incorporated as Dongseo Pulp Mfg., Co., Ltd.

 

 

 

 

Detailed Information

 

Management

 

Job Description

Name

Nationality

Date of Birth

Inauguration Date

President & CEO

Kim Seok-Man

Korean

10/21/1948

12/26/2013

Vice President

Lee Do-Kyun

Korean

05/12/1978

03/26/2015

Auditor

You Young-Seok

Korean

01/16/1957

03/21/2014

Outside Director

Lee Jang-Hwa

Korean

05/20/1948

03/17/2005

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2015

416,662,266,801

940,418,696,082

4,787,850,029

(*)2014

569,901,103,526

890,248,163,594

-26,343,340,374

(*)2013

536,399,475,779

905,982,756,885

12,481,023,989

(*)2012

477,365,506,337

837,921,384,798

-30,067,568,320

(*)2011

629,138,008,683

951,984,332,706

-21,316,069,314

(*)2010

667,850,223,396

1,050,969,661,749

21,230,104,024

2009

665,863,755,660

909,405,550,748

48,901,284,127

2008

630,649,309,511

869,202,647,284

-24,394,221,887

2007

480,639,415,563

528,785,596,072

7,718,079,858

2006

415,189,610,226

501,852,499,162

13,145,341,283

2005

431,652,469,038

 485,970,367,992

 27,898,057,185

2004

 427,054,271,740

 460,124,942,679

 34,483,558,187

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

 

Financial Description

 

Authorized Capital(KRW)

200,000,000,000

Paid-Up Capital(KRW)

104,023,275,000

Total Issued Shares

41,609,310

 

 

Balance Sheet

Unit : Korean Won

01/01/2015~09/30/2015

AS OF 12/31/2014

AS OF 12/31/2013

Total Assets

940,418,696,082

890,248,163,594

905,982,756,885

Current Assets

259,690,062,823

226,262,038,723

262,659,474,539

Cash & Cash Equivalents

53,453,429,797

38,437,172,678

37,645,315,177

National Subsidies

0

0

-24,188,824

Trade Receivables & Other Receivables

105,030,021,876

107,802,351,888

112,340,248,256

Advance Payments

3,320,678,834

957,658,723

10,877,301,323

Prepaid Expenses

731,335,947

738,990,255

699,210,061

Derivatives

4,179,016

43,824,248

107,837,819

Inventories

97,150,417,353

78,282,040,931

101,013,750,727

Non-Current Assets

680,728,633,259

663,986,124,871

643,323,282,346

Non-Current Financial Instruments

16,500,000

16,500,000

16,500,000

Marketable Financial Instruments

89,362,508

60,170,768

80,814,148

Tangibles

275,777,312,587

264,949,749,083

265,146,967,641

Intangibles

2,991,210,832

3,539,096,978

4,251,624,644

Investment_Real Estates

4,845,444,834

4,866,319,299

4,894,228,382

Prepaid Expenses

284,775,465

451,187,660

460,668,493

Other Receivables

441,025,636

438,521,861

602,373,058

Derivatives

4,053,077,466

1,216,364,073

0

Investment_Related Companies

392,229,923,931

385,816,222,489

357,958,761,720

Deferred Income Tax Assets

0

2,631,992,660

9,911,344,260

Total Liabilities

637,892,687,916

592,484,780,224

580,303,674,035

Current Liabilities

376,173,125,322

321,119,530,438

242,494,743,490

Trade Payables

36,814,430,754

15,341,499,567

48,772,117,157

Account Payables

18,675,063,261

23,866,129,530

23,193,821,651

Accrued Expenses

5,790,084,398

6,887,855,723

6,995,601,776

Other Payables

799,178,522

839,809,848

838,260,058

Advance Receipts

450,107,993

925,039,285

1,205,842,227

Unearned Income

4,210,000

0

0

Short-Term Borrowings

156,457,134,679

88,248,562,999

122,581,939,870

Current Portion of Long-Term Debts

156,665,202,668

169,122,956,090

33,933,745,266

Derivatives

517,713,047

15,887,677,396

4,973,415,485

Non-Current Liabilities

261,719,562,594

271,365,249,786

337,808,930,545

Other Long-Term Payables

1,167,583,971

1,184,902,091

1,289,738,386

Long-Term Borrowings

231,734,461,088

245,673,627,267

267,038,328,222

Confirmed Salaries

23,929,808,400

21,811,712,235

19,617,977,913

Derivatives

3,203,544,717

2,695,008,193

49,862,886,024

Deferred Income Tax Credit

1,684,164,418

0

0

Capital Stock

104,023,275,000

104,023,275,000

104,023,275,000

Capital Surplus

36,792,029,474

36,792,029,474

36,792,029,474

Profit Surplus

127,887,048,633

123,147,193,394

151,046,791,038

Others

33,823,655,059

33,800,885,502

33,816,987,338

Total Equity

302,526,008,166

297,763,383,370

325,679,082,850

Liab. & Shareholder’s Equity

940,418,696,082

890,248,163,594

905,982,756,885

 

 

Income Statement

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

416,662,266,801

569,901,103,526

536,399,475,779

Cost of Sold Goods

342,913,579,852

499,915,434,972

462,730,034,821

Gross Profit

73,748,686,949

69,985,668,554

73,669,440,958

Selling & Admin. Expenses

48,623,881,445

64,950,953,580

63,423,405,938

Operating Income

25,124,805,504

5,034,714,974

10,246,035,020

Other Income

10,955,454,274

13,640,676,022

16,422,695,647

Other Expenses

4,429,462,840

4,299,880,762

1,363,852,011

Finance Income

10,871,982,780

11,924,784,551

21,042,373,515

Finance Expenses

33,411,657,803

44,663,738,015

31,331,589,183

Income Before Taxes

9,111,121,915

-18,363,443,230

15,015,662,988

Income Taxes Expenses

4,323,271,886

7,979,897,144

2,534,638,999

Net Income

4,787,850,029

-26,343,340,374

12,481,023,989

 

Cash Flows

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

30,027,495,969

14,758,902,150

-17,640,568,304

Cash Flows from Operating

36,811,687,211

25,215,731,035

-11,541,249,615

Interests Received

499,580,416

1,013,295,997

699,684,070

Interests Paid

-14,373,116,078

-19,250,354,850

-19,781,535,881

Dividends Received

7,024,421,550

8,374,575,500

8,040,452,550

Income Taxes

64,922,870

-594,345,532

4,942,080,572

Cash Flows from Investing

-44,959,681,529

-87,289,194,717

-21,406,514,418

Cash Inflow from Investing

4,789,191,444

5,787,067,875

7,372,632,074

Cash Outflows for Investing

-49,748,872,973

-93,076,262,592

-28,779,146,492

Cash Flows from Financing

29,421,179,705

73,176,617,509

13,403,943,254

Cash Inflows from Financing

204,713,517,212

395,551,163,001

427,194,847,422

Cash Outflows from Financing

-175,292,337,507

-322,374,545,492

-413,790,904,168

Increase/Decrease in Cash

15,016,257,119

791,857,501

-25,621,732,325

Cash at the Beginning of Year

38,437,172,678

37,645,315,177

63,267,047,502

Cash at the End of Year

53,453,429,797

38,437,172,678

37,645,315,177

 

 

Products, Technologies, Services Description

 

Main Products & Services

Coated Woodfree Paper

 

Brand Name : neo-GLOSS, neo-MATT, neo-COAT, neo-LABEL SE, NEO STAR

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

MOORIM P&P CO., LTD.(181211-0002548)

Customers

MOORIM USA, INC.

Competitors

HANSOL PAPER CO.,LTD.(110111-0017867)

ARTONE PAPER MFG. CO.,LTD. (134811-0000034)

HANKUK PAPER MFG CO., LTD.(110111-0002818)

HONG WON PAPER MFG CO., LTD.(110111-0239221)

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

MOORIM POWERTECH CO., LTD.(191111-0010575)

(85.63% held by the subject company)

 

MOORIM LOGITECH CO., LTD.(110111-1076599)

(50.13% held by the subject company)

 

MOORIM OFFICEWAY CO., LTD.(110111-1272379)

(11.76% held by the subject company)

 

MOORIM CHEMTECH CO., LTD.(124611-0267060)

MOORIM SP CO., LTD.(170111-0001082)

PINERESORT CO., LTD.(110111-0107105)

ENT GLOBAL CO., LTD.(110111-1937775)

BP KOREA LTD.(110111-1425960)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

MOORIM POWERTECH CO., LTD.(191111-0010575)

(85.63% held by the subject company)

 

MOORIM P&P CO., LTD.(181211-0002548)

(53.71% held by the subject company)

 

MOORIM USA, INC.

(100.0% held by the subject company)

 

MOORIM UK, LTD.

(100.0% held by the subject company)

 

PT PLASMA NUTFAH MARIND PAPUA(INDONESIA)

 

MOORIM CAPITAL CO., LTD.(110111-4094035)

MOORIM INTERNATIONAL CO., LTD.(230111-0176098)

DAESUNG CHEMICAL CO., LTD.(191111-0038361)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO., LTD(110111-0095285)

 

-Brand Using Agreement with

MOORIM P&P CO., LTD.(181211-0002548)

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2012

2011

2010

Export

133,037

452,228

343,439

Domestic

118,458

437,297

324,411

Total

251,495

889,525

667,850

The Subject exports to USA, UK, Australia, China and Middle East. And it imports from China, Canada, USA, South East Asia and Europe.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Thousand KRW)

Status

 

 

The Subject Company & Others(93)

ISDK CO., LTD.(Korea)

Confirmation on Not Existing Debts

18,700

Proceeding

 

News Clipping

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.65

UK Pound

1

Rs.99.61

Euro

1

Rs.72.33

KRW

1

Rs.0.056

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TRU

 


 

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.