MIRA INFORM REPORT

 

 

Report No. :

306528

Report Date :

04.02.2015

 

IDENTIFICATION DETAILS

 

Name :

FAR EAST CORP.

 

 

Registered Office :

10, Teheran-ro 19-gil, Gangnam-gu, Seoul, Korea, 2nd Fl., Sinmyung Bldg., 135-910

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

07.08.1989

 

 

Com. Reg. No.:

101-81-21141

 

 

Legal Form :

Company Limited By Shares

 

 

Line of Business :

Wholesale of Textiles, Polyester Fabrics, Rayon Fabrics, Cotton Fabrics

 

 

No. of Employees :

15

 

 

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 – 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

FAR EAST CORP.

(Korean Company Name : “화이스트상사()”)

Registered Address

10, Teheran-ro 19-gil, Gangnam-gu, Seoul, Korea

Building

2nd Fl., Sinmyung Bldg.

Zip Code

135-910

Tel

+82-2-720-5078

Fax

+82-2-720-6044

E-mail

fareast@fareast-corp.com

Website

 

Trading Address

2nd Fl., Sinmyung Bldg., 10, Teheran-ro 19-gil, Gangnam-gu, Seoul, Korea

(Old Address System : 2nd Fl., Sinmyung Bldg., 645-21, Yeoksam 1-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-720-5078

Fax

+82-2-720-6044

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Wholesale of Textiles

  Main Business

Polyester Fabrics, Rayon Fabrics, Cotton Fabrics

  Sub Business

 

Established (mm/dd/yyyy)

08/07/1989

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Cotton fabrics(11161700)

Sell

Synthetic fabrics(11161800)

 

 

CEO’s

 

Name

Shin Dong-Hwan

Address

Suite 202-503, 307, Yeoksam-ro, Gangnam-gu, Seoul, Korea

Date of Birth

09/12/1958

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

950,000,000

Employees

15

Formation

Co., Ltd by Shares

Bank Details

Korea Exchange Bank-Jongro Branch

Woori Bank

Corporate Registered No.

110111-0642292

Business Registered No.

101-81-21141

Permit & Licenses

Int’l Trade No.: 433103

Shareholder Position

Name

Shares

%

SHIN DONG-HWAN

89,414

94.12

JUNG JIN-HERN

2,793

2.94

CHOI CHANG-IL

2,793

2.94

TOTAL

95,000

100.00

Company History

08/07/1989 Incorporated as the present name(Korean Name : “화리스트상사()”)

12/10/1996 Increased the authorized shares to 500,000 shares from 20,000 shares

04/29/2000 Changed Korean company name to the present name

11/10/2008 Moved to the presenty HQ address from 45-1, Gwancheol-dong, Jongno-gu, Seoul, Korea

04/210/2009 Increased the capital to 950,000,000 KRW from 425,000,000 KRW

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Shin Dong-Hwan

Male

Korean

09/11/1995

Director

Mr.

Choi Chang-Il

Male

Korean

07/01/2009

Director

Mr.

Park Seok-Won

Male

Korean

07/01/2009

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

28,085,859,000

6,950,312,000

214,108,000

2012

23,063,234,000

7,337,619,000

140,661,000

2011

24,204,423,319

7,776,961,570

57,679,786

2010

24,055,067,869

8,592,555,647

-113,008,825

2009

10,790,692,000

8,244,546,000

8,903,000

2008

17,098,080,000

7,325,127,000

118,468,000

 

 

Financial Description

 

Authorized Capital(KRW)

5,000,000,000

Paid-Up Capital(KRW)

950,000,000

Total Issues Shares

95,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

6,950,312,000

7,337,619,000

7,776,961,570

Current Assets

 

 

7,649,061,591

-Quick Assets

 

 

6,053,084,439

-Inventories

 

 

1,595,977,152

Fixed Assets

 

 

127,899,979

-Investment

 

 

75,518,826

-Tangibles

 

 

2,291,153

-Intangibles

 

 

50,090,000

Total Liabilities

5,157,626,000

5,759,041,000

6,339,044,380

Current Liabilities

 

 

6,238,596,738

Fixed Liabilities

 

 

100,447,642

Capital Stock

950,000,000

950,000,000

950,000,000

Capital Surplus

 

 

 

Profit Surplus

 

 

487,917,190

Capital Adjustment

 

 

 

Total Equity

1,792,686,000

1,578,578,000

1,437,917,190

Liab. & Shareholder’s Equity

6,950,312,000

7,337,619,000

7,776,961,570

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

28,085,859,000

23,063,234,000

24,204,423,319

Cost of Sold Goods

 

 

21,816,911,685

Gross Profit

 

 

2,387,511,634

Selling & Admin. Expenses

 

 

2,176,417,512

Operating Income

386,116,000

282,463,000

211,094,122

Non-Operating Income

 

 

575,061,882

Non-Operating expenses

 

 

702,796,608

Income Before Taxes

 

 

83,359,396

Income Taxes Expenses

 

 

25,679,610

Net Income

214,108,000

140,661,000

57,679,786

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

 

 

535,645,085

-Net Income

 

 

57,679,786

-Exp. without Cash Outflow

 

 

130,052,737

-Revenue without Cash Inflows

 

 

-11,524,322

-Changes in Asset/ & Liability

 

 

359,436,884

Cash Flows from Investing

 

 

-228,433,708

-Cash Inflow from Investing

 

 

18,070,000

-Cash Outflows for Investing

 

 

-246,503,708

Cash Flows from Financing

 

 

-141,470,623

-Cash Inflows from Financing

 

 

 

-Cash Outflows from Financing

 

 

-141,470,623

Increase/Decrease in Cash

 

 

165,740,754

Cash at the Beginning of Year

 

 

552,532,299

Cash at the End of Year

 

 

718,273,053

 

 

Products, Technologies, Services Description

 

Main Products & Services

Polyester Fabrics, Rayon Fabrics, Cotton Fabrics

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

AMMI CO., LTD.

62-12, SINDANG 5-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2238-8046  FAX:+82-2-2232-5887

 

SINAN TRADING CO., LTD.

RM. 901, SINCHANG VIVA FAMILY, 232-1, YONGDAP-DONG, SEONGDONG-GU, SEOUL, KOREA

TEL:+82-2-2248-7165  FAX:+82-2-2248-7177

 

SM CORPORATION

1ST FL., 879-3, DOKSAN 3-DONG, GEUMCHEON-GU, SEOUL, KOREA

TEL:+82-2-867-6805  FAX:+82-2-867-6806

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

 

Subsidiary

FAREAST SHANGHAI CO., LTD.

 

Sales by Region (Activity & Markets)

 

The Subject exports to Hong Kong and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

--------

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.74

UK Pound

1

Rs.92.71

Euro

1

Rs.69.94

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.