MIRA INFORM REPORT

 

 

Report No. :

348612

Report Date :

07.11.2015

 

IDENTIFICATION DETAILS

 

Name :

AGENCY FOR DEFENSE DEVELOPMENT

 

 

Registered Office :

160, Bugyuseong-Daero 488beon -Gil, Yuseong-Gu, Daejeon, Korea 34188

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

28.01.1971

 

 

Com. Reg. No.:

314-83-03869

 

 

Legal Form :

Governmental Corporation

 

 

Line of Business :

Manufacture of Motor Vehicles for Combat.

 

 

No. of Employees :

2,612

 

 

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 :

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

 

Company Name

AGENCY FOR DEFENSE DEVELOPMENT

(Trade Name : ADD)

Registered Address

160, Bugyuseong-daero 488beon -gil, Yuseong-gu, Daejeon, Korea

Building

 

Zip Code

34188

Tel

+82-42-822-4271~4

Fax

+82-42-823-3400

E-mail

mungdol@add.re.kr ; sbcho@add.re.kr

Website

www.add.re.kr

 

 

Trading Address

160, Bugyuseong-daero 488beon -gil, Yuseong-gu, Daejeon, Korea

(Old Address System : 111, Sunam-dong, Yuseong-gu, Daejeon, Korea)

(Yuseong Post Office Box 35)

Tel

+82-42-822-4271~4

Fax

+82-42-823-3400

 

 

Type

Export

Industry

Manufacture of Motor Vehicles for Combat

  Main Business

Advanced Weapon Systems

  Sub Business

 

Established (mm/dd/yyyy)

01/28/1971

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

War vehicles(25102000)

Sell

Armored fighting vehicles(25102002)

 

 

CEO’s

 

Name

Jung Hong-Yong

Address

Suite 103-2605, 45, Yanghwa-ro, Mapo-gu, Seoul, Korea

Date of Birth

06/21/1954

Title

President

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

Not Applicable to Governmental Corporation

Employees

2,612

Formation

Governmental Corporation

Bank Details

N/A

Corporate Registered No.

164171-0003056

Business Registered No.

314-83-03869

Permit & Licenses

Int’l Trade No.: 16121119

Shareholder Position

Defense Acquisition Program Administration (DAPA)

Company History

01/28/1971 Incorporated as the present name

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President

Mr.

Jung Hong-Yong

Male

Korean

05/12/2014

Director

Mr.

Han Min-Koo

Male

Korean

06/30/2014

Director

Mr.

Lee Seok-Joon

Male

Korean

03/24/2013

Director

Mr.

Lee Kwan-Seob

Male

Korean

07/25/2014

Director

Mr.

Cho Yang-Ho

Male

Korean

10/01/2014

Director

Mr.

Lee Sang-Woo

Male

Korean

07/01/2011

Director

Mr.

Jung Gap-Young

Male

Korean

10/01/2014

Director

Mr.

Shin Sung-Cheol

Male

Korean

10/01/2014

Director

Mr.

Chang Myung-Jin

Male

Korean

11/19/2014

Director

Mr.

Jung Ho-Sub

Male

Korean

02/26/2015

Director

Mr.

Chung Min-Geun

Male

Korean

06/01/2015

Director

Mr.

Chang Joon-Kyu

Male

Korean

09/16/2015

Director

Mr.

Jung Kyung-Doo

Male

Korean

09/16/2015

Director

Mr.

Lee Soon-Jin

Male

Korean

10/07/2015

Director

Mr.

Song Eon-Seok

Male

Korean

10/21/2015

Auditor

Mr.

Choi Soo-Yong

Male

Korean

11/16/2012

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

N/A

1,545,781,469,773

N/A

2013

N/A

1,401,136,716,132

N/A

2012

N/A

1,268,142,196,261

N/A

2011

N/A

1,121,503,527,456

N/A

The full financials are not available, and the Subject Company does not have any obligations to release its financials to the public.

 

 

Financial Description

 

Authorized Capital(KRW)

Not Applicable to Governmental Corporation

Paid-Up Capital(KRW)

Not Applicable to Governmental Corporation

Total Issues Shares

Not Applicable to Governmental Corporation

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

1,545,781,469,773

1,401,136,716,132

1,268,142,196,261

Current Assets

511,230,050,935

483,258,099,438

439,352,387,835

-Quick Assets

 

 

 

-Inventories

 

 

 

Fixed Assets

1,034,551,418,838

917,878,616,694

828,789,808,426

-Investment

 

 

 

-Tangibles

 

 

 

-Intangibles

 

 

 

Total Liabilities

600,765,241,810

590,304,572,612

556,611,070,027

Current Liabilities

458,123,900,970

468,669,708,622

438,720,082,069

Fixed Liabilities

142,641,340,840

121,634,863,990

117,890,987,958

Capital Stock

1,034,183,411,213

917,729,107,488

828,628,603,454

Capital Surplus

 

 

 

Profit Surplus

-89,167,183,250

-106,886,963,968

-117,097,477,220

Capital Adjustment

 

 

 

Total Equity

945,016,227,963

810,842,143,520

711,531,126,234

Liab. & Shareholder’s Equity

1,545,781,469,773

1,401,146,716,132

1,268,142,196,261

 

 

Products, Technologies, Services Description

 

Main Products & Services

The Subject is the one and only national agency for R&D in defense technology contributing to enforcing the national defense, to improving the national R&D capacity. and to fostering the domestic industry, and is in charge of the planning and conduct of all defense acquisition for the Republic of Korea, including R&D, Test and Evaluation and support for foreign military purchases.

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

SAMSUNG TECHWIN CO., LTD.

19FL., SEOCHO TOWER, 1321-15, SEOCHO-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-3467-7114  FAX:+82-3467-7000

 

DOOSAN INFRACORE CO., LTD.

DOOSAN TOWER 22TH~26TH FL. 18-12, EULJIRO-6GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-3398-8114  FAX:+82-2-3398-8117

 

 

Sales by Region (Activity & Markets)

 

The Subject exports to USA.

 

 

Court Action

 

Not Available.

 

 

News Clipping

 

----------

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.79

UK Pound

1

Rs.99.95

Euro

1

Rs.71.55

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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.