3decades

MIRA INFORM REPORT

Report No. :	503454
Report Date :	13.04.2018

IDENTIFICATION DETAILS

Name :	KOLON GLOBAL CORPORATION

Registered Office :	11, Kolon-ro, Gwacheon-si, Gyeonggi-do,

Country :	South Korea

Financials (as on) :	31.12.2017

Date of Incorporation :	28.12.1960

Com. Reg. No.:	120-81-50012 (Int’l Trading Division : 119-85-35038)

Legal Form :	Listed Company

Line of Business :	Export/Import Construction of Highways, Streets and Roads, International Trade Services, Car Sales & Dealer Services, Sporex Operation Services

No. of Employees :	2,837

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good

Payment Behaviour :	Regular

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

South Korea

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

SOUTH KOREA - ECONOMIC OVERVIEW

After emerging from the 1950-53 war with North Korea, South Korea emerged as one of the 20th century’s most remarkable economic success stories, becoming a developed, globally connected, high-technology society within decades. In the 1960s, GDP per capita was comparable with levels in the poorest countries in the world. In 2004, South Korea joined the trillion-dollar club of world economies.

Beginning in the 1960s under President PARK Chung-hee, the government promoted the import of raw materials and technology, encouraged saving and investment over consumption, kept wages low, and directed resources to export-oriented industries that remain important to the economy to this day. Growth surged under these policies, and frequently reached double-digits in the 1960s and 1970s. Growth gradually moderated in the 1990s as the economy matured, but remained strong enough to propel South Korea into the ranks of the advanced economies of the OECD by 1997. These policies also led to the emergence of family-owned chaebol conglomerates such as Daewoo, Hyundai, and Samsung, which retained their dominant positions even as the government loosened its grip on the economy amid the political changes of the 1980s and 1990s.

The Asian financial crisis of 1997-98 hit South Korea’s companies hard because of their excessive reliance on short-term borrowing, and GDP ultimately plunged by 7% in 1998. South Korea tackled difficult economic reforms following the crisis, including restructuring some chaebols, increasing labor market flexibility, and opening up to more foreign investment and imports. These steps lead to a relatively rapid economic recovery. South Korea also began expanding its network of free trade agreements to help bolster exports, and has since implemented 16 free trade agreements covering 58 countries—including the United State and China—that collectively cover more than three-quarters of global GDP.

In 2017, the election of President MOON Jae-in brought a surge in consumer confidence, in part, because of his successful efforts to increase wages and government spending. These factors combined with an uptick in export growth to drive real GDP growth to more than 3%, despite disruptions in South Korea’s trade with China over the deployment of a US missile defense system in South Korea.

In 2018 and beyond, South Korea will contend with gradually slowing economic growth - in the 2-3% range - not uncommon for advanced economies. This could be partially offset by efforts to address challenges arising from its rapidly aging population, inflexible labor market, continued dominance of the chaebols, and heavy reliance on exports rather than domestic consumption. Socioeconomic problems also persist, and include rising inequality, poverty among the elderly, high youth unemployment, long working hours, low worker productivity, and corruption.

Source : CIA

Detailed Information

Management

Job Description	Name	Nationality	Date of Birth	Inauguration Date
President & CEO	Yoon Chang-Woon	Korean	03/06/1954	03/21/2014
Group Chairman	Lee Woong-Ryeol	Korean	1956.04.18	03/22/2002
Outside Director	Bang Cheol-Hwan	Korean	09/21/1960	03/24/2017
Outside Director / Auditor	Choi Jae-Bong	Korean	06/18/1962	03/24/2017
Outside Director / Auditor	Noh Yoong-Ki	Korean	12/09/1956	03/24/2017
Outside Director	Nam Won-Joon	Korean	04/02/1959	03/24/2017
Outside Director / Auditor	Yoo In-Tae	Korean	09/05/1948	03/23/2018
Vice President	Chang Dong-Kwon	Korean	10/28/1959	03/27/2015
Sr. Executive Director	Ahn Hyo-Sang	Korean	04/24/1961	03/24/2017

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2017	3,555,315,325,627	2,235,229,698,691	18,142,326,912
2016	3,158,033,325,605	2,064,214,690,879	6,638,554,746
2015	3,008,626,590,768	1,972,563,936,839	-22,073,211,142
2014	2,806,792,698,200	2,080,410,212,562	4,956,433,236
2013	3,660,114,279,601	2,269,049,095,302	-27,195,491,235
2012	1,450,229,823,563	2,566,710,520,352	4,379,348,655
2011	1,450,229,823,563	2,566,710,520,352	4,379,348,655
2010	1,120,232,491,606	1,778,647,331,991	-67,725,238,920

Financial Description

Authorized Capital(KRW)	1,000,000,000,000
Paid-Up Capital(KRW)	105,753,005,000
Total Issued Shares	21,137,277

Balance Sheet
Unit : Korean Won	As of 12/31/2017	As of 12/31/2016	As of 12/31/2015
Total Assets	2,235,229,698,691	2,064,214,690,879	1,972,563,936,839
Current Assets	1,118,801,545,967	993,752,905,751	965,640,875,491
Cash & Cash Equivalents	88,568,470,996	64,547,255,393	61,885,356,249
Trade Receivables & Other Receivables	464,213,432,327	446,210,539,840	436,964,563,883
Other Receivables-Construction	277,501,134,320	187,273,369,396	251,076,490,107
Other Financial Assets	13,816,313,855	15,831,577,098	11,368,668,140
Inventories	198,000,720,619	178,204,733,361	118,438,161,160
Other Current Assets	76,701,473,850	101,685,430,663	85,907,635,952
Non-Current Assets	1,116,428,152,724	1,070,461,785,128	1,006,923,061,348
Long-Term Trade Receivables & Other Receivables	125,231,104,905	124,941,125,718	92,044,623,525
Non-Current Financial Instruments	109,692,458,682	82,100,314,105	95,067,059,009
Tangibles	395,504,319,159	376,980,478,844	415,508,910,890
Investment_Real Estates	242,604,662,311	236,405,776,259	156,658,724,945
Intangibles	89,363,047,606	93,486,013,925	100,753,521,328
Investment_Related Companies	58,712,183,266	54,259,123,938	42,829,312,770
Deferred Income Tax Assets	86,962,882,171	93,435,648,976	94,619,760,425
Other Non-Current Assets	8,357,494,624	8,853,303,363	9,441,148,456
Total Liabilities	1,764,528,556,201	1,629,510,728,079	1,536,672,537,586
Current Liabilities	1,457,898,777,897	1,294,412,297,372	1,119,152,026,213
Trade Payables & Other Payables	711,714,680,864	653,209,772,483	543,512,244,916
Other Payables-Construction	67,027,330,731	103,466,906,566	87,475,794,649
Short-Term Borrowings	516,231,829,670	423,034,643,618	350,086,482,688
Other Current Financial Debts	19,202,271,659	10,913,466,060	4,146,173,322
Deferred Income Tax Credit	812,503,222	432,556	770,242
Provisions	1,555,423,352	1,555,423,352	1,555,423,352
Other Current Liabilities	141,354,738,399	102,231,652,737	132,375,137,044
Non-Current Liabilities	306,629,778,304	335,098,430,707	417,520,511,373
Long-Term Trade Payables & Other Payables	68,070,002,205	68,318,601,463	76,328,829,504
Long-Term Borrowings	119,095,697,691	156,644,387,190	233,582,101,950
Confirmed Salaries	53,729,413,637	53,490,948,402	54,022,672,449
Other Non-Current Financial Debts	11,373,250,467	15,773,884,152	5,569,192,224
Other Non-Current Liabilities	9,665,355,767	3,893,968,505	7,141,498,018
Long-Term Provision	44,696,058,537	36,976,640,995	40,876,217,228
Capital Stock	127,682,825,000	106,081,950,000	105,753,005,000
Capital Surplus	130,627,149,159	152,367,073,099	152,681,412,099
Profit Surplus	187,001,937,320	170,899,738,527	175,246,215,542
Installments	27,544,272,110	7,624,906,773	3,196,848,011
Installments	-2,155,041,099	-2,269,705,599	-986,081,399
Total Equity	470,701,142,490	434,703,962,800	435,891,399,253
Liab. & Shareholder’s Equity	2,235,229,698,691	2,064,214,690,879	1,972,563,936,839

Income Statement
Unit : Korean Won	As of 12/31/2017	As of 12/31/2016	As of 12/31/2015
Sales	3,555,315,325,627	3,158,033,325,605	3,008,626,590,768
Cost of Sold Goods	3,252,905,038,034	2,888,139,330,740	2,760,670,684,720
Gross Profit	302,410,287,593	269,893,994,865	247,955,906,048
Selling & Admin. Expenses	219,895,265,184	204,644,932,018	200,286,399,477
Operating Income	82,515,022,409	65,249,062,847	47,669,506,571
Other Income	7,950,996,963	4,565,670,946	2,590,032,306
Other Expenses	33,176,444,652	27,704,501,679	37,822,198,128
Finance Income	51,987,283,108	56,169,988,116	101,358,907,256
Finance Expenses	88,812,462,284	92,172,366,541	133,300,235,169
Income Before Taxes	20,464,395,544	6,107,853,689	-19,503,987,164
Income Taxes Expenses	2,322,068,632	-530,701,057	2,569,223,978
Net Income	18,142,326,912	6,638,554,746	-22,073,211,142

Cash Flows
Unit : Korean Won	As of 12/31/2017	As of 12/31/2016	As of 12/31/2015
Operating Activities Cash Flows	51,147,411,358	94,752,190,808	191,754,574,516
Net Income	18,142,326,912	6,638,554,746	-22,073,211,142
Adjustment	87,913,837,814	76,377,621,184	30,852,505,227
Changes in Asset/ & Liability	-27,695,431,219	35,011,730,390	220,521,636,990
Interests Received	4,073,008,805	2,434,250,735	1,748,795,902
Interests Paid	-31,449,659,123	-27,828,186,545	-40,527,495,702
Dividends Received	1,313,157,184	481,502,500	637,955,301
Income Taxes	-1,149,829,015	1,636,717,798	594,387,940
Cash Flows from Investing	-58,849,123,256	-54,950,143,217	49,956,265,529
Cash Flows from Financing	31,742,688,815	-36,430,960,025	-206,276,838,419
Increase/Decrease in Cash	24,021,215,603	2,661,899,144	38,063,535,973
Cash at the Beginning of Year	64,547,255,393	61,885,356,249	23,821,820,276
Cash at the End of Year	88,568,470,996	64,547,255,393	61,885,356,249

Products, Technologies, Services Description

Main Products & Services	Construction of Highways, Streets and Roads, International Trade Services, Car Sales & Dealer Services, Sporex Operation Services
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers	BMW KOREA CO., LTD.
Customers
Competitors	DAEWOO ENGINEERING & CONSTRUCTION CO., LTD.(110111-2137895) KUMHO ASIANA FIRST TOWER, 57, SINMUNNO 1-GA, JONGNO-GU, SEOUL, KOREA TEL:+82-2-2288-3114 FAX:+82-2-2288-3113 SAMSUNG C&T CORPORATION(110111-0002975) 1321-20, SEOCHO 2-DONG, SEOCHO-GU, SEOUL, KOREA TEL:+82-2-2145-2114 FAX:+82-2-2145-3114 GS ENGINEERING & CONSTRUCTION CORP(110111-0002694) GS YEOKJEON BLDG., 537, NAMDAEMUNNO 5-GA, JUNG-GU, SEOUL, KOREA TEL:+82-2-728-1112~4 FAX:+82-2-728-1203 DAELIM INDUSTRIAL CO., LTD.(110111-0084915) DAELIM BLDG., 146-12, SUSONG-DONG, JONGNO-GU, SEOUL, KOREA TEL:+82-2-2011-7114 FAX:+82-2-2011-8000

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates-Domestic	KOLON INDUSTRIES, INC.(135311-0013606) KOLON PHARMACEUTICAL CO., LTD.(110111-0256259) KOLON CORPORATION(110111-0030528) KTP INDUSTRIES INC.(171311-0003504) KOLON GLOTECH INC. (110111-0524838) KOLON FASHION CORPORATION(110111-2127292) NEOVIEWKOLON CO., LTD (134211-0040660) KF&T INDUSTRIES INC.(230111-0091824) KOLON LIFE SCIENCE CO., LTD.(110111-1948277) CELLVIC DEVELOPMENT CORPORATION(131111-0031292) CRYOTECH CO., LTD.(191211-0010226) KOLON FASHION MATERIAL INC.(135311-0011139) KOLON EVERAY CO., LTD.(176011-0054417) FNC KOLON CORP.(110111-0003973) CAMBRIDGE MEMBERS CO., LTD.(134111-0000517) KOLONWELLCARE CO., LTD.(110111-2930299) SWEET MEAL CO., LTD.(110111-2925604) SURPLUS GLOBAL, INC.(110111-1921140) KOLON MOTORS CO., LTD.(131111-0209708) KOLON ENGINEERING & CONSTRUCTION CO., LTD.(110111-0036502) KOLON CONSTRUCTION & CONSULTING CO., LTD.(170111-0230756) I PACIFIC PARTNERS INC.(110111-1902786) KOLON I' NETWORKS CORP.(110111-0712350) DEOK PYEONG LAND CO., LTD.(134411-0024149) KOLON ENVIRONMENTAL SERVICE CO., LTD.(135311-0005893) GREEN NARAE INC(161511-0078133) KESCO LANDSCAPE CO., LTD.(135311-0009572) KOLON BENIT CO., LTD.(135311-0003920) MAUNA OCEAN DEVELOPMENT CO., LTD.(171211-0045128) EFMC (ENVIRONMENTAL FACILITIES MANAGEMENT CORPORATION 110111-1458739 ) ENVY SYSTEM INC.(110111-1028798) GREEN HWASUN INC.(160111-0199459) GREEN GYEONGSAN INC.(160111-0203622) GREEN SUNCHANG INC.(160111-0134942) ON ORGANICNANO ELECTROIC SYSEMS INC.(200111-0255228) KOREA EPLATFORM CO., LTD.(110111-2008921)
Affiliates-Overseas	PT. KOLON INA KOLON USA INC. TISSUEGENE INC. QINGDAO KOLON GLOTECH INC. KOLON NANJING CO., LTD. ZHANGJIAGANG KOLON GLOTECH INC. PT. KOLON LANGGENG BEIJING KOLON GLOTECH, INC. KOLON GP CHEMICAL (SUZHOU) CO., LTD. KOLON INT'L(H.K) LTD. KOLON IMPERIAL GRAPHICS PLC. IMPERIAL GRAPHICS GROUP SERVICES LTD. IMPERIAL GRAPHICS PRODUCTS LTD. KOLON(U.K) LTD. BEIJING MI JO DESIGN CO., LTD. KOLON GLOTECH U.S.A. CORP. FNC KOLON SHANGHAI CORP. FNC KOLON USA CORP.
Overseas Office
Liaison Office
Overseas Branch
Joint Venture	YYCWL CO., LTD.(134111-0402052) (22.40% held by the subject company) YANGYANG WIND POWER CO., LTD.(134511-0297223) (100.00% held by the subject company)
Subsidiary	NATURE BRIDGE CO., LTD.(134411-0063311) (100.00% held by the subject company) KOLON AUTOPLATFORM CORP.(110111-6261525) (100.00% held by the subject company) TECHVISION, INC(134511-0254190) (100.00% held by the subject company) KOLON HOUSE VISION CO., LTD.(134511-0290508) (100.00% held by the subject company) MYEONGJI ENERGY CO., LTD.(180111-1034105) (100.00% held by the subject company)
Corporate Ownership
Major Shareholders	KOLON CORPORATION(110111-0030528)
Cooperative Enterprise

Sales by Region (Activity & Markets)

Not Available.

Court Action

There are 71 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 60,462,000,000 KRW and 26 cases filed as Plaintiff(s)/ Creditor(s)/ Applicant(s) amounting 42,942,000,000 KRW as of 12/31/2017.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.35
UK Pound	1	INR 92.70
Euro	1	INR 80.80
KRW	1	INR 0.061

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

INFORMATION DETAILS

Analysis Done by :	VIV

Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.

Company Name	KOLON GLOBAL CORPORATION
Registered Address	11, Kolon-ro, Gwacheon-si, Gyeonggi-do, Korea (Old Address System : 12th Fl., Kolon Tower, 1-23, Byeoryang-dong, Gwacheon-si, Gyeonggi-do, Korea)
Building	12th Fl., Kolon Tower
Zip Code	13837
Tel	+82-2-3677-5114
Fax	+82-2-3677-5600~1
E-mail	kimgho@kolon.com
Website	www.kolonglobal.com
Trading Address	Songdo Techno Park IT Center, 32, Songdogwahak-ro, Yeonsu-gu, Incheon, Korea (Old Address System : Songdo Techno Park IT Center, 172-1, Songdo-dong, Yeonsu-gu, Incheon, Korea)
Tel	+82-32-420-9111
Fax	+82-32-420-9119
Other Address-Busan Branch	36-7, Namcheon-dong, Suyeong-gu, Busan, Korea
Tel	+82-51-703-5800
Fax
Type	Export/Import
Industry	Construction of Highways, Streets and Roads, International Trade Services
Main Business	Construction of Highways, Streets and Roads, International Trade Services, Car Sales & Dealer Services, Sporex Operation Services
Sub Business	Apartment Building Construction
Established (mm/dd/yyyy)	12/28/1960

Activity	Detailed Products (UNSPSC)
Sell	Highway or road paving or surfacing(72131701)
Sell	General building construction(72130000)
Sell	Commercial or industrial construction(72131600)
Sell	Residential construction(72131500)

MIRA INFORM REPORT

company Information

Detailed Information

Financials

Unit