31st Mar 2011 07:00
Annual Report
I. OUTLINE OF COMPANY
1. Purpose of Company
Purpose | Remark |
1) General travel business 2) Airline and ship ticket sales business 3) Souvenir Sales 4) Issuing of Selling Offers 5) Real estate dealing and lease 6) Optional Communication Business 7) Computer programming and supply 8) Mail order 9) Printing and publishing business 10) Issuing of Periodicals 11) The transportation business 12) Institute for traveling specialist 13) Internet (contents and supply, marketing) 14) E-commerce and information processing 15) Advertisement (Internet advertisement) 16) Information and communication 17) Homepage and web-hosting 18) Warehousing 19) All other incidental businesses |
2. History of Company
A. Changes after the establishment
Oct. 25, 1993 | Established Kookjin Travel Co., Ltd. (Capital: 350 million won) 55-4 Seosomun-dong, Jung-gu, Seoul |
Dec. 01, 1995
| Set the company policy in 'comprehensive wholesales' and launched 'Hana Tour', independent package brand, and commenced the agency sales |
Nov. 28, 2000 | Listed on KOSDAQ (commenced trading) |
Nov. 10, 2006 | Listed on LSE(London Stock Exchange) |
B. Change of trade name
Mar. 6, 1996 | Changed the name from Kookjin Travel Co., Ltd. to Hana Tour Co., Ltd. * Purpose is to unify the brand name and company image |
C. Change of location for head office
Oct. 25, 1993 | 55-4 Seosomun-dong, Jung-gu, Seoul |
Mar. 22, 1996 | 10F Inju Building, Tour cost fees-1 Seorin-dong, Jongro-gu, Seoul |
Oct. 01, 1997 | 11F Hanmi Building, 1 Gonpyeong-dong, Jongro-gu, Seoul |
Jun. 15, 2005 | 1 Gongpyeong-dong, Jongro-gu, Seoul |
D. Merger, spin off (merger), comprehensive stock swap, transfer, important business assignment and others
The company has no fact of merger or business assignment since the company establishment to this date of submitting this report.
3. Total Number of Stocks, Etc.
A. Total number of stocks
(As of December 31, 2010)
(Unit: share)
Classification | Types of stocks | Remark | ||
Common stock | Total | |||
I. Total number of stocks to be issued | 20,000,000 | 20,000,000 | ||
II. Total number of stocks issued to this point | 11,616,185 | 11,616,185 | ||
III. Total number of stocks reduced to this point | - | - | ||
1. Capital deduction | - | |||
2. Retirement of earning | - | - | ||
3. Repayment of redeemed stocks | - | - | ||
4. Others | - | |||
IV. Total number of stocks issued (II-III) | 11,616,185 | 11,616,185 | ||
V. Equity stocks | 587,003 | 587,003 | ||
VI. Number of shares distributed (IV-V) | 11,029,182 | 11,029,182 | ||
B. Change of capital
(1) Status of capital increase
(Unit: share, won)
Date of stock issuance | Type of issuance | Contents of issued stocks | ||||
Types | Quantity | Par value | Issuance amount per stock | Remark | ||
Oct. 25, 1993 | - | Common stock | 35,000 | 10,000 | 10,000 | Capital for incorporation |
Jun. 12, 1996 | Capital increase with consideration (shareholder allotment) | Common stock | 21.500 | 10,000 | 10,000 | - |
Jul. 25, 1997 | Capital increase with consideration (shareholder allotment) | Common stock | 35,840 | 10,000 | 10,000 | - |
Oct.01, 1997 | - | Common stock | 184,680 | 5,000 | - | Face amount division |
Dec. 02, 1999 | Capital increase with consideration (shareholder allotment) | Common stock | 115,320 | 5,000 | 5,000 | - |
Dec. 23, 1999 | Capital increase with consideration (shareholder allotment) | Common stock | 60,000 | 5,000 | 10,000 | - |
May, 05, 2000 | -
| Common stock | 3,600,000 | 500 | - | Face amount division |
Nov. 16, 2000 | Capital increase with consideration (shareholder allotment) | Common stock | 900,000 | 500 | 2,850 | - |
Aug. 26, 2003 | Capital increase without consideration | Common stock | 3,764,034 | 500 | - | - |
Oct. 27,2004 | Capital increase with consideration (shareholder allotment) | Common stock | 76,322 | 500 | 11,850 | - |
Oct. 27,2004 | Capital increase without consideration | Common stock | 1,977,029 | 500 | - | - |
Jan. 25, 2006 | Exercise stock options | Common stock | 137,800 | 500 | 6,171 | - |
Nov. 11, 2006 | Capital increase | Common stock | 1,161,000 | 500 | 55,711 | DR |
(2) Status of capital decrease
(Unit: share, won)
Date of capital reduction | Type | Purpose | Contents of reduced stocks | ||||
Types | Quantity | Face value per stock | Amount of acquisition per stock (for capital decrease for consideration) | Remark | |||
- | - | - | - | - | - | - | - |
C. Contents of scheduled change for capital
[No applicable change]
4. Matters on Dividends
A. Matters on dividend for three recent fiscal year
Classification | 18th Term | 17th Term | 16th Term | |
Face amount per stock (won) | 500 | 500 | 500 | |
Current net income (million won) | 24,142 | -4,837 | 5,030 | |
Net income per share (won) | 2,193 | -447 | 445 | |
Total amount of cash dividend (million won) | 9,367 | 5,404 | 8,386 | |
Total amount of stock dividend (million won) | - | - | - | |
Tendency of stock dividend (%) | 38.8 | - | 166.7 | |
Yield rate of cash dividend (%) | Common stock | 1.2 | 1.0 | 3.2 |
Preferred stock | - | - | ||
Yield rate of stock dividend (%) | Common stock | - | - | |
Preferred stock | - | - | ||
Cash dividend per share (won) | Common stock | 850 | 500 | 750 |
Preferred stock | - | - | - | |
Stock dividend per share | Common stock | - | - | - |
Preferred stock | - | - | - | |
5. Status of Employees
(As of December 31, 2010)
(Unit: persons)
Classification | No. of employees | |||
Office | Operation | Etc | Total | |
Men | 442 | 343 | 42 | 827 |
Women | 536 | 183 | 100 | 819 |
Total | 978 | 526 | 142 | 1,646 |
6. Organization
CHAIRMAN & CEO - GLOBAL STRATEGIC PLANNING DIVISION
l
PRESIDENT & CEO
l
GLOBAL MANAGEMENT DIVISION , FINANCE DIVISION , GLOBAL GENERAL SALES DIVISION
l
AGENCY SALES DIVISION , OVERSEAS BUSINESS DIVISION
II. CONTENTS OF BUSINESS
1. Summary of Business
We are the number one wholesale travel agency in Korea with over 45,000 worldwide package products selling through approximately 8,000 retail travel agencies.
Our primary business consists of assembling outbound package tour for Korean travelers. Our large scale of operations enables us to negotiate favorable rates with airline carriers, hotel operators and local transportation providers. We package air tickets, hotel rooms and land services and sell them to the end-user by distributing the products through our network of retail travel agents. We also sell our products through our website at www.hanatour.com or our call centers, of which sales are ultimately handled by the retail travel agencies.
Hanatour has attempted various changes to prepare for the future growth during 2010.
The key points of the changes are enhancing Free Individual Travel market & Online Sales and expanding global business through building a Northeast Asia tourism-belt.
Because it is expected that over 70% of outbound travelers will choose Non-Package products in 2015, we are not only focusing on group package market utilizing group tickets, but also targeting individual market selling unit products such as hotel rooms, air tickets, land services, admission tickets and etc. Thus, we launched the new business model 'B2X2C', a marketplace concept which allows the retailers to freely source out for various F.I.T products to be distributed on Hanatour.com website.
Securing myriads of tour products and contents, we are also planning to position our hanatour.com website as the leading travel portal in the market. With these new business strategies, we will endeavor to become Global No.1 Leisure Corporation in the future.
2. Market Share Rate
The market share rate of the travel business is classified based on persons and the market share rate is calculated by a number of departures. (Crews are excluded from the total departing persons)
This is based on the data announced monthly by Korea Tourism Organization (KNTO) and the passengers reported to Korea Tourism Association (KTA).
Year | 2010 | 2009 | 2008 | |||
Persons | Total departed persons | Total department persons from Hana Tour | Total departed persons | Total department persons from Hana Tour | Total departed persons | Total department persons from Hana Tour |
11,419,271 | 1,789,745 | 8,495,471 | 1,188,219 | 10,973,258 | 1,480,261 | |
Share rate | 15.67% | 13.99% | 13.49% | |||
3. Characteristics of the market
The travel business registered in Korea is about 10,000 that takes about 80% of entire tourist companies that employees about 50,000 persons that has taken a very important role as the main vein of tourism industry. In 1982, the travel business was converted into the registration system and completely liberated in 1989, bringing explosive increase of small travel companies. WTO expects the world travel industry to grow 4.1% of annual average up to 2020. In Korea, with the 5-working day system and dispersed vacation system, it opens up the advanced country-type vacation time.
4. Contents and prospect of new business and others
The company has no detailed investment plan on new business as of the date of submitting this annual report, but it plans to strive for qualitative improvement of overseas business and services through the steady expansion of overseas local corporations.
III. FINANCIAL DATA
Notice to Readers
This report is effective as of March 9, 2011, the auditors' report date. Certain subsequent events or circumstances may have occurred between the auditors' report date and the time the auditors' report is read. Such events or circumstances could significantly affect the accompanying non-consolidated financial statements and may result in modifications to the auditors' report.
HANATOUR SERVICE INC.
NON-CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2010 AND 2009
Korean won | ||
2010 | 2009 | |
(In thousands) | ||
ASSETS | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | ￦ 64,679,252 | ￦ 37,516,717 |
Short-term financial instruments | 45,207,657 | 24,332,500 |
Trade receivables, net of allowance for doubtful accounts of ￦689,413 thousand in 2010 and ￦766,917 thousand in 2009 | 23,359,944 | 20,851,085 |
Short-term loans, net of allowance for doubtful accounts of ￦427,669 thousand each in 2010 and 2009 | 1,713,230 | 2,319,983 |
Accounts receivable - other, net of allowance for doubtful accounts of ￦60,433 thousand in 2010 and ￦53,879 thousand in 2009 | 711,816 | 10,089,750 |
Accrued income, net of allowance for doubtful accounts of ￦101,373 thousand in 2010 and ￦56,669 thousand in 2009 | 926,921 | 492,245 |
Advance payments, net of allowance for doubtful accounts of ￦735,591 thousand in 2010 and ￦295,281 thousand in 2009 | 17,350,291 | 7,904,361 |
Prepaid expenses | 1,618,866 | 1,005,240 |
Deferred income tax assets | 731,880 | 672,902 |
Total current assets | 156,299,857 | 105,184,783 |
NON-CURRENT ASSETS: | ||
Available-for-sale securities | 602,368 | 602,368 |
Investment securities accounted for using the equity method | 20,763,951 | 16,505,651 |
Property and equipment, net of accumulated depreciation of ￦8,463,600 thousand in 2010 and ￦7,493,406 thousand in 2009 | 31,257,389 | 30,514,503 |
Intangible assets, net of amortization | 6,720,543 | 5,738,523 |
Long-term financial instruments | 2,500 | 2,500 |
Guarantee deposits | 4,126,770 | 3,254,085 |
Membership | 496,239 | 471,711 |
Total non-current assets | 63,969,760 | 57,089,341 |
Total assets | ￦ 220,269,617 | ￦ 162,274,124 |
(Continued)
HANATOUR SERVICE INC.
NON-CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AS OF DECEMBER 31, 2010 AND 2009
Korean won | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | 2010 | 2009 |
(In thousands) | ||
CURRENT LIABILITIES: | ||
Trade payables | ￦ 43,005,635 | ￦ 27,444,785 |
Accounts payable - other | 1,243,384 | 302,538 |
Advanced receipts | 7,381,547 | 6,534,701 |
Accrued expenses | 5,657,753 | 2,093,588 |
Withholdings | 1,219,995 | 461,850 |
Value-added tax (VAT) withholdings | 2,369,468 | 1,317,501 |
Income tax payable | 7,311,508 | 1,303,549 |
Deposits received for overseas travel | 37,047,604 | 27,586,114 |
Income received in advance | 83,333 | - |
Rental deposits received | 1,915,400 | 2,818,990 |
Operating deposits received from agents | 167,500 | 180,200 |
Provision for mileage | 614,802 | 448,759 |
Provision for guarantee | 681,120 | 753,426 |
Other provision | 571,000 | - |
Total current liabilities | 109,270,049 | 71,246,001 |
NON-CURRENT LIABILITIES: | ||
Deferred income tax liabilities | 213,223 | 101,056 |
Total non-current liabilities | 213,223 | 101,056 |
Total liabilities | 109,483,272 | 71,347,057 |
SHAREHOLDERS' EQUITY: | ||
Capital stock | 5,808,093 | 5,808,093 |
Capital surplus | 81,862,963 | 72,191,034 |
Capital adjustments | (17,157,056) | (9,741,720) |
Accumulated other comprehensive income | 2,177,323 | 2,161,597 |
Retained earnings | 38,095,022 | 20,508,063 |
Total shareholders' equity | 110,786,345 | 90,927,067 |
Total liabilities and shareholders' equity | ￦ 220,269,617 | ￦ 162,274,124 |
(Concluded)
HANATOUR SERVICE INC
NON-CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
Korean won | ||
2010 | 2009 | |
(In thousands, except per share amounts) | ||
SALES: | ||
Overseas traveling intermediation income | ￦ 173,945,806 | ￦ 83,628,936 |
Air tickets intermediation income | 24,541,125 | 30,241,908 |
Other income | 19,631,919 | 10,028,611 |
218,118,850 | 123,899,455 | |
OPERATING EXPENSES | 190,898,280 | 123,474,417 |
OPERATING INCOME | 27,220,570 | 425,038 |
NON-OPERATING INCOME (EXPENSES): | ||
Interest income | 2,924,201 | 2,875,541 |
Foreign currency transaction loss, net | (639,090) | (162,902) |
Foreign currency translation gain, net | 60,873 | 91,506 |
Gain (loss) on valuation of investment securities accounted for using the equity method, net | 2,976,709 | (6,433,114) |
Gain (loss) on disposal of investment securities accounted for using the equity method, net | 108,793 | (18,919) |
Gain on disposal of property and equipment, net | 4,484 | 132 |
Loss on disposal of intangible assets | (33,333) | - |
Transfer to reserve for provision for guarantee | - | (398,182) |
Other bad debt expenses | (54,704) | (222,382) |
Donation | (348,281) | (188,766) |
Others, net | 523,083 | 1,040,246 |
5,522,735 | (3,416,840) | |
INCOME (LOSS) BEFORE INCOME TAX | 32,743,305 | (2,991,802) |
INCOME TAX EXPENSE | 8,601,592 | 1,845,220 |
NET INCOME (LOSS) | ￦ 24,141,713 | ￦ (4,837,022) |
BASIC NET INCOME (LOSS) PER SHARE | ￦ 2,193 | ￦ (447) |
DILUTED INCOME (LOSS) PER SHARE | ￦ 2,193 | ￦ (447) |
HANATOUR SERVICE INC.
NON-CONSOLIDATED STATEMENTS OF APPROPRIATIONS OF RETAINED EARNINGS
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
Korean won | ||
2010 | 2009 | |
(In thousands) | ||
RETAINED EARNINGS BEFORE APPROPRIATIONS: | ||
Unappropriated retained earnings carried over from prior years | ￦ 13,903,620 | ￦ 24,144,603 |
Interim cash dividends | (3,852,773) | (2,701,980) |
Net income (loss) | 24,141,713 | (4,837,022) |
34,192,560 | 16,605,601 | |
APPROPRIATIONS: | ||
Cash dividends | 5,514,591 | 2,701,981 |
5,514,591 | 2,701,981 | |
UNAPPROPRIATED RETAINED EARNINGS TO BE CARRIED FORWARD TO SUBSEQUENT YEAR | ￦ 28,677,969 | ￦ 13,903,620 |
HANATOUR SERVICE INC.
NON-CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
Korean won | |||||||
Capital stock |
Capital surplus |
Capital adjustments | Accumulated other comprehensive income (loss) |
Retained earnings |
Total | ||
(In thousands) | |||||||
January 1, 2009 | ￦ 5,808,093 | ￦ 60,688,560 | ￦ (23,892,143) | ￦ 1,903,557 | ￦ 44,912,502 | ￦ 89,420,569 | |
Payment of cash dividend | - | - | - | - | (2,714,845) | (2,714,845) | |
Amortization of loss on disposal of treasury stock | - | - | 14,150,592 | - | (14,150,592) | - | |
Balance after appropriation | 5,808,093 | 60,688,560 | (9,741,551) | 1,903,557 | 28,047,065 | 86,705,724 | |
Payment of interim cash dividend | - | - | - | - | (2,701,980) | (2,701,980) | |
Net loss | - | - | - | - | (4,837,022) | (4,837,022) | |
Acquisition of treasury stock | - | - | (1,486,163) | - | - | (1,486,163) | |
Disposal of treasury stock | - | - | 6,531,601 | - | - | 6,531,601 | |
Unexercised stock option rights | - | 9,356,728 | (9,356,728) | - | - | - | |
Gain on disposal of treasury stock | - | 2,145,746 | - | - | - | 2,145,746 | |
Stock compensation expense | - | - | 4,311,121 | - | - | 4,311,121 | |
Changes in gain on valuation of investment securities | - | - | - | 222,620 | - | 222,620 | |
Changes in loss on valuation of investment securities | - | - | - | 35,420 | - | 35,420 | |
December 31, 2009 | ￦ 5,808,093 | ￦ 72,191,034 | ￦ (9,741,720) | ￦ 2,161,597 | ￦ 20,508,063 | ￦ 90,927,067 | |
January 1, 2010 | ￦ 5,808,093 | ￦ 72,191,034 | ￦ (9,741,720) | ￦ 2,161,597 | ￦ 20,508,063 | ￦ 90,927,067 | |
Payment of cash dividend | - | - | - | - | (2,701,981) | (2,701,981) | |
Balance after appropriation | 5,808,093 | 72,191,034 | (9,741,720) | 2,161,597 | 17,806,082 | 88,225,086 | |
Payment of interim cash dividend | - | - | - | - | (3,852,773) | (3,852,773) | |
Net income | - | - | - | - | 24,141,713 | 24,141,713 | |
Acquisition of treasury stock | - | - | (240,725) | - | - | (240,725) | |
Disposal of treasury stock | - | - | 694,330 | - | - | 694,330 | |
Unexercised stock option rights | - | 9,508,009 | (9,508,009) | - | - | - | |
Exercised stock option rights | - | - | (909,277) | - | - | (909,277) | |
Gain on disposal of treasury stock | - | 163,920 | - | - | - | 163,920 | |
Stock compensation expense | - | - | 2,548,345 | - | - | 2,548,345 | |
Changes in gain on valuation of investment securities | - | - | - | 46,342 | - | 46,342 | |
Changes in loss on valuation of investment securities | - | - | - | (30,616) | - | (30,616) | |
December 31, 2010 | ￦5,808,093 | ￦ 81,862,963 | ￦ (17,157,056) | ￦ 2,177,323 | ￦ 38,095,022 | ￦ 110,786,345 | |
HANATOUR SERVICE INC.
NON-CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
Korean won | ||
2010 | 2009 | |
(In thousands) | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | ￦ 24,141,713 | ￦ (4,837,022) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
Provision for severance benefits | 3,241,176 | 3,247,290 |
Stock compensation expense | 2,548,345 | 4,311,121 |
Bad debt expense | 770,279 | 587,967 |
Depreciation | 1,280,249 | 1,066,923 |
Amortization of intangible assets | 1,988,713 | 1,775,848 |
Mileage compensation expense | 359,478 | 254,097 |
Foreign currency translation gain, net | (63,963) | (94,398) |
Gain on disposal of property and equipment, net | (4,484) | (132) |
Loss on disposal of intangible assets | 33,333 | - |
Loss (gain) on valuation of investment securities accounted for using the equity method, net | (2,976,709) | 6,433,114 |
Dividend from investment securities accounted for using the equity method | 865,437 | 645,280 |
Loss (gain) on disposal of investment securities accounted for using the equity method, net | (108,793) | 18,919 |
Transfer to reserve for provision for guarantee | - | 398,182 |
Service fees and charges | 201,000 | - |
Other bad debts expense | 54,704 | 222,382 |
Donations | - | 1,307 |
Others, net | 370,000 | - |
Changes in assets and liabilities resulting in operating activities: | ||
Increase in trade receivables | (2,751,852) | (7,997,795) |
Decrease in accounts receivable - other | 9,292,265 | 3,624,557 |
Increase in advance payments | (9,886,240) | (1,998,591) |
Decrease (increase) in accrued income | (489,381) | 759,360 |
Increase in prepaid expenses | (613,625) | (353,022) |
Decrease in prepaid income tax | - | 700,484 |
Decrease (increase) in deferred income tax assets | (58,978) | 973,743 |
Increase (decrease) in trade payables | 15,552,507 | (4,249,165) |
Increase (decrease) in accounts payable - other | 940,846 | (385,549) |
Increase in advance receipts | 846,845 | 1,850,536 |
Increase in income received in advance | 83,333 | - |
Increase in accrued expenses | 3,629,385 | 821,523 |
Increase in withholdings | 758,145 | 143,492 |
Increase in VAT withholdings | 1,051,967 | 90,454 |
Increase in income tax payable | 5,955,626 | 1,055,452 |
Increase in deposits received for overseas travel | 9,461,490 | 6,509,507 |
Increase (decrease) in operating deposits received from agents | (12,700) | 2,420 |
Decrease in provision for mileage | (193,436) | (84,775) |
Payment of severance benefits | (3,306,396) | (3,194,718) |
Increase (decrease) in deferred income tax liabilities | 114,583 | (858,037) |
63,074,862 | 11,440,754 | |
(Continued)
HANATOUR SERVICE INC.
NON-CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
Korean won | ||
2010 | 2009 | |
(In thousands) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Withdrawal (acquisition) of short-term financial instruments, net | ￦ (20,875,158) | ￦ 17,652,019 |
Collection (extension) of short-term loans, net | 606,753 | (421,244) |
Disposal of investment securities accounted for using the equity method | 12,528 | 12,879 |
Proceeds from disposal of property and equipment | 10,274 | 3,770 |
Payment of guarantee deposits, net | (872,685) | (639,624) |
Acquisition of investment securities accounted for using the equity method | (2,037,451) | (1,798,382) |
Acquisition of property and equipment | (2,028,926) | (461,169) |
Acquisition of intangible assets | (3,004,066) | (919,534) |
Acquisition of membership | (24,528) | - |
(28,213,259) | 13,428,715 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Increase (decrease) in rental deposits received, net | (903,590) | 830,651 |
Acquisition of treasury stock | (240,725) | (1,486,163) |
Payment of dividends | (6,554,753) | (5,416,825) |
(7,699,068) | (6,072,337) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 27,162,535 | 18,797,132 |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR | 37,516,717 | 18,719,585 |
CASH AND CASH EQUIVALENTS, AT END OF YEAR | ￦ 64,679,252 | ￦ 37,516,717 |
(Concluded)
Ⅳ. MANAGEMENT
The directors are elected at a shareholder's meeting by a majority vote of the shareholders present or represented, so long as such number represents at least one quarter of all issued and outstanding shares with voting rights.
Name | Position | Date elected as a director or executive officer |
SangHwan Park | Chairman, Chief Executive Officer and Director | October 25, 1993(Officer and Director) |
HeeSeok Kweon | President, Chief Executive Officer and Director | January 1, 2005(Officer) December 23, 1995(Director) |
HuynSyuk Choi | Chief Operating Officer, Senior Vice President and Director | January 1, 2005(Officer) October 25, 1993(Director) |
JangSuk Han | Outside Director | March 25, 2005 |
JeongWoo Byun | Outside Director | March 23, 2006 |
KiHong Park | Outside Director | March 20, 2007 |
Ⅴ. List of major shareholders
Shareholder | Number of shares | Percentage |
Sanghwan Park | 960,020 | 8.26% |
HeeSeok Kweon | 724,020 | 6.23% |
HyunSeok Choi | 468,020 | 4.03% |
Ⅵ. Status of Affiliated Companies and Others
Namgang Travel Co., Ltd. (100%) | HANA KOREA TOUR Inc. (50%) | |
Hana Tourist Co;,Ltd. (30.23%) | HANATOUR America Inc. (50%) | |
Jeju Hanatour Co., Ltd. (77.35%) | HANATOUR Europe S.R.L (50%) | |
Hana Youth Co., Ltd. (100%) | HANATOUR USA Inc. (100%) | |
Hanauhak INC.(51%) | HANATOUR Europe Ltd (70%) | |
Hana Tour International Co., Ltd. (100%) | HANATOUR International Japan (100%) | |
Tour Marketing Korea Co., Ltd. (70%) | HANATOUR Japan Co., Ltd (70%) | |
OK Tour Co., Ltd. (39%) | HANATOUR Czech S.R.O. (100%) | |
Webtour.Co,.Ltd.(83.81%) | HANATOUR France (100%) | |
Korea Travel Service INC (60%) | HANATOUR CHINA (100%) | |
HANA T&MEDIA Co, Ltd (51%). | HANATOUR PTY Ltd (100%) | |
CJ Worldis INC (50%) | UI Coach (100%) | |
Hana Business Travel (100%) | HANATOUR Hong Kong Co., Ltd (100%) | |
Nex Tour.Co., Ltd. (100%) | HANATOUR PTE Ltd. (100%) | |
H&T Marketing (80%) | HANATOUR Taiwan Service Inc. (100%) | |
HT Shop (100%) | ||
|
Ⅶ. Investment stocks
| Ownership Ratio (%) | No. of Shares |
Hana Business Travel | 100 | 20 |
Hanatourist Service Inc. | 30.23 | 906,981 |
HANATOUR USA Inc. | 100 | 225,000 |
Tour Marketing Korea Co.,Ltd | 70 | 140,000 |
Nex Tour Co.,Ltd. | 100 | 40,000 |
HANATOUR America | 50 | 100 |
HANATOUR Europe S.R.L | 50 | 50 |
Hana Korea Tour Inc. | 50 | 200 |
Jeju HANATOUR Service Inc. | 77.35 | 54,178 |
Hanayouth Service Inc. | 100 | 30,000 |
HANATOUR International Service Inc. | 100 | 440,000 |
OK Tour Service Inc. | 39 | 3,666,000 |
Hana T & Media Co., Ltd | 51 | 510,000 |
Hanauhak INC | 51 | 714,000 |
Web tour | 80.04 | 838,085 |
HANATOUR Europe Limited | 70 | 4,200 |
Korea Travel Sevice INC | 60 | 60,000 |
HANATOUR Pte Ltd. | 100 | 2,142,000 |
HANATOUR Japan Ltd. | 70 | 1,400 |
HANATOUR CZECH | 100 | 9,476,000 |
HANATOUR FRANCE | 99 | 59,000 |
CJ Worldis INC | 50 | 8,000,001 |
HANATOUR Hong Kong Co., Ltd | 100 | 5,000,000 |
HANATOUR CHINA | 100 | - |
HANATOUR PTY LTD | 100 | 600,000 |
H&T Marketing | 80 | 80,000 |
HT Shop | 100 | 20,000 |
HANATOUR Taiwan Service Inc. | 100 | - |
Independent Accountant's Review Report
on Internal Accounting Control System ("IACS")
English Translation of a Report Originally Issued in Korean
To the Representative Directors of
HANATOUR Service Inc.:
We have reviewed the accompanying Report on the Management's Assessment of IACS (the "Management's Report") of HANATOUR Service Inc. (the "Company") as of December 31, 2010. The Management's Report, and the design and operation of IACS are the responsibility of the Company's management. Our responsibility is to review the Management's Report and issue a review report based on our procedures. The Company's management stated in the accompanying Management's Report that "based on the assessment of the IACS as of December 31, 2010, the Company's IACS has been appropriately designed and is operating effectively as of December 31, 2010, in all material respects, in accordance with the IACS Framework established by the Korea Listed Companies Association."
We conducted our review in accordance with the IACS Review Standards established by the Korean Institute of Certified Public Accountants. Those standards require that we plan and perform a review, the objective of which is to obtain a lower level of assurance than an audit, of the Management's Report in all material respects. A review includes obtaining an understanding of a company's IACS and making inquiries regarding the Management's Report and, when deemed necessary, performing a limited inspection of underlying documents and other limited procedures.
A company's IACS represents internal accounting policies and a system to manage and operate such policies to provide reasonable assurance regarding the reliability of financial statements prepared, in accordance with accounting principles generally accepted in the Republic of Korea, for the purpose of preparing and disclosing reliable accounting information. Because of its inherent limitations, IACS may not prevent or detect a material misstatement of the financial statements. Also, projections of any evaluation of effectiveness of IACS to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Based on our review, nothing has come to our attention that causes us to believe that the Management's Report referred to above is not fairly stated, in all material respects, in accordance with the IACS Framework established by the Korea Listed Companies Association.
Our review is based on the Company's IACS as of December 31, 2010, and we did not review its IACS subsequent to December 31, 2010. This report has been prepared pursuant to the Acts on External Audit for Stock Companies in the Republic of Korea and may not be appropriate for other purposes or for other users.
March 9, 2011
Report on the Assessment of Internal Accounting
Control System ("IACS")
To the Board of Directors and Auditor of
HANATOUR Service Inc.:
I, as the Internal Accounting Control Officer ("IACO") of HANATOUR Service Inc. ("the Company"), assessed the status of the design of the Company's IACS for the year ended December 31, 2010.
The Company's management including IACO is responsible for designing IACS. I, as the IACO, assessed whether the IACS has been appropriately designed and is effectively operating to prevent and detect any error or fraud, which may cause any misstatement of the non-consolidatedfinancial statements, for the purpose of preparing and disclosing reliable financial statement reporting. I, as the IACO, applied the IACS Framework established by the Korea Listed Companies Association for the assessment of the design of the IACS.
Based on the assessment of the IACS, the Company's IACS has been appropriately designed and is operating effectively as of December 31, 2010, in all material respects, in accordance with the IACS Framework.
February1, 2011
Kweon, Hee Seok, , Internal Accounting Control Officer |
Park, Sang Hwan, Chief Executive Officer or President |
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