Credibility evaluation
Purpose of credibility evaluation
- We evaluate credibility of management capability and financial statement of the members and reward credibility rates, to differentiate trade terms accordingly.
Parties subject to evaluation
- ssociation members : decisions on work trade terms with association
- Companies applying for membership in the association : decisions on admission of association membership
- Joint and several guarantee company : evaluation on coverage capacity
- Companies looking to use other services (material purchase, PL group insurance, performance insurance, etc.)
Evaluation period
- Association members : Submit data within 4 months after the closing date of each year (Individuals within 6 months)
- Companies applying for membership if the association : anytime
- Joint and several guarantee company : 1 month before the contract finalization
Validity of Evaluation
- After the evaluation financial statement, 1 year and 8 months
Credit rating
- Credit rate distinguishes companies from AAA grade to C grade
- The credit rating is determined by combining the financial model, the nonfinancial model, and the representative model and reflecting the reasons for the rating limitation
Exemption from evaluation
- If the evaluated company falls under the following condition, evaluation is exempted and the grade below will be rewarded
- Companies on file for bankruptcy will be graded D
- Companies applying for membership in the association statement as transaction history is shorter than 1 year will be rewarded C grade
- If a company subject to external audits has not received one, or the report of the external audit was inappropriate, will be rewarded C- grade
- Association members that did not present credibility evaluation data to the association will be rewarded C- grade
Required documents
| Required documents | expiration date | Note |
|---|---|---|
| ① Credit evaluation application |
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| ② Company status table |
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| ③ Articles of Incorporation |
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| ④ Copy of corporation registration (including erasure) | Months |
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| ⑤ Copy of business registration certificate and business registration certificate | Months |
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| ⑥ Recent financial information (3-year data for initial evaluation) |
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| ⑦ Financial Transaction Confirmation | 7 days |
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| ⑧ National tax, local tax completion certificate, | Months | |
| ⑨ National tax payment certificate, |
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| ⑩ Certified copy of real estate (land, building) registration | 7 days | Copy for viewing online available. |
| ⑪ Other Materials requested by the union. |
- Instructions for Submitting Documents
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- - The application form is required in addition to the evaluation materials
- - In the case of a joint guaranty company, the data of the item ① needs to be turned in as a joint guaranty application
- - For organizations, ⑦ Confirmation of financial transactions ⑧ National tax and local tax full payment certificate are exempted.
Credit rating Process
- Within 4months after the closing date
- Evaluation and notice on results within 3 months after submission
- Conclude an agreement : within an effective date by evaluation
- The effective terms of evaluation : within 1 year and 8 months after cloding date
- Agreement can be renewed anytime within the effective period
- Closing date
- submit required documents
- Assessment
- Notice on evaluation results
- Concluding an agreement
- Guaranteed transaction