MIRA INFORM REPORT

Report Date :

1^st March, 2007

IDENTIFICATION DETAILS

Name :	AEKYUNG SPECIALTY CHEMICALS CO., LTD.

Registered Office :	72-6, Yongjeon-Dong, Dong-Gu, Daejeon, Korea

Country :	Korea

Financials (as on) :	31.12.2005

Date of Incorporation :	19.03.1982

Legal Form :	Company Limited by Shares.

Line of Business :	Manufacture of Surface-Active Agents

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good

Payment Behaviour :	Usually Correct

Litigation :	Clear

Basic Information

Company Name	Aekyung Specialty Chemicals Co., Ltd.
Address	72-6, YONGJEON-DONG, DONG-GU, DAEJEON, KOREA
Building	Miseong Bldg.
Zip Code	300-824
Tel	+82-42-621-0436
Fax	+82-42-624-2607
E-mail	kim_hm@aksc.co.kr
Website	www.aksc.co.kr
Daejeon Plant	63-1 DAEWHA-DONG, DAEDUK-GU, DAEJEON, KOREA
Tel	82-42-634-3695
Fax	82-42-626-5196
Cheongyang Plant	625 YEOKCHON-Ri JEONGSAN-MYEON, CHEONGYANG-GUN, CHUNGNAM-DO, KOREA
Tel	+82-41-943-4461
Fax	+82-41-943-4463
Type	Export/Import
Industry	Manufacture of Surface-Active Agents
Main Business	Surfactant Agent, Functional Polymer, Bleach Activator
Established	03/19/1982

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Surfactants(12161900)
Sell	Feldspar(11101514)
Sell	Enzymes(12352204)
Buy	Alcohols or its substitutes(12352104)
Buy	Additives(12160000)
Buy	Curing agents(12162300)
Buy	Chemistry reagents or solutions(41116105)
Buy	Ammonia(12142103)
Buy	Inorganic hydroxides(12352305)
Buy	Organic acids or its substitutes(12352106)
Buy	Alcohols or its substitutes(12352104)
Buy	Organic derivatives and substituted compounds(12352100)

Others

Name	Kim Yong-Nam
Address	467-29, Dogok-dong, Gangnam-gu, Seoul 135-270 Korea
Date of Birth	03/13/1946
Title	President & CEO
Sex	Male
Nationality	Korean
Capital	1,400,000,000 KRW
Employees	95
Formation	Co, Ltd. by shares, A company of Aekyung Group

The Subject established in March 1982, is the renewed manufacturer of raw materials for the third generation synthetic detergent into the global market. AKSC produces intermediate raw materials, such as Alpha Olefin Sulphonate (AOS), Linear Alkylbenzene Sulphonic Acid (LAS), and Alcohol Ethoxy Sulphate (AES) at a production rate of 80,000 tons annually.

The products are distributed to domestic and global markets. In 1994 in order to put forth to expand the export of the products to Asia as well as worldwide market, The Subject completed the new factory in Chungyang. In 1995 The Subject was awarded the Steel Tower industrial medal on the 32nd day of Trade. To subsequently pass on the monetary values to its customers, The Subject has constructed Cheongyang plant that is equipped with Active Matter Drying Unit(AMDU) which reduces the energy consumption to a minimal unlike the existing liquefied materials. The plant also features high condensation technology, and is able to produce powder products.

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Day
President & CEO	Mr.	Kim Yong-Nam	Male	Korean	05/31/1998
Director	Mr.	Baik In-Seob	Male	Korean	03/26/1998
Director	Mr.	Chae Hung-Seok	Male	Korean	03/26/2004
Director	Mr.	Lee Jong-Ki	Male	Korean	03/26/2004
Auditor	Mr.	Shin Han-Seob	Male	Korean	03/24/2006

Financials

Unit: KRW

Year	Sales	Assets	Net income
2005	80,067,287,160	38,259,095,635	2,312,541,792
2004	69,624,857,302	36,767,897,59	2,443,823,456
2003	56,967,470,109	32,562,352,875	1,654,292,751

Financial Description

Unit: KRW

Authorized Capital

1,400,000,000

Paid-Up Capital

1,400,000,000

Total Issues Shares

140,000

Balance Sheet Unit : Korean Won

As of 12/31/2005

As of 12/31/2004

As of 12/31/2003

Total Assets

38,259,095,635

36,767,897,593

32,562,352,875

Current Assets

19,717,347,723

19,152,514,733

17,671,889,493

-Quick Assets

9,869,715,951

10,028,898,460

8,285,788,175

-Inventories

9,847,631,772

9,123,616,273

9,386,101,318

Fixed Assets

18,541,747,912

17,615,382,860

14,890,463,382

-Investment

4,038,359,508

3,006,901,076

3,178,816,843

-Tangibles

13,802,044,489

13,907,078,058

10,966,826,463

-Intangibles

701,343,915

701,403,726

744,820,076

Total Liabilities

24,782,392,680

25,323,736,430

23,282,015,168

Current Liabilities

23,259,165,008

23,768,316,285

22,016,070,877

Fixed Liabilities

1,523,227,672

1,555,420,145

1,265,944,291

Capital Stock

1,400,000,000

Capital Surplus

Profit Surplus

12,076,702,955

10,044,161,163

7,880,337,707

Capital Adjustment

Total Equity

13,476,702,955

11,444,161,163

9,280,337,707

Liab. & Shareholder’s Equity

38,259,095,635

36,767,897,593

32,562,352,875

Income Statement Unit : Korean Won

As of 12/31/2005

As of 12/31/2004

As of 12/31/2003

Sales

80,067,287,160

69,624,857,302

56,967,470,109

Cost of Sold Goods

69,616,018,512

58,737,470,434

46,777,209,001

Gross Profit

10,451,268,648

10,887,386,868

10,190,261,108

Selling & Admin Expenses

7,640,131,490

7,965,502,579

6,077,265,133

Operating Income

2,811,137,158

2,921,884,289

4,112,995,975

Non-Operating Income

1,371,042,583

1,411,542,507

490,800,104

Non-Operating expenses

1,505,431,219

1,486,748,136

2,395,129,698

Ordinary Income

2,676,748,522

2,846,678,660

2,208,666,381

Special Income

Income Before Taxes

2,676,748,522

2,846,678,660

2,208,666,381

Income Taxes Expenses

364,206,730

402,855,204

554,373,630

Net Income

2,312,541,792

2,443,823,456

1,654,292,751

Bank Details

Citi Bank, Korea

Daejeon Corporate Finance Branch

Corporate Registered No.

160111-0004541

Business Registered No.

306-81-03812

Permit & Licenses

Int’l Trade No.: 866749

Shareholder Position

Name	Shares	%
Aekyung Industrials Co., Ltd.	70,000	50.00%
Aekuyng Co., Ltd.	25,994	18.60%
Chang Young-Shin	15,201	10.90%
Chae Hyung-Seok	13,505	9.60%
Others	15,300	10.90%
Total	140,000	100.00%

Company History

03/1982 Established Aekyung Shell Co., Ltd. with Royal Dutch Shell Corp. joining on a 50:50 equity basis

06/1983 Completed Daejeon Factory

05/1989 Expanded Daejeon Factory

11/1990 Awarded for 5 Million Dollars Exports by Ministry of Commerce

04.1994 Completed Cheongyang Factory

08/1994 Completed Central Research Center in Cheongyang

11/1995 Awarded for 10 Million Dollars Exports by Ministry of Commerce

01/1997 Contracted for Sales of ALS, AE3S with P&G Corp.

07/1997 Completed AMDU Manufacturing Factory in Cheongyang

05/1998 Yong nam Kim appointed CEO

09/1998 Renamed the company Aekyung Specialty Chemicals Co., Ltd. and obtained 100% ownership from Royal Dutch Shell Corp.

06/2000 Built new Compound Plant. Diversified in Compound Technology (Amine Oxide, CDE, EQ developed)

09/2000 Moved and expanded Central Research Center to Daejeon

07/2001 Completed Compounding Factory ( cationic surfactants & nonionic surfactants Produced)

12/2001 Designated a Laboratory for Specialized research technicians.

12/2002 Earned first place award in Technology in Economical Export award.

02/2003 Certificate of professional development of enhanced equipment and parts.

Products, Technologies, Services Description

Main Products & Services

AOS (Alpha Olefin Sulphonate),

AES (Alcohol Ethoxy Sulphate; Alkyl Ether Sulphate),

SLS(Sodium Lauryl Alcohol Sulphate; Alkyl Sulphate),

LAS (Linear Alkylbenzene Sulphonic Acid; Alkyl Sulphonic Acids),

CDE (Coconut Diethanol Amide),

Amine Oxide (Dimethyl Lauryl Amine Oxide),

EQ (Ester Quats) etc.

Brand Name: ASCO

Production Capacity

102,000MT

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

Aekyung Co., Ltd.

Aekyung Duty-free Shop

Aekyung Petrochemical Co., Ltd.

Aekyung Development Co., Ltd.

Aekyung Chemical Co., Ltd.

Atec Co., Ltd.

Aekyung Department Store

Aekyung PQ Advanced Materials Co., Ltd.

Aekyung Industrials Co., Ltd.

Kospa Corporation

Gyeongsin Industrials Co., Ltd.

Suwon Aekyung Yoksa

Sales by Region (Activity & Markets)

Sales/ Unit :KRW	2005	2004	2003
Export	19,951,080,369	21,663,188,332	18,396,655,671
Domestic	60,116,206,791	47,961,668,970	38,570,814,438
Total	80,067,287,160	69,624,857,302	56,967,470,109

Court Action

Case No.	Court	Plaintiff(s)/ Creditor(s)/ Applicant(s)	Defendant(s)/ Debtor(s)/ Respondent(s)	Cause	Amount (KRW)	Status
	Daejeon District Court	Kim Myung-Hwan and others(3)	The Subject	Claim of Damages	163,000,000	Pending

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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