MIRA INFORM REPORT

 

 

Report Date :

09.11.2012

 

IDENTIFICATION DETAILS

 

Name :

OCI CORPORATION

 

 

Registered Office :

16FL., Ferrum Tower, 66, Suha-dong, Jung-gu, Seoul, Korea 100-210

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

02.09.1994

 

 

Com. Reg. No.:

104-81-29104

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Wholesale of Industrial Basic Chemicals

 

 

No. of Employees :

101

 

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 :

No Complaints

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 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, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, 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 6.9% in 1998, and then recovered by 9% in 1999-2000. 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. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP

Source : CIA

 

 

 

Basic Information

 

Company Name

OCI CORPORATION

(Korean Company Name : “(주)오씨아이상사”)

Registered Address

66, Suha-dong, Jung-gu, Seoul, Korea

Building

16FL., Ferrum Tower,

Zip Code

100-210

Tel

+82-2-3709-9900

Fax

+82-2-776-3553

E-mail

davidko@ocicorp.co.kr;bjchung@ocicorp.co.kr

Website

www.ocicorp.co.kr

Trading Address

16FL., Ferrum Tower, 66, Suha-dong, Jung-gu, Seoul, Korea

(New Address System : 16FL., Ferrum Tower, 66, Euljiro 5-gil, Jung-gu, Seoul, Korea)

Tel

+82-2-3709-9900

Fax

+82-2-776-3553

Other Address-Busan Branch

Rm. 1305, Busan Trade Center Bdlg, 87-7, Jungangdong 4-ga, Jung-gu, Busan, Korea

Tel

+82-51-464-6032

Fax

+82-51-462-6983

Type

Export/Import

Industry

Wholesale of Industrial Basic Chemicals

  Main Business

Poly Vinyl Alcohol, Toluene Diisocynate

  Sub Business

 

Established (mm/dd/yyyy)

09/02/1994

The Subject Company occupies the premises of registered HQ address by leasing base.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Aromatic or heterocyclic compounds(12352005)

Sell

Polyvinyl alcohol(13111042)

Sell

Chemicals including Bio Chemicals and Gas Materials(12000000)

Sell

Chemistry reagents or solutions(41116105)

Sell

Polyvinyl alcohol(13111042)

Sell

Inorganic metal salts(12352302)

Sell

Borate(11101512)

Sell

Chloroprene CR(13101706)

Sell

Latex rubber(13101501)

Sell

Ethers or its substitutes(12352112)

 

 

CEO’s

 

Name

Lee Hwa-Young

Address

20 daesagwan-ro 11ga gil, Seongbuk-gu, Seoul 136-020 Korea

Date of Birth

05/16/1951

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,400,000,000

Employees

101

Formation

Co., Ltd by shares

A company of DONG YANG CHEMICAL GROUP

Bank Details

Citi Bank, Korea-Sokong Dong Branch

Korea Exchange Bank

Shinhan Bank

Woori Bank

Kookmin Bank

Corporate Registered No.

110111-1072159

Business Registered No.

104-81-29104

Permit & Licenses

Int’l Trade No.: 11185222

Shareholder Position

Name

Shares

%

LEE HWA-YOUNG

180,000

64.29

LEE WOO-IL

100,000

35.71

TOTAL

280,000

100.00

Company History

09/02/1994 Incorporated as CHEMTECH CO., LTD.

02/19/1997 Changed company name to the present name after acquiring Int’l Business from Dong Yang Chemical Industrial Co., Ltd.

03/16/2000 Increased the authorized shares to 1,280,000 KRW from 320,000 shares

12/24/2004 Increased capital to 2,400,000,000 KRW from 200,000,000 KRW

04/22/2010 Decreased capital to 1,400,000,000 KRW from 2,400,000,000 KRW

07/01/2011 Moved to the present HQ address from 3rd Fl., Oriental Chemical Industries Bldg., 50, Sogong-dong, Jung-gu, Seoul, Korea

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Chairman & CEO

Mr.

Lee Hwa-Young

Male

Korean

09/02/1997

Co-President & CEO

Mr.

Cheong Kwang-Hee

Male

Korean

08/01/2005

Co-President & CEO

Mr.

Kim Kyung-Ho

Male

Korean

03/26/2004

Auditor

Mr.

Seo Il-Tae

Male

Korean

03/15/2012

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

831,257,862,981

260,892,762,918

13,819,168,381

2010

727,568,024,685

219,642,458,077

18,199,498,348

2009

732,761,667,345

178,754,158,888

10,429,986,388

2008

817,390,669,892

205,877,800,411

25,169,363,114

2007

592,801,803,814

144,915,543,678

9,645,146,174

2006

508,769,740,766

128,499,191,614

4,025,722,182

2005

463,900,837,742

99,518,074,117

1,487,384,984

2004

472,857,956,962

81,717,258,827

3,862,804,412

2003

396,273,539,976

71,845,750,733

2,839,977,260

 

 

Financial Description

 

Authorized Capital(KRW)

6,400,000,000

Paid-Up Capital(KRW)

1,400,000,000

Total Issues Shares

280,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

260,892,762,918

219,642,458,077

178,754,158,888

Current Assets

122,826,245,264

104,439,270,317

94,317,001,140

-Quick Assets

89,678,573,792

78,144,098,777

71,973,452,858

-Inventories

33,147,671,472

26,295,171,540

22,343,548,282

Fixed Assets

138,066,517,654

115,203,187,760

84,437,157,748

-Investment

133,751,045,525

111,743,114,790

81,983,283,865

-Tangibles

1,492,223,064

1,413,224,320

724,608,176

-Intangibles

250,000

3,250,000

8,697,700

-Others

2,822,999,065

2,043,598,650

1,720,568,007

Total Liabilities

174,596,616,467

148,657,009,808

109,226,728,722

Current Liabilities

142,312,501,469

113,285,599,936

86,011,354,276

Fixed Liabilities

32,284,114,998

35,371,409,872

23,215,374,446

Capital Stock

1,400,000,000

1,400,000,000

2,400,000,000

Capital Surplus

　

　

　

Profit Surplus

102,985,745,220

81,958,655,290

64,239,156,942

Capital Adjustment

-18,089,598,769

-12,373,207,021

2,888,273,224

Total Equity

86,296,146,451

70,985,448,269

69,527,430,166

Liab. & Shareholder’s Equity

260,892,762,918

219,642,458,077

178,754,158,888

 

Current Liabilities

142,312,501,469

113,285,599,936

86,011,354,276

Trade Payables

83,490,144,457

69,302,050,039

63,800,614,478

Short-Term Borrowings

38,991,625,086

31,683,532,459

17,515,155,520

Account Payables

2,048,352,348

1,960,927,342

1,245,104,963

Accrued Expenses

208,079,597

153,499,003

84,498,082

Advance Receipts

1,440,169,551

3,003,620,309

1,036,088,935

Withholdings

98,191,080

233,391,280

223,265,815

Accrued Income Tax

533,909,488

945,519,274

2,097,495,169

Currency Swap

812,499

1,400,000

1,480,688

Others

1,217,363

1,660,230

7,650,626

Current Portion of Long-Term Debts

15,500,000,000

6,000,000,000

-

Fixed Liabilities

32,284,114,998

35,371,409,872

23,215,374,446

Long-Term Borrowings

14,000,000,000

20,500,000,000

  14,500,000,000

Leasehold Deposit Received

135,000,000

100,000,000

      100,000,000

Provision for Severance & Retirement

5,427,522,488

4,535,286,719

3,989,064,090

Deferred Income Tax Credit

16,814,128,356

13,419,743,957

7,449,606,632

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

831,257,862,981

727,568,024,685

732,761,667,345

Cost of Sold Goods

792,274,190,319

691,209,382,763

699,242,591,485

Gross Profit

38,983,672,662

36,358,641,922

33,519,075,860

Selling & Admin. Expenses

34,391,969,684

29,958,815,644

28,531,044,530

Operating Income

4,591,702,978

6,399,826,278

4,988,031,330

Non-Operating Income

32,639,101,410

33,905,312,073

32,317,731,937

Non-Operating Expenses

19,939,362,997

17,347,955,044

24,084,239,295

Income Before Taxes

17,291,441,391

22,957,183,307

13,221,523,972

Income Taxes Expenses

3,472,273,010

4,757,684,959

2,791,537,584

Net Income

13,819,168,381

18,199,498,348

10,429,986,388

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

-3,762,144,225

173,684,109

28,095,604,147

-Net Income

13,819,168,381

18,199,498,348

10,429,986,388

-Exp. without Cash Outflow

4,410,891,818

2,278,372,819

2,030,540,237

-Revenue without Cash Inflows

-18,564,938,354

-19,336,591,201

-9,039,802,071

-Changes in Asset/ & Liability

-3,427,266,070

-967,595,857

24,674,879,593

Cash Flows from Investing

-2,781,836,513

-1,497,877,318

-117,252,851

-Cash Inflow from Investing

3,697,624,743

394,075,434

196,411,067

-Cash Outflows for Investing

-6,479,461,256

-1,891,952,752

-313,663,918

Cash Flows from Financing

7,254,725,415

-685,828,029

-30,580,649,725

-Cash Inflows from Financing

69,745,674,036

73,219,172,604

22,253,688,087

-Cash Outflows from Financing

-62,490,948,621

-73,905,000,633

-52,834,337,812

Increase/Decrease in Cash

710,744,677

-2,010,021,238

-2,602,298,429

Cash at the Beginning of Year

3,462,586,377

5,472,607,615

8,074,906,044

Cash at the End of Year

4,173,331,054

3,462,586,377

5,472,607,615

 

 

Products, Technologies, Services Description

 

Main Products & Services

Poly Vinyl Alcohol, Toluene Diisocynate

(*)The Subject imports a variety of materials to meet the demand of textile, paint, and adhesive industries in Korea.

 

 

Trade Partners & Competitors

 

Suppliers

DAELIM COPORATION(110111-1081093)

HONAM PETRO CHEMICAL CORPORATION(110111-0193196)

LOTTE DAESAN PETROCHEMICAL CORPORATION(161411-0014684)

UNION STEELCO., LTD.(110111-0041501)

 

PT.PERTAMINA

CELANESE CHEMICAL(USA)

ELF ATOCHEM(FRANCE)

N.A.C.C.(USA)

OCCIDENTAL CHEMICAL(USA)

J.H.C.(JAPAN)

OXITENO(BRAZIL)

Customers

ORIENTAL CHEMICAL INDUSTRIES

UNID

BULLS ONE

SAMKWANG GLASS

YI YANG CHEMICALS

DC PERO

UNION

OCI(HONG KONG) LTD. – HONG KONG

OCI INTERNATIONAL INC. - USA

OCI(SHAGHAI) INTERNATIONAL TRADING LTD. –CHINA

Competitors

SHIN WOUN CHEMICAL CO., LTD.

1RA-106, SIHWA INDUSTRIAL COMPLEX, 1236-5, JEONGWANG 3-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-432-6688  FAX:+82-31-432-9204

 

E-YOUNG CHEMICAL CO., LTD.

108B-4L, NAMDONG INDUSTRIAL COMPLEX, 658-1, GOJAN-DONG, NAMDONG-GU, INCHEON, KOREA

TEL:+82-32-822-1321~6  FAX:+82-32-822-1327

 

SDC CO., LTD.

41B-4L, NAMDONG INDUSTRIAL COMPLEX, 720-4, GOJAN-DONG, NAMDONG-GU, INCHEON, KOREA

TEL:+82-32-817-8901  FAX:+82-32-817-8905

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

UNID CO.,LTD (110111-0275069)

(25.1% held by the subject company)

 

OCI COMPANY LTD.(174611-0000981)

DC CHEMICAL CO.,LTD (174611-0000981)

SAMKWANG GLASS IND CO.,LTD (110111-0079817)

UNION CORPORATION(110111-0200579)

ETEC E&C LIMITED(110111-0327555)

DONG YANG SILICONE COMPANY LIMITED(110111-0586375)

DC-FERRO CO LTD(110111-2410233)

BULLSONE(110111-2187676)

ORDEG CO. ,LTD.(110111-0407357)

OCI INFORMATION & COMMUNICATION(110111-1443780)

EYANG CHEMICAL CO., LTD.(110111-0506216)

SHIN YOUNG WOOD CO., LTD(110111-1083643)

ITVMEDIA(110111-1691446)

GUNJANG ENERGY CO., LTD.(211111-0014332)

REGENDARY SOFT CO., LTD.

SEOUL VIDEO VENTURE BUSINESS ASSOCIATES

Overseas Office

AKARETLER, SPOR CAD BJK PLAZA NO. 92 A-BLOK D;58 BESIKTAS ISTANBUL TURKEY

PHONE: +90-212-236-9081  FAX +90-212-236-9085

E-MAIL: ociistanbul@atlas.net.tr

 

UNID LED CO., LTD.(110111-4593623)

(27.20% held by the subject company)

Subsidiary

OCI(HONG KONG) LTD.(HONG KONG)

(100.0% held by the subject company)

 

OCI INTERNATIONAL INC.(USA)

(100.0% held by the subject company)

 

OCI-UNID PHILS. INC.

(100.0% held by the subject company)

 

OCI UNID EUROPE B.V

(100.0% held by the subject company)

Cooperative Enterprise

-Insured Company

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 

 

Sales by Region

 (Activity & Markets)

 

Sales/ Unit :Mil KRW

2009

2008

2007

Export

 

632,734,807

430,487,451

Domestic

 

183,223,875

161,140,628

Others

 

1,431,988

1,173,725

Total

 

817,390,670

592,801,804

The subject deals with the companies in Australia, China, Japan and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.44

UK Pound

1

Rs.87.00

Euro

1

Rs.69.47

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.