MIRA INFORM REPORT

 

 

Report Date :

04.10.2012

 

IDENTIFICATION DETAILS

 

Name :

SEAH BESTEEL CORPORATION

 

 

 

 

Registered Office :

26-2, Guro 5-dong, Guro-gu, Seoul, Korea 152-838

 

 

 

 

Country :

South Korea

 

 

 

 

Financials (as on) :

30.06.2012

 

 

 

 

Date of Incorporation :

05.04.1955

 

 

 

 

Com. Reg. No.:

113-81-06798

 

 

 

 

Legal Form :

Listed Company

 

 

 

 

Line of Business :

Manufacture of Basic Iron and Steel

 

 

 

 

No. of Employees :

1,510

 

 

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 :

Exist

 

 

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

(31.03.2011)

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

SEAH BESTEEL CORPORATION

(Korean Company Name : “(주)세아베스틸”)

Registered Address

26-2, Guro 5-dong, Guro-gu, Seoul, Korea

Zip Code

152-838

Tel

+82-2-818-2114

Fax

+82-2-864-8698

E-mail

hnyoon@seahbesteel.co.kr

Website

www.seahbesteel.co.kr

Trading Address

26-2, Guro 5-dong, Guro-gu, Seoul, Korea

Tel

+82-2-818-2114

Fax

+82-2-864-8698

Other Address-Gunsan Factory

1-6, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea

Tel

+82-63-460-8114

Fax

+82-63-460-8560

Other Address-Busan Office

159-4, Gamjeon-dong, Sasang-gu, Busan, Korea

Tel

+82-51-312-8522

Fax

+82-51-311-2105

Type

Export/Import

Industry

Manufacture of Basic Iron and Steel

  Main Business

Specialty Steel, Automotive Parts

  Sub Business

Manufacture of Other Parts and Accessories for Motor Vehicles n. e. c.

Established (mm/dd/yyyy)

04/05/1955

The Subject owns the premises of Gunsan factory and Head Office.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Transportation components and systems(25170000)

Sell

Steel(11101704)

Sell

Train wheels(25171902)

Buy

Electrodes(39121436)

Buy

Metal scrap(11191600)

Buy

Ferrous alloy(11101712)

 

 

CEO’s

 

Name

Lee Sung-Hwi

Date of Birth

02/04/1950

Title

President & CEO

Sex

Male

Nationality

Korean

Profiles

 

Capital (KRW)

219,310,595,000

Employees

1,510

Formation

Listed Company (Korea Stock Exchange : 001430) as of 03/12/1991

A Company of SeAH Group

Bank Details

Korea Development Bank-Finance 1 Dept.

Hana Bank

Corporate Registered No.

110111-0035794

Business Registered No.

113-81-06798

Permit & Licenses

1985 KS

1988 JIS

1995 ISO 9002

1999 QS 9000

1999 KT

1999 ISO 9002

2005 KT

12/07/2005 ISO 9001

2/01/2006 ISO/TS 16949:2002

 

Int’l Trade No.: 720799

Shareholder Position

Name

Shares

%

SEAH HOLDINGS CORP(110111-2276809)

19,500,000

54.37

SEAH STEEL CORPORATION(110111-0118996)

3,000,000

8.37

HAIDUK CORPORATION(110111-0038011)

2,693,738

7.51

NATIONAL PENSION SERVICE(110171-0007134)

2,318,350

6.46

LEE WOON-HYUNG

266,000

0.74

LEE SOON-HYUNG

108,070

0.30

HUR EUN-HONG

880

0.00

TREASURY STOCK

943,020

2.63

OTHERS

7,032,061

19.61

TOTAL

35,862,119

100.00

Company History

1937 Established as GWANDONG MACHINE MANUFACTORY

04/05/1955 Incorporated and Changed company name to KOREA HEAVY MACHINERY INDUSTRY CO., LTD.

1978 Merged with Incheon Casting Plant of Won Poong Industry Co., Ltd.

1986 Joined to KIA Group

1990 Changed company name to KIA STEEL CO., LTD.

1991 Listed at Korea Stock Exchange

1993 Moved Head Office to Gunsan

1996 Awarded US$50 Million Export Top Prize

02/03/1999 Decided to be managed and operated by Court

2003 Joined to SeAH Group

2003 Awarded US$100 Million Export Top Prize

12/26/2003 Discharged of managing by Court

2004 Changed company name to SEAH BESTEEL CORPORATION

2008 Awarded US$300 Million Export Top Prize

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Lee Woon-Hyung

Korean

1947.02.17

Seoul National University, Korea

President & CEO

Mr.

Lee Sung-Hwi

Korean

1950.02.04

Seoul National University, Korea

Vice President

Mr.

Yoon Ki-Soo

Korean

1956.09.03

Hongik University, Korea

Outside Director

Mr.

Chae Bang-Eun

Korean

1946.05.31

Seoul National University, Korea

Auditor

Mr.

Choi Jong-Seung

Korean

1946.09.20

Seoul National University, Korea

Auditor

Mr.

Kim Chang-Do

Korean

1950.02.26

Seoul National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2012

1,257,984,240,019

2,191,518,256,595

89,093,800,099

(*)2011

2,484,734,008,766

1,999,402,384,509

226,558,728,481

(*)2010

1,867,538,671,152

1,909,295,729,574

149,026,404,566

2009

1,245,359,976,570

1,697,962,001,325

(-)38,680,863,688

2008

1,840,728,419,741

1,681,299,268,997

101,694,543,435

2007

1,195,387,344,807

1,339,894,395,686

41,126,496,193

2006

 967,358,415,494

 1,138,843,285,053

 60,217,991,212

2005

 1,002,705,294,421

 986,945,040,122

 67,763,780,544

2004

926,423,705,351

 916,008,512,067

50,544,157,989

(*)Figures are based on the K-IFRS Accounting System.

 

 

Financial Description

 

Authorized Capital(KRW)

750,000,000,000

Paid-Up Capital(KRW)

219,310,595,000

Total Issues Shares

35,862,119

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

2,191,518,256,595

1,999,402,384,509

1,909,295,729,574

Current Assets

960,803,025,117

846,781,514,988

707,392,819,974

Cash & Cash Equivalents

7,919,158,220

2,585,800

7,605,103,900

Trade Receivables & Other Receivables

361,243,113,420

313,783,733,298

249,607,159,073

Current Financial Instruments

10,891,701,906

273,126,263

1,253,910,000

Current Non-Financial Instruments

1,472,592,781

1,791,851,254

5,676,793,648

Inventories

579,276,458,790

530,930,218,373

443,249,853,353

Non-Current Assets

1,230,715,231,478

1,152,620,869,521

1,201,902,909,600

Tangibles

1,189,186,746,813

1,109,841,221,871

1,179,363,152,880

Intangibles

4,027,547,424

3,818,955,889

2,408,069,201

Long-Term Trade Receivables & Other Receivables

5,226,551,997

5,063,160,287

6,143,605,963

Non-Current Financial Instruments

10,299,679,601

10,686,944,601

13,348,614,601

Investment_Related Companies

21,315,762,586

22,564,266,302

　

Non-Current Non-Financial Instruments

658,943,057

646,320,571

639,466,955

Total Liabilities

865,814,172,557

711,380,113,629

805,342,860,673

Current Liabilities

525,830,728,836

535,655,482,619

616,202,031,182

Trade Payables & Other Payables

242,757,352,214

215,576,087,100

163,738,752,347

Short-Term Borrowings

255,765,950,111

265,808,552,639

428,223,232,189

Other Current Financial Debts

　

　

1,560,382,098

Accrued Income Tax

25,171,600,110

46,657,567,997

10,613,318,498

Other Current Non-Financial Debts

2,135,826,401

7,613,274,883

12,066,346,050

Non-Current Liabilities

339,983,443,721

175,724,631,010

189,140,829,491

Long-Term Trade Payables & Other Payables

8,128,164,813

8,145,357,280

8,319,933,294

Long-Term Borrowings

298,940,576,714

139,662,309,857

142,154,297,597

Other Non-Current Financial Debts

　

　

1,431,274

Deferred Income Tax Credit

25,898,840,810

25,776,410,079

32,690,905,575

Confirmed Salaries

6,890,890,084

1,953,172,206

5,621,460,548

Other Non-Current Non-Financial Debts

124,971,300

187,381,588

352,801,203

Capital Stock

219,310,595,000

219,310,595,000

219,310,595,000

Capital Surplus

30,172,223,578

30,172,223,578

30,172,223,578

Others

273,446,026,030

278,643,610,273

278,643,610,273

Installments

-535,462,365

-254,054,865

433,651,880

Profit Surplus

803,310,701,795

760,149,896,894

575,392,788,170

Total Equity

1,325,704,084,038

1,288,022,270,880

1,103,952,868,901

Liab. & Shareholder’s Equity

2,191,518,256,595

1,999,402,384,509

1,909,295,729,574

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

1,257,984,240,019

2,484,734,008,766

1,867,538,671,152

Cost of Sold Goods

1,094,021,168,758

2,109,652,346,547

1,598,177,532,814

Gross Profit

163,963,071,261

375,081,662,219

269,361,138,338

Selling & Admin. Expenses

39,936,345,706

72,900,765,655

59,772,378,522

Other Operating Income

4,877,582,784

8,222,668,867

3,267,895,143

Other Operating Expenses

2,577,471,346

13,057,268,527

3,871,014,365

Operating Income

126,326,836,993

297,346,296,904

208,985,640,594

Finance Income

3,276,247,587

5,953,985,318

9,804,027,582

Finance Expenses

13,602,086,680

35,577,538,802

43,163,782,886

Profits from Equity Method

-548,503,716

3,614,266,302

　

Income Before Taxes

115,452,494,184

271,337,009,722

175,625,885,290

Income Taxes Expenses

26,358,694,085

44,778,281,241

26,599,480,724

Net Income

89,093,800,099

226,558,728,481

149,026,404,566

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

44,159,490,121

252,790,833,176

212,928,658,490

Net Income

115,452,494,184

271,337,009,722

175,625,885,290

Exp. without Cash Outflow

64,272,280,813

155,146,883,588

148,304,966,941

Revenue without Cash Inflows

-822,646,350

-6,960,382,789

-3,365,533,077

Changes in Asset/ & Liability

-77,006,852,391

-123,701,288,764

-44,666,501,925

Interests Received

491,992,403

938,104,221

498,540,555

Interests Paid

-11,520,753,228

-28,797,492,111

-62,394,287,455

Income Taxes

-46,707,025,310

-15,172,000,691

-1,074,411,839

Cash Flows from Investing

-136,437,572,685

-55,512,550,541

-101,518,784,844

Cash Inflow from Investing

4,902,893,637

51,493,197,093

7,698,206,137

Cash Outflows for Investing

-141,340,466,322

-107,005,747,634

-109,216,990,981

Cash Flows from Financing

100,194,654,984

-204,880,800,735

-104,595,644,062

Cash Inflows from Financing

831,888,540,127

615,272,564,359

553,545,212,318

Cash Outflows from Financing

-731,693,885,143

-820,153,365,094

-658,140,856,380

Increase/Decrease in Cash

7,916,572,420

-7,602,518,100

6,814,229,584

Cash at the Beginning of Year

2,585,800

7,605,103,900

766,869,040

Cash at the End of Year

7,919,158,220

2,585,800

7,605,103,900

 

Products, Technologies, Services Description

 

Main Products & Services

Special Steel

-Carbon Steel

-Alloy Steel

-Steel

-Nitriding Steel

-Spring Steel

-Bearing Steel

-Boron Steel

-High Strength Steel

-Microalloying Steel

-Free-Cutting Steel

 

Automotive Parts

Crank Shaft

-Axle Shaft

-Tripod Housing-Outer Race

-Inner Race

-Front Driving Differential Assembly-Rear Axle Assembly

-Axle Casting

-Brake Drum & Disc

-Hub Casting

-Differential Carrier & Differentia Case

 

Railway Wheels

 

Brand Name : Besteel, Shine Mold

 

 

Trade Partners & Competitors

 

Suppliers

SEJONG RESOURCES CO., LTD.(160111-0079891)

DONGBU METAL CO., LTD.(110111-3836678)

VALDUNES(FRANCE)

Customers

KIA MOTORS CORPORATION(110111-0037998)

Competitors

G & C HEAVY INDUSTRY CO., LTD.

2NA-203, SIHWA INDUSTRIAL COMPLEX, 1260-2, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-358-1011  FAX:+82-31-358-9617

 

YONG JIN SPECIALTY STEEL CO., LTD.

980-59, BANGBAE 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-32-680-3000  FAX:+82-32-678-8520

 

POSCO SPECIALTY STEEL CO., LTD.

65, SINCHON-DONG, CHANG-WON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-269-6114  FAX:+82-55-269-6901

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SEAH HOLDINGS CORP(110111-2276809)

SEAH METAL CO., LTD.(194311-0003292)

SEAH SPECIAL STEEL CO., LTD.(174611-0005478)

KANG NAM CITY GAS CO., LTD.(110111-0385199)

KOREA BUNDY CORP.(134711-0001266)

ESAB SEAH CORP.(180111-0059047)

SEAH LOGISTICS CORP.(151111-0000847)

SEAH ENT CO., LTD(110111-0740707)

SEAH INVESTMENT DEVELOPMENT CO., LTD(120111-0039489)

SEAH COMMUNICATIONS CO., LTD.(110111-0862519)

SEAH INFORMATION SYSTEM CO., LTD.(110111-0613855)

DREAMLINE CORPORATION(110111-1447021)

SEAH TECHNICS CO., LTD.(110111-1243875)

SEAH SOLAR SYSTEMS CO., LTD.(110111-3788655)

HAIDUK CORPORATION(110111-0038011)

HAIDUK STEEL CO.,LTD(110111-2121145)

HOYEON TOURIST LEISURE INDUSTRY CO., LTD(131411-0176612)

SEAHBNK CO.,LTD.(135111-0084924)

OSAN PRECISION CORP.(131311-0029293)

 

SEAH JAPAN

SEAH STEEL AMERICA INC.

Corporate Ownership

SEAH HOLDINGS CORP(110111-2276809)

Major Shareholders

SEAH HOLDINGS CORP(110111-2276809)

Cooperative Enterprise

-Technical Support from

VALDUNES(FRANCE)

 

-Insured Company

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2012

2011

2010

Export

208,954

366,159

251,136

Domestic

1,049,030

2,118,574

1,616,403

Total

1,257,984

2,484,733

1,867,539

The Subject exports to USA, Oceania, Europe and Asia.

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

 

 

 

The Subject Company

Claim for Compensation from Damages

   9,760,472,000

3rd round is proceeding

 

 

 

The Subject Company

Refund

2,666,926,000

1st round is proceeding

 

 

 

The Subject Company

Claim for Compensation from Damages

1,315,460,000

1st round is proceeding

 

 

 

The Subject Company

Claim for Compensation from Damages

105,754,000

1st round is proceeding

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.33

UK Pound

1

Rs.84.30

Euro

1

Rs.67.45

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

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.