MIRA INFORM REPORT

 

 

Report Date :

16.04.2013

 

IDENTIFICATION DETAILS

 

Name :

HAN KUM CO., LTD.

 

 

Registered Office :

331, Yusan-dong, Yangsan-si, Gyeongsangnam-do, Korea 626-230

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

16.08.1988

 

 

Com. Reg. No.:

621-81-05271

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products

 

 

No. of Employees :

214

 

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

(31.03.2011)

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

HAN KUM CO., LTD.

(Korean Company Name : “()한금”)

Registered Address

331, Yusan-dong, Yangsan-si, Gyeongsangnam-do, Korea

Zip Code

626-230

Tel

+82-55-370-5600

Fax

+82-55-370-5610

E-mail

general@hankookmetal.co.kr;jy@hankookmetal.co.kr;

ryush@hankookmetal.co.kr

Website

www.hankookmetal.co.kr

Trading Address

1 Dong-309, Lotte IT Castle, 550-1, Gasan-dong, Geumcheon-gu, Seoul, Korea

Tel

+82-2-525-2211

Fax

+82-2-525-0105~6

Other Address-Pohang Factory

1874, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-278-2886~8

Fax

+82-54-278-2889

Other Address-Daegu Office

1597, Sangyeok 2-dong, Buk-gu, Daegu, Korea

Tel

+82-53-384-5791

Fax

+82-53-384-6053

Other Address

A-808, 222-7, Guro-dong, Guro-gu, Seoul, Korea

Type

Export

Industry

Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products

  Main Business

Cold Rolled Steel Strapping, Cold Rolled Steel Strip

Established (mm/dd/yyyy)

08/16/1988

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Metal straps(31151901)

Sell

Steel(11101704)

Sell

Fastening supplies(44122100)

 

 

CEO’s

 

Name

Ryu Ho-Chang

Address

Suite 506-901, 1049, Guseo-dong, Geumjeong-gu, Busan, Korea

Date of Birth

10/13/1960

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

4,210,000,000

Employees

214

Formation

Co., Ltd by shares

Bank Details

Industrial Bank of Korea

Woori Bank

Kookmin Bank-Hwagok Bon Dong Corporate Finance Branch

Corporate Registered No.

184511-0003795

Business Registered No.

621-81-05271

Permit & Licenses

Int’l Trade No.: 894821

Shareholder Position

Name

Shares

%

RYU CHANG-MOK & HIS FAMILY(3)

400,000

100.00

TOTAL

400,000

100.00

Company History

08/16/1988 Incorporated as the present name

02/14/1998 Acquired HANKUM SALES CO., LTD.

03/09/1999 Confirmed of Corporate Composition by the approval of Ulsan District Court

11/07/2002 Completed Corporate Composition

08/27/2008 Increased capital to 4,000,000,000 KRW from 1,500,000,000 KRW

09/28/2011 Increased the authorized shares to 2,000,000 shares from 400,000 shares

11/01/2011 Increased capital to 4,210,000,000 KRW from 4,000,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Ryu Ho-Chang

Male

Korean

03/11/2005

Director

Mr.

Shim Kyu-Seok

Male

Korean

03/24/2011

Director

Mr.

Yoo Sung-Hoon

Male

Korean

06/12/2009

Auditor

Mr.

Lee Joon-Kook

Male

Korean

03/27/2006

Supervisor of HQ

Mr.

Lim Byung-Hak

Male

Korean

11/14/2011

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

190,286,186,985

117,807,107,958

2,066,237,192

2011

220,023,521,274

124,014,589,757

9,877,356,620

2010

189,439,378,385

96,936,695,473

9,019,989,874

2009

135,742,826,241

72,845,941,465

1,605,252,292

2008

191,121,160,773

92,748,844,529

11,668,700,461

2007

136,952,384,637

87,105,109,568

137,985,893

2006

127,855,089,811

59,213,852,185

(-)6,868,895,709

2005

143,207,202,445

67,618,828,129

1,983,990,115

2004

105,371,922,256

53,053,597,275

2,372,205,662

 

 

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

4,210,000,000

Total Issued Shares

421,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

117,807,107,958

124,014,589,757

96,936,695,473

Current Assets

77,090,911,807

85,128,292,787

63,205,353,104

-Quick Assets

25,235,971,740

34,076,118,256

26,343,228,887

-Inventories

51,854,940,067

51,052,174,531

36,862,124,217

Fixed Assets

40,716,196,151

38,886,296,970

33,731,342,369

-Investment

1,661,600,117

215,665,108

1,651,808,467

-Tangibles

37,569,132,485

36,365,753,364

30,504,009,511

-Intangibles

1,485,463,549

2,304,878,498

1,575,524,391

Total Liabilities

66,904,930,791

75,040,580,115

62,670,864,036

Current Liabilities

55,866,228,955

67,169,329,911

60,756,364,036

Fixed Liabilities

11,038,701,836

7,871,250,204

1,914,500,000

Capital Stock

4,210,000,000

4,210,000,000

4,000,000,000

Capital Surplus

17,338,541,883

17,338,541,883

12,949,541,883

Profit Surplus

29,353,635,284

27,425,467,759

17,316,289,554

Capital Adjustment

 

 

 

Total Equity

50,902,177,167

48,974,009,642

34,265,831,437

Liab. & Shareholder’s Equity

117,807,107,958

124,014,589,757

96,936,695,473

 

Current Liabilities

55,866,228,955

67,169,329,911

60,756,364,036

Trade Payables

13,693,456,009

15,719,612,992

7,811,925,832

Short-Term Borrowings

31,001,310,414

34,178,376,115

27,546,661,268

Account Payables

1,786,905,807

2,382,849,797

1,512,707,697

Advance Receipts

330,475,315

203,944,230

367,324,519

Withholdings

148,823,877

191,719,237

180,690,843

Accrued Expenses

2,003,986,011

1,689,391,005

1,483,078,367

Deferred Income Tax Credit

-

874,563,801

3,252,365,989

Short-Term Borrowings to Shareholders/ Executives/ Employees

5,560,714,822

10,507,708,234

17,354,315,021

Current Portion of Long-Term Debts

1,121,862,200

1,137,470,000

1,091,600,000

Guarantee Deposit Withhold

218,694,500

183,694,500

83,694,500

National Subsidies

-

100,000,000

72,000,000

Fixed Liabilities

11,038,701,836

7,871,250,204

1,914,500,000

Long-Term Borrowings

11,038,701,836

7,871,250,204

1,914,500,000

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

190,286,186,985

220,023,521,274

189,439,378,385

Cost of Sold Goods

177,325,489,412

195,704,396,851

164,508,391,193

Gross Profit

12,960,697,573

24,319,124,423

24,930,987,192

Selling & Admin. Expenses

10,205,616,747

10,719,257,972

9,425,794,438

Operating Income

2,755,080,826

13,599,866,451

15,505,192,754

Non-Operating Income

3,163,740,542

2,497,705,485

2,767,040,208

Non-Operating Expenses

3,615,689,297

3,906,196,220

3,682,141,690

Income Before Taxes

2,303,132,071

12,191,375,716

14,590,091,272

Income Taxes Expenses

236,894,879

2,314,019,096

5,570,101,398

Net Income

2,066,237,192

9,877,356,620

9,019,989,874

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

7,490,884,464

-2,301,379,655

-7,321,598,056

-Net Income

2,066,237,192

9,877,356,620

9,019,989,874

-Exp. without Cash Outflow

3,967,394,639

2,875,833,740

3,219,316,282

-Revenue without Cash Inflows

-451,980,618

-105,375,649

-320,384,869

-Changes in Asset/ & Liability

1,909,233,251

-14,949,194,366

-19,240,519,343

Cash Flows from Investing

-2,742,124,852

-7,531,153,321

-3,321,997,631

-Cash Inflow from Investing

3,453,946,895

3,002,679,473

2,625,296,786

-Cash Outflows for Investing

-6,196,071,747

-10,533,832,794

-5,947,294,417

Cash Flows from Financing

-4,700,602,317

10,242,615,260

10,085,610,446

-Cash Inflows from Financing

75,030,075,555

52,907,985,555

67,078,258,170

-Cash Outflows from Financing

-79,730,677,872

-42,665,370,295

-56,992,647,724

Increase/Decrease in Cash

48,157,295

410,082,284

-557,985,241

Cash at the Beginning of Year

1,014,443,264

604,360,980

1,162,346,221

Cash at the End of Year

1,062,600,559

1,014,443,264

604,360,980

 

 


Products, Technologies, Services Description

 

Main Products & Services

Cold Rolled Low Carbon Steel Strip

Cold Rolled Special Steel Strip

Cold Rolled Stainless Steel Strip

Steel Strapping

Self Locking

Strapping Seals

 

 

Trade Partners & Competitors

 

Suppliers

POSCO(174611-0000741)

Competitors

SINSTEEL CO., LTD.

4BA-508, SIHWA INDUSTRIAL COMPLEX, 748-9, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-434-6342  FAX:+82-31-434-7975

 

HWA CHANG STEEL & WORKS CO., LTD.

94-1, ORYU 2-DONG, GURO-GU, SEOUL, KOREA

TEL:+82-2-2684-5272~6  FAX:+82-2-2681-3598

 

JUYOUNG METAL CO., LTD.

1ST FL., 21, MULLAE-DONG 2-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2678-9525  FAX:+82-2-2633-8131

 

 

Related Parties

 (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

HANKUM TRADING CO., LTD.(180111-0188317)

HANKOOK PRECISION IND.CO., LTD.(190111-0011855)

ILHEUNG METAL CO., LTD.(194311-0001014)

HANKOOK METAL CO., LTD.(KOREA)

Cooperative Enterprise

-Insured Company

GREEN NON-LIFE INSURANCE CO., LTD.(110111-0007082)

 

 

Sales by Region

 (Activity & Markets)

 

Sales/ Unit : KRW

2012

2011

2010

Export

49,094,854,244

73,491,020,228

62,153,861,479

Domestic

131,754,596,474

136,863,156,306

117,888,254,239

Others

9,436,736,267

9,669,344,740

9,397,262,667

Total

190,286,186,985

220,023,521,274

189,439,378,385

 

 

Court Action

 

No.

 

 

News Clipping

 

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.62

UK Pound

1

Rs.83.69

Euro

1

Rs.71.41

 

 

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.