MIRA INFORM REPORT

 

 

Report Date :

14.12.2013

 

IDENTIFICATION DETAILS

 

Name :

SK GLOBAL CHEMICAL CO., LTD.

 

 

Registered Office :

99, Seorin-dong, Jongno-gu, Seoul

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

04.01.2011

 

 

Com. Reg. No.:

101-86-60116

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacturer of Petroleum Products, Chemicals & Lubricants

 

 

No. of Employees :

1,203

 

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 – September 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 is currently the world's 12th largest economy. 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. Korea''s export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. 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

 

Company Name

SK GLOBAL CHEMICAL CO., LTD.

(Korean Company Name : “에스케이종합화학())

Registered Address

99, Seorin-dong, Jongno-gu, Seoul, Korea

Zip Code

110-110

Tel

+82-2-2121-5114

Fax

+82-2-2121-7001

E-mail

markij@sk.com;dw@sk.com  

Website

www.skglobalchemical.com

Trading Address

99, Seorin-dong, Jongno-gu, Seoul, Korea

(New Address System : 26, Jong-ro, Jongno-gu, Seoul, Korea)

Tel

+82-2-2121-5114

Fax

+82-2-2121-7001

Other Address-R&D Center

140-1, Wonchon-dong, Yuseong-gu, Daejeon, Korea

Tel

+82-42-866-7301

Fax

+82-42-866-7302

Other Address-Ulsan Complex

110, Gosa-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-208-2114

Fax

+82-52-208-2002

Type

Export/Import

Industry

Manufacture of Petroleum Products, Chemicals &Lubricants

  Main Business

LLDPE, HDPE, PP, Performance Rubber, Benzene, Toluene, Xylene, Para-Xylene, Styrene Monomer, Performance Chemicals

Established (mm/dd/yyyy)

01/04/2011

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Polystyrene PS(13102026)

Sell

High Density Polyethylene HDPE(13102017)

Sell

Amines or imines or its substitutes(12352116)

Sell

Elastomers(13101700)

Sell

Polyethylene(13111016)

Sell

Chemistry reagents or solutions(41116105)

Sell

Polystyrene PS(13102026)

Sell

Aromatic or heterocyclic compounds(12352005)

Sell

Low Density Polyethylene LDPE(13102018)

 

 

CEO’s

 

Name

Cha Hwa-Youb

Address

Suite 608-305, 911, Mok-dong, Yangcheon-gu, Seoul, Korea

Date of Birth

02/21/1959

Title

President & CEO

Sex

Male

Nationality

Korean

 

Education

1977  Graduated from Inchang High School

1983  B.S. Chemical Engineering, Sogang Univ.

 

Career

1983  Joined Korea Oil Corporation Division

2000  Head of PP Sales Team, SK Chemical Division

2004  Head of SK Chemical Business Planning Headquarters (Managing Director)

2009  Head of SK Energy Corporate Culture Headquarters & Head of HR Division(Executive Director)

2010  Head of SK Energy CIC Olefin Business Headquarters (Executive Director)

2011  SK global chemical CEO & President

 

 

Profiles

 

Capital (KRW)

130,000,000,000

Employees

1,203

Formation

Co., Ltd by Shares

A Company of SK Group

Bank Details

Hana Bank

Korea Exchange Bank

Corporate Registered No.

110111-4505975

Business Registered No.

101-86-60116

Permit & Licenses

Int’l Trade No.: 30682803

Shareholder Position

Name

Shares

%

SK INNOVATION CO., LTD.(110111-3710385)

26,000,000

100.00

TOTAL

26,000,000

100.00

Company History

01/04/2011 Incorporated after spin off from SK ENERGY CO., LTD., has been spin off into the existing company, SK INNOVATION CO., LTD.(110111-3710385), and newly established companies, the Subject Company and SK ENERGY CO., LTD.(110111-4505967)

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Cha Hwa-Youb

Male

Korean

02/21/1959

Director

Mr.

Kim Bong-Young

Male

Korean

07/25/1957

Director

Mr.

Koo Ja-Young

Male

USA

12/07/1947

Director

Mr.

Cha Jin-Seok

Male

Korean

04/11/1963

Director

Mr.

Jung Tae-Yoon

Male

Korean

09/17/1959

Auditor

Mr.

Kim Kil-Yong

Male

Korean

04/17/1960

 


Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

09/2013

11,840,666,608,000

5,543,592,731,000

523,048,784,000

2012

15,380,102,154,000

5,061,450,665,000

550,782,968,000

2011

17,217,145,192,000

5,232,175,625,000

466,515,342,000

 

 

Financial Description

 

Authorized Capital(KRW)

520,000,000,000

Paid-Up Capital(KRW)

130,000,000,000

Total Issues Shares

26,000,000

 

 

Balance Sheet

 

Unit : Thousand Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

5,543,592,731

5,061,450,665

5,232,175,625

Current Assets

2,663,515,952

2,652,140,620

3,052,839,995

Cash & Cash Equivalents

479,935,454

723,821,285

657,930,935

Other Financial Assets

32,000,000

12,000,000

42,000,000

Trade Receivables

1,434,390,414

1,239,542,054

1,820,542,343

Other Receivables

14,578,987

13,651,341

13,659,843

Uneraned Income

1,645,973

5,112,274

2,109,096

Short-Term Receivables

2,152,000

2,700,000

3,000,000

Advance Payments

114,406,562

130,421,491

44,827,880

Prepaid Expenses

4,883,742

3,366,043

3,182,252

Guarantees

1,705,026

2,340,096

3,432,555

Derivatives

2,725,965

2,713,943

204,179

Inventories

575,091,829

516,472,093

461,950,912

Non-Current Assets

2,880,076,779

2,409,310,045

2,179,335,630

Other Financial Assets

22,500

22,500

22,500

Marketable Financial Instruments

52,689,839

57,409,839

57,790,993

Investment_Related Companies

397,080,869

432,244,506

297,852,714

Guarantees

886,788

1,024,813

4,821,766

Tangibles

2,421,433,761

1,910,858,707

1,813,051,238

Intangibles

7,963,022

7,734,888

5,770,143

Long-Term Receivables

                  -

14,792

26,276

Total Liabilities

2,459,430,616

2,499,916,489

2,969,852,475

Current Liabilities

1,503,851,043

1,531,428,909

1,593,052,892

Trade Payables

770,701,989

642,746,424

945,887,130

Short-Term Borrowings

112,336,209

48,297,399

381,119,390

Current Portion of Long-Term Debts

416,218,299

614,273,150

50,393,677

Account Payables

6,651,905

6,483,258

7,586,688

Accrued Expenses

92,645,694

101,069,379

132,974,781

Advance Receipts

8,454,564

7,733,097

7,152,285

Withholdings

8,106,463

10,074,295

9,646,236

Derivatives

3,103,356

3,113,521

75,541

Deferred Income Tax Credit

85,632,564

97,638,386

58,217,164

Non-Current Liabilities

955,579,573

968,487,580

1,376,799,583

Debentures & Long-Term Trade Payables

917,356,743

937,270,983

1,365,871,714

Provision for Severance & Retirement

13,742,732

7,310,095

4,400,094

Deferred Income Tax Credit

24,480,098

23,906,502

4,511,143

Others

- 

-

2,016,632

Capital Stock

130,000,000

130,000,000

130,000,000

Capital Surplus

1,671,123,574

1,671,123,574

1,671,123,574

Profit Surplus

1,284,696,029

761,472,368

462,764,680

Capital Adjustment

-1,657,488

-1,061,766

-1,565,104

Total Equity

3,084,162,115

2,561,534,176

2,262,323,150

Liab. & Shareholder’s Equity

5,543,592,731

5,061,450,665

5,232,175,625

 

 

Income Statement

 

Unit : Thousand Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Sales

11,840,666,608

15,380,102,154

17,217,145,192

Cost of Sold Goods

-10,911,657,359

14,324,825,269

16,181,917,191

Gross Profit

    929,009,249

1,055,276,885

1,035,228,001

Selling & Admin. Expenses

-229,951,059

296,736,491

346,013,895

Operating Income

    699,058,190

758,540,394

689,214,106

Finance Income

    221,697,605

-39,604,044

-76,475,457

Finance Expenses

-249,228,237

225,145,724

384,394,488

Non-Operating Income

       2,910,216

-266,015,340

-476,827,157

Non-Operating Expenses

-7,961,303

10,843,638

29,744,535

Losses from the investment on Related Companies

                   -

9,578,066

13,787,323

Income Before Taxes

    666,476,471

718,936,350

612,738,649

Income Taxes Expenses

-143,427,687

168,153,382

146,223,307

Net Income

    523,048,784

550,782,968

466,515,342

 

 

Cash Flows

 

Unit : Thousand Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

465,815,876

796,916,114

756,899,379

Net Income

523,048,784

550,782,968

466,515,342

Adjustment

135,585,460

406,879,435

423,840,868

Dividends Received

848,108

20,968,539

9,508,419

Interests Received

20,138,672

-74,466,441

-83,277,782

Interests Paid

-59,087,213

1,458,852

375,664

Income Taxes

-154,717,935

-108,707,239

-60,063,132

Cash Flows from Investing

-555,064,020

-299,210,654

-199,423,638

Cash Flows from Financing

-154,637,687

-431,806,074

-182,670,522

Increase/Decrease in Cash

-243,885,831

65,899,386

374,805,219

Cash at the Beginning of Year

723,821,285

657,930,935

283,238,861

Cash at the End of Year

479,935,454

723,821,285

657,930,935

 

 

Products, Technologies, Services Description

 

Main Products & Services

Olefin Division

Aromatics Division

Performance Chemicals

Polymer

EPDM

 

 

Trade Partners & Competitors

 

Competitors

GS-CALTEX CORPORATION (110111-0078819)

GS GANGNAM TOWER, 679, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2005-1114  FAX:+82-2-2005-6051

 

S-OIL CORPORATION(110111-0189955)

45TH FL., KOREA LIFE INSURANCE 63 BLDG., 60, YEOEUIDO-DONG, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-3772-5151  FAX:+82-2-786-4030

 

HYUNDAI OILBANK CO., LTD.(110111-0090558)

640-6. DAEJUK-RI, DAESAN-EUP, SEOSAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-660-5114  FAX:+82-41-660-5111

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

SK PETROCHEMICAL CO., LTD.(135811-0120906)

(100.0% held by the subject company)

 

GREEN IS CO., LTD.(134811-0195562)

(84.31% held by the subject company)

 

AROCHEMI CO., LTD.(110111-4499954)

(50.01% held by the subject company)

 

SHANGHAI GAOQIAO- SK SOLVENT CO., LTD.

(50.0% held by the subject company)

 

ZHEJIANG SHENXIN SK PACKAGING CO., LTD.

(25.0% held by the subject company)

 

SK GLOBAL CHEMICAL (CHINA) HOLDING CO., LTD.

(100.0% held by the subject company)

 

SK GLOBAL CHEMICA AMERICAS, INC.

(100.0% held by the subject company)

 

SK ENERGY INTERNATIONAL TRADING (SHANGHAI) CO., LTD.

(3.04% held by the subject company)

 

SK GLOBAL CHEMICAL SINGAPORE PTE. LTD.

(100.0% held by the subject company)

 

HANJU CORPORATION(181211-0007663)

(7.38% held by the subject company)

 

HYUNDAI ENGINEERING PLASTICS CO., LTD(165011-0006768)

(4.99% held by the subject company)

 

SK IIS PTE. LTD.

(16.67% held by the subject company)

Affiliates-Domestic

SK TELECOM CO., LTD.(110111-0371346)

SK C&C CO., LTD.(110111-0769583)

SK TELINK, CORP.(110111-1533599)

INNOACE CO., LTD(110111-2104026)

PAXNET, INC.(110111-1698830)

IHQ, INC.(110111-0042393)

AIRCROSS CO., LTD.(110111-2121765)

TU MEDIA CORPORATION(110111-2907826)

SK COMMUNICATIONS CO., LTD.(110111-1322885)

COMMERCE PLANET CO., LTD.(110111-1416133)

F&U CREDIT INFORMATION CO., LTD.(135311-0003300)

SK WYVERNS CO., LTD(120111-0217366)

SK HOLDINGS CO., LTD.(110111-0022816)

SK ENGINEERING & CONSTRUCTION CO., LTD.(110111-0038805)

SK TELESYS CO., LTD.(110111-1405897)

LOEN ENTERTAINMENT, INC.(134111-0010706)

INFOSEC CO., LTD(110111-2007858)

INDEPENDENCE CO., LTD.(110111-2010116)

SKC MEDIA CO., LTD.(161511-0076377)

IFILM CORPORATION(110111-2857451)

SK BROADBAND CO., LTD.(110111-1466659)

CU MEDIA. INC.(110111-2031477)

NTREEV SOFT CO., LTD.(110111-2906456)

SK I-MEDIA CO., LTD.(110111-3505851)

IPLATFORM, INC(110111-3638917)

NURI SOLUTION CO., LTD.(110111-1866213)

HANAROMEDIA INC.(110111-3292664)

HANARO DREAM INCORPORATED(110111-2183343)

BROADBAND D&M CO., LTD.(110111-1509269)

NOWON JOEUN TELECOM CO., LTD.(110111-3655218)

MIRACLE INFORMATION & TELECOMMUNICATION CO., LTD.(120111-0433491)

ENCAR NETWORKS LTD.(110111-2125270)

SK MARKETING & COMPANY CO., LTD.(110111-3874066)

Affiliates-Domestic

QC I&T CO., LTD.(110111-3675381)

QL KWANAK CO., LTD.(110111-3826140)

QL DONGJAK CO., LTD.(110111-3729740)

QL SEOCHO CO., LTD.(110111-3729807)

QL YONGSAN CO., LTD.(110111-3761023)

QL YANGCHEON CO., LTD.(110111-3729609)

SK NETWORKS CO., LTD.(130111-0005199)

SK SHIPPING CO., LTD.(110111-0311392)

MRO KOREA CO., LTD(110111-2016940)

SK D&D CO., LTD.(110111-3001685)

OK CASHBAG SERVICE CO., LTD.(110111-1873432)

SK NETWORKS SERVICE CO., LTD.(135811-0141788)

BROADBAND TS CO., LTD.(281111-0119401)

BROADBAND CS CO., LTD.(110111-1592595)

BROADBAND SEOUL CS CO., LTD.(110111-3558842)

BROADBAND BUSAN CS CO., LTD.(180111-0573774)

BROADBAND GYEONGGI CS CO., LTD.(134111-0147575)

BROADBAND GWANGJU CS CO., LTD.(200111-0233050)

ANTS CO., LTD.(151111-0031058)

ULLEUNG DEEP SEA WATER CO., LTD(110111-3224724)

WS TRADING CO., LTD.(110111-3448712)

SK SECURITIES CO., LTD(110111-0037112)

SOLMICS CO., LTD.(134711-0014631)

UB CARE CO., LTD.(110111-1105364)

MECHARONICS CO., LTD.(120111-0233338)

ULLEUNG MINERAL CO., LTD.(110111-2602244)

WALKERHILL INC.(110111-0142854)

REAL BEST CO., LTD.(180111-0612027)

SK LUBRICANTS CO., LTD.(110111-4191815)

Affiliates-Overseas

SK AUSTRALIA PTY. LTD.

SK AUSTRALIA(TOGARA)

SK AUSTRALIA(WYONG)

SK DO BRASIL, LTDA

SK E&P CO. LTD.

SK ENERGY INTERNATIONAL PTE LTD.

SK ENERGY EUROPE LTD.

SK CHINA HOLDING CO.LTD.

SK INSURANCE (BERMUDA) LTD

SK ENERGY ROAD INVESTMENT

SK E&P ASIA LIMITED

SK CORPORATION HONG KONG INVESTMENT

CELTIC OIL LIMITED

SK ENERGY CANADA LIMITED

SK USA, INC.

SHANGHAI GAOQIAO-SK SOLVENT

DZP (DE ZWARTE PONK B.V.)

SKC INC

ZHEJIANG SHENXIN SK PACKAGING CO. LTD.

SK CHINA CO. LTD.

Overseas Branch

BEIJING, CHINA BRANCH

26F, SK TOWER, NO6 JIA, JIANGUOMENWAI AVENUE, BEIJING, CHINA

TEL:+86-10-5920-5660

 

SHANGHAI, CHINA BRANCH

RM 801, MAXDO CENTER, 8-XINGYI RD. SHANGHAI. CHINA

TEL:+86-21-6197-0242/0252

 

GUNGZHOU, CHINA BRANCH

ROOM 2504, HNA BUILDING, NO. 8 LINHE ZHONG ROAD, TIANHE DISTRICT, GUANGZHOU, GUANGDONG PROVINCE, CHINA

TEL:+86-20-8510-0301

 

NORTH AMERICA, HOUSTON BRANCH

1300 POST OAK BLVD., STE #425, HOUSTON, TEXAS, USA 77056

TEL:+1-713-850-0005

 

SINGAPORE BRANCH

4 SHENTON WAY #11 - 02/04 SGX CENTRE TWO SINGAPORE 068807

TEL:+65-6232-9381, 9367

 

TOKYO BRANCH

NBF HIBIYA BLDG. 8F, 1-1-7, UCHISAIWAI-CHO, CHIYODA-KU, TOKYO 100-0011, JAPAN

TEL:+81-3-3591-0343

 

DUBAI BRANCH

SUITE NO. 1702, FESTIVAL CITY OFFICE TOWER, MARSA AL KHOR, PO BOX 9389 DUBAI, UAE

TEL:+971-4-232-9371

 

LIMA BRANCH

CALLE AMADOR MERINO REYNA NO. 267 OF.702 EDIFICIO "PARQUE PLAZA" SAN ISIDRO, LIMA 27, PERU

TEL:+51-1-719-1080

Subsidiary

SK PETROCHEMICAL CO., LTD.(135811-0120906)

(100.0% held by the subject company)

 

SK GLOBAL CHEMICAL (CHINA) HOLDING CO., LTD.

SK GLOBAL CHEMICAL INTERNATIONAL TRADING (SHANGHAI) CO., LTD.

SK GLOBAL CHEMICAL SINGAPORE PTE, LTD.

SK INTERNATIONAL INVESTMENT SINGAPORE PTE., LTD.

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2011

2010

2009

Export

         8,753,104

 

 

Domestic

         5,264,275

 

 

Others

         3,204,115

 

 

Total

        17,221,494

 

 

The Subject deals with the companies in USA, Australia, China, Indonesia, India and Vietnam.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.13

UK Pound

1

Rs.101.53

Euro

1

Rs.85.41

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.