MIRA INFORM REPORT

 

 

Report Date :

02.07.2013

 

IDENTIFICATION DETAILS

 

Name :

KISCO

 

 

Registered Office :

70, Sinchon-dong, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

642-370

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

01.09.2008

 

 

Com. Reg. No.:

609-81-84470

 

 

Legal Form :

Listed Company

 

 

Line of Business :

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

 

 

No. of Employees :

551

 

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 :

Slow but correct

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

KISCO

(Korean Company Name : “한국철강()”)

Registered Address

70, Sinchon-dong, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

Zip Code

642-370

Tel

+82-55-260-0500

Fax

+82-55-283-3429

E-mail

june04@kisco.co.kr

Website

www.kisco.co.kr

Trading Address

9th Fl., Dabo Bldg., 140, Mapo-dong, Mapo-gu, Seoul, Korea

Tel

+82-2-718-4551

Fax

+82-2-718-4551

Other Address-Jeungpyeong Factory(Energy)

1044, Miam-ri, Jeungpyeong-eup, Jeungpyeong-gun, Chungcheongbuk-do, Korea

Tel

+82-43-820-9000

Type

Export

Industry

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

  Main Business

Steel Bar, Round Bar, Steel Pipe, Billet, Ingot, Industrial Gas, Thin Film Solar Cell, Module

Established (mm/dd/yyyy)

09/01/2008

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Carbon steel pipe(40142101)

Sell

Iron bars(30101603)

Sell

Forgings(31130000)

Sell

Steel tubing(31231310)

Sell

Billets(30103300)

Sell

Ingots(30103400)

Sell

Steel(11101704)

Buy

Refining metal services(73121509)

Buy

Furnaces(40101805)

Buy

Tube and tubing(31231300)

Buy

Metal scrap(11191600)

Buy

Ferrous alloy(11101712)

Buy

Iron(11101713)

Buy

Non ferrous alloy(11101711)

Buy

Hydraulic presses(27121500)

Buy

Coke(15101604)

 


CEO’s

 

Name

Chang Sang-Don

Address

 

Date of Birth

10/01/1937

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

46,050,000,000

Employees

551

Formation

Listed Company(Korea Stock Exchange : 104700) as of 09/29/2008

A Company of KISCO HOLDINGS CORP. (190111-0001872)

Bank Details

Korea Development Bank

Corporate Registered No.

194211-0094318

Business Registered No.

609-81-84470

Permit & Licenses

09/2009 UL Mark

06/2010 ISO 14001

06/2010 OHSAS 18001

06/2010 KOSHA 18001

Shareholder Position

Name

Shares

%

KISCO HOLDINGS CORP. (190111-0001872)

3,758,785

40.81

CHANG SANG-DON

1,080,578

11.73

CHANG SE-HYUN

316,263

3.43

KOREA STEEL SHAPES CO., LTD.(180111-0015362)

215,667

2.34

OTHERS

3,838,707

41.68

TOTAL

9,210,000

100.00

Company History

09/01/2008 Incorporated as the present name

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Chang Sang-Don

Korean

1937.10.01

Dongkuk University, Korea

Vice Chairman

Mr.

Kim Man-Yeol

Korean

1942.01.12

Youngnam University, Korea

Sr. Executive Director

Mr.

Chang Se-Hong

Korean

1966.10.01

California University, USA

Vice President & CFO

Mr.

Jung Chan-Hyun

Korean

1946.03.02

Busan Commercial High

Sr. Executive Director

Mr.

Moon Jong-In

Korean

1953.05.20

Kyungnam University, Korea

Director

Mr.

Jung Cheol-Ki

Korean

1955.08.18

Korea University, Korea

Director

Mr.

Lee Byung-Je

Korean

1959.07.29

Kyungnam University, Korea

Director

Mr.

Lee Soo-Ha

Korean

1961.01.25

Busan National University, Korea

Outside Director

Mr.

Kim Jo-Il

Korean

1944.11.10

Masan High School

Outside Director

Mr.

Kwak Cheol-Yoon

Korean

1947.03.10

Sunggang High School

Outside Director

Mr.

Ha Sung-Hae

Korean

1952.06.22

Hyupsung Commercial High

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2013

194,635,369,194

912,101,519,715

-10,125,687,691

(*)2012

987,039,948,435

936,810,385,294

18,485,336,818

(*)2011

1,020,601,374,388

1,015,150,137,441

-33,510,227,388

2010

879,924,338,630

947,286,728,297

15,461,258,461

2009

911,503,171,887

972,821,670,640

46,053,565,383

2008

316,051,876,212

904,562,483,962

49,290,877,098

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

 

 

Financial Description

 

Authorized Capital(KRW)

150,000,000,000

Paid-Up Capital(KRW)

46,050,000,000

Total Issued Shares

9,210,000

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

912,101,519,715

936,810,385,294

1,015,150,137,441

Current Assets

438,277,552,994

460,604,367,248

503,714,730,886

Cash & Cash Equivalents

49,573,279,454

79,683,117,304

56,596,124,887

Current Financial Instruments

74,695,647,117

62,647,276,853

93,821,632,053

Trade Receivables

174,468,636,214

187,457,153,055

189,301,953,103

Other Receivables

2,014,804,009

1,810,730,596

1,718,522,416

Other Finance Assets

48,120,000

48,120,000

13,105,000

Inventories

136,945,356,561

128,162,060,860

153,898,968,524

Other Assets

408,843,369

299,636,800

8,067,676,493

Deferred Income Tax Assets

122,866,270

496,271,780

296,748,410

Non-Current Assets

473,823,966,721

476,206,018,046

511,435,406,555

Non-Current Financial Instruments

9,249,641,234

8,209,641,234

12,624,641,234

Other Receivables

770,697,332

770,697,332

764,362,332

Other Financial Assets

23,211,374,300

21,023,646,000

21,189,531,550

Tangibles

437,356,934,759

443,092,458,126

474,059,180,960

Intangibles

1,215,116,928

1,215,116,928

979,906,928

Investment_Related Companies

2,020,202,168

1,894,458,426

1,817,783,551

Total Liabilities

247,929,207,619

255,990,254,603

341,129,622,152

Current Liabilities

225,618,170,381

229,638,716,231

324,967,234,512

Trade Payables

149,842,162,522

165,933,645,261

210,009,924,469

Other Payables

33,358,973,040

30,964,339,319

44,073,533,438

Short-Term Borrowings

35,094,132,965

26,069,961,963

58,383,245,537

Other Current Liabilities

7,322,901,854

6,670,769,688

12,500,531,068

Non-Current Liabilities

22,311,037,238

26,351,538,372

16,162,387,640

Provision for Severance & Retirement

2,627,624,208

2,563,118,866

2,674,770,471

Confirmed Salaries

16,317,354,449

16,893,735,052

10,543,319,569

Deferred Income Tax Credit

2,098,858,581

4,627,484,454

85,245,749

Other Payables

1,267,200,000

2,267,200,000

2,859,051,851

Capital Stock

46,050,000,000

46,050,000,000

46,050,000,000

Capital Surplus

552,548,163,966

552,548,163,966

552,548,163,966

Profit Surplus

55,541,392,335

73,953,223,426

69,237,051,470

Installments

10,194,310,240

8,430,297,744

6,346,854,298

Others

-161,554,445

-161,554,445

-161,554,445

Total Equity

664,172,312,096

680,820,130,691

674,020,515,289

Liab. & Shareholder’s Equity

912,101,519,715

936,810,385,294

1,015,150,137,441

 

 

Income Statement

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

194,635,369,194

987,039,948,435

1,020,601,374,388

Cost of Sold Goods

183,074,016,931

921,998,113,436

974,265,325,497

Gross Profit

11,561,352,263

65,041,834,999

46,336,048,891

Selling & Admin. Expenses

24,710,775,628

49,508,134,081

43,951,274,477

Operating Income

-13,149,423,365

15,533,700,918

2,384,774,414

Other Income

411,713,820

19,311,364,189

3,616,796,391

Other Expenses

517,524,559

18,756,363,172

48,716,526,739

Equity Method Profits

51,917,560

92,737,984

 

Finance Income

1,190,564,137

10,894,688,996

5,758,444,880

Finance Expenses

1,139,103,143

3,089,698,052

5,533,880,660

Income Before Taxes

-13,151,855,550

23,986,430,863

-42,490,391,714

Income Taxes Expenses

-3,026,167,859

5,501,094,045

-8,980,164,326

Net Income

-10,125,687,691

18,485,336,818

-33,510,227,388

 

 

Cash Flows

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

-20,782,563,780

34,294,287,011

47,145,803,872

Cash Flows from Operating

-21,963,224,048

30,668,148,849

48,780,821,556

Interests Received

1,003,320,954

4,818,474,375

3,212,251,092

Interests Paid

-196,066,196

-992,812,843

-1,476,710,598

Income Taxes

373,405,510

-199,523,370

-3,370,558,178

Cash Flows from Investing

-18,001,879,252

27,961,836,540

-118,166,035,530

Cash Flows from Financing

8,676,218,547

-39,164,739,938

34,747,634,741

Increase/Decrease in Cash

-30,109,837,850

23,086,992,417

-36,270,527,221

Cash at the Beginning of Year

79,683,117,304

56,596,124,887

92,866,652,108

Cash at the End of Year

49,573,279,454

79,683,117,304

56,596,124,887

 

 

Products, Technologies, Services Description

 

Main Products & Services

Steel Products

Energy Business

 

Brand Name : GET WATT

 

 

Trade Partners & Competitors

 

Customers

PUBLIC PROCUREMENT SERVICE, KOREA

Competitors

DONGKUK STEEL MILL CO., LTD.(110111-0031338)

HYUNDAI STEEL COMPANY(120111-0001743)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KISCO HOLDINGS CORP. (190111-0001872)

KOREA STEEL SHAPES CO., LTD.(180111-0015362)

YOUNG HEUNG IRON & STEEL CO., LTD.(194211-0000191)

HWAN YOUNG STEEL IND.CO., LTD.(180111-0028026)

DAE HEUNG INDUSTRIAL CO., LTD.(194311-0000660)

SEORYUNG CO., LTD.(KOREA)

DAE YU CORE CO., LTD.(110111-2224759)

SEHWA EXPRESS CO., LTD.(190111-0001468)

MASAN PORT 5 OPERATION CO., LTD.(190111-0035433)

LABO CO., LTD.(145211-0002047)

PYUNGRI MATERIAL CO., LTD.(190111-0063781)

 

YOUNGHUNG(TAECHANG) KANGSASUNG CO., LTD.(CHINA)

YOUNGWIRE VINA

 

LABO JAPAN

(14.0%% held by the subject company)

 

JINIL INTERNATIONAL

(41.0% held by the subject company)

Cooperative Enterprise

-Insured Company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2013

2012

2011

Export

2,451

45,770

38,976

Domestic

192,184

941,270

981,625

Total

194,635

987,040

1,020,601

The Subject exports to Australia, China, Japan and Russia.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.14

UK Pound

1

Rs.90.05

Euro

1

Rs.77.06

 

 

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.