MIRA INFORM REPORT

 

 

Report Date :

04.05.2013

 

IDENTIFICATION DETAILS

 

Name :

DK CORP.

 

 

Registered Office :

612-1, Gohyeon-ri, Cheongha-myeon, Buk-gu, Pohang-si, Gyeongsangbuk-do

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

28.02.1990

 

 

Com. Reg. No.:

506-81-08019

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacturer of Ferro-Alloys

 

 

No. of Employees :

164

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

With Financials

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 Information

 

Company Name

DK CORP.

(Korean Company Name : “()디케이씨”)

Registered Address

612-1, Gohyeon-ri, Cheongha-myeon, Buk-gu, Pohang-si, Gyeongsangbuk-do, Korea

Zip Code

791-921

Tel

+82-54-232-3120

Fax

+82-54-232-3122

E-mail

webmaster@dkcsteel.com

Website

www.dkcsteel.co.kr

 

 

Trading Address

16th Fl., KT Bldg., 28-2, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-3016-2854

Fax

+82-2-596-8270

 

 

Other Address

30, Saebyeok-ro, Sasang-gu, Busan, Korea

 

 

Type

Export/Import

Industry

Manufacture of Ferro-Alloys

  Main Business

Stainless Backboard, Stainless Flat Bar

  Sub Business

 

Established (mm/dd/yyyy)

02/28/1990

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Stainless steel plate(30102205)

 

 

CEO’s

 

Name

Suh Soo-Min

Address

728-2, Yeoksam-dong, Gangnam-gu, Seoul, Korea

Date of Birth

10/31/1963

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

2,344,250,000

Employees

164

Formation

Co., Ltd by shares

Bank Details

Woori Bank

Korea Exchange Bank

Kookmin Bank

Corporate Registered No.

174611-0009701

Business Registered No.

506-81-08019

Permit & Licenses

10/30/1996 ISO 9002

03/12/2003 JIS

12/29/2004 JIS

 

Int’l Trade No.: 911591

Shareholder Position

Name

Shares

%

SUH SOO-MIN

165,355

35.27

SUH HONG-MIN

77,266

16.48

POSTEEL(110111-0344591)

72,000

15.35

MIN BYUNG-RAN

66,140

14.11

DK D&I

56,645

12.08

LEE WOONG-JAE

31,444

6.71

TOTAL

468,850

100.00

Company History

02/28/1990 Incorporated as DAEKYUNG CORP.

11/30/1997 Awarded US$10 Million Export Top Prize

11/30/1999 Awarded US$30 Million Export Top Prize

11/30/2001 Awarded US$50 Million Export Top Prize

01/14/2004 Decreased capital to 2,344,250,000 KRW from 3,600,000,000 KRW

10/11/2004 Increased the authorized shares to 3,000,000 shares from 1,280,000 shares

11/30/2004 Awarded US$100 Million Export Top Prize

02/21/2007 Changed company name to the present name

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Suh Soo-Min

Male

Korean

04/10/2006

Co-President & CEO

Mr.

Suh Hong-Min

Male

Korean

01/05/2006

Director

Mr.

Suh Jung-Hwa

Male

Korean

03/28/2005

Director

Mr.

Choi Saeng-Lim

Male

Korean

03/28/2005

Director

Mr.

Kil Sang-Ho

Male

Korean

03/28/2008

Auditor

Mr.

Kim Young-Cheol

Male

Korean

03/12/2012

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

313,443,142,270

165,001,107,516

-7,294,317,156

2011

412,018,939,178

200,964,082,097

7,648,776,480

2010

382,154,237,512

185,009,318,946

10,166,038,295

2009

237,894,152,338

173,326,232,558

-46,534,631,458

2008

401,407,905,150

244,591,785,934

3,823,274,400

2007

456,908,906,104

192,238,311,380

6,015,835,033

2006

337,995,816,926

  142,291,721,480

11,788,802,481

2005

312,775,347,933

101,655,835,237

2,676,958,530

 

 

Financial Description

 

Authorized Capital(KRW)

15,000,000,000

Paid-Up Capital(KRW)

2,344,250,000

Total Issued Shares

468,850 (Common : 396,850 / Preferable :72,000)

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

165,001,107,516

200,964,082,097

185,009,318,946

Current Assets

80,624,719,667

111,947,837,972

98,100,924,501

-Quick Assets

31,153,052,268

58,642,993,471

45,510,111,981

-Inventories

49,471,667,399

53,304,844,501

52,590,812,520

Fixed Assets

84,376,387,849

89,016,244,125

86,908,394,445

-Investment

48,999,111,533

60,494,988,757

56,338,265,222

-Tangibles

33,712,225,438

26,741,370,026

26,603,894,725

-Intangibles

132,575,365

22,127,662

64,552,244

-Others

1,532,475,513

1,757,757,680

3,901,682,254

Total Liabilities

138,768,131,409

163,602,752,087

156,067,208,998

Current Liabilities

130,400,395,590

159,592,782,014

147,391,040,726

Fixed Liabilities

8,367,735,819

4,009,970,073

8,676,168,272

Capital Stock

2,344,250,000

2,344,250,000

2,344,250,000

Capital Surplus

4,378,880,045

4,378,880,045

4,378,880,045

Profit Surplus

10,635,005,930

18,364,377,581

11,121,238,601

Capital Adjustment

8,874,840,132

12,273,822,384

11,097,741,302

Total Equity

26,232,976,107

37,361,330,010

28,942,109,948

Liab. & Shareholder’s Equity

165,001,107,516

200,964,082,097

185,009,318,946

 

Current Liabilities

130,400,395,590

159,592,782,014

147,391,040,726

Trade Payables

73,832,064,322

93,743,112,254

109,646,120,728

Account Payables

2,028,633,099

1,604,813,413

3,577,472,098

Short-Term Borrowings

52,410,270,354

56,996,160,000

31,500,000,000

Withholdings

232,849,670

244,797,100

449,402,630

Advance Receipts

-

160,684,910

526,219,596

Accrued Expenses

892,712,245

760,947,947

608,445,674

Current Portion of Long-Term Debts

999,960,000

1,041,620,000

1,083,380,000

Deferred Income Tax Credit

3,905,900

43,146,390

-

Current Portion of Debentures

-

5,000,000,000

-

Fixed Liabilities

8,367,735,819

4,009,970,073

8,676,168,272

Long-Term Borrowings

4,566,660,000

1,166,620,000

2,208,240,000

Debentures

 

 

5,000,000,000

Provision for Severance & Retirement

4,290,990,980

4,028,602,130

3,252,440,690

Leasehold Deposit Received

1,102,624,800

98,868,000

104,092,800

Deferred Income Tax Credit

94,258,690

531,833,941

-

 

 

Income Statement

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

313,443,142,270

412,018,939,178

382,154,237,512

Cost of Sold Goods

297,393,937,954

386,375,097,729

357,305,230,738

Gross Profit

16,049,204,316

25,643,841,449

24,849,006,774

Selling & Admin. Expenses

11,497,790,934

12,680,455,142

11,540,373,837

Operating Income

4,551,413,382

12,963,386,307

13,308,632,937

Non-Operating Income

5,356,690,420

8,274,146,899

10,167,844,537

Non-Operating Expenses

22,897,172,984

11,407,058,856

10,741,427,026

Income Before Taxes

-12,989,069,182

9,830,474,350

12,735,050,448

Income Taxes Expenses

-5,694,752,026

2,181,697,870

2,569,012,153

Net Income

-7,294,317,156

7,648,776,480

10,166,038,295

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

-8,699,382,888

2,235,888,747

35,486,623,337

-Net Income

-7,294,317,156

7,648,776,480

10,166,038,295

-Exp. without Cash Outflow

19,572,002,122

7,024,839,301

5,136,502,491

-Revenue without Cash Inflows

-2,646,807,196

-2,736,718,530

-4,815,176,809

-Changes in Asset/ & Liability

-18,330,260,658

-9,701,008,504

24,999,259,360

Cash Flows from Investing

-11,813,383,064

-4,044,594,857

-21,528,336,212

-Cash Inflow from Investing

2,005,544,490

5,666,762,660

165,151,506

-Cash Outflows for Investing

-13,818,927,554

-9,711,357,517

-21,693,487,718

Cash Flows from Financing

-6,327,859,305

24,002,202,500

-36,098,195,748

-Cash Inflows from Financing

201,045,669,959

222,651,476,015

171,860,340,485

-Cash Outflows from Financing

-207,373,529,264

-198,649,273,515

-207,958,536,233

Increase/Decrease in Cash

-26,840,625,257

22,193,496,390

-22,139,908,623

Cash at the Beginning of Year

28,076,223,319

5,882,726,929

28,022,635,552

Cash at the End of Year

1,235,598,062

28,076,223,319

5,882,726,929

 

 

Products, Technologies, Services Description

 

Main Products & Services

Stainless Backboard, Stainless Flat Bar

 

 

Trade Partners & Competitors

 

Competitors

DONGIL INDUSTRIES CO., LTD.

800, JANGHEUNG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-285-3201  FAX:+82-54-285-4151

 

MECHEM KOREA CO., LTD.

9TH FL., ILJIN BLDG., 50-1, DOHWA-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-323-5193  FAX:+82-2-323-5195

 

KTC KOREA CO., LTD.

567-49, YEONNAM-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-3144-5052  FAX:+82-2-3141-5846

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DKC STEEL S'PORE PTE LTD.

(100.00% held by the subject company)

 

DKC JAPAN CO, LTD.

(100.00% held by the subject company)

 

DAEKYUNG MOTOR PARTS CO., LTD.(CHINA)

(94.33% held by the subject company)

 

KUN SHAN D.K.C AUTOMAT IVE SYSTEM CO., LTD.(CHINA)

(100.00% held by the subject company)

 

JS TECH CO.,LTD.(164711-0008737)

(7.6% held by the subject company)

 

SEGI CORPORATION(KOREA)

(45.40% held by the subject company)

 

DKC SERVICE CO., LTD(110111-0404535)

(71.39% held by the subject company)

 

DKC EUROPE NV

(100.00% held by the subject company)

 

 

Sales by Region (Activity & Markets)

 

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

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

 

 

The Subject Company (2 Cases)

 

40

Proceeding

 

 

The Subject Company (3 Cases)

 

 

2,523

Proceeding

 

 

News Clipping

 

-----

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.95

UK Pound

1

Rs.70.50

Euro

1

Rs.83.81

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.