MIRA INFORM REPORT

 

 

Report Date :

22.04.2014

 

IDENTIFICATION DETAILS

 

Name :

TK CHEMICAL CORPORATION

 

 

Registered Office :

3FL., Yeonwoo Bldg., 128, Wondae-ro, Buk-gu, Daegu, Korea

(Old Address System : 3FL., Yeonwoo Bldg., 416-8, Chimsan 3-dong, Buk-gu, Daegu, Korea), 702-857

 

 

Country :

Korea (South)

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

07.11.2007

 

 

Com. Reg. No.:

107-87-01960

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Synthetic Fibers, Polyester Yarn, Spandex Yarn, Cotton Yarn, PET Resin, Chip

 

 

No. of Employees

816

 

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 / Moderate

Payment Behaviour :

Unknown

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Korea (South)

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

D

 

KOREA (SOUTH)- 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 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge 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 about half of GDP

Source : CIA


Basic

 

Company Name

TK CHEMICAL CORPORATION

(Korean Company Name : “()티케이케미칼”)

Registered Address

3FL., Yeonwoo Bldg., 128, Wondae-ro, Buk-gu, Daegu, Korea

(Old Address System : 3FL., Yeonwoo Bldg., 416-8, Chimsan 3-dong, Buk-gu, Daegu, Korea)

Zip Code

702-857

Tel

+82-53-252-4177

Fax

+82-53-253-5216

E-mail

webmaster@tkchemi.co.kr;philiplee@tkchemi.co.kr

Website

www.tkchemi.co.kr

Trading Address

9FL., Jinduck Bldg., 22, Seonyudong 1-ro, Yeongdeungpo-gu, Seoul, Korea

(Old Address System : 9FL., Jinduck Bldg., 160-2, Dangsan-dong 2-ga, Yeongdeungpo-gu, Seoul, Korea)

Tel

+82-2-2001-6000

Fax

+82-2-2001-6180  +82-2-782-1160  +82-2-780-5263

Other Address-Synthetic 1 Factory

298-1, Gongdan-dong, Gumi-si, Gyeongbuk, Korea

Tel

+82-54-461-3401

Fax

+82-54-461-8100

Other Address-Synthetic 2 Factory

291-20, Gongdan-dong, Gumi-si, Gyeongbuk, Korea

Tel

+82-54-461-6055

Fax

+82-54-462-0460

Other Address-Synthetic 3 Factory

520, Jung-ri, Seokjeok-eup, Chilgok-gun, Gyeongbuk, Korea

Tel

+82-54-971-9051

Fax

+82-54-971-9051

Other Address-Resin Factory

300, Gongdan-dong, Gumi-si, Gyeongbuk, Korea

Tel

+82-54-463-0380

Fax

+82-54-461-3922

Other Address-Daegu Office

103-6, Dongsan-dong, Jung-gu, Daegu, Korea

Tel

+82-53-252-4177

Fax

+82-53-252-4177

Type

Export/Import

Industry

Manufacture of Synthetic Fibers

  Main Business

Polyester Yarn, Spandex Yarn, Cotton Yarn, PET Resin, Chip

Established (mm/dd/yyyy)

11/07/2007

The Subject occupies the premises of registered HQ address by leasing base.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Polyester yarn(11151703)

Sell

Cotton yarn(11151702)

Sell

Resins(13111000)

 

 

CEO’s

 

Name

So Hong-Seok

Address

Suite 214-1302, 609-1, Donam-dong, Seongbuk-gu, Seoul, Korea

Date of Birth

06/01/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

45,000,000,000

Employees

816

Formation

Listed Company (KOSDAQ : 104480) as of 04/26/2011

Foreign Direct Investment Corporation

A Company of SM GROUP

Bank Details

Woori Bank-Yeoido Central Branch

Korea Development Bank

SC. First Bank of Korea

Corporate Registered No.

110111-3783457

Business Registered No.

107-87-01960

Permit & Licenses

Int’l Trade No.: 45338773

Shareholder Position

Name

Shares

%

SMT CHEMICAL CO., LTD.(170111-0351776)

18,065,530

20.07

DAEWOO INTERNATIONAL CORPORATION(110111-2137358)

8,000,000

8.89

WOOBANG INDUSTRIES CO., LTD.(110111-0002834)

11,800,000

13.11

WOOBANG CONSTRUCTION CO.,LTD.(170111-0352732)

6,496,040

7.22

TREASURY STOCK

4,675,998

5.20

OTHERS

40,962,432

45.51

TOTAL

90,000,000

100.00

Company History

11/07/2007 Incorporated as the present name

12/26/2007 Increased the authorized shares to 20,000,000 shares from 40,000 shares

01/22/2008 Moved to the present address from 17-26, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea

01/31/2008 Acquired Spandex, Polyester, Resin Business from TONGKOOK CORP.(110111-0059950)

02/05/2008 Increased capital to 40,000,000,000 KRW from 50,000,000 KRW

07/17/2008 Registered as a Foreign Direct Investment Corporation

07/18/2008 Changed stock type to 8,000,000 shares (Common:5,300,653, Preferable:2,699,347) from 8,000,000 shares (Common: 8,000,000)

04/26/2011 Increased capital to 45,000,000,000 KRW from 40,000,000,000 KRW

07/01/2011 Moved to the present HQ address registration from 14th Fl., Korea Sinsong Center Bldg., 25-12, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

So Hong-Seok

Male

Korean

1954.06.01

Chairman

Mr.

Woo Oh-Hyun

Male

Korean

1953.11.06

Director

Mr.

Kim Yong-Wan

Male

Korean

1956.03

Auditor

Mr.

Bae Soon-Ki

Male

Korean

1957.07.08

Director

Mr.

Kwak Jin-Soo

Male

Korean

1964.08

Outside Director

Mr.

Park Se-Kyu

Male

Korean

1953.09.10

Outside Director

Mr.

Lee Min-Ki

Male

Korean

1949.12.03

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2013

848,025,474,441

532,727,301,778

11,631,633,966

(*)2012

852,763,702,460

474,029,741,985

-28,503,136,674

(*)2011

1,000,564,178,112

666,314,510,118

38,165,046,662

(*)2010

882,043,327,810

457,268,415,266

26,155,939,425

2009

777,194,493,448

323,556,543,330

25,632,641,591

2008

710,630,616,602

320,963,467,180

-17,308,870,150

2007

-

48,690,862

(-)456,138

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

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

45,000,000,000

Total Issues Shares

90,000,000

 

 


Balance Sheet

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

532,727,301,778

474,029,741,985

666,314,510,118

Current Assets

159,010,189,397

193,956,056,724

318,579,521,942

Cash & Cash Equivalents

8,169,609,270

51,840,353,962

79,781,319,353

Current Financial Instruments

2,271,263,158

9,426,502,801

76,911,263,158

Trade Receivables & Other Receivables

79,828,243,326

61,536,130,391

96,453,928,241

Inventories

64,203,602,926

65,263,078,012

47,656,296,210

Deferred Income Tax Assets

168,488,570

786,501,240

2,564,220,011

Other Current Non-Financial Assets

2,206,312,786

2,357,132,786

12,258,295,154

Other Current Assets

2,162,669,361

2,746,357,532

2,954,199,815

Non-Current Assets

373,717,112,381

280,073,685,261

347,734,988,176

Non-Current Financial Instruments

103,000,000

103,000,000

50,103,000,000

Long-Term Trade Receivables & Other Receivables

0

433,201,082

407,029,110

Non-Current Marketable Financial Instruments

1,184,102,000

2,153,102,000

4,538,279,940

Held-to-Maturity Financial Assets

0

0

3,530,000

Investment_Related Companies

154,854,490,390

50,630,337,405

33,388,700,625

Tangibles

214,366,564,836

222,073,191,825

244,489,554,965

Investment_Real Estates

837,900,000

837,900,000

837,900,000

Operating Rights

0

0

7,187,179,961

Intangibles

1,366,937,631

1,366,937,631

5,309,419,511

Non-Current Financial Instruments

958,036,097

1,310,257,560

1,406,466,738

Other Non-Current Assets

46,081,427

48,526,355

63,927,326

Deferred Income Tax Assets

0

1,117,231,403

0

Total Liabilities

334,269,810,680

284,822,694,747

445,140,129,037

Current Liabilities

293,259,906,541

231,809,257,356

388,156,650,633

Trade Payables & Other Payables

132,286,846,119

79,002,075,318

154,641,172,521

Short-Term Borrowings

158,571,820,515

150,691,093,228

109,339,928,723

Other Current Financial Debts

1,182,741,400

1,229,395,000

2,500,000

Other Current Liabilities

1,218,498,507

886,693,810

124,173,049,389

Non-Current Liabilities

41,009,904,139

53,013,437,391

56,983,478,404

Long-Term Borrowings

15,700,000,000

25,000,000,000

23,000,000,000

Confirmed Salaries

24,195,689,459

27,725,667,881

28,784,912,530

Other Non-Current Financial Debts

34,969,500

287,769,510

2,875,654,520

Deferred Income Tax Credit

1,079,245,180

0

2,322,911,354

Capital Stock

45,000,000,000

45,000,000,000

45,000,000,000

Capital Surplus

118,784,676,063

118,797,004,830

128,795,451,155

Profit Surplus

28,587,178,852

15,054,821,440

47,026,639,488

Others

6,085,636,183

10,355,220,968

352,290,438

Total Equity

198,457,491,098

189,207,047,238

221,174,381,081

Liab. & Shareholder’s Equity

532,727,301,778

474,029,741,985

666,314,510,118

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

848,025,474,441

852,763,702,460

1,000,564,178,112

Cost of Sold Goods

819,435,007,599

830,228,534,140

933,244,698,213

Gross Profit

28,590,466,842

22,535,168,320

67,319,479,899

Selling & Admin. Expenses

28,268,646,084

36,223,990,094

34,147,354,137

Operating Income

321,820,758

-13,688,821,774

33,172,125,762

Non-Operating Income

236,233,966

971,660,601

8,994,804,276

Non-Operating Expenses

3,952,126,376

3,755,859,277

15,189,517,206

Finance Income

7,175,204,703

10,694,069,272

18,864,376,567

Finance Expenses

15,138,561,346

17,721,591,892

23,601,057,366

Profits from Equity Method

11,531,515,369

-11,414,331,849

-201,219,455

Others

14,941,838,138

0

23,570,065,256

Losses from Investment on Related Companies

0

0

1,499,997,000

Income Before Taxes

15,115,925,212

-34,914,874,919

44,109,580,834

Income Taxes Expenses

3,484,291,246

-5,520,583,794

4,108,078,857

Income from Continuous Business

11,631,633,966

-29,394,291,125

40,001,501,977

Income from Stopped Business

0

891,154,451

-1,836,455,315

Net Income

11,631,633,966

-28,503,136,674

38,165,046,662

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

56,182,717,438

-41,111,647,330

5,156,362,825

Cash Flows from Operating

887,589,060

2,940,640,820

-16,234,641,117

Changes in Asset/ & Liability

32,479,013,893

-58,856,048,382

-36,360,846,969

Cash Flows from Investing

-91,400,997,973

-12,243,327,144

-33,554,670,419

Cash Inflow from Investing

28,227,051,747

73,354,680,932

111,241,228,756

Cash Outflows for Investing

-119,628,049,720

-74,056,884,863

-153,844,465,515

Cash Flows from Financing

-8,452,495,603

25,815,684,076

28,911,627,655

Cash Inflows from Financing

1,071,514,118,349

912,119,401,738

451,257,993,979

Cash Outflows from Financing

-1,079,966,613,952

-886,226,823,981

-420,402,956,945

Increase/Decrease in Cash

-43,670,776,138

-27,539,290,398

513,320,061

Cash at the Beginning of Year

51,840,353,962

79,781,319,353

78,872,195,640

Cash at the End of Year

8,169,609,270

51,840,353,962

79,781,319,353

 

 

Products, Technologies, Services Description

 

Main Products & Services

Polyester Yarn (Full Dull, Middle Dull, Cation Dyable, High Shrinkage, Supper Bright, Bright)

SPANDEX Yarn

CHIP(FD, CD, HS)

Resin for PET Bottle

 

Brand Name: TexPet, ARACHRA, TEXLON

 

 

Trade Partners & Competitors

 

Suppliers

SAMSUNG PETROCHEMICAL CO., LTD.(181211-0000435)

Customers

DAEWOO INTERNATIONAL CORPORATION(110111-2137358)

LG INTERNATIONAL CORP(110111-0004632)

KIPSCO(KOREA)

YOONSE TONGSANG CO., LTD.(KOREA)

Competitors

TAEKWANG INDUSTRIAL CO., LTD.

162-1, JANGCHUNGDONG 2-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-3406-0300  FAX:+82-2-2273-9166

 

HUVIS CORP.

HUVIS BLDG., 151-7, SAMSEONG 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2189-4567 FAX:+82-2-2189-4569

 

WOONGJIN CHEMICAL CO., LTD.

287, GONGDAN 2-DONG, GUMI-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-469-4114  FAX:+82-54-469-4444

 


Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

NAMSUN ALUMINIUM CO.,LTD.(170111-0005042)

SAMRA CONSTRUCTION CO., LTD. (200111-0013220)

JINDUK CO., LTD.(110111-0002834)

KYUNGNAM WOOL TEXTILE CO., LTD(190111-0004107)

BEXEL CORPORATION(176011-0028438)

DAEWOO LIFE CO., LTD.(176011-0028595)

CHOYANG CO., LTD. (130111-0009662)

KUKDONG CO. LTD(200111-0075931)

SAMRA ENGINEERING & CONSTRUCTION CO., LTD.(200111-0013220)

SAMRA INDUSTRIAL DEVELOPMENT CO., LTD.(20111-0071319)

SAMRA MIDAS CO., LTD.(200111-0069330)

BULLWHUI CO., LTD.

GIMPO CHARACTER WORLD CO., LTD.(124411-0050211)

KOREA COMMUNICATION ENGINEERING CO., LTD.(110111-0204654)

SMT CHEMICAL CO., LTD.(170111-0351776)

TK CHEMICAL HOLDINGS CO., LTD.(170111-0352732)

Affiliates-Overseas

QINGDAO KYUNGNAM WOOL TEXTILE CO., LTD.(CHINA)

BEST CHEMICALS & PLASTICS, INC.(BCPI)

BESTCHEM, INC(BCI)

Overseas Office

TK CHEMICAL CORP. ISTANBUL OFFICE

BESIKTAS LEVENT NISPETIYE CAD. NO.30 C BLOCK D.23 ISTANBUL, TURKIYE

TEL:+90-212-3257861/3257862  FAX:+90-212+3258242

Subsidiary

HIPLUSCARD CO., LTD.(131111-0191187)

(100.0% held by the subject company)

Corporate Ownership

SAMRA CONSTRUCTION CO., LTD.(200111-0013220)

SMT CHEMICAL CO., LTD.(170111-0351776)

Major Shareholders

SMT CHEMICAL CO., LTD.(170111-0351776)

Cooperative Enterprise

-Insured Company

HYUNDAIMARINE&FIREINSURANCECO., LTD.(110111-0035893)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2011

2010

2009

Export

622,668

761,367

666,003

Domestic

134,433

120,676

111,191

Total

757,101

882,043

777,194

The Subject exports to Asia, USA, Middle East and Europe.

 


Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

Daegu District Court, Korea

HNL CO., LTD.(Korea)

The Subject Company

Fees

550,000,000

1st round is proceeding.

 

Seoul High  Court

The Subject Company

Kyunghan Industry Co., Ltd.

Refund of Inappropriate Profits

667,524,000

1st round is proceeding.

 

Supreme Court, Korea

The Subject Company

ASAM Investment Advisory(110111-1295850) & Others(4)

Refund of Stock Transferring amount

1,499,997,000

1st round is proceeding.

 

 

News Clipping

 

---

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.71

UK Pound

1

Rs.102.04

Euro

1

Rs.83.76

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

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.