MIRA INFORM REPORT

 

 

Report Date :

11.12.2014

 

IDENTIFICATION DETAILS

 

Name :

UNION STEEL CO., LTD.

 

 

Formerly Known As :

Union Steel Mfg. Co., Ltd

 

 

Registered Office :

19, Eulji-Ro 5-Gil, Jung-Gu, Seoul, Korea, 5 FL., Ferrum Tower, Zip Code 100-210

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

10.12.1962

 

 

Com. Reg. No.:

102-81-18542

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Drawn and Extruded Iron, Cold Rolled Steel, Electro-Galvanized Steel, Aluminum-Zinc Alloy Steel, Hot-Dip Galvanized Steel Sheets & Pre-Coated Metal, Color Steel Sheets

 

 

No of Employees :

953

 

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 :

Exists

 

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 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. South 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. South 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-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, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP.

 

Source : CIA

 

 

 

Basic

 

Company Name

UNION STEEL CO., LTD.

(Korean Company Name : “유니온스틸(주)”)

Registered Address

19, Eulji-ro 5-gil, Jung-gu, Seoul, Korea

Building

5 FL., Ferrum Tower

Zip Code

100-210

Tel

+82-2-2222-0114

Fax

+82-2-2222-0275

E-mail

jinwoo.shin@dongkuk.com;sungwon1.lee@dongkuk.com

Website

www.unionsteel.co.kr

Trading Address

5 FL., Ferrum Tower, 19, Eulji-ro 5-gil, Jung-gu, Seoul, Korea

(Old Address System : 5 FL., Ferrum Tower, 66, Suha-dong, Jung-gu, Seoul, Korea)

Tel

+82-2-2222-0114

Fax

+82-2-2222-0275

Other Address

588-1, Gaman-dong, Nam-gu, Busan-si, Korea

Tel

82-51-640-5960~9

Fax

82-51-643-1830

Other Address-Giheung Factory

833-7, Jung-ri, Dongtan-myeon, Hwaseong-si, Gyeonggi-do, Korea

Other Address-R&D Center

67-1, Namcheon-dong, Suyeong-gu, Busan, Korea

Tel

+82-51-610-2300

Fax

+82-51-610-2309

Type

Export

  Main Business

Manufacturer of Drawn and Extruded Iron, Cold Rolled Steel, Electro-Galvanized Steel, Aluminum-Zinc Alloy Steel, Hot-Dip Galvanized Steel Sheets & Pre-Coated Metal, Color Steel Sheets

Established (mm/dd/yyyy)

12/10/1962

The Subject owns the premises of registered Busan Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Steel plate(30102204)

Buy

Hot Coil

 

 

CEO’s

 

Name

Chang Se-Wook

Date of Birth

12/15/1962

Title

President & CEO

Sex

Male

Nationality

Korean

Profiles

 

Capital (KRW)

51,777,410,000

Employees

953

Formation

Listed Company (Korea Stock Exchange : 003640) as of 06/30/1973

A Company of DONGKUK STEEL MILL

Bank Details

Korea Development Bank

Korea Development Bank

Kookmin Bank

Shinhan Bank

Corporate Registered No.

110111-0041501

Business Registered No.

102-81-18542

Permit & Licenses

05/11/1995 ISO 9001

02/18/1997 ISO 14001

 

Int’l Trade No.: 710297

Shareholder Position

Name

Shares

%

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

6,680,297

64.51

POSCO(174611-0000741)

1,005,000

9.71

OTHERS

2,670,185

25.79

TOTAL

10,355,482

100.00

Company History

12/10/1962 Incorporated as Union Steel Mfg. Co., Ltd

03/16/2004 Changed company name to the present name, UNION STEEL CO., LTD.

08/17/2010 Moved to the present HQ address from 15th~19th floor, Union Steel Building, 890. Daechi-dong, Gangnam-gu, Seoul, Korea (P.O.BOX 4610)

10/13/2014 Decided to be acquired by DONGKUK STEEL MILL CO., LTD.(110111-0031338) as of 01/01/2015

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman

Mr.

Chang Se-Joo

Korean

1953.11.08

Yonsei University, Korea

President & CEO

Mr.

Chang Se-Wook

Korean

1962.12.15

Korea Army Academy, Korea

Vice President & CEO

Mr.

Lee Yong-Soo

Korean

1955.01

Dongah University, Korea

Sr. Executive Director

Mr.

Sohn Ho

Korean

1957.01

Kyungbuk National University, Korea

Director

Mr.

Kim Ki-Young

Korean

1963.03

Busan National University, Korea

Outside Director

Mr.

Lee Bu-Sik

Korean

1945.01

-

Outside Director

Mr.

Cha Dong-Min

Korean

1959.11

-

Outside Director

Mr.

Sung Young-Hoon

Korean

1960.01

-

Outside Director

Mr.

Sohn Sung-Kyu

Korean

1959.12

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2014

1,232,537,951,281

1,838,129,607,069

10,925,792,259

(*)2014

1,693,283,650,449

1,749,051,288,174

26,764,027,337

(*)2013

1,780,032,333,792

1,844,601,838,337

-45,954,395,967

(*)2012

1,780,032,333,792

1,844,601,838,337

-45,954,395,967

(*)2011

1,946,033,328,675

1,935,828,193,316

10,484,079,787

2010

1,926,594,213,107

1,846,509,763,896

30,316,597,976

2009

1,300,397,267,789

1,810,355,160,041

-76,637,700,648

2008

1,609,685,456,303

1,670,716,696,229

-15,045,615,741

2007

1,062,903,370,464

1,458,475,919,258

2,741,316,175

2006

1,090,349,297,501

1,352,708,672,891

1,642,170,343

2005

1,152,215,347,482

1,246,701,552,990

3,093,406,293

2004

1,113,955,191,833

1,278,041,196,926

78,660,542,606

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

 

 

Financial Description

 

Authorized Capital(KRW)

200,000,000,000

Paid-Up Capital(KRW)

51,777,410,000

Total Issued Shares

10,355,482

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

1,838,129,607,069

1,749,051,288,174

1,844,601,838,337

Current Assets

764,856,840,307

670,661,773,567

727,062,333,165

Cash & Cash Equivalents

176,765,803,383

126,295,695,438

85,063,920,045

Current Financial Instruments

750,000,000

 

2,000,001,000

Trade Receivables

347,420,887,019

332,146,478,642

311,119,865,311

Other Receivables

1,933,736,437

951,798,444

2,125,192,072

Other Finance Assets

1,454,306,688

2,196,110,963

12,227,401,948

Inventories

214,445,760,765

187,196,964,603

202,702,986,012

Deferred Income Tax Assets

1,297,643,254

 

 

Other Current Assets

20,788,702,761

21,874,725,477

4,563,562,932

Assets to be Sold

 

 

107,259,403,845

Non-Current Assets

1,073,272,766,762

1,078,389,514,607

1,117,539,505,172

Non-Current Financial Instruments

115,900,000

102,900,000

78,900,000

Other Receivables

2,474,652,311

2,440,779,369

2,980,564,609

Other Finance Assets

5,927,806,570

930,247,730

11,925,886,170

Tangibles

900,203,334,444

905,880,319,253

937,159,294,902

Intangibles

5,379,663,306

5,650,218,834

6,289,977,214

Investment_Real Estates

5,953,063,699

5,167,202,989

5,247,279,631

Investment_Related Companies

153,218,346,432

158,217,846,432

153,857,602,646

Total Liabilities

1,094,236,065,439

1,035,785,575,200

1,157,103,216,222

Current Liabilities

891,675,385,655

711,510,350,695

606,817,846,450

Trade Payables

226,204,788,341

221,191,571,631

183,276,144,852

Other Payables

630,558,037,586

425,892,291,039

336,698,997,401

Deferred Income Tax Credit

 

15,099,081,695

2,073,924,042

Other Payables

30,283,340,425

45,765,312,112

66,118,427,073

Other Current Financial Debts

678,237,943

914,843,794

1,051,753,790

Other Current Liabilities

3,950,981,360

2,647,250,424

17,598,599,292

Non-Current Liabilities

202,560,679,784

324,275,224,505

550,285,369,772

Long-Term Trade Payables & Other Payables

170,027,394,493

300,701,707,774

505,844,574,197

Provision for Severance & Retirement

15,332,780,605

12,299,814,412

10,639,033,339

Deferred Income Tax Credit

14,241,517,427

8,847,039,604

19,850,582,240

Other Non-Current Financial Debts

395,319,777

663,244,000

12,119,175,760

Long-Term Provisions

2,017,516,363

1,583,256,688

824,259,563

Derivatives

546,151,119

180,162,027

1,007,744,673

Capital Stock

51,777,410,000

51,300,000,000

51,300,000,000

Capital Surplus

30,811,543,165

29,889,067,376

29,889,067,376

Profit Surplus

618,673,528,072

610,825,639,213

584,977,824,373

Installments

19,454,038,773

-500,629,777

-419,905,796

Others

23,177,021,620

21,751,636,162

21,751,636,162

Total Equity

743,893,541,630

713,265,712,974

687,498,622,115

Liab. & Shareholder’s Equity

1,838,129,607,069

1,749,051,288,174

1,844,601,838,337

 

 

Income Statement

 

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

1,232,537,951,281

1,693,283,650,449

1,780,032,333,792

Cost of Sold Goods

1,142,496,147,227

1,562,998,321,337

1,681,632,820,396

Gross Profit

90,041,804,054

130,285,329,112

98,399,513,396

Selling & Admin. Expenses

65,566,715,215

89,951,902,430

73,781,999,734

Operating Income

24,475,088,839

40,333,426,682

24,617,513,662

Non-Operating Income

7,578,818,301

58,394,923,192

10,977,297,962

Non-Operating Expenses

8,170,916,535

14,532,769,241

52,308,255,941

Finance Income

11,715,693,132

34,189,925,076

42,883,441,724

Finance Expenses

22,577,016,818

51,076,427,187

40,185,490,677

Profits from Investment on Related Companies

 

34,063,951,238

27,299,955,206

Income Before Taxes

13,021,666,919

33,245,127,284

-41,315,448,476

Income Taxes Expenses

2,095,874,660

6,481,099,947

4,638,947,491

Net Income

10,925,792,259

26,764,027,337

-45,954,395,967

 

 

Cash Flows

 

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

-17,135,437,052

43,771,486,833

179,205,846,631

Cash Flows from Operating

11,027,330,072

72,388,664,809

210,304,017,553

Interests Received

3,127,544,212

5,297,712,561

6,453,112,093

Interests Paid

-16,581,853,226

-29,664,808,135

-35,840,099,664

Dividends Received

2,915,656,550

217,590,850

686,329,050

Income Taxes

-17,624,114,660

-4,467,673,252

-2,397,512,401

Cash Flows from Investing

-3,259,482,973

104,483,329,977

-43,271,896,320

Cash Flows from Financing

70,579,215,798

-107,014,059,922

-93,152,428,417

Increase/Decrease in Cash

50,184,295,773

41,240,756,888

42,781,521,894

Cash at the Beginning of Year

126,295,695,438

85,063,920,045

42,736,561,818

Cash at the End of Year

176,765,803,383

126,295,695,438

85,063,920,045

 

 

Products, Technologies, Services Description

 

Main Products & Services

COLD ROLLED

Cold Rolled Steel Sheet

 

GALVANIZED

Electrolytic Galvanized Steel Sheet

Hot-dip Galvanized Steel Sheet

Galvalume Steel Sheet (Aluminum-Zinc Alloy Coated Steel Sheet)

Galva-annealed Steel Sheet

 

COLOR

Regular Modified Polyester Coated Steel Sheet(RMP)

Silicone Modified Polyester Coated Steel Sheet(SMP)

PVDF Coated Steel Sheet

High Polymer Polyester Coated Steel Sheet(HPP)

Embossed Color Steel Sheet

Both-side Embossed Steel Sheet

White Board & Green Board Steel Sheet

Printed Steel Sheet

Uni-besque Steel Sheet

Marble Tone Steel Sheet

Unistone Steel Sheet

Anti-Static Steel Sheet

Screen Steel Steel Sheet

Hair Line Steel

Colorlume

 

Brand Name : UNION STEEL

 

 

Trade Partners & Competitors

 

Suppliers

POSCO(174611-0000741)

Customers

DAEWOO INTERNATIONAL CORPORATION(110111-2137358)

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

DK INTERNATIONAL CO., LTD.(204411-0006465)

SEOK JIN STEEL CO., LTD(170111-0156415)

DAE HAN STEEL CO., LTD.(180111-0159871)

GWANG SHIN STEEL CO., LTD.(200111-0133606)

Competitors

POSCO(174611-0000741)

1, GOEDONG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-220-0114  FAX:+82-54-220-6000

 

DONGBU STEEL CO., LTD.(110111-0393308)

18TH FL., DONGBU FINANCIAL CENTER, 891-10, DAECHI 4-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-3450-8114  FAX:+82-2-3450-8500

 

HYUNDAI STEEL COMPANY(120111-0001743)

HYUNDAI STEEL, 1, SONGHYEON 3-DONG, DONG-GU, INCHEON, KOREA

TEL:+82-32-760-2114  FAX:+82-32-760-2813

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

UNION COATING COMPANY LIMITED(134811-0082462)

(70.94% held by the subject company)

 

INTERGIS CO., LTD.(Ex. DONGKUK TRANSPORTATION CO., LTD, 180111-0001973)

KUKJE TRANSPORTATION CO., LTD.(180111-0020345)

DK UIL CO.,LTD(110111-0320955)

FERRUM INFRA(110111-4199330)

ILSHIN U& VENTURE INVESTMENT ASSOCIATION

DONGKUK CORPORATION

BUSAN PORT PIER4 CO., LTD.(180111-0290047)

KUKJE MACHINERY CO., LTD.(131111-0000635)

DK S& CO.,LTD.(110111-3435660)

DK UTECH CO.,LTD.(115611-0020526)

DKUNC CO., LTD.(110111-1462524)

DANGJIN GODAE PORT OPERATION CO,., LTD.(165011-0034347)

Affiliates-Overseas

DONGKUK INTERNATIONAL, INC.

(35.73% held by the subject company)

 

DONGKUK CO., LTD.

(44.80% held by the subject company)

 

MUSEOK JANGKANG PLATE CO., LTD.(CHINA)

(100.0% held by the subject company)

 

UNION STEEL CHINA CO., LTD.(CHINA)

(100.0% held by the subject company)

 

BRANSON MASHINERY LLC.

UNION STEEL CHINA

DK UTECH (TIANJIN) CO., LTD.

DK UIL (H.K.) LTD.

DK UIL (TIANJIN) ELECTRONICS CO., LTD.

IC&IG INVESTIMENTOS BR S.A.

CEARA STEEL S.A.

DKS & CORPORATION

UNION STEEL MEXICO,S.A. DE C.V

DK UIL VIETNAM CO., LTD.

CSP

Overseas Office

UNION STEEL CHINA CO., LTD.

XIAGANG ZONE JIANGYIN RIVERSIDE ECONOMY DEVELOPMENT AREA, JIANGYIN CITY, JIANGSU214442, CHINA

TEL:+86-510-8603-2308

 

WUXI CHANGJIIANG METAL CO., LTD.

YUQI TOWN, HUISHAN, WUXI CITY, JIANGSU214183 CHINA

TEL:+86-510-8388-0089

 

UNION STEEL GUANGZHOU OFFICE

ROOM 2001, GUANGZHOU GOLDLION TOWER, NO.138, TIANHE TIYU DONG ROAD, GUANGZHOU, GUANGDONG 510620, CHINA

TEL:+86-20-3878-0425

 

UNION STEEL SHANGHAI OFFICE

ROOM 2306 SHENGGAO INTERNATIONAL BUILDING NO.137, XIANXIA ROAD, SHANGHAI 200051, CHINA

TEL:+86-21-6229-0213

 

LOS ANGELES OFFICE

UNIONSTEEL AMERICA, CO. A DIVISION OF DONGKUK INT'L INC 19750 MAGELLAN DR, TORRANCE, CA 90502 U.S.A.

TEL:+310-523-9595 FAX: 310-523-9599

 

NEW YORK OFFICE

UNIONSTEEL AMERICA, CO. A DIVISION OF DONGKUK INT'L INC SUITE #302, 460 BERGEN BLVD PALISADES PARK, NJ 07650-2300 U.S.A.

TEL:+201-947-7373 FAX: 201-947-3999

 

DONGKUK CORPORATION

6FLOOR, HANIUDA BUILDING 2-7-6, KAYABA-CHO, NIHONBASHI CHUO-KU, TOKYO 103-0025, JAPAN

TEL:+81-3-5623-5723 FAX:+81-3-5623-5722

 

UNION STEEL MEXICO

(56.0% held by the subject company)

AV INTERNACIONAL #303 C.P 66634 PARQUE INDUSTRIAL HUINALA APODACA, N.L UNION STEEL MEXICO SA DE CV

TEL:81-8145-2122

Subsidiary

MUSEOK JANGKANG PLATE CO., LTD.(CHINA)

(100.00% held by the subject company)

 

UNION STEEL CHINA CO., LTD.

(87.55% held by the subject company)

 

UNION COATING COMPANY LIMITED(134811-0082462)

(70.94% held by the subject company)

 

UNION STEEL MEXICO

(55.56% held by the subject company)

 

USI SERVICE CENTER P.L(INDIA)

(75.00% held by the subject company)

 

UNION STEEL PROCESSING CENTER(THAILAND), LTD.

(100.00% held by the subject company)

Corporate Ownership

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

Major Shareholders

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

Cooperative Enterprise

-Insured Company

FIRST FIRE & MARINE INSURANCE CO., LTD(110111-0017586)

MERITZ FIRE & MARINE INSURANCE CO., LTD(110111-0013328)

 

 

Sales by Region

(Activity & Markets)

 

The Subject imports from China and Japan. It exports to Asia, North America, Oceania, Africa and Middle East.

 

 

Court Action

 

There are 5 cases filed as Plaintiff(s)/ Creditor(s)/ Applicant(s) amounting 3,537,803,000 KRW, and 3 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 280,000,00 KRW.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.95

UK Pound

1

Rs.97.16

Euro

1

Rs.76.75

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.