MIRA INFORM REPORT

Report Date :

13.12.2014

IDENTIFICATION DETAILS

Name :	SHINHAN CHEMICAL CO., LTD.

Registered Office :	24, Daeeun-Ro 104beon-Gil, Siheung-Si, Gyeonggi-Do, Korea Rm. 202, Iseo Bldg., 429-838

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	11.05.1984

Com. Reg. No.:	139-81-05374

Legal Form :	Co., Ltd by Shares

Line of Business :	Wholesale of Other Chemical Materials and Chemical Products.

No. of Employees :	8

RATING & COMMENTS

MIRA’s Rating :

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 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

South Korea

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 Information

Company Name	SHINHAN CHEMICAL CO., LTD.
Registered Address	24, Daeeun-ro 104beon-gil, Siheung-si, Gyeonggi-do, Korea
Building	Rm. 202, Iseo Bldg.
Zip Code	429-838
Tel	+82-31-316-6095
Fax	+82-31-316-6097
E-mail	scheolchoi@hotmail.com;7dragons@hanmail.net

Trading Address	Rm. 202, Iseo Bldg., 24, Daeeun-ro 104beon-gil, Siheung-si, Gyeonggi-do, Korea (Old Address System : Rm. 202, Iseo Bldg., 540-4, Eunhaeng-dong, Siheung-si, Gyeonggi-do, Korea)
Tel	+82-31-316-6095
Fax	+82-31-316-6097

Type	Export
Industry	Wholesale of Other Chemical Materials and Chemical Products
Main Business	Resin, Dyes, Adhesives, Stationary

Established (mm/dd/yyyy)	05/11/1984

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Other adhesives and sealants(31201600)
Sell	Pigments(12171600)
Sell	Dyes(12171500)

CEO’s

Name	Jung Woo-Seok
Address	Suite 3-106, 603, Dunchon-dong, Gangdong-gu, Seoul, Korea
Date of Birth	09/17/1966
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)	80,000,000
Employees	8
Formation	Co., Ltd by Shares
Bank Details	Industrial Bank of Korea-Jongro Branch
Corporate Registered No.	1341110-022553
Business Registered No.	139-81-05374
Permit & Licenses	Int’l Trade No.: 14038530
Shareholder Position	N/A
Company History	05/11/1984 Incorporated as the present name 05/18/2009 Moved to the present HQ address from 696-6, Gojan-dong, Namdong-gu, Incheon, Korea

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Jung Woo-Seok	Male	Korean	08/05/1999
Director	Mr.	Choi Sung-Chul	Male	Korean	03/30/2000
Auditor	M/S.	Lee Hwa-Sil	Female	Korean	02/20/2001

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	2,704,140,000	3,352,327,000	86,743,000
2012	1,910,947,000	3,314,713,000	77,356,000
2011	235,257,000	3,704,143,000	2,388,167,000
2010	1,776,085,000	4,674,698,000	-1,018,975,000
2009	3,984,832,000	6,738,329,000	-822,061,000
2008	4,469,000,000	6,994,000,000	16,000,000

Financial Description

Authorized Capital(KRW)	120,000,000
Paid-Up Capital(KRW)	80,000,000
Total Issues Shares	16,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	3,352,327,000	3,314,713,000	3,704,143,000
Current Assets
-Quick Assets
-Inventories
Fixed Assets
-Investment
-Tangibles
-Intangibles
Total Liabilities	635,262,000	684,391,000	519,605,000
Current Liabilities
Fixed Liabilities
Capital Stock	80,000,000	80,000,000	80,000,000
Capital Surplus
Profit Surplus
Capital Adjustment
Total Equity	2,717,065,000	2,630,322,000	3,184,538,000
Liab. & Shareholder’s Equity	3,352,327,000	3,314,713,000	3,704,143,000

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	2,704,140,000	1,910,947,000	235,257,000
Cost of Sold Goods
Gross Profit
Selling & Admin. Expenses
Operating Income	108,643,000	108,726,000	-556,041,000
Non-Operating Income
Non-Operating expenses
Income Before Taxes
Income Taxes Expenses
Net Income	86,743,000	77,356,000	2,388,167,000

Products, Technologies, Services Description

Main Products & Services

Resin, Dyes, Adhesives, Stationary

Trade Partners & Competitors

Competitors

WOOSHIN PIGMENT CO., LTD.

117-4, GWANGCHEON-RI, SUNSEONG-MYEON, DANGJIN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-352-7976 FAX:+82-41-352-2401

HYUNDAI CHEMICAL CO., LTD.

3RD FL., M&S PLAZA, 141-2, SONGPA 1-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-3431-6671 FAX:+82-2-3431-1898

DONG YUNG CORPORATION

RM. 303, DAEMYEONG BLDG., 1340, SEOCHO 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-586-6090 FAX:+82-2-587-0223

Sales by Region (Activity & Markets)

The Subject exports to Sri Lanka, India, Pakistan and Vietnam.

Court Action

Not Available.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs.77.38

INFORMATION DETAILS

Analysis Done by :	SUB

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%)

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