MIRA INFORM REPORT

 

 

Report Date :

27.01.2014

 

IDENTIFICATION DETAILS

 

Name :

KUMHO POLYCHEM CO., LTD.

 

 

Registered Office :

99, Supyo-dong, Jung-gu, Seoul, Korea, 8F, East Wing, Signature Tower, Zip Code 100-230

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

05.06.1985

 

 

Com. Reg. No.:

104-81-34515

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacturer of Synthetic Rubber

 

 

No. of Employees :

163

 

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 :

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

Basic

 

Company Name

KUMHO POLYCHEM CO., LTD.

(Korean Company Name : “금호폴리켐()”)

Registered Address

99, Supyo-dong, Jung-gu, Seoul, Korea

Building

8F, East Wing, Signature Tower

Zip Code

100-230

Tel

+82-2-6303-3801

Fax

+82-2-6303-3812

E-mail

yoo1128@polychem.co.kr;webmaster@polychem.co.kr

Website

www.polychem.co.kr

Trading Address

8F, East Wing, Signature Tower, 99, Supyo-dong, Jung-gu, Seoul, Korea

(New Address System : 100, Cheonggyecheon-ro, Jung-gu, Seoul, Korea)

Tel

+82-2-6303-3801

Fax

+82-2-6303-3812

Other Address-Yeocheon Factory

144-6, Wolha-dong, Yeosu-si, Jeollanam-do, Korea

Tel

+82-61-688-2711

Fax

+82-61-688-2899

Type

Export

Industry

Manufacture of Synthetic Rubber

  Main Business

Athylenpropylene Rubber, Synthetic Rubber

Established (mm/dd/yyyy)

06/05/1985

The Subject owns the premises of Yeocheon Factory.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Rubber compound(13101607)

 

CEO’s

 

Name

Park Chan-Gu

Address

12, Itaewon-ro 55ga-gil, Yongsan-gu, Seoul, Korea

Date of Birth

08/13/1948

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

21,500,000,000

Employees

163

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

A company of KUMHO ASIANA BUSINESS GROUP

Bank Details

Woori Bank-Sales 1 Division

Korea Development Bank

Shinhan Bank

Korea Exchange Bank

Corporate Registered No.

110111-0400533

Business Registered No.

104-81-34515

Permit & Licenses

11/20/1993 Obtained ISO 9002

05/24/1994 Obtained ISO 9001

09/30/1996 Obtained ISO 14001

12/06/2000 Obtained KOSHA 2000 certificate

10/17/2000 Obtained OHSAS 18001 certificate

01/27/2006 Obtained ISO 9001 by DNV

01/27/2006 Obtained ISO 14001 by DNV

 

Int’l Trade No.: 548029

Shareholder Position

Name

Shares

%

KOREA KUMHO PETRO CHEMICAL CO., LTD.(110111-0205975)

2,150,000

50.00

J S R CORPORATION(JAPAN)

2,150,000

50.00

TOTAL

4,300,000

100.00

Company History

06/05/1985 Incorporated as KUMHO EP RUBBER CO., LTD. as a JV between KOREA SYNTHETIC RUBBER INDUSTRIES CO., LTD. and JAPAN SYNTHETIC RUBBER CO., LTD.

1986 Completed construction of the Yeochon plant

1986 Signed an agreement for technology licensing for 1st expansion (20,000MT/Yr) with Japan Synthetic Rubber Co., Ltd.

01/09/1987 Registered as a Foreign Direct Investment Corporation

1988 Signed an agreement for stock sales and modified JV (Korea Kumho Petrochemical Co., Ltd., Japan Synthetic Rubber, Co., Ltd. and Exxon Chemical Co., Ltd.)

1988 Signed an agreement for a technology license with Exxon Chemical Co., Ltd.

1989 Completed construction of the 1st plant expansion

1989 Started Business

1993 Received ISO 9002 certification

1994 Received ISO 9001 certification

1994 Received BS 7750 certification

1995 Signed an Agreement for a KP-II Plant Technology License

1996 Received ISO 14001 certification

05/01/1997 Changed the company’s name to Kumho Polychem Co., Ltd.

1997 Held the KP-II Plant construction completion ceremony (50,000MT/Yr)

2000 Received ISO 18001 certification

2000 Received KOSHA 2000 certification

03/27/2001 Increased the authorized shares to 12,000,000 shares from 4,000,000 shares

11/06/2001 Increased capital to 30,000,000,000 KRW from 15,000,000,000 KRW

06/11/2002 Decreased capital to 24,000,000,000 KRW from 30,000,000,000 KRW

03/27/2003 Decreased capital to 21,500,000,000 KRW from 24,000,000,000 KRW

2005 Signed an Agreement for Stock Transaction and JV Modification (Korea Kumho Petrochemical Co., Ltd. and Japan Synthetic Rubber Co., Ltd.).

2005 Changed shareholding (Kumho Petrochemical : JSR = 50:50)

2006 Received the patent for EP(D)M production process technology <Patent Name>: High yield EP(D)M manufacturing method and yield control method, and EP(D)M recovery method

2007 3rd expansion construction completion ceremony (80,000MT/Yr)

2007 Selected as an excellent quality business (for 8 consecutive years)

11/2007 Awarded USD 100 Million Export Tower in the 44th International Trading Day

09/07/2008 Moved to the present HQ address from 57, Sinmunno 1-ga, Jongno-gu, Seoul, Korea

09/01/2012 Moved to the present HQ address from 20th Fl., Kumho Asiana Main Bldg., 115, Sinmunno 1-ga, Jongno-gu, Seoul, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Park Chan-Gu

Male

Korean

04/27/2012

Co-President & CEO

Mr.

Wakabayashi Takashi

Male

Japanese

06/15/2012

Director

Mr.

Kim Sung-Chae

Male

Korean

06/15/2012

Director

Mr.

Kawasaki Koichi

Male

Japanese

06/16/2008

Director

Mr.

Koshiba Mitsunobu

Male

Japanese

06/17/2011

Director

Mr.

Han Dong-Hwa

Male

Korean

07/19/2010

Auditor

Mr.

Hirano Hayata

Male

Japanese

06/15/2012

Auditor

Mr.

Lim Kyung-Jin

Male

Korean

03/07/2013

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2012

430,827,352,166

402,274,646,624

105,648,252,677

(*)2011

403,243,061,120

308,647,190,756

110,629,567,944

(*)2010

309,805,563,351

215,220,666,911

54,384,460,467

2009

219,001,945,770

159,634,856,497

21,695,848,327

2008

204,491,335,877

153,916,504,724

9,667,634,155

2007

151,482,919,960

134,196,824,121

4,814,410,180

2006

 143,249,207,329

 108,829,517,839

 11,048,313,789

2005

129,916,865,273

81,204,422,939

17,568,304,688

2004

110,680,354,635

61,447,096,136

4,718,277,521

2003

99,325,824,880

61,964,578,036

6,328,211,894

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


 

Financial Description

 

Authorized Capital(KRW)

60,000,000,000

Paid-Up Capital(KRW)

21,500,000,000

Total Issues Shares

4,300,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

402,274,646,624

308,647,190,756

215,220,666,911

Current Assets

162,144,930,275

155,672,077,829

108,130,505,440

Inventories

71,996,710,984

60,012,294,931

41,231,288,476

Trade Receivables

29,247,874,198

26,351,801,170

23,077,849,746

Other Receivables

4,842,004,327

18,850,360,683

3,883,020,069

Cash & Cash Equivalents

55,415,745,141

49,909,961,550

39,350,325,377

Other Current Assets

642,595,625

547,659,495

588,021,772

Non-Current Assets

240,129,716,349

152,975,112,927

107,090,161,471

Tangibles

234,044,093,222

147,343,619,038

101,970,951,835

Intangibles

3,828,258,200

3,802,538,656

3,456,294,624

Other Receivables

2,257,364,927

1,828,955,233

1,641,426,088

Other Non-Current Assets

 

 

21,488,924

Total Liabilities

95,592,162,338

85,740,487,617

80,221,930,554

Current Liabilities

85,692,843,362

73,572,628,233

67,232,396,987

Trade Payables

20,524,325,417

19,857,853,737

16,049,077,554

Other Payables

36,259,737,713

18,405,651,506

13,749,117,342

Short-Term Borrowings

11,968,907,177

10,007,157,040

22,512,256,358

Derivatives

 

 

159,484,037

Accrued Income Tax

16,679,261,525

24,913,425,180

13,772,226,691

Other Current Liabilities

260,611,530

388,540,770

990,235,005

Non-Current Liabilities

9,899,318,976

12,167,859,384

12,989,533,567

Other Payables

1,442,015,420

2,702,015,420

3,769,940,420

Long-Term Borrowings

3,714,500,000

4,064,000,000

5,124,000,000

Deferred Income Tax Credit

1,785,959,299

1,694,039,626

1,624,139,597

Confirmed Salaries

2,471,803,692

3,398,773,837

2,166,602,195

Long-Term Accrued Expenses

485,040,565

309,030,501

304,851,355

Capital Stock

21,500,000,000

21,500,000,000

21,500,000,000

Capital Surplus

1,559,108,425

1,559,108,425

1,559,108,425

Others

 

 

-22,384,149

Profit Surplus

283,623,375,861

199,847,594,714

111,962,012,081

Total Equity

306,682,484,286

222,906,703,139

134,998,736,357

Liab. & Shareholder’s Equity

402,274,646,624

308,647,190,756

215,220,666,911

 

Income Statement

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

430,827,352,166

403,243,061,120

309,805,563,351

Cost of Sold Goods

277,051,392,352

245,369,321,451

223,200,648,757

Gross Profit

153,775,959,814

157,873,739,669

86,604,914,594

Selling & Admin. Expenses

18,525,082,421

15,990,320,982

14,950,503,487

Operating Income

135,250,877,393

141,883,418,687

1,783,758,290

Other Income

1,623,158,935

3,492,909,095

2,534,427,335

Other Expenses

3,399,972,401

4,005,395,197

70,903,742,062

Finance Income

3,388,248,345

2,558,813,718

1,996,442,149

Finance Expenses

625,009,218

1,018,804,045

2,242,585,715

Income Before Taxes

136,237,303,054

142,910,942,258

70,657,598,496

Income Taxes Expenses

30,589,050,377

32,281,374,314

16,273,138,029

Net Income

105,648,252,677

110,629,567,944

54,384,460,467

 

Cash Flows

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

111,258,110,956

117,988,795,746

78,964,830,984

Cash Flows from Operating

147,874,342,281

137,969,967,463

87,049,201,395

Net Income

105,648,252,677

110,629,567,944

 

Interests Received

2,254,390,233

1,479,026,954

710,653,540

Interests Paid

-258,242,912

-779,932,746

-1,661,753,817

Income Taxes

-38,612,378,646

-20,680,265,925

-7,133,270,134

Cash Flows from Investing

-85,919,994,304

-72,378,057,021

-29,570,502,418

Cash Flows from Financing

-19,829,699,945

-35,067,116,755

-24,878,219,411

Increase/Decrease in Cash

5,508,416,707

10,543,621,970

24,516,109,155

Cash at the Beginning of Year

49,909,961,550

39,350,325,377

14,834,436,455

Cash at the End of Year

55,415,745,141

49,909,961,550

39,350,325,377

 

 

Products, Technologies, Services Description

 

Main Products & Services

Ethylene-Propylene based rubbers(EP(D)M)

 

 

Trade Partners & Competitors

 

Customers

KOREA KUMHO PETRO CHEMICAL CO., LTD.(110111-0205975)

Competitors

SHIN-ETSU SILICONE KOREA CO., LTD.

RM. 904, DANAM BLDG., 120, NAMDAEMUNNO 5-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-775-9691 FAX:+82-2-775-9690

 

CHO YANG CORPORATION

111-1, ANPYEONG-RI, HOBEOP-MYEON, ICHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-31-638-4220  FAX:+82-31-636-8015

 

DYM CO., LTD.

624-2, EOPSEONG-DONG, SEOBUK-GU, CHEONAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-621-6250  FAX:+82-41-621-8420

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

KUMHO INDUSTRIAL CO., LTD(110111-0134877)

KOREA KUMHO PETRO CHEMICAL CO., LTD(110111-0205975)

DAEWOO ENGINEERING & CONSTRUCTION CO., LTD.(110111-2137895)

KUMHO TIRE CO., LTD.(110111-2810590)

ASIANA AIRLINES INC.(110111-0562804)

KOREA EXPRESS CO., LTD(110111-0006167)

KUMHO TRADING CO., LTD.(110111-2079641)

KUMHO RENT-A-CAR CO., LTD.(110111-0513253)

KUMHO MITSUI CHEMICALS, INS.(110111-0612980)

KUMHO LIFE INSURANCE CO., LTD.(200111-0014608)

KUMHO POLYCHEM CO., LTD.(110111-0400533)

KUMHO P&B CHEMICALS, INC.(206211-0018313)

KUMHO ASIANA MAIN TOWER CO., LTD.(110111-3207712)

SEOUL EXPRESS BUS TERMINAL CO., LTD.(110111-0187644)

ASIANAIDT, INC.(110111-0801848)

ASIANA AIRPORT DEVELOPMENT CO., LTD.(110111-1412496)

ASIANA ABACUS , INC.(110111-3010925)

INCHEON AIRPORT ENERGY CO., LTD.(110111-1415408)

JUNG-BU INTEGRATED FREIGHT TERMINAL CO., LTD.(110111-3284158)

CHUNGJU BORAMAE CO., LTD.(110111-3348524)

KUMHO TERMINAL CO., LTD.(200111-0231418)

KUMHO RESORT CO., LTD(134511-0105856)

GK FIXED LINK CORP(180111-0443224)

AAS AIRPORT SERVICES. INC(110111-0562713)

KUMHO AUTOLEASE, INC.(110111-3626970)

ILSAN GRAND BRIDGE CORP.(110111-2576192)

SOUTHWEST COAST LEISURE COMPANY(205511-0024878)

GREEN ANSEONG ENVIRO CO., LTD(110111-3780833)

SONGNISAN EXPRESS CO., LTD.(150111-0000286)

THE KOREA EXPRESS TERMINAL CO., LTD.(110111-1726227)

KOREA EXPRESS INFORMATION TECHNOLOGY CO., LTD(110111-2230417)

GWANGYANG WEST CONTAINER TERMINAL CO., LTD.(110111-3547514)

DAEHAN YONGYOK CO., LTD.

KOREA INTEGRATED FREIGHT TERMINAL CO., LTD(110111-0853576)

BUSAN EAST CONTAINER TERMINAL CO., LTD.(180111-0101252)

PECT NEW CONTAINER TERMINAL CO., LTD.(180111-0449579)

DONG SEOK LOGISTICS CO., LTD.(144711-0009135)

TERMINAL OPERATING CO., LTD OF MASAN PORT-PIER 4(194211-0035362)

BUSAN GAMMAN CONTAINER TERMINAL CO., LTD.(180111-0560234)

BND CO., LTD.(164811-0005799)

ULSAN PORT OPERATING CO., LTD.(230111-0057769)

INCHEON SOUTH TERMINAL OPERATION COMPANY(120111-0426305)

KE-CATI LOGISTICS CO., LTD(204611-0024273)

CNK WORLD LOGISTICS CO., LTD(110111-3638496)

AIR BUSAN CO., LTD(180111-0605121)

HANGANG TOWN(110111-3937260)

Affiliates-Overseas

JSR TRADING CO., LTD

DW ARABIA LTD.

DW CONSTRUCTION PHILIPPINE INC.

DW ENG & CON POLAND LTD.

DW NIGERIA LTD.

UNION DW ENG & CON LTD.

DAEWOO-HANEL CORP.

DAEWOO E & C IRAN

PRUGIO SAKHALIN LTD.

HECO(HELVETIA ENERGY COMPANY GMBH)

AL-HIDAYAH-DAEWOO DEVELOPMENT SDN.BHD

DW AMERICA DEVEL'T INC.

DW ENG & CON.(M) SDN BHD

DW POWER(INDIA) LTD.

MEGAWORLD-DW CO.

(BEIJING LUFTHANSA CENTER CO.

DAEHA CO., LTD.

GUILIN DW HOTEL CO., LTD.

GULF ENG.CONST. & CONTRACT

THT DEVELOPMENT CO.,LTD

DAEWOO TRIPOLI INVESTMENT & DEVELOPMENT CO.

KUMHO HOLDINGS (H.K.) CO., LTD

Major Shareholders

KOREA KUMHO PETRO CHEMICAL CO., LTD.(110111-0205975)

JSR CORPORATION(JAPAN)

Cooperative Enterprise

- Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

 

-Technical Support Agreement with

EXXON MOBIL CHEMICAL COMPANY

 

 

Sales by Region

(Activity & Markets)

 

The subject deals with the companies in China, Taiwan and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.18

UK Pound

1

Rs.103.38

Euro

1

Rs.85.09

 

INFORMATION DETAILS

 

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.