MIRA INFORM REPORT

 

 

Report Date :

10.06.2014

 

IDENTIFICATION DETAILS

 

Name :

SEAH METAL CO., LTD.

 

 

Registered Office :

280, Gongdan-ro, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea 641-290

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

22.03.1994

 

 

Com. Reg. No.:

608-81-19001

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Steel Wire.

 

 

No. of Employees

126

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

Basic

 

Company Name

SEAH METAL CO., LTD.

(Korean Company Name : “()세아메탈”)

Registered Address

280, Gongdan-ro, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

(Old Address System : 50, Ungnam-dong, Changwon-si, Gyeongsangnam-do, Korea)

Building

 

Zip Code

641-290

Tel

+82-55-266-8777

Fax

+82-55-283-7404

E-mail

nkr5503@seahmetal.com;yjcho@seahmetal.com;hanth@seahmetal.com

Website

www.seahmetal.com

Trading Address

24FL., Seah Tower, 45, Yanghwa-ro, Mapo-gu, Seoul, Korea

(Old Address System : 24FL., Seah Tower, 490, Seogyo-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-6970-0355

Fax

+82-2-6970-0347

Other Address-Haman Factory

465-4, Pasu-ri, Haman-myeon, Haman-gun, Gyeongsangnam-do, Korea

Tel

+82-55-585-0569

Fax

+82-55-585-7011

Other Address-Wonju Factory

1132, Chuibyeong-ri, Munmak-eup, Wonju-si, Gangwon-do, Korea

Tel

+82-33-731-8500

Fax

+82-33-731-8511

Type

Export/Import

Industry

Manufacture of Steel Wire

  Main Business

Stainless Steel Wire, Special Steel Wire, Spring Wire, Non-magnetic stainless steel, Re-drawing Wire, Free-Cutting Wire, Heat & corrosion-resistant Wire, Welding Wire, Rack Bar

  Sub Business

 

Established (mm/dd/yyyy)

03/22/1994

The Subject owns the premises of Haman Factory and Wonju Factory.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Mechanical wire(31151800)

Sell

Steel(11101704)

 

CEO’s

 

Name

Park Eui-Sook

Address

 

Date of Birth

101/4/1946

Title

Co-President & CEO

Sex

Female

Nationality

Korean

 

Profiles

 

Capital (KRW)

12,430,000,000

Employees

126

Formation

Co., Ltd by shares

A Company of Seah Group

Bank Details

Shinhan Bank

Woori Bank

Citibank, Korea

Corporate Registered No.

194311-0003292

Business Registered No.

608-81-19001

Permit & Licenses

04/07/1999 ISO 9001 by DNV

 

Int’l Trade No.: 2400554

Shareholder Position

Name

Shares

%

SEAH HOLDINGS CORP(110111-2276809)

120,601

99.62

OTHERS

3,699

0.38

TOTAL

124,300

100.00

Company History

03/22/1994 Incorporated as SEAH GUMSOK CO., LTD.

03/01/2000 Changed company name to the present name

11/30/2000 Awarded US$10 Million Export Top Prize

05/10/2001 Listed at KOSDAQ Market

12/20/2004 Unlisted from KOSDAQ Market

04/25/2006 Changed par value to 5,000 KRW from 500 KRW

09/26/2008 Changed par value to 100,000 KRW from 5,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

Co-President & CEO

M/S.

Park Eui-Sook

Korean

1946.10.14

Yonsei University, Korea

Co-President & CEO

Mr.

Cho Young-Ho

Korean

-

Ex. President of Dong Kwang Kiyeon Co., Ltd.

Director

Mr.

Lee Tae-Sung

Korean

1978.08

Director of Seah Holdings

Director

Mr.

Lee Seung-Hui

Korean

1950.02.04

CEO of SeAH Special Steel

Auditor

Mr.

Han Jin-Ki

Korean

1961.10

Seah Holdings

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2013

56,074,560,069

78,458,402,590

1,013,439,821

(*)2012

81,018,355,790

76,153,402,104

507,632,307

(*)2011

87,400,355,856

60,778,728,966

1,676,765,385

(*)2010

81,991,495,620

48,718,228,448

3,764,956,657

2009

58,919,963,903

40,526,899,597

217,257,019

2008

78,833,397,202

46,138,013,830

-718,935,661

2007

76,929,641,685

45,375,220,010

1,237,470,242

2006

59,280,549,923

39,262,038,492

1,581,763,976

2005

54,324,999,374

37,929,958,844

1,006,748,200

2004

53,805,909,722

36,122,563,931

2,199,728,623

2003

31,095,780,788

26,497,971,323

835,011,048

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

 

Financial Description

 

Authorized Capital(KRW)

16,000,000,000

Paid-Up Capital(KRW)

12,430,000,000

Total Issued Shares

124,300

 

Balance Sheet

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

78,458,402,590

76,153,402,104

60,778,728,966

Current Assets

35,920,081,494

34,883,015,900

37,673,608,957

Cash & Cash Equivalents

377,349,654

331,496,068

244,656,196

Trade Receivables & Other Receivables

24,301,053,121

21,381,933,245

22,219,457,504

Current Financial Instruments

-

224,000,000

1,325,000,000

Other Current Assets

151,861,183

145,694,533

68,929,625

Income Taxes

-

-

132,664,903

Inventories

11,089,817,536

12,799,892,054

13,682,900,729

Non-Current Assets

42,538,321,096

41,270,386,204

23,105,120,009

Tangibles

41,231,658,517

40,395,201,590

22,609,024,556

Intangibles

7,956,300

7,956,300

15,304,117

Long-Term Trade Receivables & Other Receivables

210,624,000

199,996,000

273,954,000

Other Finance Assets

344,762,361

157,503,060

206,837,336

Deferred Income Tax

743,319,918

509,729,254

-

Total Liabilities

49,763,831,749

48,462,449,633

38,321,071,041

Current Liabilities

33,004,035,636

28,825,034,119

34,695,494,471

Trade Payables & Other Payables

8,299,350,787

7,566,946,649

7,333,647,281

Short-Term Borrowings

24,237,950,977

20,869,264,555

26,948,745,420

Accrued Income Tax

421,742,499

97,295,596

-

Other Current Liabilities

44,991,373

291,527,319

413,101,770

Non-Current Liabilities

16,759,796,113

19,637,415,514

3,625,576,570

Long-Term Borrowings

15,570,065,153

19,102,365,153

3,000,000,000

Confirmed Salaries

1,189,730,960

535,050,361

547,000,125

Deferred Income Tax Credit

-

-

78,576,445

Capital Stock

12,430,000,000

12,430,000,000

7,430,000,000

Capital Surplus

1,692,380,555

1,692,380,555

1,719,586,185

Profit Surplus

14,572,190,286

13,568,571,916

13,308,071,740

Total Equity

28,694,570,841

27,690,952,471

22,457,657,925

Liab. & Shareholder’s Equity

78,458,402,590

76,153,402,104

60,778,728,966

 

Income Statement

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Sales

56,074,560,069

81,018,355,790

87,400,355,856

Cost of Sold Goods

51,901,043,648

77,823,761,528

82,454,241,822

Gross Profit

4,173,516,421

3,194,594,262

4,946,114,034

Selling & Admin. Expenses

1,757,702,232

2,755,781,254

2,955,394,732

Operating Income

2,415,814,189

438,813,008

1,990,719,302

Other Income

365,125,635

1,501,742,971

1,148,357,608

Other Expenses

77,437,975

325,275,058

167,511,228

Finance Income

260,837,978

802,636,033

759,764,929

Finance Expenses

1,558,566,327

2,260,220,445

2,124,715,525

Income Before Taxes

1,405,773,500

157,696,509

1,606,615,086

Income Taxes Expenses

392,333,679

-349,935,798

-70,150,299

Net Income

1,013,439,821

507,632,307

1,676,765,385

 

Cash Flows

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

2,653,181,077

2,560,606,054

-3,599,183,875

Net Income

1,013,439,821

507,632,307

1,676,765,385

Adjustment

3,883,416,099

3,177,016,865

3,009,904,123

Changes in Asset/ & Liability

-710,808,641

592,812,624

-6,471,329,380

Interests Received

35,294,886

121,965,491

111,436,457

Interests Paid

-1,269,453,802

-1,900,115,766

-1,238,167,663

Income Taxes

-298,707,286

61,294,533

-687,792,797

Cash Flows from Investing

-2,586,403,063

-17,550,001,857

-7,924,123,352

Cash Inflow from Investing

271,679,658

5,673,913,110

978,195,950

Cash Outflows for Investing

-2,858,082,721

-23,223,914,967

-8,902,319,302

Cash Flows from Financing

-21,782,968

15,075,417,528

11,629,585,765

Cash Inflows from Financing

158,325,168,077

391,188,343,382

363,189,850,854

Cash Outflows from Financing

-158,346,951,045

-376,112,925,854

-351,560,265,089

Increase/Decrease in Cash

44,995,046

86,021,725

106,278,538

Cash at the Beginning of Year

331,496,068

244,656,196

138,377,618

Cash at the End of Year

377,349,654

331,496,068

244,656,196

 

Products, Technologies, Services Description

 

Main Products & Services

STAINLESS STEEL WIRE BUSINESS

-Weaving Wires

-Spring Stainless Steel Wire

-Super-Hard & Non-Magnetic Stainless Steel Wire

-Free-Cutting Stainless Steel Wire

-Re-Drawing Wire

-Heat-Resistance and Corrosion - Resistance Alloy Steel Wire

 

AUTOMOTIVE PARTS BUSINESS

-Rack Bar

 

Brand Name : SMP

Annual Production Capacity (Unit: Ton/ Thousand EA)

Item

2009

2008

2008

Stainless Wire

12,000

12,000

12,000

Rack Bar

3,200

3,200

3,200

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

POSCO SPECIALTY STEEL CO., LTD.(194211-0025248)

SEAH SPECIAL STEEL CO., LTD.(174611-0005478)

Customers

MANDO CORPORATION(131311-0030042)

Competitors

POSCO SPECIALTY STEEL CO., LTD.

65, SINCHON-DONG, CHANG-WON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-269-6114  FAX:+82-55-269-6901

 

KISWIRE LTD.

475, MANGMI 2-DONG, SUYEONG-GU, BUSAN, KOREA

TEL:+82-51-760-1700  FAX:+82-51-757-7379

 

HANKUK STEEL WIRE CO., LTD.

370-34, SINPYEONG 1-DONG, SAHA-GU, BUSAN, KOREA

TEL:+82-51-202-1991  FAX:+82-51-205-1551

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

SEAH HOLDINGS CORP(110111-2276809)

SEAH BESTEEL CORPORATION(110111-0035794)

SEAH SPECIAL STEEL CO., LTD.(174611-0005478)

KANG NAM CITY GAS CO., LTD.(110111-0385199)

KOREA BUNDY CORP.(134711-0001266)

ESAB SEAH CORP.(180111-0059047)

SEAH LOGISTICS CORP.(151111-0000847)

SEAH ENT CO., LTD(110111-0740707)

SEAH INVESTMENT DEVELOPMENT CO., LTD(120111-0039489)

SEAH COMMUNICATIONS CO., LTD.(110111-0862519)

SEAH INFORMATION SYSTEM CO., LTD.(110111-0613855)

DREAMLINE CORPORATION(110111-1447021)

SEAH TECHNICS CO., LTD.(110111-1243875)

SEAH SOLAR SYSTEMS CO., LTD.(110111-3788655)

SEAH STEEL CORPORATION(110111-0118996)

SEDAE STEEL CO.,LTD.(110111-2792392)

HAIDUK CORPORATION(110111-0038011)

HOYEON TOURIST LEISURE INDUSTRY CO., LTD.(131411-0176612)

HAIDUK STEEL CO.,LTD.(110111-2121145)

SEAH BNK CO.,LTD.(135111-0084924)

WOOJIN PRECISION CORP.(131311-0029293)

Affiliates-Overseas

SEAH STEEL AMERICA, INC.

STATE PIPE & SUPPLY, INC.

SEAH JAPAN CO., LTD.

VIETNAM STEEL PIPE CO., LTD.

SEAH STEEL VINA CORP.

LANDMARK STEEL CORP.

SEAH STEEL CALIFORNIA, LLC.

SEAH STEEL UAE LLC.

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

SEAH MOTOR PARTS CO., LTD.(CHINA)

(100.0% held by the subject company)

Corporate Ownership

SEAH HOLDINGS CORP(110111-2276809)

Major Shareholders

SEAH HOLDINGS CORP(110111-2276809)

Cooperative Enterprise

-Insured Company

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

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2013

2012

2011

Export

7,063

14,333

22,645

Domestic

49,012

66,685

64,755

Total

56,075

81,018

87,400

The Subject exports to Japan, South East Asia and Europe.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.20

UK Pound

1

Rs.99.52

Euro

1

Rs.80.83

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIS

 

               

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.