|
Report Date : |
06.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
KORLOY, INC. |
|
|
|
|
Registered Office : |
1350, Nambusunhwan-ro, Geumcheon-gu, Seoul, Korea Holistar Bldg. 153-823 |
|
|
|
|
Country : |
South
Korea |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
11.06.1966 |
|
|
|
|
Com. Reg. No.: |
214-81-08556 |
|
|
|
|
Legal Form : |
Co., Ltd by
Shares |
|
|
|
|
Line of Business : |
Manufacture of Saws, Saw Blades and Interchangeable Tools |
|
|
|
|
No. of Employees : |
545 |
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 : |
Slow but correct |
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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 |
KORLOY, INC. (Korean Company Name : “한국야금(주)”) |
|
Registered
Address |
1350, Nambusunhwan-ro, Geumcheon-gu, Seoul, Korea |
|
Building |
Holistar Bldg. |
|
Zip Code |
153-823 |
|
Tel |
+82-2-521-4700 |
|
Fax |
+82-2-522-3188 |
|
E-mail |
kcb1965@korloy.com;export@korloy.com;eusoo@korloy.com |
|
Website |
www.korloy.com |
|
Trading Address |
Holistar Bldg., 1350, Nambusunhwan-ro, Geumcheon-gu, Seoul, Korea (Old Address System : Holistar Bldg., 953-1, Doksanbon-dong, Geumcheon-gu, Seoul, Korea (P.O.BOX 25)) |
|
Tel |
+82-2-521-4700 |
|
Fax |
+82-2-522-3188 |
|
Other Address-Seoul Office |
3FL., Dongin B/D., 1606-2, Seocho-dong, Seocho-gu, Seoul, Korea |
|
Tel |
+82-2-587-7367 |
|
Fax |
+82-2-3486-4990 |
|
Other Address-Cheongju Factory |
53-16, Songjeong-dong, Heungdeok-gu, Cheongju-si, Chungcheongbuk-do, Korea |
|
Tel |
+82-43-261-0141 |
|
Fax |
+82-43-263-8731 |
|
Other Address-Jincheon Factory |
767-1, Gwanghyewon-ri, Gwanghyewon-myeon, Jincheon-gun, Chungcheongbuk-do, Korea |
|
Tel |
+82-43-535-0141 |
|
Fax |
+82-43-535-0144 |
|
Other Address-Daejeon Sales Office |
11-4, Yongjeon-dong, Dong-gu, Daejeon, Korea |
|
Tel |
+82-42-627-2496 |
|
Fax |
|
|
Other Address-Busan Sales Office |
124-1, Gamjeon-dong, Sasang-gu, Busan, Korea |
|
Tel |
+82-51-326-2215 |
|
Fax |
|
|
Other Address-Masan Sales Office |
208-7, Sanho-dong, Masan-si, Gyeongsangnam-do, Korea |
|
Tel |
+82-55-241-1227 |
|
Fax |
|
|
Other Address-Daegu Sales Office |
31-222, Industrial Materials Bldg., 12-10, Sangyeok-dong, Buk-gu, Daegu, Korea |
|
Tel |
+82-53-604-0864 |
|
Fax |
|
|
Other Address-Ulsan Sales Office |
3rd Fl., Juok Bldg., 1484-3, Samsan-dong, Nam-gu, Ulsan, Korea |
|
Tel |
+82-52-273-6670 |
|
Fax |
+82-52-275-3353 |
|
Type |
Export/Import |
|
Industry |
Manufacture of Saws, Saw Blades and Interchangeable Tools |
|
Main Business |
Inserts, Toolholders, Cutter Bodies, Endmills, Drills |
|
Sub Business |
|
|
Established (mm/dd/yyyy) |
06/11/1966 |
The Subject owns the premises of registered HQ address, Cheongju Factory and Jincheon Factory.
Detailed Products
|
Activity |
Detailed
Products (UNSPSC) |
|
Sell |
Cutting tools(23153300) |
|
Sell |
Drill bits(27112801) |
|
Sell |
Metal working machinery attachments(23172000) |
|
Sell |
Machine end mills(23172005) |
|
Sell |
Holder jaw(23153026) |
|
Buy |
Tungsten carbide(31191518) |
|
Buy |
Bolts(31161600) |
|
Buy |
Ball bearings(31171504) |
CEO’s
|
Name |
Kim Kyung-Bae |
|
Address |
Suite 202-603,
Seohyeonjung-ro, Heungdeok-gu, Cheongju-si, Chungcheongbuk-do, Korea |
|
Date of Birth |
09/28/1956 |
|
Title |
President
& CEO |
|
Sex |
Male |
|
Nationality |
Korean |
Profiles
|
Capital (KRW) |
5,000,000,000 |
|||||||||||||||
|
Employees |
545 |
|||||||||||||||
|
Formation |
Co., Ltd by
Shares Foreign Direct Investment Corporation |
|||||||||||||||
|
Bank Details |
Industrial
Bank of Korea-Sales 1 Department Shinhan Bank Mizuho Bank SC First Bank of Korea |
|||||||||||||||
|
Corporate
Registered No. |
110111-0077720 |
|||||||||||||||
|
Business
Registered No. |
214-81-08556 |
|||||||||||||||
|
Permit &
Licenses |
05/1996 EM 03/2003 ISO
9001 06/2004 EM 09/2004 EM Int’l Trade
No.: 757793 |
|||||||||||||||
|
Shareholder
Position |
|
|||||||||||||||
|
Company
History |
06/11/1966
Incorporated as KOREA YAKUM INDUSTRY CO., LTD. 07/1987
Changed company name to the present name 07/2005
Designated as an INNO-BIZ Company 12/2008 Awarded
US$ 50 Million Export Top Prize |
|||||||||||||||
|
|
|
Management
|
Job
Description |
Title |
Name |
Sex |
Nationality |
Inauguration
Date |
|
Co-President
& CEO |
Mr. |
Kim Kyung-Bae |
Male |
Korean |
03/24/2011 |
|
Co-President & CEO |
Mr. |
Murayama Tomomichi |
Male |
Japanese |
03/24/2009 |
|
Director |
Mr. |
Kim Hak-Kyu |
Male |
Korean |
03/31/2010 |
|
Director |
Mr. |
Yoon Hae-Sup |
Male |
Korean |
03/24/1993 |
|
Director |
Mr. |
Usizima Nozomi |
Male |
Japanese |
03/24/2012 |
|
Director |
Mr. |
Siraisi Junichi |
Male |
Japanese |
03/21/2014 |
|
Director |
Mr. |
Han Jae-Keun |
Male |
Korean |
03/24/2009 |
|
Auditor |
Mr. |
Park Joon-Bum |
Male |
Korean |
03/24/2009 |
|
Auditor |
Mr. |
Sakai Masaki |
Male |
Japanese |
07/05/2013 |
|
Year / Unit :
KRW |
Sales |
Assets |
Net Income |
|
165,796,930,038 |
216,129,964,337 |
12,530,819,900 |
|
|
2012 |
179,114,160,848 |
226,424,221,832 |
17,442,015,001 |
|
2011 |
172,214,223,240 |
226,118,240,301 |
31,176,010,546 |
|
2010 |
132,816,215,934 |
152,647,971,761 |
20,003,774,790 |
|
2009 |
90,667,498,212 |
122,203,019,621 |
2,115,925,703 |
|
2008 |
117,773,667,836 |
138,710,052,758 |
13,318,720,574 |
|
2007 |
95,653,772,946 |
118,496,602,453 |
7,031,347,475 |
|
2006 |
90,079,051,697 |
114,374,617,582 |
4,803,967,478 |
|
2005 |
83,925,130,193 |
99,941,133,351 |
7,290,325,321 |
|
2004 |
71,047,454,568 |
87,822,044,291 |
11,083,380,648 |
Financial Description
|
Authorized
Capital(KRW) |
5,000,000,000 |
|
Paid-Up
Capital(KRW) |
5,000,000,000 |
|
Total Issues
Shares |
1,000,000 |
|
Balance Sheet |
|||
|
Unit : Korean
Won |
As of
12/31/2013 |
As of
12/31/2012 |
As of
12/31/2011 |
|
Total Assets |
216,129,964,337 |
226,424,221,832 |
226,118,240,301 |
|
Current Assets |
121,439,990,418 |
127,428,093,484 |
128,331,171,874 |
|
-Quick Assets |
41,798,899,059 |
34,672,501,025 |
35,362,320,521 |
|
-Inventories |
79,641,091,359 |
92,755,592,459 |
92,968,851,353 |
|
Fixed Assets |
94,689,973,919 |
98,996,128,348 |
97,787,068,427 |
|
-Investment |
12,648,633,331 |
9,276,109,558 |
5,402,148,154 |
|
-Tangibles |
78,665,033,096 |
85,702,204,558 |
89,115,111,960 |
|
-Intangibles |
1,660,203,674 |
1,813,954,424 |
613,016,684 |
|
-Others |
1,716,103,818 |
2,203,859,808 |
2,656,791,629 |
|
Total
Liabilities |
64,020,966,342 |
84,456,043,737 |
96,586,214,674 |
|
Current
Liabilities |
45,108,063,752 |
54,996,634,995 |
86,042,778,951 |
|
Fixed
Liabilities |
18,912,902,590 |
29,459,408,742 |
10,543,435,723 |
|
Capital Stock |
5,000,000,000 |
5,000,000,000 |
5,000,000,000 |
|
Capital
Surplus |
7,533,134,067 |
7,533,134,067 |
7,533,134,067 |
|
Profit Surplus |
139,575,863,928 |
129,435,044,028 |
116,998,891,560 |
|
Capital
Adjustment |
|
|
|
|
Total Equity |
152,108,997,995 |
141,968,178,095 |
129,532,025,627 |
|
Liab. &
Shareholder’s Equity |
216,129,964,337 |
226,424,221,832 |
226,118,240,301 |
|
Current
Liabilities |
45,108,063,752 |
54,996,634,995 |
86,042,778,951 |
|
Trade
payables |
15,975,740,703 |
10,517,178,029 |
37,169,017,826 |
|
Short-Term
Borrowings |
19,000,000,000 |
26,800,000,000 |
29,000,000,000 |
|
Account
Payables |
2,348,416,103 |
1,738,630,354 |
4,185,949,455 |
|
Advance
Receipts |
280,097,783 |
627,969,405 |
63,519,192 |
|
Withholdings |
675,004,690 |
2,693,892,887 |
2,993,589,393 |
|
Accrued
Expenses |
1,981,568,423 |
1,218,586,519 |
781,197,519 |
|
Accrued
Income Tax |
1,576,145,965 |
389,617,091 |
6,407,913,587 |
|
Derivatives |
2,450,085 |
2,120,710 |
191,979 |
|
Current
Portion of Long-Term Debts |
3,268,640,000 |
11,008,640,000 |
5,441,400,000 |
|
Fixed
Liabilities |
18,912,902,590 |
29,459,408,742 |
10,543,435,723 |
|
Long-Term
Borrowings |
16,394,160,000 |
26,662,800,000 |
7,921,500,000 |
|
Provision
for Severance & Retirement |
11,373,513,603 |
9,337,978,738 |
6,871,302,238 |
|
Leasehold
Deposit Received |
900,000,000 |
900,000,000 |
800,000,000 |
|
Provision
for Promotion |
34,800,774 |
70,558,658 |
75,091,539 |
|
Income Statement |
|||
|
Unit : Korean
Won |
As of
12/31/2013 |
As of
12/31/2012 |
As of
12/31/2011 |
|
Sales |
165,796,930,038 |
179,114,160,848 |
172,214,223,240 |
|
Cost of Sold
Goods |
130,073,159,645 |
137,869,165,687 |
115,062,452,640 |
|
Gross Profit |
35,723,770,393 |
41,244,995,161 |
57,151,770,600 |
|
Selling &
Admin. Expenses |
19,193,032,619 |
18,322,826,555 |
17,327,730,299 |
|
Operating
Income |
16,530,737,774 |
22,922,168,606 |
39,824,040,301 |
|
Non-Operating
Income |
2,589,230,255 |
3,584,833,867 |
3,615,107,736 |
|
Non-Operating
Expenses |
3,828,171,232 |
5,992,665,607 |
4,514,968,755 |
|
Income Before
Taxes |
15,291,796,797 |
20,514,336,866 |
38,924,179,282 |
|
Income Taxes
Expenses |
2,760,976,897 |
3,072,321,865 |
7,748,168,736 |
|
Net Income |
12,530,819,900 |
17,442,015,001 |
31,176,010,546 |
|
Cash Flows |
|||
|
Unit : Korean
Won |
As of
12/31/2013 |
As of 12/31/2012 |
As of
12/31/2011 |
|
Cash Flows
from Operating |
49,552,338,013 |
4,766,450,891 |
21,692,497,504 |
|
-Net Income |
12,530,819,900 |
17,442,015,001 |
31,176,010,546 |
|
-Exp. without
Cash Outflow |
23,883,379,292 |
25,786,452,533 |
18,452,892,443 |
|
-Revenue
without Cash Inflows |
-247,081,532 |
-1,335,841,004 |
-798,650,772 |
|
-Changes in
Asset/ & Liability |
13,385,220,353 |
-37,126,175,639 |
-27,137,754,713 |
|
Cash Flows
from Investing |
-15,602,952,681 |
-23,410,508,722 |
-41,635,432,242 |
|
-Cash Inflow
from Investing |
2,232,326,752 |
2,712,544,168 |
1,466,454,410 |
|
-Cash Outflows
for Investing |
-17,835,279,433 |
-26,123,052,890 |
-43,101,886,652 |
|
Cash Flows
from Financing |
-28,031,328,000 |
18,165,756,700 |
20,493,370,000 |
|
-Cash Inflows
from Financing |
98,167,312,000 |
222,422,216,700 |
28,550,000,000 |
|
-Cash Outflows
from Financing |
-126,198,640,000 |
-204,256,460,000 |
-8,056,630,000 |
|
Increase/Decrease
in Cash |
5,918,057,332 |
-478,301,131 |
550,435,262 |
|
Cash at the
Beginning of Year |
1,981,686,650 |
2,459,987,781 |
1,909,552,519 |
|
Cash at the
End of Year |
7,899,743,982 |
1,981,686,650 |
2,459,987,781 |
Products,
Technologies, Services Description
|
Main Products
& Services |
The Subject Company
has the wide range of carbide grades for Turning inserts such as Uncoated
Carbide, CVD Coated Carbide, PVD Coated carbide, TiAlN Coated, Cermet, Coated
Cermet, PCBN and Diamond Coated Carbide. Those are combined with high
technology geometry design on inserts for general External Turning, Boring,
Threading, Grooving, Face-grooving and Parting off operations. Recently, the
AK geometry insert is one of our fame resounding all over the world in
Aluminum machining. The Subject
Company offers various solutions for customers' changing needs in Milling
operations with deep know-how and accumulated field experiences for 34 years.
To optimize customer's machining condition, The Subject Company designs and
produces custom-made milling tools as well as wide range of KORLOY standard
milling programs such as MILL-MAX Series, DOUBLE-MILL Series, FUTURE-MILL
Series, SIDE-MILLING CUTTER Series, ECO-MAX Series, ALPHA-MILL Series,
MACH-MILL Series, TURBO-MILL Series, CEN-MILL Series. The Subject Company
produces and supplies Carbide Endmills for precision endmill operations with
its new Q-MAX Coating technique and Ultra-fine Grain Grade in it. The Subject
Company has indexable insert type drilling solution as the JIP-DRILL Series. It
is used at short hole drilling with high efficiency and productivity
indexable insert. Also The Subject Company offers Carbide Drills for high
performance drilling as it is called, Vulcan-Drill Series. The Subject
Company supplies KORLOY TOOLING SYSTEM for all kinds of machining centers.
The Subject Company produces and supplies the HSK Tooling System for the high
speed machining centers as well as general tooling systems such as BT type
holders. |
|
Detailed
Products Spec. |
|
|
Technologies
Acquired |
|
Trade Partners &
Competitors
|
Suppliers |
|
|
Customers |
DINE INC.(110111-1045396) SUMITOMO HARD
METAL SUMITOMO
ELECTRIC INDUSTRIES |
|
Competitors |
INBEX DIAMOND
CO., LTD. 296-2, DONGPAE
1-RI, GYOHA-EUP, PAJU-SI, GYEONGGI-DO, KOREA TEL:+82-31-945-2153 FAX:+82-31-945-2809 ACCUTECH CO.,
LTD. 1402-3, JUAN
5-DONG, NAM-GU, INCHEON, KOREA TEL:+82-32-816-8808 FAX:+82-32-811-0837 SEWON TECH
CO., LTD. 396-11,
CHEONGCHEON 2-DONG, BUPYEONG-GU, INCHEON, KOREA TEL:+82-32-582-4324~6 FAX:+82-32-582-4327 |
Related Parties
(Subsidiaries, Joint-Venture & Affiliates)
|
Affiliates |
DINE INC.
(110111-1045396) SUMITOMO HARD
METAL CO., LTD.(JAPAN) SUMITOMO
ELECTRIC INDUSTRIES CO., LTD.(JAPAN) KORLOY DINE TOOL INC. DINE CHINA SALES (DCS) |
|
Overseas Office |
|
|
Liaison Office |
|
|
Overseas
Branch |
|
|
Joint Venture |
|
|
Subsidiary |
KORLOY AMERICA
INC. (100.0% held
by the subject company) KORLOY EUROPE
GMBH. (100.0% held
by the subject company) KORLOY INDIA
TOOLING PRIVATE LTD. (100.0% held by
the subject company) KORLOY FACTORY
QINGDAO CO., LTD. (100.0% held
by the subject company) KORLOY DO
BRASIL COMERCIO DE FERRAMENTAS S.A. (100.0% held
by the subject company) |
|
Corporate
Ownership |
DINE INC.(110111-1045396) SUMITOMO ELECTRIC INDUSTRIES CO., LTD.(JAPAN) SUMITOMO HARD METAL CO., LTD.(JAPAN) |
|
Major
Shareholders |
DINE INC.(110111-1045396) |
|
Cooperative
Enterprise |
-Insured
Company DONGBU INSURANCE CO., LTD.(110111-0095285) LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459) |
Sales by Region
(Activity & Markets)
The Subject exports to Japan, Canada and Germany.
Court Action
No.
--
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.39 |
|
|
1 |
Rs.98.00 |
|
Euro |
1 |
Rs.76.99 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.