MIRA INFORM REPORT

 

 

Report Date :

21.11.2014

 

IDENTIFICATION DETAILS

 

Name :

SEAH STEEL CORPORATION

 

 

Registered Office :

45, Yanghwa-ro, Mapo-gu, Seoul, Korea,

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

19.10.1960

 

 

Com. Reg. No.:

106-81-60926

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Tubes and Pipes of Cast Iron or Cast Steel

 

 

No of Employees :

918

 

 

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 :

Exist

 

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 Information

 

Company Name

SEAH STEEL CORPORATION

(Trade Name : SSC)

(Korean Company Name : “()세아제강”)

Registered Address

45, Yanghwa-ro, Mapo-gu, Seoul, Korea

Building

26th Fl., Seah Tower

Zip Code

121-841

Tel

+82-2-6970-1105

Fax

+82-2-6970-1198

E-mail

export@seahsteel.co.kr

Website

www.seahsteel.co.kr

Trading Address

26th Fl., Seah Tower, 45, Yanghwa-ro, Mapo-gu, Seoul, Korea

(Old Address System : 26th Fl., Seah Tower, 490, Seogyo-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-6970-1105

Fax

+82-2-6970-1198

Other Address-Pohang Factory

14-1, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-271-4114

Fax

+82-54-285-6401

Other Address-Gunsan Factory

1632, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea

Tel

+82-63-469-8500

Fax

+82-63-469-8521

Other Address-Changwon Factory

50, Ungnam-dong, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

Tel

+82-55-278-2222

Fax

+82-55-289-8848

Other Address-Busan Sales Office

729-1, Hakjang-dong, Sasang-gu, Busan, Korea

Tel

+82-51-320-5200

Fax

+82-51-311-4530

Type

Export/Import

Industry

Manufacture of Tubes and Pipes of Cast Iron or Cast Steel

  Main Business

Pipe, Color Shredder

  Sub Business

 

Established (mm/dd/yyyy)

10/19/1960

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Pipe(40142100)

Sell

Stainless steel pipe(40142117)

Sell

Steel plate(30102204)

Sell

Plate(30102200)

Sell

Tube and tubing(31231300)

Sell

Titanium tubing(31231303)

Sell

Electrical conduit(39121202)

Sell

Aluminum plate(30102206)

Sell

Hardware and fittings(40141700)

Sell

Plastic pipe(40142115)

Sell

Steel pilings(30102803)

Buy

Stainless steel coil(30101905)

Buy

Steel plate(30102204)

Buy

Coil(30101900)

 

 

CEO’s

 

Name

Lee Hui-Ryeong

Address

 

Date of Birth

04/25/1962

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

30,000,000,000

Employees

918

Formation

Listed Company (Korea Stock Exchange : 003030) as of 5/13/1969

A Company of Seah Group

Bank Details

Shinhan Bank-Sales 2 Dept

Corporate Registered No.

110111-0118996

Business Registered No.

106-81-60926

Permit & Licenses

02/18/2013 OHSAS18001

02/18/2013 ISO 14001

06/04/2012 OHSAS18001

06/04/2012 ISO 14001

10/24/2011 KC Mark

01/06/2011 ISO 9001

12/04/2002 JIS Mark

05/17/2000 UL Mark

 

Int’l Trade No.: 672995

Shareholder Position

Name

Shares

%

LEE SOON-HYUNG

680,556

11.34

LEE TAE-SUNG

1,097,366

18.29

LEE JU-SUNG

660,895

11.01

NATIONAL PENSION SERVICE(110171-0007134)

521,839

8.70

OTHERS

3,039,344

50.66

TOTAL

6,000,000

100.00

Company History

10/19/1960 Incorporated as BUSAN STEEL PIPE INDUSTRY CO., LTD.

02/27/1975 Changed company name to Busan Pipe Co., Ltd.

01/01/1996 Changed company name to the present name

11/30/2005 Awarded US$ 300 Million Export Top Prize

11/30/2009 Awarded US$ 400 Million Export Top Prize

12/05/2012 Awarded US$ 500 Million Export Top Prize

01/01/2013 Acquired SEAH STEEL PIPE CO., LTD.(201311-0046755)

01/01/2013 Moved to the present HQ address from 10, Bongnae-dong 1-ga, Jung-gu, Seoul, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

Chairman & CEO

Mr.

Lee Soon-Hyung

Korean

1949.02.

Hanyang University, Korea

President & CEO

Mr.

Lee Hui-Ryeong

Korean

1962.04.25

U.C.L.A, USA

Sr. Executive Director & CEO

Mr.

Kwon Byung-Ki

Korean

1959.12.

Youngnam University, Korea

Vice President

Mr.

Lee Yeon-Jae

Korean

1952.09.20

Korea University, Korea

Outside Director

Mr.

Kim Yong-Seok

Korean

1957.08.

Prof., of Hongik University, Korea

Outside Director

Mr.

Cho Chang-Jin

Korean

1947.10.

-

Auditor

Mr.

Kang Ki-Won

Korean

1948.08.

Dongah University, Korea

Auditor

Mr.

Choi Jong-Seung

Korean

1946.09.

Seoul National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2014

919,902,430,005

1,742,854,826,534

41,803,675,423

(*)2013

1,720,004,505,517

1,717,961,947,545

77,720,122,312

(*)2012

1,912,943,848,388

1,682,525,724,496

55,408,222,089

2011

1,711,721,720,125

1,641,639,573,755

71,925,895,953

2010

1,542,387,299,290

1,133,472,425,196

90,158,761,326

2009

1,246,731,410,044

1,020,159,609,944

13,295,951,110

2008

1,790,689,197,514

1,241,752,728,513

118,021,068,722

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

 


Financial Description

 

Authorized Capital(KRW)

60,000,000,000

Paid-Up Capital(KRW)

30,000,000,000

Total Issued Shares

6,000,000

 

Balance Sheet

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

1,742,854,826,534

1,717,961,947,545

1,682,525,724,496

Current Assets

607,073,856,302

622,282,192,075

722,185,308,522

Cash & Cash Equivalents

44,781,902,173

103,959,884,969

111,038,267,543

Trade Receivables & Other Receivables

306,041,577,344

263,171,013,847

308,836,582,482

Other Financial Assets

10,280,164,184

24,468,629,893

58,166,560,133

Other Current Assets

1,531,507,164

1,407,774,150

1,976,697,887

Inventories

244,438,705,437

229,274,889,216

242,167,200,477

Non-Current Assets

1,135,780,970,232

1,095,679,755,470

960,340,415,974

Tangibles

732,124,270,989

741,299,107,105

562,513,009,837

Investment_Real Estates

12,328,611,954

12,440,581,211

8,655,709,075

Intangibles

8,104,165,733

8,159,810,317

9,004,713,181

Investment_Subsidiaries

250,416,619,330

211,790,502,412

257,824,122,692

Investment_JV

10,121,849,349

10,121,849,349

10,121,849,349

Long-Term Trade Receivables & Other Receivables

7,564,386,555

6,983,688,413

6,756,472,734

Provision for Severance & Retirement

139,505,471

 

 

Other Financial Assets

114,969,115,851

104,862,414,183

105,425,216,626

Other Non-Current Assets

12,445,000

21,802,480

39,322,480

Total Liabilities

635,031,321,262

654,645,452,171

713,226,569,980

Current Liabilities

410,560,234,084

434,765,726,463

468,464,050,577

Trade Payables & Other Payables

181,820,755,709

179,630,056,888

234,819,097,295

Short-Term Borrowings

218,411,933,737

247,262,462,426

208,520,313,388

Deferred Income Tax Credit

7,808,464,883

4,500,725,984

16,326,093,469

Other Current Financial Debts

272,927,195

112,167,611

233,797,341

Other Current Liabilities

2,246,152,560

3,260,313,554

8,564,749,084

Non-Current Liabilities

224,471,087,178

219,879,725,708

244,762,519,403

Long-Term Trade Payables & Other Payables

1,814,498,009

1,818,498,009

1,463,262,154

Long-Term Borrowings

154,509,889,350

154,452,025,156

183,633,408,509

Confirmed Salaries

 

2,585,845,799

1,953,618,678

Deferred Income Tax Credit

67,811,334,088

60,687,140,871

57,409,761,139

Other Non-Current Financial Debts

 

 

84,998,567

Other Non-Current Liabilities

335,365,731

336,215,873

217,470,356

Capital Stock

30,000,000,000

30,000,000,000

30,000,000,000

Capital Surplus

58,706,626,330

58,706,626,330

26,574,403,026

Capital Surplus

968,182,638,029

935,099,944,606

869,506,250,712

Others

50,934,240,913

39,509,924,438

43,218,500,778

Total Equity

1,107,823,505,272

1,063,316,495,374

969,299,154,516

Liab. & Shareholder’s Equity

1,742,854,826,534

1,717,961,947,545

1,682,525,724,496

 

Income Statement

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

919,902,430,005

1,720,004,505,517

1,912,943,848,388

Cost of Sold Goods

811,802,018,810

1,515,512,391,116

1,675,485,056,410

Gross Profit

108,100,411,195

204,492,114,401

237,458,791,978

Selling & Admin. Expenses

64,347,746,071

111,801,348,647

118,563,879,601

Operating Income

43,752,665,124

92,690,765,754

118,894,912,377

Finance Income

20,245,172,167

29,937,441,606

41,715,915,953

Finance Expenses

11,530,676,200

30,642,812,124

33,172,495,371

Profits from investment on Related Companies

 

 

27,700,622,040

Non-Operating Income

1,465,019,285

4,199,661,568

2,995,059,531

Non-Operating Expenses

332,538,300

970,300,823

22,265,287,390

Income Before Taxes

53,599,642,076

95,214,755,981

80,467,483,060

Income Taxes Expenses

11,795,966,653

17,494,633,669

25,059,260,971

Net Income

41,803,675,423

77,720,122,312

55,408,222,089

 

Cash Flows

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

915,034,571

125,400,525,970

126,306,445,987

Cash Flows from Operating

3,273,459,967

148,706,357,257

158,666,572,491

Net Income

41,803,675,423

77,720,122,312

55,408,222,089

Adjustment

22,311,250,073

50,090,793,938

82,402,913,351

Changes in Asset/ & Liability

-60,841,465,529

20,895,441,007

20,855,437,051

Interests Received

1,145,088,319

2,509,622,200

5,777,138,992

Interests Paid

-3,249,716,021

-5,309,340,594

-7,752,993,299

Dividends Received

4,757,577,987

3,135,830,057

4,924,137,104

Income Taxes

-5,011,375,681

-23,641,942,950

-35,308,409,301

Cash Flows from Investing

-28,199,698,013

-73,770,224,517

-177,617,423,987

Cash Flows from Financing

-31,893,319,354

-58,708,684,027

11,863,070,038

Increase/Decrease in Cash

-59,177,982,796

-7,078,382,574

-39,447,907,962

Cash at the Beginning of Year

103,959,884,969

111,038,267,543

150,486,175,505

Cash at the End of Year

44,781,902,173

103,959,884,969

111,038,267,543

 

 

Products, Technologies, Services Description

 

Main Products & Services

Pipe, Color Shredder

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

POSCO(174611-0000741)

KOREA ZINC INC.(110111-0168404)

Customers

 

Competitors

HIHO METAL CO., LTD.

8TH FL., DONGNAM BLDG., 588-19, SINSA-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-514-6671  FAX:+82-2-514-6489

 

DAEHAN METALS CO., LTD.

1769-2, SONGJEONG-DONG, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-974-6002  FAX:+82-51-831-9008

 

KYUNGSUNG METAL CO., LTD.

76-12, GUUI 2-DONG, GWANGJIN-GU, SEOUL, KOREA

TEL:+82-2-465-2300  FAX:+82-2-499-2101

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SEAH HOLDINGS CORP(110111-2276809)

SEAH METAL CO., LTD. (194311-0003292)

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)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

SEAH STEEL AMERICA

(88.57% held by the subject company)

9615 SOUTH NORWALK BLVD., SUIT B,  SANTA FE SPRINGS, CA 90670, USA

 

STATE PIPE & SUPPLY

(40.00% held by the subject company)

183 S. CEDAR AVE. RIALTO CA92376, USA

 

SEAH STEEL CALIFORNIA

(100.00% held by the subject company)

9615 SOUTH NORWALK BLVD., SUIT B, SANTA FE SPRINGS, CA 90670, USA

 

SEAH STEEL VINA

(100.00% held by the subject company)

NO. 7 STREET 3A, BIEN HOA INDUSTRIAL ZONE , DONG NAI PROVINCE, VIETNAM

 

SEAH JAPAN

(100.00% held by the subject company)

OGAWA BLDG. 5F, 6-1, 2-CHOME, NISHI-SHINBASHI, MINATO-KU, TOKYO, 105-0003, JAPAN

 

SEAH STEE UAE

(100.00% held by the subject company)

AL JAZEERA AL HAMRA, P.O.BOX. 31291RAS AL KHAIMAH, UAE (RAKIA)

 

SEAH STEEL EUROPE

CAP 35121, PIAZZA EREMITANI 18, PADOVA(PD), ITALY

 

INOX TECH

VIA ALDO MORO, 10/C, 45026, LENDINARA (RO), ITALY

 

SEAH STEEL INDONESIA

AXA TOWER, LEVEL 37, SUITE 6, JL.PROF.DR.SATRIO KAV.18, KUNINGAN-SETIABUDI, JAKARTA, 12940, INDONESIA

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 


Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Russia, USA, Japan, China and Middle East.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Million KRW)

Status

 

 

The Subject Company (4 Cases)

 

Violation on The Law of  Fair Trade

2,100

Proceeding

 

 

News Clipping

 

-----

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.10

UK Pound

1

Rs.97.32

Euro

1

Rs.77.91

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 


 

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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