MIRA INFORM REPORT

 

 

Report Date :

26.11.2014

 

IDENTIFICATION DETAILS

 

Name :

ISU CHEMICAL CO., LTD.

 

 

Registered Office :

84, Sapyeong-daero, Seocho-gu, Seoul, Korea, Isu Chemical Co. Bldg., 137-714

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

17.01.1969

 

 

Com. Reg. No.:

114-81-54648

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Basic Organic Petrochemicals like Alkylbenzene, Nomalparaffin, Special Solvent, Lubricants

 

 

No of Employees :

388

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 


 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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

ISU CHEMICAL CO., LTD.

(Korean Company Name : “이수화학()”)

Registered Address

84, Sapyeong-daero, Seocho-gu, Seoul, Korea

Building

Isu Chemical Co. Bldg.

Zip Code

137-714

Tel

+82-2-590-6600

Fax

+82-2-590-6666

E-mail

ij1004@isu.co.kr

Website

www.isuchemical.co.kr

Trading Address

Isu Chemical Co. Bldg.84, Sapyeong-daero, Seocho-gu, Seoul, Korea

(Old Address System, : Isu Chemical Co. Bldg., 112-4, Banpo 4-dong, Seocho-gu, Seoul, Korea (P.O.BOX 424))

Tel

+82-2-590-6600

Fax

+82-2-590-6666

Other Address-Ulsan Factory

156, Bugok-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-278-2700

Fax

+82-52-278-2888

Other Address-Onsan Factory

857, Hwasan-ri, Onsan-eup, Ulju-gun, Ulsan, Korea

Tel

+82-52-231-5600

Fax

+82-52-231-5666

Type

Export/Import

Industry

Manufacture of Basic Organic Petrochemicals

  Main Business

Alkylbenzene, Nomalparaffin, Special Solvent, Lubricants

  Sub Business

 

Established (mm/dd/yyyy)

01/17/1969

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Petroleum and distillates(15101500)

Sell

Benzene(15101507)

Sell

Engine oil(15121501)

Sell

Additives(12160000)

 

 

CEO’s

 

Name

Lee Kyu-Cheol

Address

 

Date of Birth

12/1953

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

76,390,000,000

Employees

388

Formation

Listed Company (Korea Stock Exchange: 005950 ) as of 04/28/1988

A Company of ISU Group

Bank Details

Korea Exchange Bank-Jo Dal Cheong Branch

Korea Development Bank-Ulsan Branch

Corporate Registered No.

110111-0008600

Business Registered No.

114-81-54648

Permit & Licenses

06/02/1995 ISO 9002 (DNV)

06/02/1995 ISO 9001(DNV)

11/00/1996 KT

06/04/1997 ISO 14001 (DNV)

12/06/2000 QS 9000 (KFQ)

 

Int’l Trade No.: 851338

Shareholder Position

Name

Shares

%

ISU CORPORATION(110111-2833451)

5,319,911

34.82

NATIONAL PENSION SERVICE(110171-0007134)

721,549

4.72

OTHERS

9,236,540

60.46

TOTAL

15,278,000

100.00

Company History

01/1969 Incorporated as the present name

11/1987 Awarded the President Prize for saving Energy

04/1988 Listed at Korea Stock Exchange

11/1995 Awarded US$100 Million Export Top Prize

03/1996 Changed company name to the present name from ISU Chemical Industry Co., Ltd.

10/1999 Honored as Top 100 Worldwide Companies by Forbes Magazine

09/2003 Selected as Good Company with New Culture of Capital & Labor

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Lee Kyu-Cheol

Korean

1953.12.

Korea University, Korea

Sr. Executive Director

Mr.

Lee Seok-Joo

Korean

1966.04.

Yonsei University, Korea

Auditor

Mr.

Park Kwang-Kyu

Korean

1956.05.

Dongkuk University, Korea

Outside Director

Mr.

Park Won-Woo

Korean

1959.02.

Seoul National University, Korea

Sr. Executive Director

Mr.

Ryu Seung-Ho

Korean

1963.04.

Seoul National University, Korea

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2014

739,525,916,270

1,076,559,459,648

-3,212,978,208

(*)2013

1,774,728,432,890

1,080,775,043,117

11,967,152,268

(*)2012

1,848,372,357,504

997,882,247,720

34,149,768,416

(*)2011

1,682,729,057,425

935,237,212,007

31,933,980,724

(*)2010

1,326,550,340,267

843,964,068,039

52,632,374,417

2009

1,082,134,524,978

705,043,544,606

33,243,325,059

2008

1,379,773,834,215

643,296,701,211

35,909,210,390

2007

896,673,284,012

464,615,355,314

-10,335,201,541

2006

770,932,075,364

369,929,884,151

-8,523,211,108

2005

687,828,458,300

359,373,832,600

-4,849,335,735

2004

676,635,687,211

357,110,393,100

1,855,404,514

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

 

 

Financial Description

 

Authorized Capital(KRW)

250,000,000,000

Paid-Up Capital(KRW)

76,390,000,000

Total Issues Shares

15,278,000

 

 

Balance Sheet

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

1,076,559,459,648

1,080,775,043,117

997,882,247,720

Current Assets

395,851,162,121

397,937,798,832

371,491,638,996

Cash & Cash Equivalents

68,789,393,900

119,438,874,305

105,372,753,974

Current Financial Instruments

4,532,252,293

2,946,458,061

8,630,017,434

Trade Receivables

194,196,371,990

137,994,754,050

142,427,627,979

Other Receivables

19,754,594,131

24,992,825,348

20,111,557,660

Inventories

107,567,017,873

112,045,617,992

94,039,335,898

Other Current Assets

844,816,064

519,269,076

910,346,051

Deferred Income Tax Assets

166,715,870

 

 

Non-Current Assets

680,708,297,527

682,837,244,285

626,390,608,724

Non-Current Financial Instruments

6,924,555,539

7,223,077,922

15,492,695,360

Long-Term Trade Receivables & Other Receivables

418,935,105

419,266,105

1,432,406,862

Investment_Subsidiaries

371,168,737,645

371,168,737,645

323,741,603,959

Investment_Related Companies

1,942,512,000

1,500,000,000

1,500,000,000

Investment_Co-Dominant Companies

32,550,440,151

32,550,440,151

26,413,744,146

Tangibles

183,111,893,227

181,380,348,604

178,098,851,554

Investment_Real Estates

69,330,267,894

69,816,178,215

66,490,102,167

Intangibles

6,637,422,228

6,728,420,921

6,723,270,187

Other Non-Current Assets

8,623,533,738

12,050,774,722

6,497,934,489

Total Liabilities

517,457,701,223

511,616,374,928

422,754,442,432

Current Liabilities

309,405,727,233

274,436,838,930

225,108,951,432

Trade Payables & Other Payables

38,540,822,106

32,393,382,945

36,894,305,845

Short-Term Borrowings

88,840,300,000

88,832,020,000

33,831,020,000

Deferred Income Tax Credit

 

1,235,896,937

3,570,930,079

Other Current Financial Debts

9,706,761,283

13,228,531,139

20,743,537,430

Current Portion of Long-Term Debts

158,227,310,000

118,923,850,000

112,600,000,000

Other Current Liabilities

14,090,533,844

19,823,157,909

17,469,158,078

Non-Current Liabilities

208,051,973,990

237,179,535,998

197,645,491,000

Long-Term Borrowings

172,903,490,000

202,111,000,000

163,792,950,000

Other Non-Current Financial Debts

13,265,082,744

16,830,847,665

11,375,782,444

Provision for Severance & Retirement

7,261,483,707

4,010,122,664

6,759,394,042

Deferred Income Tax Credit

14,621,917,539

14,227,565,669

15,717,364,514

Capital Stock

76,390,000,000

76,390,000,000

76,390,000,000

Capital Surplus

130,059,697,097

130,059,697,097

128,684,329,663

Others

-9,876,650,410

-9,876,650,410

-9,876,650,410

Installments

735,341,947

926,127,003

661,739,533

Profit Surplus

361,793,369,791

371,659,494,499

379,268,386,502

Total Equity

559,101,758,425

569,158,668,189

575,127,805,288

Liab. & Shareholder’s Equity

1,076,559,459,648

1,080,775,043,117

997,882,247,720

 

Income Statement

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

739,525,916,270

1,774,728,432,890

1,848,372,357,504

Cost of Sold Goods

715,736,879,291

1,703,989,107,086

1,767,754,808,725

Gross Profit

23,789,036,979

70,739,325,804

80,617,548,779

Selling & Admin. Expenses

17,365,211,971

37,872,115,800

36,663,337,246

Operating Income

6,423,825,008

32,867,210,004

43,954,211,533

Other Operating Income

380,581,523

618,517,794

9,169,583,329

Other Operating Expenses

127,007,887

3,465,711,140

7,062,991,646

Finance Income

13,213,579,945

35,517,929,214

37,838,772,391

Finance Expenses

22,633,026,268

47,110,418,881

40,315,464,501

Income Before Taxes

-2,742,047,679

18,427,526,991

43,584,111,106

Income Taxes Expenses

-470,930,529

6,460,374,723

9,434,342,690

Net Income

-3,212,978,208

11,967,152,268

34,149,768,416

 

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

-47,000,485,642

-9,766,569,337

16,245,837,913

Cash Flows from Operating

-37,246,223,376

10,698,955,901

45,365,241,567

Interests Received

1,025,294,251

5,007,507,813

7,275,064,834

Interests Paid

-9,361,275,320

-16,408,380,633

-17,484,556,529

Income Taxes

-1,418,281,197

-9,131,152,418

-19,029,576,459

Dividends Received

 

66,500,000

119,664,500

Cash Flows from Investing

-5,864,417,686

-68,831,960,446

-4,663,252,509

Cash Inflow from Investing

802,165,565

11,806,370,491

43,254,542,512

Cash Outflows for Investing

-6,666,583,251

-80,638,330,937

-47,917,795,021

Cash Flows from Financing

3,592,900,642

92,602,007,584

31,979,645,160

Cash Inflows from Financing

40,441,940,000

219,974,452,584

173,022,548,340

Cash Outflows from Financing

-36,849,039,358

-127,372,445,000

-141,042,903,180

Increase/Decrease in Cash

-49,272,002,686

14,003,477,801

43,562,230,564

Cash at the Beginning of Year

119,438,874,305

105,372,753,974

62,136,965,011

Cash at the End of Year

68,789,393,900

119,438,874,305

105,372,753,974

 

 

Products, Technologies, Services Description

 

Main Products & Services

Major Brands : ULTRASOL, ISU D-SOL, LAB, BAB

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

S-OIL CORPORATION(110111-0189955)

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

Customers

Payment Condition:

Domestic : Cash within 60 days or Promissory Notes within 3 Months

Export : Cash within 3 Months

 

The Subject sells Arkyl Benzene through the networks of LG HOUSEHOLD & HEALTH CARE LTD and CJ Corporation.

Competitors

PHILIPS

AKEMA

 

 


Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

ISU CORPORATION(110111-2833451)

ISU CHEMICAL CO., LTD(110111-0008600)

ISUPETASYS CO., LTD(110111-0186638)

ISU SYSTEM CO., LTD.(110111-1304643)

ISU VENTURE CAPITAL CO., LTD.(110111-1917636)

EXACHEM CO., LTD.(110111-2303826)

ISU C&D CO., LTD.(110111-1151549)

EXA BOARD CO., LTD.(131411-0161035)

TODA ISU CORPORATION(141211-0043623)

 

ISU OIL CHEMICAL CO., LTD.(110111-0584436)

(63.20% held by the subject company)

 

ISU ABXIS CO., LTD.(110111-2203951)

(45.85% held by the subject company)

 

ISU ENGINEERING & CONSTRUCTION CO., LTD.(110111-0202202)

(100.0% held by the subject company)

Affiliates-Overseas

ISU PETASYS CORP.

ISU-SAUDI ENGINEERING AND CONSTRUCTION CO., LTD.

ISU BROWNSTONE CO., LTD

 

ISU CHEMICAL GERMANY GMBH

(100.0% held by the subject company)

 

GREAT ORIENT CHEMICAL PTE. LTD.

(50.0% held by the subject company)

Overseas Office

ISU EUROPE B.V.

TRANSPOLIS COMMERCE CENTER PLOARISAVENUE

83C 2132 IH HOOLDDROP THE NETHERLANDS

TEL 32-23-568-5180 FAX 31-23-568-5181

 

ISU CHEMICAL GERMANY GMBH

RHENANIASTRAß E 76-102,

D-68219 MANNHEIM, FEDERAL REPUBLIC OF GERMANY

TEL 49-621-481-035-0 FAX 49-621-481-035-29

 

ISU CHEMICAL MEXICO OFFICE

BOSQUES DE CIRUELOS NO. 130. 5. PISO MEXICO. D. F.

TEL 52-55-5596-7109 FAX 52-55-5596-1585

Subsidiary

ISU ENGINEERING & CONSTRUCTION CO., LTD.(110111-0202202)

(100.0% held by the subject company)

 

ISU CHEMICAL GERMANY GMBH

(100.0% held by the subject company)

RHENANIASTRASSE 76-102, D-68219 MANNHEIM IN GERMANY

 

QINGDAO DONGSUNG TEXTILE CO., LTD.(CHINA)

(100.0% held by the subject company)

JI MO SHI HUAN XIU QU GUO JIA PO ZI CHUN QINGDAO CHINA

 

ISU CONSTRUCTION (TAICANG) CO., LTD.(CHINA)

 

ISU ABXIS CO., LTD.(110111-2203951)

(45.85% held by the subject company)

Corporate Ownership

ISU CORPORATION(110111-2833451)

Cooperative Enterprise

-Insured Company

FIRST FIRE & MARINE INSURANCE CO., LTD.(110111-0017586)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

03/2012

2011

2010

Export

163,685,780

586,112,999

508,729,121

Domestic

321,008,204

1,092,752,055

814,252,711

Others

1,036,867

3,864,004

3,568,508

Total

485,730,852

1,682,729,057

1,326,550,340

The Subject exports to Taiwan, Japan, China and South East Asia, and it imports from Russia.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

 

Hong Soon-Yang

The Subject Company

Salaries

50

Proceeding

 

 

Kim Il-Ho & Others(1)

The Subject Company

Maintenance & Administrative Fee

67

Proceeding

 

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.92

UK Pound

1

Rs.97.12

Euro

1

Rs.76.93                           

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SMN

 

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.