MIRA INFORM REPORT

 

 

Report Date :

04.10.2014

 

IDENTIFICATION DETAILS

 

Name :

KISWEL CO., LTD.

 

 

Registered Office :

70, Saebyeok-ro 63beon-gil, Sasang-gu, Busan, Korea 617-843

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

10.09.1964

 

 

Com. Reg. No.:

606-81-03615

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of fabricated and processed metal products

 

 

No. of Employees :

289

 

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 Information

 

Basic

 

Company Name

KISWEL CO., LTD.

(Korean Company Name : “고려용접봉()”)

Registered Address

70, Saebyeok-ro 63beon-gil, Sasang-gu, Busan, Korea

(Old Address System : 721-3, Hakjang-dong, Sasang-gu, Busan, Korea)

Building

 

Zip Code

617-843

Tel

+82-51-317-3131~40

Fax

+82-51-325-3627

E-mail

master@kiswel.com

Website

www.kiswel.com

Trading Address

7FL., Heungkook Bldg., 43-1, Juja-dong, Jung-gu, Seoul, Korea (P.O.BOX 8641)

Tel

+82-2-2270-9400  +82-2-2270-9468

Fax

+82-2-2272-7233~4  +82-2-2275-2826

Other Address-Changwon Factory

58-2, Seongju-dong, Changwon-si, Gyeongsangnam-do, Korea

Tel

+82-55-269-7200

Fax

+82-55-285-1655

Other Address-Busan Office

667-1, Buam-dong, Busanjin-gu, Busan, Korea

Tel

+82-51-806-3133

Fax

 

Type

Export/Import

Industry

Manufacture of Other Fabricated and Processed Metal Products n.e.c

  Main Business

Welding Electrode, Flux Cored Wire

  Sub Business

 

Established (mm/dd/yyyy)

09/10/1964

The Subject owns the premises of registered HQ address and Changwon Factory.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Welding rods(23171512)

Sell

Welding wire(23171510)

 

CEO’s

 

Name

Hong Min-Chul

Address

8Ho, 330-356, Seongbuk-dong, Seongbuk-gu, Seoul, Korea

Date of Birth

06/11/1951

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

990,000,000

Employees

289

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Woori Bank-Myung-Dong Branch

Corporate Registered No.

180111-0011261

Business Registered No.

606-81-03615

Permit & Licenses

10/29/1998 KS Mark

09/1999 QS 9000

09/22/1999 ISO 14001 by UKAS

02/2005 ISO/TS 16949

 

Int’l Trade No.: 741455

Shareholder Position

Name

Shares

%

HONG MIN-CHUL

134,640

68.00

OTHERS

63,360

32.00

TOTAL

198,000

100.00

Company History

09/10/1964 Incorporated as the present name

12/13/1970 Moved to the present HQ address from 21, Sogong-dong, Jung-gu, Seoul, Korea

11/26/1996 Awarded US$50 Million Export Top Prize

12/2008 Awarded US$100 Million Export Top Prize

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Hong Min-Chul

Male

Korean

03/23/2001

Co-President & CEO

Mr.

Kim Duck-Hyun

Male

Korean

05/26/2014

Director

Mr.

Lee Young-Rang

Male

Korean

03/24/2012

Auditor

Mr.

Choi Ho-Seok

Male

Korean

03/24/2006

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

243,815,323,572

405,099,882,572

7,522,742,423

2012

297,116,394,664

402,203,225,827

14,039,279,877

2011

300,194,852,055

376,994,963,747

25,781,894,273

2010

232,608,544,974

325,256,195,932

35,610,480,538

2009

184,429,273,509

269,645,098,846

14,984,567,033

2008

240,267,484,538

260,596,073,245

29,403,304,006

2007

174,914,805,175

223,452,404,785

16,114,847,319

2006

162,174,931,673

199,120,057,270

12,149,157,022

2005

154,726,415,344

192,528,196,778

20,680,651,387

2004

143,137,784,279

169,976,489,352

11,874,881,749

 

Financial Description

 

Authorized Capital(KRW)

1,500,000,000

Paid-Up Capital(KRW)

990,000,000

Total Issued Shares

198,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

405,099,882,572

402,203,225,827

376,994,963,747

Current Assets

165,247,522,919

169,016,681,630

216,377,302,191

-Quick Assets

129,304,964,418

131,447,328,942

172,365,301,153

-Inventories

35,942,558,501

37,569,352,688

44,012,001,038

Fixed Assets

239,852,359,653

233,186,544,197

160,617,661,556

-Investment

172,106,861,450

170,299,419,508

98,211,057,001

-Tangibles

63,280,986,904

57,986,321,365

57,534,871,988

-Intangibles

 

 

 

-Others

4,464,511,299

4,900,803,324

4,871,732,567

Total Liabilities

47,928,742,594

41,974,480,725

52,588,523,930

Current Liabilities

28,947,189,611

20,437,791,059

36,154,228,801

Fixed Liabilities

18,981,552,983

21,536,689,666

16,434,295,129

Capital Stock

990,000,000

990,000,000

990,000,000

Capital Surplus

44,965,971,981

44,965,971,981

44,965,971,981

Profit Surplus

277,923,045,610

270,400,303,187

256,361,023,310

Capital Adjustment

33,292,122,387

43,872,469,934

22,089,444,526

Total Equity

357,171,139,978

360,228,745,102

324,406,439,817

Liab. & Shareholder’s Equity

405,099,882,572

402,203,225,827

376,994,963,747

 

Current Liabilities

28,947,189,611

20,437,791,059

36,154,228,801

Trade Payables

21,173,361,634

14,949,664,467

26,093,068,774

Account Payables

5,519,433,722

4,723,155,570

6,094,872,602

Advance Receipts

1,052,714,419

505,707,276

87,932,896

Withholdings

94,403,850

153,858,315

68,694,108

Accrued Income Tax

964,407,914

-

3,598,401,037

Deferred Income Tax Credit

142,868,072

105,405,431

211,259,384

Fixed Liabilities

18,981,552,983

21,536,689,666

16,434,295,129

Provision for Severance & Retirement

12,479,864,000

11,594,814,500

10,627,811,400

Guarantee Deposit Withhold

325,000,000

325,000,000

170,000,000

Deferred Income Tax Credit

17,356,175,871

19,187,397,319

13,594,276,798

 


 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

243,815,323,572

297,116,394,664

300,194,852,055

Cost of Sold Goods

210,374,306,334

258,990,774,455

253,424,173,521

Gross Profit

33,441,017,238

38,125,620,209

46,770,678,534

Selling & Admin. Expenses

25,459,149,310

26,329,430,135

25,279,310,517

Operating Income

7,981,867,928

11,796,190,074

21,491,368,017

Non-Operating Income

14,372,298,376

11,701,825,845

16,243,253,450

Non-Operating Expenses

12,377,645,232

6,701,964,523

4,976,421,962

Income Before Taxes

9,976,521,072

16,796,051,396

32,758,199,505

Income Taxes Expenses

2,453,778,649

2,756,771,519

6,976,305,232

Net Income

7,522,742,423

14,039,279,877

25,781,894,273

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

19,287,522,515

12,451,465,558

8,101,961,788

-Net Income

7,522,742,423

14,039,279,877

25,781,894,273

-Exp. without Cash Outflow

15,535,865,068

10,774,978,438

8,543,968,614

-Revenue without Cash Inflows

-7,642,224,323

-5,698,141,182

-8,985,531,587

-Changes in Asset/ & Liability

3,871,139,347

-6,664,651,575

-17,238,369,512

Cash Flows from Investing

-11,454,681,249

-17,351,228,637

-18,314,451,732

-Cash Inflow from Investing

104,679,921,752

91,694,483,571

60,467,122,149

-Cash Outflows for Investing

-116,134,603,001

-109,045,712,208

-78,781,573,881

Cash Flows from Financing

17,000,000

28,000,000

19,000,000

-Cash Inflows from Financing

17,000,000

28,000,000

19,000,000

-Cash Outflows from Financing

-

-

-

Increase/Decrease in Cash

7,849,841,266

-4,871,763,079

-10,193,489,944

Cash at the Beginning of Year

19,489,079,410

24,360,842,489

34,554,332,433

Cash at the End of Year

27,338,920,676

19,489,079,410

24,360,842,489

 

Products, Technologies, Services Description

 

Main Products & Services

Welding Electrode, Flux Cored Wire

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

SAMHWA STEEL CO., LTD.(180111-0085373)

Competitors

HYUNDAI WELDING CO., LTD.

16TH FL., ILSONG BLDG., 157-37, SAMSEONG 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-6230-6010  FAX:+82-2-598-6928

 

CHOSUN WELDING CO., LTD.

865, JANGHEUNG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-285-8221  FAX:+82-54-285-8543

 

PYUNGSAN METALS CO., LTD.

5-4, MULLAE-DONG 5-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2635-5454  FAX:+82-2-2635-5453

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KOREA HEAT TREATMENT CO., LTD.(180111-0025014)

(46.56% held by the subject company)

 

KOREA OMEGA INVESTMENT ADVISORY CO., LTD.(110111-1551955)

(38.23% held by the subject company)

 

POS WELDING CO., LTD.(171711-0101079)

(50.0% held by the subject company)

 

KISWEL SINGAPORE PTE. LTD.

(80.0% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

KISWEL SDN BHD

(100.0% held by the subject company)

 

KISWEL JAPAN

(100.0% held by the subject company)

 

KISWEL USA

(100.0% held by the subject company)

 

KISWEL DALIAN TRADING

(100.0% held by the subject company)

Corporate Ownership

HONG MIN-CHUL

Major Shareholders

HONG MIN-CHUL

Cooperative Enterprise

-Insured Company

LIG INSURANCE CO., LTD.(110111-0017859)

 

Sales by Region (Activity & Markets)

 

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

 

 

Court Action

 

No.

 

 

News Clipping

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.100.07

Euro

1

Rs.77.95

 

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%)

 

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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.