MIRA INFORM REPORT

 

 

Report Date :

07.10.2014

 

IDENTIFICATION DETAILS

 

Name :

SEAH BESTEEL CORPORATION

 

 

Registered Office :

45, Yanghwa-ro, Mapo-gu, Seoul, Korea, 29th Fl., Seah Tower, 121-841

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

05.04.1955

 

 

Com. Reg. No.:

113-81-06798

 

 

Legal Form :

Listed Company

 

 

Line of Business :

·         Manufacture of Basic Iron and Steel

·         Manufacture of Other Parts and Accessories for Motor Vehicles

 

 

No of Employees :

1,526

 

 

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 BESTEEL CORPORATION

(Korean Company Name : “()세아베스틸”)

Registered Address

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

Building

29th Fl., Seah Tower

Zip Code

121-841

Tel

+82-2-6970-2000

Fax

+82-2-6970-2181

E-mail

hnyoon@seahbesteel.co.kr

Website

www.seahbesteel.co.kr

Trading Address

29th Fl., Seah Tower, 45, Yanghwa-ro, Mapo-gu, Seoul, Korea

(Old Address System : 29th Fl., Seah Tower, 490, Seogyo-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-6970-2000

Fax

+82-2-6970-2181

Other Address-Gunsan Factory

1-6, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea

Tel

+82-63-460-8114

Fax

+82-63-460-8560

Other Address-Busan Office

159-4, Gamjeon-dong, Sasang-gu, Busan, Korea

Tel

+82-51-312-8522

Fax

+82-51-311-2105

Type

Export/Import

Industry

Manufacture of Basic Iron and Steel

  Main Business

Specialty Steel, Automotive Parts

  Sub Business

Manufacture of Other Parts and Accessories for Motor Vehicles n. e. c.

Established (mm/dd/yyyy)

04/05/1955

The Subject owns the premises of Gunsan factory and Head Office.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Transportation components and systems(25170000)

Sell

Steel(11101704)

Sell

Train wheels(25171902)

Buy

Electrodes(39121436)

Buy

Metal scrap(11191600)

Buy

Ferrous alloy(11101712)

 

 


CEO’s

 

Name

Lee Sung-Hwi

Address

 

Date of Birth

02/04/1950

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

219,310,595,000

Employees

1,526

Formation

Listed Company (Korea Stock Exchange : 001430) as of 03/12/1991

A Company of SeAH Group

Bank Details

Korea Development Bank-Finance 1 Dept.

Hana Bank

Corporate Registered No.

110111-0035794

Business Registered No.

113-81-06798

Permit & Licenses

1985 KS

1988 JIS

1995 ISO 9002

1999 QS 9000

1999 KT

1999 ISO 9002

2005 KT

12/07/2005 ISO 9001

2/01/2006 ISO/TS 16949:2002

 

Int’l Trade No.: 720799

Shareholder Position

Name

Shares

%

SEAH HOLDINGS CORP(110111-2276809)

19,500,000

54.37

SEAH STEEL CORPORATION(110111-0118996)

2,163,186

6.03

HAIDUK CORPORATION(110111-0038011)

1,635,633

4.56

TREASURY STOCK

266,470

0.74

OTHERS

12,296,830

34.29

TOTAL

35,862,119

100.00

Company History

1937 Established as GWANDONG MACHINE MANUFACTORY

04/05/1955 Incorporated and Changed company name to KOREA HEAVY MACHINERY INDUSTRY CO., LTD.

1978 Merged with Incheon Casting Plant of Won Poong Industry Co., Ltd.

1986 Joined to KIA Group

1990 Changed company name to KIA STEEL CO., LTD.

1991 Listed at Korea Stock Exchange

1993 Moved Head Office to Gunsan

1996 Awarded US$50 Million Export Top Prize

02/03/1999 Decided to be managed and operated by Court

2003 Joined to SeAH Group

2003 Awarded US$100 Million Export Top Prize

12/26/2003 Discharged of managing by Court

2004 Changed company name to SEAH BESTEEL CORPORATION

2008 Awarded US$300 Million Export Top Prize

2012 Moved to the present HQ address from 26-2, Guro 5-dong, Guro-gu, Seoul, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Lee Woon-Hyung

Korean

1947.02.17

Seoul National University, Korea

President & CEO

Mr.

Lee Sung-Hwi

Korean

1950.02.04

Seoul National University, Korea

Vice President & CEO

Mr.

Yoon Ki-Soo

Korean

1956.09.03

Hongik University, Korea

Outside Director

Mr.

Chae Bang-Eun

Korean

1946.05.31

Seoul National University, Korea

Outside Director

Mr.

Jung Yong-Hee

Korean

1944.10.

Hanyang University, Korea

Outside Director

Mr.

Kim Chang-Do

Korean

1950.02.26

Seoul National University, Korea

Outside Director

Mr.

Park In-Mok

Korean

1951.08.

Kunkuk University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2014

1,141,107,874,530

2,267,325,770,867

62,020,992,170

(*)2013

2,112,649,587,661

2,209,112,063,459

104,009,777,169

(*)2012

2,194,080,927,379

2,159,086,176,283

119,182,019,385

(*)2011

2,484,734,008,766

1,999,402,384,509

226,558,728,481

(*)2010

1,867,538,671,152

1,909,295,729,574

149,026,404,566

2009

1,245,359,976,570

1,697,962,001,325

(-)38,680,863,688

2008

1,840,728,419,741

1,681,299,268,997

101,694,543,435

2007

1,195,387,344,807

1,339,894,395,686

41,126,496,193

2006

 967,358,415,494

 1,138,843,285,053

 60,217,991,212

2005

 1,002,705,294,421

 986,945,040,122

 67,763,780,544

2004

926,423,705,351

 916,008,512,067

50,544,157,989

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

 

Financial Description

 

Authorized Capital(KRW)

750,000,000,000

Paid-Up Capital(KRW)

219,310,595,000

Total Issues Shares

35,862,119

 

Balance Sheet

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

2,267,325,770,867

2,209,112,063,459

2,159,086,176,283

Current Assets

955,383,701,562

863,988,945,023

825,507,988,277

Cash & Cash Equivalents

86,580,519,607

4,871,295,393

7,473,821,414

Trade Receivables & Other Receivables

344,779,676,395

326,317,543,473

270,785,829,664

Current Financial Instruments

3,314,836,473

4,967,624,140

8,253,199,593

Current Non-Financial Instruments

1,937,603,651

2,392,234,941

2,693,507,602

Inventories

518,771,065,436

525,440,247,076

536,301,630,004

Non-Current Assets

1,311,942,069,305

1,345,123,118,436

1,333,578,188,006

Tangibles

1,227,029,797,090

1,261,571,571,957

1,269,114,305,003

Investment_Real Estate

19,477,259,104

19,526,489,632

 

Intangibles

4,058,826,229

4,201,626,229

4,201,626,229

Long-Term Trade Receivables & Other Receivables

7,604,902,919

7,507,058,767

7,646,356,234

Non-Current Financial Instruments

29,228,352,927

28,485,256,820

29,729,782,110

Investment_Related Companies

23,136,830,658

22,443,356,553

21,520,415,078

Non-Current Non-Financial Instruments

1,406,100,378

1,387,758,478

1,365,703,352

Total Liabilities

817,042,639,325

785,989,793,218

809,368,104,621

Current Liabilities

652,213,029,772

410,715,934,646

392,327,740,495

Trade Payables & Other Payables

201,429,210,805

172,502,733,466

180,023,150,866

Short-Term Borrowings

422,463,753,252

215,607,857,977

194,932,946,167

Accrued Income Tax

20,438,802,394

17,618,131,956

13,444,294,034

Other Current Non-Financial Debts

7,881,263,321

4,987,211,247

3,927,349,428

Non-Current Liabilities

164,829,609,553

375,273,858,572

417,040,364,126

Long-Term Trade Payables & Other Payables

7,406,345,840

7,792,265,685

7,709,752,784

Long-Term Borrowings

112,719,594,086

332,302,325,901

378,829,885,798

Deferred Income Tax Credit

26,221,834,720

27,646,595,859

25,664,179,782

Confirmed Salaries

18,380,820,820

7,346,850,698

4,834,015,275

Other Non-Current Non-Financial Debts

101,014,087

185,820,429

2,530,487

Capital Stock

219,310,595,000

219,310,595,000

219,310,595,000

Capital Surplus

30,172,223,578

30,172,223,578

30,172,223,578

Others

268,737,990,119

268,737,990,119

268,737,990,119

Installments

171,249,784

-544,174,195

-965,051,634

Profit Surplus

931,891,073,061

905,445,635,739

832,462,314,599

Total Equity

1,450,283,131,542

1,423,122,270,241

1,349,718,071,662

Liab. & Shareholder’s Equity

2,267,325,770,867

2,209,112,063,459

2,159,086,176,283

 

Income Statement

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

1,141,107,874,530

2,112,649,587,661

2,194,080,927,379

Cost of Sold Goods

1,012,312,917,125

1,888,744,775,023

1,945,062,201,002

Gross Profit

128,794,957,405

223,904,812,638

249,018,726,377

Selling & Admin. Expenses

43,999,941,495

80,052,681,654

77,245,721,340

Operating Income

84,795,015,910

143,852,130,984

171,773,005,037

Other Operating Income

2,968,502,736

5,172,768,312

7,178,089,977

Other Operating Expenses

111,476,797

1,687,286,086

3,291,249,538

Finance Income

3,926,787,914

6,578,206,481

4,464,837,810

Finance Expenses

12,756,625,870

25,632,701,031

27,141,978,704

Profits from Equity Method

1,113,474,105

922,941,475

-343,851,224

Income Before Taxes

79,935,677,998

129,206,060,135

152,638,853,358

Income Taxes Expenses

17,914,685,828

25,196,282,966

33,456,833,973

Net Income

62,020,992,170

104,009,777,169

119,182,019,385

 

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

138,139,141,419

142,195,347,300

144,435,468,355

Net Income

79,935,677,998

129,206,060,135

152,638,853,358

Exp. without Cash Outflow

61,580,697,582

121,585,829,062

126,374,270,527

Revenue without Cash Inflows

-2,934,268,366

-3,099,819,125

-1,490,836,413

Changes in Asset/ & Liability

21,954,986,267

-66,937,300,593

-46,581,059,700

Interests Received

668,444,418

829,246,393

694,351,659

Income Taxes

1,772,946,277

819,888,383

213,786,520

Interests Paid

-9,222,174,827

-20,711,823,065

-22,082,938,606

Income Taxes Paid

-15,617,167,930

-19,496,733,890

-65,330,958,990

Cash Flows from Investing

-11,481,383,157

-86,436,645,078

-251,892,756,012

Cash Inflow from Investing

2,662,464,000

6,376,499,277

11,242,375,281

Cash Outflows for Investing

-14,143,847,157

-92,813,144,355

-263,135,131,293

Cash Flows from Financing

-44,944,218,453

-58,361,228,243

114,928,614,309

Cash Inflows from Financing

342,990,966,710

1,031,013,520,712

1,379,867,404,764

Cash Outflows from Financing

-387,935,185,163

-1,089,374,748,955

-1,264,938,790,455

Increase/Decrease in Cash

81,713,539,809

-2,602,526,021

7,471,326,652

Cash at the Beginning of Year

4,871,295,393

7,473,821,414

2,585,800

Cash at the End of Year

86,580,519,607

4,871,295,393

7,473,821,414

 

 

Products, Technologies, Services Description

 

Main Products & Services

Special Steel

-Carbon Steel

-Alloy Steel

-Steel

-Nitriding Steel

-Spring Steel

-Bearing Steel

-Boron Steel

-High Strength Steel

-Microalloying Steel

-Free-Cutting Steel

 

Automotive Parts

Crank Shaft

-Axle Shaft

-Tripod Housing-Outer Race

-Inner Race

-Front Driving Differential Assembly-Rear Axle Assembly

-Axle Casting

-Brake Drum & Disc

-Hub Casting

-Differential Carrier & Differentia Case

 

Railway Wheels

 

Brand Name : Besteel, Shine Mold

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

SEJONG RESOURCES CO., LTD.(160111-0079891)

DONGBU METAL CO., LTD.(110111-3836678)

VALDUNES(FRANCE)

Customers

KIA MOTORS CORPORATION(110111-0037998)

Competitors

G & C HEAVY INDUSTRY CO., LTD.

2NA-203, SIHWA INDUSTRIAL COMPLEX, 1260-2, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-358-1011  FAX:+82-31-358-9617

 

YONG JIN SPECIALTY STEEL CO., LTD.

980-59, BANGBAE 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-32-680-3000  FAX:+82-32-678-8520

 

POSCO SPECIALTY STEEL CO., LTD.

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

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

 

 

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)

HAIDUK CORPORATION(110111-0038011)

HAIDUK STEEL CO.,LTD(110111-2121145)

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

SEAHBNK CO.,LTD.(135111-0084924)

OSAN PRECISION CORP.(131311-0029293)

 

SEAH JAPAN

SEAH STEEL AMERICA INC.

Corporate Ownership

SEAH HOLDINGS CORP(110111-2276809)

Major Shareholders

SEAH HOLDINGS CORP(110111-2276809)

Cooperative Enterprise

-Technical Support from

VALDUNES(FRANCE)

 

-Insured Company

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2014

2013

2012

Export

166,211

286,192

322,173

Domestic

974,897

1,826,458

1,871,908

Total

1,141,108

2,112,650

2,194,081

The Subject exports to USA, Oceania, Europe and Asia.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

 

 

The Subject Company

Claim for Compensation from Damages

9,760,472,000

3rd round is proceeding

 

 

 

The Subject Company

Refund

2,666,926,000

1st round is proceeding

 

 

 

The Subject Company

Claim for Compensation from Damages

105,754,000

1st round is proceeding

 

 

 

The Subject Company

-

41,690,000

1st round is proceeding

 

 

 

The Subject Company

Claim for Compensation from Damages

72,495,000

1st round is proceeding

 

 

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 :

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.