MIRA INFORM REPORT

 

 

Report Date :

11.10.2014

 

IDENTIFICATION DETAILS

 

Name :

KUKDONG ELECTRIC WIRE CO., LTD.

 

 

Registered Office :

29-23, Yongjeong-gil, Chopyeong-myeon, Jincheon-gun, Chungcheongbuk-do, Korea

(Old Address System : 370-95, Yongjeong-ri, Chopyeong-myeon, Jincheon-gun, Chungcheongbuk-do, Korea)

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

23.10.1969

 

 

Com. Reg. No.:

301-81-11393

 

 

Legal Form :

Company Limited By Shares

 

 

Line of Business :

Manufacture of Other Insulated Wire and Cable

 

 

No of Employees :

284

 

 

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 :

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

 

Company Name

KUKDONG ELECTRIC WIRE CO., LTD.

(Korean Company Name : “극동전선()”)

Registered Address

29-23, Yongjeong-gil, Chopyeong-myeon, Jincheon-gun, Chungcheongbuk-do, Korea

(Old Address System : 370-95, Yongjeong-ri, Chopyeong-myeon, Jincheon-gun, Chungcheongbuk-do, Korea)

Building

 

Zip Code

365-853

Tel

+82-43-530-2000~1

Fax

+82-43-530-2140

E-mail

www.cablekukdong.co.kr

Website

www.cablekukdong.co.kr

Trading Address

7F, I'Park Tower, 160, Samseong-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-2140-3000

Fax

+82-2-2140-3098~9

Other Address

Rm.1220, Yuwon Bldg., 474-80, Bujeon-dong, Busanjin-gu, Busan, Korea

Tel

+82-51-817-0295~6

Fax

 

Type

Export/Import

Industry

Manufacture of Other Insulated Wire and Cable

  Main Business

Shipboard Cables, Communication Cables, Power Cables

  Sub Business

 

Established (mm/dd/yyyy)

10/23/1969

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Electrical cable and accessories(26121600)

Sell

Hoses(40142000)

Sell

Network cable(26121609)

Buy

Mechanical wire(31151800)

Buy

Films(13111200)

Buy

Copper clad aluminum wire(26121519)

Buy

Dyes(12171500)

Buy

Polyurethane resins(13111061)

Buy

Copper(11101715)

 

 

CEO’s

 

Name

Kang In-Koo

Address

Suite 302-1601, 435, Olympic-ro 34-gil, Songpa-gu, Seoul, Korea

Date of Birth

12/03/1956

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

6,741,895,000

Employees

284

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

SC First Bank of Korea

Corporate Registered No.

115211-0000609

Business Registered No.

301-81-11393

Permit & Licenses

04/1999 EM Mark

08/2000 UL Mark

09/2010 UL Mark

05/2011 ISO 9001

05/2011 ISO 14001

 

Int’l Trade No.: 872939

Shareholder Position

Name

Shares

%

NEXANS PARTICIPATIONS S.A.

1,188,973

88.18

NEXANS S.A

131,080

9.72

OTHERS

28,326

2.10

TOTAL

1,348,379

100.00

Company History

10/23/1969 Incorporated as KUKDONG ELECTRIC WIRE INDUSTRY CO., LTD.

07/1976 Acquired Daeyang Electric Wire Co., Ltd.

09/20/1988 Listed at Korea Stock Exchange(006250)

03/19/1999 Changed company name to the present name

06/13/2003 Registered as a Foreign Direct Investment Corporation

07/18/2005 Delisted from Korea Stock Exchange Market

11/2006 Awarded US$ 100 Million Export Top Prize

12/04/2006 Increased capital to 7,433,500,000 KRW from 12,480,000,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Kang In-Koo

Male

Korean

1956.12.03

Director

Mr.

Nicholas Peter Ballas

Male

USA

1960.07.27

Director

Mr.

Choi Byung-Cheol

Male

Korean

1946.07.14

Director

Mr.

Francis Bailleux

Male

French

1961.07.19

Auditor

Mr.

Choi Ho-Soon

Male

Korean

1963.01.06

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

06/2014

160,771,028,056

177,837,840,425

7,609,630,892

2013

285,402,328,358

160,372,037,477

12,847,615,377

2012

284,916,616,797

149,346,173,687

13,853,623,253

2011

253,434,502,263

132,710,510,408

-14,786,719,297

2010

222,588,312,839

143,639,660,544

2,741,295,973

 

 

Financial Description

 

Authorized Capital(KRW)

40,000,000,000

Paid-Up Capital(KRW)

6,741,895,000

Total Issued Shares

1,348,379

 

Balance Sheet

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

177,837,840,425

160,372,037,477

149,346,173,687

Current Assets

138,510,045,267

128,412,596,154

117,315,364,112

-Quick Assets

86,020,690,097

83,640,253,649

73,215,450,707

-Inventories

52,489,355,170

44,772,342,505

44,099,913,405

Fixed Assets

39,327,795,158

31,959,441,323

32,030,809,575

-Investment

8,641,945,161

527,839,123

714,708,223

-Tangibles

29,492,686,200

29,766,752,019

29,596,393,867

-Intangibles

 

 

 

-Others

1,193,163,797

1,664,850,181

1,719,707,485

Total Liabilities

81,934,491,924

68,855,490,050

66,926,571,114

Current Liabilities

81,036,012,736

68,394,654,666

66,607,523,058

Fixed Liabilities

898,479,188

460,835,384

319,048,056

Capital Stock

6,741,895,000

7,433,500,000

7,433,500,000

Capital Surplus

29,507,942,264

29,507,942,264

29,507,942,264

Profit Surplus

61,559,922,136

58,130,266,144

47,979,408,767

Capital Adjustment

-1,906,410,899

-3,555,160,981

-2,501,248,458

Total Equity

95,903,348,501

91,516,547,427

82,419,602,573

Liab. & Shareholder’s Equity

177,837,840,425

160,372,037,477

149,346,173,687

 

Current Liabilities

81,036,012,736

68,394,654,666

66,607,523,058

Trade Payables

54,536,669,693

47,900,561,415

53,089,071,472

Account Payables

14,126,604,943

8,229,287,318

6,635,825,239

Advance Receipts

145,933,697

516,310,388

61,679,321

Withholdings

369,846,697

556,562,438

411,622,750

Accrued Expenses

3,044,011,067

1,984,605,398

917,573,068

Accrued Income Tax

2,297,677,773

3,032,500,853

1,439,869,122

Derivatives

4,024,799,721

3,921,710,236

3,770,152,701

Other Liabilities

2,490,469,145

2,253,116,620

281,729,385

Fixed Liabilities

898,479,188

460,835,384

319,048,056

Provision for Severance & Retirement

12,330,348,449

11,999,740,504

10,177,186,421

Derivatives

11,097,278

382,851,159

319,048,056

 

Income Statement

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

160,771,028,056

285,402,328,358

284,916,616,797

Cost of Sold Goods

143,818,640,905

250,743,289,008

261,591,537,586

Gross Profit

16,952,387,151

34,659,039,350

23,325,079,211

Selling & Admin. Expenses

9,391,762,395

21,167,288,594

18,226,124,106

Operating Income

7,560,624,756

13,491,750,756

5,098,955,105

Non-Operating Income

13,070,086,370

23,832,868,257

24,653,805,494

Non-Operating Expenses

10,823,540,650

20,998,321,245

11,994,206,050

Income Before Taxes

9,807,170,476

16,326,297,768

17,758,554,549

Income Taxes Expenses

2,197,539,584

3,478,682,391

3,904,931,296

Net Income

7,609,630,892

12,847,615,377

13,853,623,253

 

Cash Flows

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

4,434,998,012

25,654,758,549

13,365,553,405

-Net Income

7,609,630,892

12,847,615,377

13,853,623,253

-Exp. without Cash Outflow

6,928,887,653

11,320,497,852

8,130,641,962

-Revenue without Cash Inflows

-3,672,952,994

-6,914,488,216

-7,134,159,644

-Changes in Asset/ & Liability

-6,430,567,539

8,401,133,536

-1,484,552,166

Cash Flows from Investing

-9,698,179,309

-2,904,533,182

-2,314,278,418

-Cash Inflow from Investing

60,839,134,242

826,201,246

36,636,017

-Cash Outflows for Investing

-70,537,313,551

-3,730,734,428

-2,350,914,435

Cash Flows from Financing

-4,179,974,900

-2,696,758,000

-

-Cash Inflows from Financing

-

-

-

-Cash Outflows from Financing

-4,179,974,900

-2,696,758,000

-

Increase/Decrease in Cash

-9,443,156,197

20,053,467,367

11,051,274,987

Cash at the Beginning of Year

44,862,681,196

24,809,213,829

13,757,938,842

Cash at the End of Year

35,419,524,999

44,862,681,196

24,809,213,829

 

Products, Technologies, Services Description

 

Main Products & Services

Shipboard Cables, Communication Cables, Power Cables

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

TAIHAN ELECTRIC WIRE CO., LTD.(110111-0035835)

HANWHA L&C CORPORATION(110111-1725930)

KUMHO POLYCHEM CO., LTD.(110111-0400533)

Customers

KOREA ELECTRIC POWER CORPORATION(114671-0001456)

KT CORPORATION(110111-1468754)

Competitors

LS CABLE LTD.(134111-0168357)

12TH FL., LS TOWER, 1026-6, HOGYE 1-DONG, DONGAN-GU, ANYANG-SI, GYEONGGI-DO, KOREA

TEL:+82-2-2189-9114  FAX:+82-2-2189-9259

 

GAON CABLE CO.,LTD.(134111-0000567)

166, GEUMJEONG-DONG, GUNPO-SI, GYEONGGI-DO, KOREA

TEL:+82-31-459-6222  FAX:+82-31-454-1916

 

ILJIN ELECTRIC CO.,LTD.(134811-0159279)

112-83, ANNYEONG-DONG, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-220-0500  FAX:+82-31-220-0789

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : KRW

06/2014

2013

2012

Export

130,397,122,832

215,472,329,631

219,744,516,605

Domestic

30,373,905,224

69,929,998,727

65,172,100,192

Total

160,771,028,056

285,402,328,358

284,916,616,797

 

 

Court Action

 

No.

 


News Clipping


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.16

UK Pound

1

Rs.98.62

Euro

1

Rs.77.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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%)

 

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.