MIRA INFORM REPORT

 

 

Report Date :

11.10.2014

 

IDENTIFICATION DETAILS

 

Name :

YONGSAN CHEMICALS, INC.

 

 

Registered Office :

273, Hangang-daero, Yongsan-gu, Seoul, Korea, Building, 10th Fl., Yongsan Bldg., 140-717

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

12.05.1973

 

 

Com. Reg. No.:

105-81-37077

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Other Basic Organic Chemicals like Maleic Anhydride, Fumaric Acid, Tetrahydrophthalic Anhydride, DL-Malic Acid

 

 

No of Employees :

129

 

 

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

YONGSAN CHEMICALS, INC.

(Korean Company Name : “용산화학()”)

Registered Address

273, Hangang-daero, Yongsan-gu, Seoul, Korea

Building

10th Fl., Yongsan Bldg.

Zip Code

140-717

Tel

+82-2-3274-9100

Fax

+82-2-718-7330

E-mail

recruit@yci.co.kr

Website

www.yci.co.kr

Trading Address

10th Fl., Yongsan Bldg., 273, Hangang-daero, Yongsan-gu, Seoul, Korea

(Old Address System : 10th Fl., Yongsan Bldg., 92, Garwol-dong, Yongsan-gu, Seoul, Korea)

Tel

+82-2-3274-9100

Fax

+82-2-718-7330

Other Address-Ulsan Plant

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

Tel

+82-52-226-8800

Fax

+82-52-226-8859

Type

Export/Import

Industry

Manufacture of Other Basic Organic Chemicals

  Main Business

Maleic Anhydride, Fumaric Acid, Tetrahydrophthalic Anhydride, DL-Malic Acid

  Sub Business

 

Established (mm/dd/yyyy)

05/12/1973

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Organic derivatives and substituted compounds(12352100)

Sell

Additives(12160000)

Sell

Amides or imides(12352111)

Sell

Organic acids or its substitutes(12352106)

Sell

Chemistry reagents or solutions(41116105)

Sell

Aromatic or heterocyclic compounds(12352005)

Sell

Amides or imides(12352111)

 

 

CEO’s

 

Name

Kim Kee-Joon

Address

105-2, Itaewon-dong, Yongsan-gu, Seoul, Korea

Date of Birth

10/31/1949

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

6,000,000,000

Employees

129

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank

Kookmin Bank

Korea Exchange Bank-Namyoungdong Branch

Corporate Registered No.

110111-0145709

Business Registered No.

105-81-37077

Permit & Licenses

09/26/1999 ISO 9001 by DNV

 

Int’l Trade No.: 935034

Shareholder Position

Name

Shares

%

KIM KEE-JOON

630,550

52.55

KIM KEE-SOO

187,390

15.62

MITSUI CHEMICALS CO., LTD.(JAPAN)

120,000

10.00

MITSUI&CO KOREA LTD(110111-0989628)

30,000

2.50

YONG SAN CO., LTD.(230111-0050359)

30,000

2.50

OTHERS

202,060

16.83

TOTAL

1,200,000

100.00

Company History

05/12/1973 Incorporated as Daegyo Yuhwa Co., Ltd.

08/06/1974 Changed company name to Daenong Yuhwa Co., Ltd.

03/10/1976 Registered as a Foreign Direct Investment Corporation

07/15/1997 Moved to the present HQ address from 33-1, Mapo-dong, Mapo-gu, Seoul, Korea

12/01/1997 Changed company name to the present name

01/01/2003 Increased capital to 6,000,000,000 KRW from 3,960,000,000 KRW

12/2004 Awarded US$ 30 Million Export Top Prize

 

 


 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Kim Kee-Joon

Male

Korean

07/15/1997

Director

Mr.

Kim Kee-Soo

Male

Korean

07/14/2009

Director

M/S.

Nam Susan Eunsook

Female

USA

08/28/2008

Outside Director

Mr.

Lee Cheon-Pyo

Male

Korean

10/01/2010

Director

Mr.

Egawa Masahiro

Male

Japanese

10/08/2010

Director

Mr.

Kim Hyung-Joo

Male

USA

02/24/2014

Auditor

Mr.

Park Jae-Hwi

Male

Korean

01/04/2010

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

106,417,350,676

97,780,176,248

7,622,427,411

2012

96,891,116,123

94,600,296,149

4,509,824,895

2011

88,259,519,041

91,465,423,216

6,830,180,760

2010

80,317,837,095

78,216,449,115

7,362,727,872

2009

61,105,311,809

76,577,181,026

455,021,951

2008

66,606,155,817

85,050,700,496

345,088,205

2007

61,356,095,813

72,483,021,328

499,447,129

2006

52,436,262,979

77,613,119,235

-1,709,800,573

2005

64,300,481,904

78,767,201,881

4,497,999,375

 

 

Financial Description

 

Authorized Capital(KRW)

10,000,000,000

Paid-Up Capital(KRW)

6,000,000,000

Total Issued Shares

1,200,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

97,780,176,248

94,600,296,149

91,465,423,216

Current Assets

27,558,469,739

27,689,003,880

24,386,577,555

-Quick Assets

19,827,670,920

19,173,474,441

19,931,403,373

-Inventories

7,730,798,819

8,515,529,439

4,455,174,182

Fixed Assets

70,221,706,509

66,911,292,269

67,078,845,661

-Investment

39,247,239,860

36,150,147,880

39,126,559,553

-Tangibles

30,584,099,278

30,197,618,548

26,537,404,508

-Intangibles

154,941,885

151,027,855

210,661,114

-Others

235,425,486

412,497,986

1,204,220,486

Total Liabilities

46,149,312,114

48,721,187,922

47,573,266,796

Current Liabilities

41,692,218,105

43,927,382,622

45,653,481,448

Fixed Liabilities

4,457,094,009

4,793,805,300

1,919,785,348

Capital Stock

6,000,000,000

6,000,000,000

6,000,000,000

Capital Surplus

7,235,027,724

7,235,027,724

7,235,027,724

Profit Surplus

38,645,432,676

32,823,005,265

30,686,008,679

Capital Adjustment

-249,596,266

-178,924,762

-28,879,983

Total Equity

51,630,864,134

45,879,108,227

43,892,156,420

Liab. & Shareholder’s Equity

97,780,176,248

94,600,296,149

91,465,423,216

 

Current Liabilities

41,692,218,105

43,927,382,622

45,653,481,448

Trade Payables

5,441,477,556

4,347,888,842

3,078,080,574

Short-Term Borrowings

29,110,000,000

32,700,000,000

30,500,000,000

Account Payables

3,252,128,035

3,236,371,450

5,595,369,071

Accrued Expenses

682,523,977

708,788,472

68,480,086

Withholdings

621,120,224

757,119,510

3,036,711,966

Deferred Income Tax Credit

966,928,313

478,664,348

1,241,384,655

Current Portion of Long-Term Debts

1,618,040,000

1,698,550,000

1,118,130,000

Advance Receipts

 

 

844,800

VAT Withhold

 

 

1,013,883,898

Current Portion of Deferred Income Tax Credit

 

 

596,398

Fixed Liabilities

4,457,094,009

4,793,805,300

1,919,785,348

Long-Term Borrowings

2,592,190,000

4,210,230,000

1,417,780,000

Provision for Severance & Retirement

4,620,141,330

3,928,310,330

3,370,145,370

Non-Current Portion of Deferred Income Tax Credit

895,392,834

230,157,587

502,005,348

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

106,417,350,676

96,891,116,123

88,259,519,041

Cost of Sold Goods

93,506,091,854

85,398,852,916

76,606,499,555

Gross Profit

12,911,258,822

11,492,263,207

11,653,019,486

Selling & Admin. Expenses

4,741,792,308

4,221,549,766

4,942,317,540

Operating Income

8,169,466,514

7,270,713,441

6,710,701,946

Non-Operating Income

5,543,766,553

1,228,330,363

4,409,399,656

Non-Operating Expenses

3,949,654,654

2,905,186,977

2,365,502,375

Income Before Taxes

9,763,578,413

5,593,856,827

8,754,599,227

Income Taxes Expenses

2,141,151,002

1,084,031,932

1,924,418,467

Net Income

7,622,427,411

4,509,824,895

6,830,180,760

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

9,923,349,727

-1,560,107,272

7,423,840,048

-Net Income

7,622,427,411

4,509,824,895

6,830,180,760

-Exp. without Cash Outflow

5,550,960,606

4,414,072,273

3,650,199,955

-Revenue without Cash Inflows

-4,817,925,741

-512,814,092

-2,841,337,116

-Changes in Asset/ & Liability

1,567,887,451

-9,971,190,348

-215,203,551

Cash Flows from Investing

-3,356,407,814

-3,770,961,720

-8,462,059,946

-Cash Inflow from Investing

1,187,573,251

4,414,695,723

4,998,918,727

-Cash Outflows for Investing

-4,543,981,065

-8,185,657,443

-13,460,978,673

Cash Flows from Financing

-7,088,550,000

3,772,870,000

800,650,000

-Cash Inflows from Financing

6,260,000,000

13,741,000,000

22,812,000,000

-Cash Outflows from Financing

-13,348,550,000

-9,968,130,000

-22,011,350,000

Increase/Decrease in Cash

-521,608,087

-1,558,198,992

-237,569,898

Cash at the Beginning of Year

921,806,993

2,480,005,985

2,717,575,883

Cash at the End of Year

400,198,906

921,806,993

2,480,005,985

 

 

Products, Technologies, Services Description

 

Main Products & Services

Maleic Anhydride, Fumaric Acid, Tetrahydrophthalic Anhydride, DL-Malic Acid

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

SK GAS LTD.(110111-0413247)

HUMADE CORPORATION(110111-3000538)

Customers

 

Competitors

KYUNGDONG CHEMICALS CORP.

RM. 704, BYUCKSAN SEONYEONG TECHNOPIA, 196-5, OJEON-DONG, UIWANG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-387-3573~5  FAX:+82-31-387-3576

 

DAEHAN PARKERIZING CO., LTD.

4TH FL., UDO BLDG., 363-5, SEOGYO-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-333-5821  FAX:+82-2-333-6092

 

SAMWANG CHEMICAL CORPORATION

348, MYOBONG-RI, IDONG-MYEON, CHEOIN-GU, YONGIN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-336-3873  FAX:+82-31-336-3876

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KOREA PTG CO., LTD.(230111-0060548)

(44.72 % held by the subject company)

 

YONGSAN MITSUI CHEMICAL CO., LTD.(110111-1852600)

(30.00% held by the subject company)

 

YONGSAN CO., LTD.(110111-0019813)

(25.60% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

KOREA PTG CO., LTD.(230111-0060548)

(33.33% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 

-Technical Support from

SCIENTIFIC DESIGN COMPANY, INC.

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.16

UK Pound

1

Rs.98.63

Euro

1

Rs.77.67   

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

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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.