MIRA INFORM REPORT

 

 

Report Date :

05.09.2014              

 

IDENTIFICATION DETAILS

 

Name :

KUKDO CHEMICAL CO., LTD.

 

 

Registered Office :

61, Gasan digital 2-ro, Geumcheon-gu, Seoul, Korea

 

 

Country :

Korea (South)

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

22.02.1972

 

 

Com. Reg. No.:

119-81-04497

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Synthetic Resin and Other Plastic Materials

 

 

No. of Employees :

369

 

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 :

Regular  

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Korea (South)

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

KOREA (SOUTH) - 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

 

Company Name

KUKDO CHEMICAL CO., LTD.

(Korean Company Name : “국도화학(주)”)

Registered Address

61, Gasan digital 2-ro, Geumcheon-gu, Seoul, Korea

Zip Code

153-802

Tel

+82-2-3282-1400

Fax

+82-2-869-0101

E-mail

purchase@kukdo.com;import@kukdo.com;customs@kukdo.com;

general@kukdo.com

Website

www.kukdo.com

Trading Address

61, Gasan digital 2-ro, Geumcheon-gu, Seoul, Korea

(Old Address System : 345-35, Gasan-dong, Geumcheon-gu, Seoul, Korea)

Tel

+82-2-3282-1400

Fax

+82-2-869-0101

Other Address-Iksan Factory

643, Seogam-dong, Iksan-si, Jeollabuk-do, Korea

Tel

+82-63-835-0101

Fax

+82-63-835-6959

Other Address-Busan Office

1518-2, Songjeong-dong, Gangseo-gu, Busan, Korea

Tel

+82-51-832-2267~9

Fax

+82-51-832-2264

Type

Export/Import

Industry

Manufacture of Synthetic Resin and Other Plastic Materials

  Main Business

Epoxy Resins, Hardener, Polymide Resin, Polyurethan, Polyurea Resin, Polyol, Adhesives, High-Quality Bleach, Disinfectant, Germicidal Agent

Established (mm/dd/yyyy)

02/22/1972

The Subject owns the premises of registered HQ address (8,264.47), Iksan Factory (55,981.20㎡) and Busan Office (8,196.60㎡).

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Epoxy(13111001)

Sell

Curing agents(12162300)

Sell

Resins(13111000)

Sell

Chemistry reagents or solutions(41116105)

Sell

Foams(13111300)

Sell

Polyurethane resins(13111061)

Sell

Polyamide(13111031)

Buy

Epichlorohydrin ECO(13101714)

Buy

Phenols or its substitutes or derivatives(12191503)

 

CEO’s

 

Name

Lee Sam-Yeol

Date of Birth

10/21/1930

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

29,053,080,000

Employees

369

Formation

Listed Company (Korea Stock Exchange : 007690) as of 08/05/1989

A Company of KUKDO CHEMICAL CO., LTD.

Foreign Direct Investment Corporation

Bank Details

Kookmin Bank-Youngdeungpo Branch

Korea Exchange Bank

Shinhan Bank

Woori Bank

SC First Bank of Korea

Hana Bank

Corporate Registered No.

110111-0126642

Business Registered No.

119-81-04497

Permit & Licenses

12/06/1994 ISO 9002 by BVQI

12/19/1995 ISO 14001 by BVQI

10/01/1996 ISO 14001 –Iksan Factory

11/21/1996 ISO 14001-Seoul Factory

11/25/1998 ISO 14001 by BVQI

01/2000 KS

03/2003 ISO 9001 by BVQI

 

Int’l Trade No.: 952330

Shareholder Position

Name

Shares

%

NIPPON STEEL & SUMIKIN CHEMICAL CO., LTD.(JAPAN)

1,300,486

22.38

SHINDO CHEMICAL CO., LTD.(110111-0309347)

1,100,711

18.94

NATIONAL PENSION SERVICE(110171-0007134)

615,235

10.59

SHINYOUNG ASSET MANAGEMENT CO., LTD.(110111-1304148)

552,471

9.51

OTHERS

2,241,713

38.58

TOTAL

5,810,616

100.00

Company History

07/2007 Completion of Epoxy resin factory in Seoul Total Capacity : 165,000mt/year

09/2006 Completion of SCM-Plant in Iksan

01/2006 The announcement of Kukdo's Vision EGK 2010 (generate aroundUS$500million in annual sales in 2010)

12/2006 The achievement of annual sales over US$300million

11/2005 Awarded export performance US$100,000,000 Prize (The 42th Annual Tradeday)

07/2004 Removal of Busan Office and Establishment of Polyol producing Plant

12/2004 Completion of the 2nd Epoxy Resin and Polyol producing factory in China

11/2003 Completion of the 1st Epoxy resin and Polyol producing factory in China

03/2003 Acquired ISO-9001 : 2000 (Quality Management System) from BVQI

04/2002 Establishment of Konsan Ltd. in China

04/2001 Acquired the official "KS" mark (Korean Industrial Standard) on Polyurethane waterproofing material

06/1999 Sepcial Construction License (Surface treatment & Waterproofing work)

04/1999 Change company name to present name

04/1999 new business launch for Polyester Resin, Polyurethane, Polyurea

01/1998 Operation of KD-NIS (Integration Computer System)

12/1998 Awarded '98 Excellent Labor-Management Consultation Company (The Ministry of Labor)

03/1997 Awarded Prime Minister Reward (31st Taxation Day)

03/1996 Establishment of Kukdo Fine Chemical Co., Ltd.

11/1995 Awarded Silver Tower Prize (32nd Trade Anniversary)

12/1995 Acquired ISO 14001, BS-7750 (Environmental Management System) from BVQI

05/1994 Completion of the 2nd Factory for Epoxy Resin & Hardener in Iksan

03/1994 Acquired ISO 9002 (Quality Management System) from BVQI

01/1994 Participating in the Great man Made River project in Libya

12/1994 Iksan plant Acquired ISO 9002 : 1994 (Quality Management System) from BVQI

08/1989 Stock is enlisted on the Korea Stock Exchange

11/1985 Awarded Export Performance US$10,000,000 Prize (The President Prize)

10/1983 Establishment of R&D (Technical) Center

11/1980 Sodium Chlorite and Sodium Hypochlorite Plant in Seoul

01/1973 Completion of Epoxy Resin Factory in Seoul

02/1972 Incorporated as KUKDO CHEMICAL INDUSTRY. CO., LTD.

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

Chairman & CEO

Mr.

Lee Sam-Yeol

Korean

1930.10.21

Seoul National University

President & CEO

Mr.

Lee Si-Chang

Korean

1962.09.01

Soongsil University, Korea

Outside Director

Mr.

Yu Soon-Seok

Korean

1936.11.25

Seoul National University, Korea

Outside Director

Mr.

Choi Byung-Il

Korean

1933.08.16

Hanyang University, Korea

Outside Director

Mr.

Lee Eun-Taik

Korean

1943.10.08

Daejeon College, Korea

Sr. Executive Director

Mr.

Song Won

Chinese

1961.03.

-

Vice Chairman

Mr.

Park Jong-Soo

Korean

1958.07.14

Chunbuk National University, Korea

Director

Mr.

Yasuwura Shigetto

Japanese

1956.02.

-

Sr. Executive Director

Mr.

Hur Yeon-Jin

Korean

1959.05.

Korea University, Korea

Executive Director

Mr.

Kwon Young-Hwan

Korean

1958.12.09

Hankyung College, Korea

Executive Director

Mr.

Lee Sang-Wook

Korean

1965.11.

Kyunghee University, Korea

Auditor

Mr.

Na Jeong-Yong

Korean

1954.01.19

Hanyang University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2014

340,967,121,821

517,286,929,870

9,932,287,974

(*)2013

655,660,067,474

488,596,159,115

28,109,802,811

(*)2012

620,364,704,391

464,358,946,607

26,371,468,531

(*)2011

647,898,270,824

466,990,358,920

21,896,616,502

(*)2010

623,873,940,111

495,413,868,490

25,252,821,112

2009

405,235,601,054

340,776,694,754

22,655,745,894

2008

433,225,688,605

332,638,181,740

29,212,509,388

2007

388,343,719,327

289,710,056,816

13,253,669,144

2006

320,433,331,852

251,623,909,432

16,913,865,727

2005

275,979,227,317

214,610,844,771

10,791,997,291

2004

244,264,150,989

206,359,420,569

9,238,206,832

2003

210,990,648,619

183,027,965,032

6,257,591,290

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

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

29,053,080,000

Total Issued Shares

5,810,616

 

 


Balance Sheet

 

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

517,286,929,870

488,596,159,115

464,358,946,607

Current Assets

290,467,790,400

253,922,828,101

255,889,699,341

Inventories

64,385,170,544

74,751,803,150

61,696,595,980

Trade Receivables & Other Receivables

125,753,705,060

109,990,472,792

118,462,705,852

Investment

92,791,081,764

63,004,783,710

72,340,908,701

Other Current Assets

3,064,810,529

1,909,420,976

1,383,589,610

Cash & Cash Equivalents

4,473,022,503

4,266,347,473

2,005,899,198

Non-Current Assets

226,819,139,470

234,673,331,014

208,469,247,266

Tangibles

125,672,200,944

117,290,963,526

110,258,389,210

Intangibles

1,075,408,918

1,075,408,918

2,233,680,392

Long-Term Trade Receivables & Other Receivables

990,000,846

937,880,000

934,167,000

Investment_Related Companies

4,500,000,000

4,500,000,000

 

Investment_Subsidiaries

94,076,497,810

94,076,497,810

94,076,497,810

Investment

505,030,952

16,792,580,760

966,512,854

Total Liabilities

173,832,906,121

149,217,948,511

147,074,392,647

Current Liabilities

122,307,845,541

95,869,373,082

120,325,292,739

Short-Term Borrowings

20,577,394,234

10,276,260,993

22,702,003,077

Current Portion of Debentures

 

 

14,988,315,441

Current Portion of Long-Term Debts

10,765,824,000

9,235,824,000

12,174,490,664

Trade Payables & Other Payables

86,048,696,914

73,167,338,785

64,171,236,841

Deferred Income Tax Credit

2,919,034,739

2,016,906,132

4,945,053,986

Other Current Liabilities

1,996,895,654

1,173,043,172

1,344,192,730

Non-Current Liabilities

51,525,060,580

53,348,575,429

26,749,099,908

Long-Term Borrowings

19,705,824,000

21,553,736,000

11,686,226,662

Debentures

14,950,083,672

14,936,920,491

 

Deferred Income Tax Credit

16,869,152,908

16,857,918,938

15,062,873,246

Capital Stock

29,053,080,000

29,053,080,000

29,053,080,000

Capital Surplus

46,225,796,228

46,225,796,228

46,225,796,228

Others

20,118,854,059

15,782,712,888

14,300,712,888

Profit Surplus

248,056,293,462

248,316,621,488

227,704,964,844

Total Equity

343,454,023,749

339,378,210,604

317,284,553,960

Liab. & Shareholder’s Equity

517,286,929,870

488,596,159,115

464,358,946,607

 


Income Statement

 

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

340,967,121,821

655,660,067,474

620,364,704,391

Cost of Sold Goods

307,116,185,793

582,501,617,256

552,332,316,012

Gross Profit

33,850,936,028

73,158,450,218

68,032,388,379

Selling & Admin. Expenses

21,336,781,456

39,628,518,765

34,863,903,628

Operating Income

12,514,154,572

33,529,931,453

33,168,484,751

Other Income

812,198,856

1,090,791,741

1,541,953,943

Other Expenses

591,679,071

1,249,920,921

157,896,218

Finance Income

3,933,078,772

6,873,404,946

5,306,362,558

Finance Expenses

2,965,328,722

5,106,726,859

5,998,162,396

Income Before Taxes

13,702,424,407

35,137,480,360

33,860,742,638

Income Taxes Expenses

3,770,136,433

7,027,677,549

7,489,274,107

Net Income

9,932,287,974

28,109,802,811

26,371,468,531

 

 

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

13,212,575,561

36,064,751,238

60,440,655,287

Net Income

9,932,287,974

28,109,802,811

26,371,468,531

Adjustment

6,530,406,673

14,390,080,178

37,430,732,188

Interests Received

1,087,524,334

2,537,886,847

2,810,253,827

Dividends Received

 

1,331,877,503

727,266,737

Income Taxes

-2,842,850,611

-8,098,518,130

-3,289,546,625

Interests Paid

-1,494,792,809

-2,206,377,971

-3,609,519,371

Cash Flows from Investing

-17,293,389,490

-22,417,775,065

-21,997,892,168

Cash Inflow from Investing

87,335,324,156

169,284,278,101

191,259,775,696

Cash Outflows for Investing

-104,628,713,646

-191,702,053,166

-213,257,667,864

Cash Flows from Financing

4,290,986,317

-11,386,673,240

-41,828,429,844

Cash Inflows from Financing

86,278,534,255

206,954,849,510

277,396,279,811

Cash Outflows from Financing

-81,987,547,938

-218,341,522,750

-319,224,709,655

Increase/Decrease in Cash

206,675,030

2,260,448,275

-3,385,686,848

Cash at the Beginning of Year

4,266,347,473

2,005,899,198

5,391,586,046

Cash at the End of Year

4,473,022,503

4,266,347,473

2,005,899,198

 

Products, Technologies, Services Description

 

Main Products & Services

Epoxy

 Bisphenol-A Type Epoxy Resin

 Bisphenol-F Type Epoxy Resin

 Hydrogenated Bisphenol-A Type Epoxy Resin

 Brominated Epoxy Resin

 Non-halogen Flame Retardant Epoxy Resin

 Novolac Epoxy Resin

 Flexibile Epoxy Resin

 UV Curing Type Epoxy Resin

 Low Temperature Curing Type Epoxy Resin

 Phenoxy Resin

 Epoxy Resin for P.C.M

 Epoxy Modified Polyol(Isocyanate Curing Type)

 Filament Winding, Laminating Epoxy Resin

 Molding Epoxy Resin

 Reactive Diluent

 Tri-functional Epoxy Resin

 Tetra-Functional Epoxy Resin

 Special Type Epoxy Resin

 Waterborne Epoxy Resin

 New Product

 

Hardener

 Polyamide&Amidoamine Type

 Polyamide Adduct Type

 Aliphatic amine Modified Type

 Cycloaliphatic Amine Modified Type

 Aromatic Amine Modified Type

 Waterborne Curing Agent

 Amine & Anhydride Hardener

 

Brand Name : YD-128, KDC-250, ECH

 

Trade Partners & Competitors

 

Suppliers

LG CHEM LTD.(110111-2207995)

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

DOW CHEMICAL KOREA LTD.(110111-0879019)

SAMSUNG FINE CHEMICALS CO., LTD(181211-0000013)

HANWHA CHEMICAL CORPORATION(110111-0360935)

Customers

CHEIL INDUSTRIES INC.(170111-0000076)

KCC Corporation(110111-0221814)

SAMHWA PAINT INDUSTRIAL CO., LTD.(110111-0014433)

Competitors

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

319, HWACHI-DONG, YEOSU-SI, JEOLLANAM-DO, KOREA

TEL:+82-61-688-3500  FAX:+82-61-688-3505

 

HEXION SPECIALTY CHEMICALS KOREA CO., LTD.(230111-0085231)

580-3, HWASAN-RI, ONSAN-EUP, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-231-5046  FAX:+82-52-231-5028

 

DOW CHEMICAL KOREA LTD.(110111-0879019)

20TH FL., CITY AIR TOWER, 159-9, SAMSEONG 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-3490-0700  FAX:+82-2-3490-4305

 

DOW CHEMICAL

NANYA

HEXION SPECIALTY CHEMICALS

 

(*) The Subject is ranked as 1st player as about 60.0% domestic market shares.

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

ILDO CHEMICAL CO., LTD.(110111-5065952)

Subsidiary

HAJIN CHEMTECH CO., LTD.(184611-0029377)

(100.0% held by the subject company)

 

KUKDO FINE CHEMICAL CO., LTD.(154311-0001111)

(100.0% held by the subject company)

 

KUKDO CHEMICAL KUNSHAN CO., LTD.(CHINA)

(90.0% held by the subject company)

NO. 1 SHANPUZHONG ROAD, QIAN DONG TOWN, KUNSHAN CITY, JIANGSUPROVINCE, CHINA

TEL:+86-512-5746-0881 FAX:+86-512-5746-0886

Cooperative Enterprise

-Manufacturing Cooperation

KUKDO FINE CHEMICAL CO., LTD.(154311-0001111) is agreed to manufacture for the subject company.

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2011

2010

2009

Export

337,719

391,098

248,728

Domestic

186,120

232,776

156,508

Total

523,839

623,874

405,236

The Subject exports to North & South America, Japan, China, South-East Asia, Europe and Middle East.  It imports BPA from Japan, Netherlands, Israel and Taiwan.

 

 


Court Action

 

No.

 

 

News Clipping

 

---

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.45

UK Pound

1

Rs.99.45

Euro

1

Rs.79.46

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

PDT

 

               

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.