MIRA INFORM REPORT

 

 

Report No. :

356534

Report Date :

22.12.2015

 

IDENTIFICATION DETAILS

 

Name :

SEAH STEEL CORPORATION

 

 

Registered Office :

45, Yanghwa-Ro, Mapo-Gu, Seoul, 26th Fl., Seah Tower, Korea 04027

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2015

 

 

Date of Incorporation :

19.10.1960

 

 

Com. Reg. No.:

106-81-60926

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Tubes and Pipes of Cast Iron or Cast Steel.

 

 

No. of Employees :

861

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 economic 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. A system of close government and business ties, including directed credit and import restrictions, initially 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 7% 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 over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced slow growth due to sluggish domestic consumption and investment. The administration in 2015 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 the heavy reliance on exports, which comprise about half of GDP. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

 

Source : CIA

 

Basic Information

 

Company Name

SEAH STEEL CORPORATION

(Trade Name : SSC)

Registered Address

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

Building

26th Fl., Seah Tower

Zip Code

04027

Tel

+82-2-6970-1105

Fax

+82-2-6970-1198

E-mail

export@seahsteel.co.kr

Website

www.seahsteel.co.kr

Trading Address

26th Fl., Seah Tower, 45, Yanghwa-ro, Mapo-gu, Seoul, Korea

(Old Address System : 26th Fl., Seah Tower, 490, Seogyo-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-6970-1105

Fax

+82-2-6970-1198

Other Address-Pohang Factory

14-1, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-271-4114

Fax

+82-54-285-6401

Other Address-Gunsan Factory

1632, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea

Tel

+82-63-469-8500

Fax

+82-63-469-8521

Other Address-Changwon Factory

50, Ungnam-dong, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

Tel

+82-55-278-2222

Fax

+82-55-289-8848

Other Address-Busan Sales Office

729-1, Hakjang-dong, Sasang-gu, Busan, Korea

Tel

+82-51-320-5200

Fax

+82-51-311-4530

Type

Export/Import

Industry

Manufacture of Tubes and Pipes of Cast Iron or Cast Steel

  Main Business

Pipe, Color Shredder

  Sub Business

 

Established (mm/dd/yyyy)

10/19/1960

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Pipe(40142100)

Sell

Stainless steel pipe(40142117)

Sell

Steel plate(30102204)

Sell

Plate(30102200)

Sell

Tube and tubing(31231300)

Sell

Titanium tubing(31231303)

Sell

Electrical conduit(39121202)

Sell

Aluminum plate(30102206)

Sell

Hardware and fittings(40141700)

Sell

Plastic pipe(40142115)

Sell

Steel pilings(30102803)

Buy

Stainless steel coil(30101905)

Buy

Steel plate(30102204)

Buy

Coil(30101900)

 

 

CEO’s

 

Name

Lee Hui-Ryeong

Address

Suite 733-1401, Samlim Maeul, Jingwan-dong, Eunpyeong-gu,Seoul, Korea

Date of Birth

04/25/1962

Title

President & CEO

Nationality

USA

 

 

Profiles

 

Capital (KRW)

30,000,000,000

Employees

861

Formation

Listed Company (Korea Stock Exchange : 003030) as of 5/13/1969

A Company of Seah Group

Bank Details

Shinhan Bank-Sales 2 Dept

Corporate Registered No.

110111-0118996

Business Registered No.

106-81-60926

Permit & Licenses

02/18/2013 OHSAS18001

02/18/2013 ISO 14001

06/04/2012 OHSAS18001

06/04/2012 ISO 14001

10/24/2011 KC Mark

01/06/2011 ISO 9001

12/04/2002 JIS Mark

05/17/2000 UL Mark

 

Int’l Trade No.: 672995

Shareholder Position

Name

Shares

%

LEE SOON-HYUNG

680,556

11.34

LEE TAE-SUNG

1,097,366

18.29

LEE JU-SUNG

672,207

11.20

NATIONAL PENSION SERVICE(110171-0007134)

461,482

7.69

TREASURY STOCK

186,012

3.10

OTHERS

2,902,377

48.37

TOTAL

6,000,000

100.00

Company History

10/19/1960 Incorporated as BUSAN STEEL PIPE INDUSTRY CO., LTD.

02/27/1975 Changed company name to Busan Pipe Co., Ltd.

01/01/1996 Changed company name to the present name

11/30/2005 Awarded US$ 300 Million Export Top Prize

03/18/2009 Increased capital to 30,000,000,000 KRW from 26,700,000,000 KRW

11/30/2009 Awarded US$ 400 Million Export Top Prize

12/05/2012 Awarded US$ 500 Million Export Top Prize

01/01/2013 Acquired SEAH STEEL PIPE CO., LTD.(201311-0046755)

01/01/2013 Moved to the present HQ address from 10, Bongnae-dong 1-ga, Jung-gu, Seoul, Korea

 

 

 

 

Management

 

Job Description

 

Name

Nationality

Date of Birth

Inauguration Date

Chairman & CEO

Lee Soon-Hyung

Korean

02/10/1949

03/21/2014

President & CEO

Lee Hui-Ryeong

USA

04/25/1962

01/01/2009

Sr. Executive Director & CEO

Kwon Byung-Ki

Korean

12/17/1959

03/21/2014

Vice President

Lee Yeon-Jae

Korean

09/20/1952

03/26/2010

Outside Director

Kim Yong-Seok

Korean

08/13/1957

03/23/2012

Outside Director

Cho Chang-Jin

Korean

10/28/1947

03/22/2013

Auditor

Kang Ki-Won

Korean

08/01/1948

03/26/2010

Auditor

Choi Jong-Seung

Korean

09/20/1946

03/22/2013

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2015

1,087,830,709,395

1,665,491,593,998

28,850,506,016

(*)2014

1,870,280,357,254

1,735,274,281,626

50,045,430,613

(*)2013

1,720,004,505,517

1,717,961,947,545

77,720,122,312

(*)2012

1,912,943,848,388

1,682,525,724,496

55,408,222,089

2011

1,711,721,720,125

1,641,639,573,755

71,925,895,953

2010

1,542,387,299,290

1,133,472,425,196

90,158,761,326

2009

1,246,731,410,044

1,020,159,609,944

13,295,951,110

2008

1,790,689,197,514

1,241,752,728,513

118,021,068,722

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

 

 

Financial Description

 

Authorized Capital(KRW)

60,000,000,000

Paid-Up Capital(KRW)

30,000,000,000

Total Issued Shares

6,000,000

 

Balance Sheet

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

1,665,491,593,998

1,735,274,281,626

1,717,961,947,545

Current Assets

550,244,048,398

614,727,723,679

622,282,192,075

Cash & Cash Equivalents

46,066,678,487

83,701,227,456

103,959,884,969

Trade Receivables & Other Receivables

297,611,903,418

298,105,477,099

263,171,013,847

Other Financial Assets

12,327,717,212

7,063,553,107

24,468,629,893

Inventories

193,333,908,771

225,201,270,303

229,274,889,216

Other Current Assets

903,840,510

656,195,714

1,407,774,150

Non-Current Assets

1,115,247,545,600

1,120,546,557,947

1,095,679,755,470

Tangibles

711,547,211,233

726,363,832,109

741,299,107,105

Investment_Real Estates

12,048,688,810

12,216,642,696

12,440,581,211

Intangibles

7,925,897,648

8,358,777,227

8,159,810,317

Long-Term Trade Receivables & Other Receivables

8,096,961,158

7,754,309,915

6,983,688,413

Other Financial Assets

107,978,885,612

103,643,562,861

104,862,414,183

Investment_Subsidiaries

257,515,606,790

252,075,138,790

211,790,502,412

Investment_JV

10,121,849,349

10,121,849,349

10,121,849,349

Other Non-Current Assets

12,445,000

12,445,000

21,802,480

Total Liabilities

537,070,856,873

630,087,673,663

654,645,452,171

Current Liabilities

331,733,651,691

476,053,872,911

434,765,726,463

Trade Payables & Other Payables

170,827,952,454

166,151,685,332

179,630,056,888

Short-Term Borrowings

157,623,466,857

296,968,629,147

247,262,462,426

Other Current Financial Debts

 

 

112,167,611

Deferred Income Tax Credit

2,290,599,532

9,370,513,396

4,500,725,984

Other Current Liabilities

991,632,848

3,563,045,036

3,260,313,554

Non-Current Liabilities

205,337,205,182

154,033,800,752

219,879,725,708

Long-Term Trade Payables & Other Payables

2,059,416,813

2,021,073,813

1,818,498,009

Long-Term Borrowings

130,839,386,489

84,644,116,692

154,452,025,156

Deferred Income Tax Credit

67,983,313,580

64,742,574,394

60,687,140,871

Confirmed Salaries

3,739,594,105

1,847,264,942

2,585,845,799

Other Non-Current Liabilities

715,494,195

778,770,911

336,215,873

Capital Stock

30,000,000,000

30,000,000,000

30,000,000,000

Capital Surplus

58,706,626,330

58,706,626,330

58,706,626,330

Capital Surplus

994,565,811,796

974,436,287,780

935,099,944,606

Others

45,148,298,999

42,043,693,853

39,509,924,438

Total Equity

1,128,420,737,125

1,105,186,607,963

1,063,316,495,374

Liab. & Shareholder’s Equity

1,665,491,593,998

1,735,274,281,626

1,717,961,947,545

 

Income Statement

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

1,087,830,709,395

1,870,280,357,254

1,720,004,505,517

Cost of Sold Goods

964,173,821,874

1,637,713,119,724

1,515,512,391,116

Gross Profit

123,656,887,521

232,567,237,530

204,492,114,401

Selling & Admin. Expenses

87,788,537,664

135,700,757,283

111,801,348,647

Operating Income

35,868,349,857

96,866,480,247

92,690,765,754

Non-Operating Income

2,800,740,864

4,719,513,927

4,199,661,568

Non-Operating Expenses

435,743,137

1,385,283,297

970,300,823

Finance Income

23,449,394,425

30,190,933,401

29,937,441,606

Finance Expenses

23,696,393,329

38,464,075,529

30,642,812,124

Profits from investment on Related Companies

 

23,076,900,000

 

Income Before Taxes

37,986,348,680

68,850,668,749

95,214,755,981

Income Taxes Expenses

9,135,842,664

18,805,238,136

17,494,633,669

Net Income

28,850,506,016

50,045,430,613

77,720,122,312

 

Cash Flows

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

81,357,877,223

79,510,741,334

132,034,425,838

Cash Flows from Operating

93,660,826,435

87,462,446,155

155,340,257,125

Net Income

28,850,506,016

50,045,430,613

77,720,122,312

Adjustment

37,464,281,981

89,900,910,386

50,090,793,938

Changes in Asset/ & Liability

27,346,038,438

-52,483,894,844

27,529,340,875

Interests Received

804,055,414

1,729,486,648

2,509,622,200

Interests Paid

-4,493,195,142

-6,461,435,203

-5,309,340,594

Dividends Received

5,352,387,865

6,834,470,279

3,135,830,057

Income Taxes

-13,966,197,349

-10,054,226,545

-23,641,942,950

Cash Flows from Investing

-17,229,929,135

-65,136,722,648

-80,404,124,385

Cash Flows from Financing

-101,762,497,057

-34,632,676,199

-58,708,684,027

Increase/Decrease in Cash

-37,634,548,969

-20,258,657,513

-7,078,382,574

Cash at the Beginning of Year

83,701,227,456

103,959,884,969

111,038,267,543

Cash at the End of Year

46,066,678,487

83,701,227,456

103,959,884,969

 

 

Products, Technologies, Services Description

 

Main Products & Services

Pipe, Color Shredder

Detailed Products Spec.

 

Technologies Acquired

 

 

 


Trade Partners & Competitors

 

Suppliers

POSCO(174611-0000741)

KOREA ZINC INC.(110111-0168404)

Customers

 

Competitors

HIHO METAL CO., LTD.

8TH FL., DONGNAM BLDG., 588-19, SINSA-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-514-6671  FAX:+82-2-514-6489

 

DAEHAN METALS CO., LTD.

1769-2, SONGJEONG-DONG, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-974-6002  FAX:+82-51-831-9008

 

KYUNGSUNG METAL CO., LTD.

76-12, GUUI 2-DONG, GWANGJIN-GU, SEOUL, KOREA

TEL:+82-2-465-2300  FAX:+82-2-499-2101

 

 

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)

SEAH STEEL CORPORATION(110111-0118996)

SEDAE STEEL CO.,LTD.(110111-2792392)

HAIDUK CORPORATION(110111-0038011)

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

HAIDUK STEEL CO.,LTD.(110111-2121145)

SEAH BNK CO.,LTD.(135111-0084924)

WOOJIN PRECISION CORP.(131311-0029293)

UNITED SPIRAL PIPE, LLC

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

LANDMARK STEEL CORP.(CHINA)

(50.00% held by the subject company)

 

VIETNAM STEEL PIPE CO., LTD.(VIETNAM)

(50.00% held by the subject company)

 

SHANDONG STAINLESS STEEL PIPES

Subsidiary

SEAH STEEL AMERICA

(88.57% held by the subject company)

9615 SOUTH NORWALK BLVD., SUIT B,  SANTA FE SPRINGS, CA 90670, USA

 

STATE PIPE & SUPPLY, INC.

(40.00% held by the subject company)

183 S. CEDAR AVE. RIALTO CA92376, USA

 

SEAH STEEL CALIFORNIA, LLC

(100.00% held by the subject company)

9615 SOUTH NORWALK BLVD., SUIT B, SANTA FE SPRINGS, CA 90670, USA

 

SEAH STEEL VINA CORP.

(100.00% held by the subject company)

NO. 7 STREET 3A, BIEN HOA INDUSTRIAL ZONE , DONG NAI PROVINCE, VIETNAM

 

SEAH JAPAN CO., LTD.

(100.00% held by the subject company)

OGAWA BLDG. 5F, 6-1, 2-CHOME, NISHI-SHINBASHI, MINATO-KU, TOKYO, 105-0003, JAPAN

 

SEAH STEE UAE, LLC.

(100.00% held by the subject company)

AL JAZEERA AL HAMRA, P.O.BOX. 31291RAS AL KHAIMAH, UAE (RAKIA)

 

SEAH STEEL EUROPE S.R.L

CAP 35121, PIAZZA EREMITANI 18, PADOVA(PD), ITALY

 

SEAH STEEL INDONESIA

(60.00% held by the subject company)

AXA TOWER, LEVEL 37, SUITE 6, JL.PROF.DR.SATRIO KAV.18, KUNINGAN-SETIABUDI, JAKARTA, 12940, INDONESIA

 

INOX TECH

VIA ALDO MORO, 10/C, 45026, LENDINARA (RO), ITALY

 

NORAM PROPERTIES, LLC.

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

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

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

 

The Subject Company (2 Cases)

 

Violation on The Law of  Fair Trade

-

Proceeding

 

 

News Clipping

 

--------

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.32

UK Pound

1

Rs.98.99

Euro

1

Rs.72.13

KRW

1

Rs.0.057

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

NIT

 

               


 

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.