MIRA INFORM REPORT

 

 

Report No. :

326219

Report Date :

05.06.2015

 

IDENTIFICATION DETAILS

 

Name :

KUKDO CHEMICAL CO., LTD.

 

 

Registered Office :

61, Gasan Digital 2-Ro, Geumcheon-Gu, Seoul, Korea 153-802

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2015

 

 

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 :

389

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 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, and is currently the world's 12th largest economy. 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 sluggish growth because of external market slowdowns. 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.

 

Source : CIA

 

 

Basic Information

 

Company Name

KUKDO CHEMICAL CO., LTD.

Registered Address

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

Building

--

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

  Sub Business

 

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

Address

 

Date of Birth

10/21/1930

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

29,053,080,000

Employees

389

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)

487,330

8.39

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

647,311

11.14

OTHERS

2,274,778

39.15

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 the 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.

 

 

 

 

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.

Sohn Young-Rae

Korean

1946.02.

Yonsei 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.

Kawahara Nobuyuki

Japanese

1958.03.

Tokyo National University, Japan

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

(*)03/2015

173,227,669,895

536,100,595,143

11,668,411,726

(*)2014

668,499,923,092

520,694,819,628

15,218,365,669

(*)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

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

536,100,595,143

520,694,819,628

488,596,159,115

Current Assets

277,099,487,319

265,215,682,403

253,922,828,101

Inventories

66,582,139,682

70,808,707,740

74,751,803,150

Trade Receivables & Other Receivables

119,898,524,319

118,471,604,486

109,990,472,792

Investment

74,540,018,554

71,397,815,633

63,004,783,710

Other Current Assets

2,305,152,630

2,796,555,853

1,909,420,976

Cash & Cash Equivalents

13,773,652,134

1,740,998,691

4,266,347,473

Non-Current Assets

259,001,107,824

255,479,137,225

234,673,331,014

Tangibles

132,727,945,309

132,706,721,823

117,290,963,526

Intangibles

1,151,872,918

1,039,408,918

1,075,408,918

Long-Term Trade Receivables & Other Receivables

649,356,310

455,301,094

937,880,000

Investment_Related Companies

4,500,000,000

4,500,000,000

4,500,000,000

Investment_Subsidiaries

94,076,497,810

94,076,497,810

94,076,497,810

Investment

25,895,435,477

22,701,207,580

16,792,580,760

Total Liabilities

181,503,347,339

171,929,846,899

149,217,948,511

Current Liabilities

133,629,860,657

120,931,496,118

95,869,373,082

Short-Term Borrowings

36,603,214,358

33,340,749,506

10,276,260,993

Current Portion of Long-Term Debts

12,315,000,000

12,298,000,000

9,235,824,000

Current Portion of Derivatives

79,527,600

35,663,397

 

Trade Payables & Other Payables

79,736,139,039

73,955,467,089

73,167,338,785

Deferred Income Tax Credit

3,797,159,795

546,910,973

2,016,906,132

Other Current Liabilities

1,098,819,865

754,705,153

1,173,043,172

Non-Current Liabilities

47,873,486,682

50,998,350,781

53,348,575,429

Long-Term Borrowings

15,460,000,000

18,544,000,000

21,553,736,000

Debentures

14,970,252,820

14,963,509,091

14,936,920,491

Deferred Income Tax Credit

17,443,233,862

17,490,841,690

16,857,918,938

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

19,600,204,693

20,143,725,344

15,782,712,888

Profit Surplus

259,718,166,883

253,342,371,157

248,316,621,488

Total Equity

354,597,247,804

348,764,972,729

339,378,210,604

Liab. & Shareholder’s Equity

536,100,595,143

520,694,819,628

488,596,159,115

 

Income Statement

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

173,227,669,895

668,499,923,092

655,660,067,474

Cost of Sold Goods

148,241,718,043

607,364,503,259

582,501,617,256

Gross Profit

24,985,951,852

61,135,419,833

73,158,450,218

Selling & Admin. Expenses

11,016,614,195

42,553,282,724

39,628,518,765

Operating Income

13,969,337,657

18,582,137,109

33,529,931,453

Other Income

271,392,603

1,294,580,684

1,090,791,741

Other Expenses

101,575,545

739,689,540

1,249,920,921

Finance Income

2,874,824,822

6,621,371,087

6,873,404,946

Finance Expenses

1,769,164,469

6,217,882,032

5,106,726,859

Income Before Taxes

15,244,815,068

19,540,517,308

35,137,480,360

Income Taxes Expenses

3,576,403,342

4,322,151,639

7,027,677,549

Net Income

11,668,411,726

15,218,365,669

28,109,802,811

 

Cash Flows

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

24,458,968,310

10,766,426,169

36,064,751,238

Net Income

11,668,411,726

15,218,365,669

28,109,802,811

Adjustment

12,067,928,509

-346,709,687

14,390,080,178

Interests Received

1,572,148,894

1,930,246,891

2,537,886,847

Interests Paid

-552,687,169

-2,131,784,105

-2,206,377,971

Dividends Received

68,000,000

1,249,611,882

1,331,877,503

Income Taxes

-364,833,650

-5,153,304,481

-8,098,518,130

Cash Flows from Investing

-6,759,655,964

-30,386,141,701

-22,417,775,065

Cash Inflow from Investing

28,074,394,128

189,438,595,363

169,284,278,101

Cash Outflows for Investing

-34,834,050,092

-219,824,737,064

-191,702,053,166

Cash Flows from Financing

-5,666,649,471

17,095,489,448

-11,386,673,240

Cash Inflows from Financing

29,833,488,930

136,039,204,947

206,954,849,510

Cash Outflows from Financing

-35,500,138,401

-118,943,715,499

-218,341,522,750

Increase/Decrease in Cash

12,032,653,443

-2,525,348,782

2,260,448,275

Cash at the Beginning of Year

1,740,998,691

4,266,347,473

2,005,899,198

Cash at the End of Year

13,773,652,134

1,740,998,691

4,266,347,473

 

 

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

Detailed Products Spec.

 

Technologies Acquired

 

 

 

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)

JOTUN GROUP

GCA CHEMICAL

HEMPEL

ALL CHEMICAL

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)

Joint Venture

ILDO CHEMICAL CO., LTD.(KOREA)

(50.0% held by the subject company)

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.64.18

UK Pound

1

Rs.98.30

Euro

1

Rs.72.25

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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.