MIRA INFORM REPORT

 

 

Report No. :

328095

Report Date :

18.06.2015

 

IDENTIFICATION DETAILS

 

Name :

KUM YANG CO., LTD.

 

 

Registered Office :

81, Nakdong-daero 960beon-gil, Sasang-gu, Busan, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

17.11.1955

 

 

Com. Reg. No.:

606-81-04711

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of All Other Chemical Products

 

 

No. of Employees :

99

 

 

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 :

Exist

 

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, 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

KUM YANG CO., LTD.

(Korean Company Name : “()금양”)

Registered Address

81, Nakdong-daero 960beon-gil, Sasang-gu, Busan, Korea

(Old Address System : 951-1, Gamjeon-dong, Sasang-gu, Busan, Korea)

Building

 

Zip Code

617-805

Tel

+82-51-316-5881~5

Fax

+82-51-325-5887

E-mail

kysale@kyc.co.kr;poisoner@kyc.co.kr;dcryu@kyc.co.kr;dcryu@kyc.co.kr

Website

www.kyc.co.kr

Trading Address

Rm. 1201, Korea Trade Tower, 511, Yeongdong-daero, Gangnam-gu, Seoul, Korea

(Old Address System : Rm. 1201, Korea Trade Tower, 159-1, Samseong 1-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-563-5907

Fax

+8 -2-553-9078

Other Address

 

Tel

 

Fax

 

Type

Export

Industry

Manufacture of All Other Chemical Products n.e.c.

  Main Business

Chemical Blowing Agent, Plasticizer, Master Batch

  Sub Business

 

Established (mm/dd/yyyy)

11/17/1955

The Subject owns the premises of registered HQ address(15,443).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Polymer masterbatches(12171701)

Sell

Foaming agents(12161903)

Sell

Cracking catalysts(12161604)

 

 

CEO’s

 

Name

Ryu Kwang-Jy

Address

 

Date of Birth

05/25/1966

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

19,676,654,000

Employees

99

Formation

Listed Company (Korea Stock Exchange : 001570) as of 12/17/1976

Venture Business

Bank Details

Shinhan Bank-Bujeon Dong Branch

Korea Development Bank

Busan Bank

Kookmin Bank

Hana Bank

Corporate Registered No.

180111-0003101

Business Registered No.

606-81-04711

Permit & Licenses

01/01/2000 ISO 9002

08/01/2000 ISO 14001

 

Int’l Trade No.: 700087

Shareholder Position

Name

Shares

%

RYU KWANG-JY

16,382,001

41.63

TREASURY STOCK

5,744,151

14.60

OTHERS

17,227,156

43.78

TOTAL

39,353,308

100.00

Company History

11/17/1955 Incorporated as KUM BUK CHEMICAL INDUSTRIES CO., LTD.

07/15/1978 Changed company name to the present name

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

President & CEO

Mr.

Ryu Kwang-Jy

Korean

1966.05.25

Korea University

Director

Mr.

Kim Soo-Young

Korean

1956.02.

Seoul National University, Korea

Director

Mr.

Lee Hyuck

Korean

1966.04.

Gyemyung University, Korea

Outside Director

Mr.

Yoon Kwang-Woon

Korean

1949.09.03

Chungang University

Outside Director

Mr.

Ahn Duck-Kun

Korean

1967.02.28

Seogang University, Korea

Auditor

Mr.

Kim Jeong-Ku

Korean

1966.10.21

Samil Accounting Company

Auditor

Mr.

Yang Young-Jong

Korean

1961.12.

Korea University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2015

35,662,921,230

146,218,529,571

610,044,851

(*)2014

137,946,044,073

145,135,554,101

2,861,900,159

(*)2013

132,045,280,291

142,485,294,649

1,518,012,636

(*)2012

108,275,608,383

127,197,483,946

3,159,937,218

(*)2011

100,918,699,262

124,086,391,998

2,436,780,120

(*)2010

90,724,087,239

104,994,772,301

1,511,752,065

2009

67,389,205,385

96,227,231,370

1,483,631,960

2008

55,441,463,748

84,853,281,928

3,250,965,564

2007

47,096,071,631

52,267,245,881

25,268,327

2006

44,724,117,122

43,517,284,394

520,234,970

2005

51,474,876,450

42,982,532,071

6,099,463,938

2004

42,855,816,549

42,006,212,928

227,054,698

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

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

19,676,654,000

Total Issued Shares

39,353,308

 

Balance Sheet

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

146,218,529,571

145,135,554,101

142,485,294,649

Current Assets

58,247,828,660

57,627,190,380

60,939,478,137

Cash & Cash Equivalents

11,495,484,436

10,161,697,971

6,454,729,886

Current Financial Instruments

5,193,417,519

4,510,000,000

7,410,000,000

Trade Receivables

31,558,993,731

30,010,237,503

35,826,840,593

Advance Payments

979,488,167

819,970,832

1,813,848,914

Prepaid Expenses

83,812,158

119,345,626

70,776,757

Other Receivables

995,569,831

1,050,965,459

1,003,353,534

Inventories

7,941,062,818

10,954,972,989

8,359,928,453

Non-Current Assets

87,970,700,911

87,508,363,721

81,545,816,512

Non-Current Financial Instruments

1,818,901,378

1,317,931,378

363,551,378

Marketable Financial Instruments

239,295,000

239,295,000

278,728,148

Investment_Related Companies

61,223,738,062

61,223,738,062

56,240,523,930

Other Receivables

1,489,338,116

1,539,338,116

1,376,457,016

Tangibles

23,098,909,874

23,087,542,684

23,186,037,559

Investment_Real Estate

78,627,360

78,627,360

78,627,360

Intangibles

878,671

878,671

878,671

Other Non-Current Assets

21,012,450

21,012,450

21,012,450

Total Liabilities

101,254,415,496

98,653,967,217

97,062,605,237

Current Liabilities

79,110,901,252

76,183,553,771

80,447,090,152

Trade Payables

17,990,638,285

17,029,436,810

5,976,993,892

Short-Term Borrowings

50,408,013,887

50,083,705,151

63,436,904,667

Current Portion of Long-Term Debts

5,526,168,469

5,723,102,459

8,917,592,476

Deferred Income Tax Credit

246,105,509

433,640,771

9,549,146

Accrued Dividends

2,016,549,420

0

0

Advance Receipts

389,779,501

407,221,525

558,504,542

Withholdings

63,248,930

70,275,740

63,792,561

Other Payables

2,470,397,251

2,436,171,315

1,483,752,868

Non-Current Liabilities

22,143,514,244

22,470,413,446

16,615,515,085

Debentures

2,493,200,831

2,493,200,831

0

Long-Term Borrowings

14,569,413,668

15,164,522,870

11,828,360,549

Provision for Severance & Retirement

1,084,804,737

816,594,737

729,407,244

Deferred Income Tax Credit

3,996,095,008

3,996,095,008

4,057,747,292

Capital Stock

19,676,654,000

19,676,654,000

19,676,654,000

Capital Surplus

244,674,433

244,674,433

244,674,433

Others

-3,549,766,560

-3,549,766,560

-3,549,766,560

Installments

14,777,395,668

14,777,395,668

14,777,395,668

Profit Surplus

13,815,156,534

15,332,629,343

14,273,731,871

Total Equity

44,964,114,075

46,481,586,884

45,422,689,412

Liab. & Shareholder’s Equity

146,218,529,571

145,135,554,101

142,485,294,649

 

Income Statement

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

35,662,921,230

137,946,044,073

132,045,280,291

Cost of Sold Goods

31,247,699,478

122,147,399,331

118,655,638,389

Gross Profit

4,415,221,752

15,798,644,742

13,389,641,902

Selling & Admin. Expenses

2,872,524,555

8,796,876,304

8,201,365,895

Operating Income

1,542,697,197

7,001,768,438

5,188,276,007

Other Operating Income

17,894,466

11,630,813

35,475,586

Other Operating Expenses

22,834,154

4,904,420

13,047,338

Finance Income

363,101,953

2,784,360,609

2,287,244,768

Finance Expenses

1,245,214,476

6,325,398,834

5,729,179,643

Income Before Taxes

655,644,986

3,467,456,606

1,768,769,380

Income Taxes Expenses

45,600,135

605,556,447

250,756,744

Net Income

610,044,851

2,861,900,159

1,518,012,636

 

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

3,243,547,394

20,006,547,996

-16,431,018,568

Net Income

610,044,851

2,861,900,159

1,518,012,636

Adjustment

1,147,452,059

4,781,222,976

4,735,976,208

Changes in Asset/ & Liability

2,353,743,520

15,071,363,968

-18,866,850,395

Income Taxes

-264,625,602

-161,155,649

-687,249,307

Interests Received

91,250,089

332,709,452

276,219,652

Interests Paid

-694,317,523

-2,885,048,130

-3,412,682,582

Dividends Received

0

5,555,220

5,555,220

Cash Flows from Investing

-1,348,404,010

-3,441,343,376

-5,026,710,906

Cash Flows from Financing

-550,872,633

-12,855,874,953

15,592,810,795

Increase/Decrease in Cash

1,333,786,465

3,706,968,085

-5,864,925,442

Cash at the Beginning of Year

10,161,697,971

6,454,729,886

12,319,655,328

Cash at the End of Year

11,495,484,436

10,161,697,971

6,454,729,886

 

 

Products, Technologies, Services Description

 

Main Products & Services

Chemical Blowing Agent, Plasticizer, Master Batch

 

Brand Name CELLCOM

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

PVC, PE, EVA manufacturers

Competitors

DONGGU IND. CO., LTD.

350-1, MAJANG-RI, GWANGTAN-MYEON, PAJU-SI, GYEONGGI-DO, KOREA

TEL:+82-31-948-5381  FAX:+82-31-948-5387

 

YOO KWANG CHEMICAL CO., LTD.

190-1, YUSAN-DONG, YANGSAN-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-386-3101  FAX:+82-55-386-3221

 

ORION POLYTECH CO., LTD.

RM. 208, WORLD MERIDIAN 1-CHA, 60-24, GASAN-DONG, GEUMCHEON-GU, SEOUL, KOREA

TEL:+82-2-2113-7550  FAX:+82-2-2113-7553

 


Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

ILOVESCHOOL JAPAN

(50.0% held by the subject company)

 

KJ INTERNATIONAL CO., LTD.(180111-0895160)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

KUMYANG CHEMICALS HONG KONG LTD.

(100.0% held by the subject company)

 

K&J CHEMICALS CO., LTD.

(70.0% held by the subject company)

 

KUMYANG CHEMICAL SHANGHAI CO., LTD.

(100.0% held by the subject company)

 

KUMYANG(LIANYUNGANG) CHEMICAL CO., LTD.

(100.0% held by the subject company)

 

KUMYANG USA INC.

(100.0% held by the subject company)

 

HAN DONG MAO YI

(100.0% held by the subject company)

 

KUMYANG CHEMICALS HONG KONG LTD.

(100.0% held by the subject company)

 

KUMYANG NEIMENGGU CHEMICAL CO., LTD.

(100.0% held by the subject company)

 

KUNMING KUMYANG CHEMICAL CO., LTD.

(51.59 % held by the subject company)

 

KUMYANG AMERICA LTD.

(100.0% held by the subject company)

 

HANKUM NEIMENGGU CHEMICAL CO., LTD.

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

57,537

68,753

62,372

Domestic

27,742

32,166

28,352

Total

85,279

100,919

90,724

The subject deals with the companies in Asia, USA and European countries.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

2010 GAHAP 65431

 

Mitsui O.S.K Lines Ltd

The Subject Company /

Kumyang Chemicals  (Shanghai) Co., Ltd. / Shanghai Yunhong    Transportation Co., Ltd.

MOL

USD 45,000,000.00

Proceeding

2012 GAHAP 10287

 

Kim Young-Sam

The Subject Company

Loans

10,365,419,000

Proceeding

2013GAHAP 4321

 

HAPAG-LLOYD ACTIEN GESELLSCHAFT & Others(1)

The Subject Company & Others(1)

Claim for Compensation from Damages

USD 1,390,763.08, SGD 33,763.26

 

Proceeding

 

 

News Clipping

 

-------

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.11

UK Pound

1

Rs.100.31

Euro

1

Rs.72.17

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

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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.