MIRA INFORM REPORT

 

 

Report No. :

328488

Report Date :

22.06.2015

 

IDENTIFICATION DETAILS

 

Name :

KYUNG-IN SYNTHETIC CORPORATION

 

 

Registered Office :

199, Geonji-ro, Seo-gu, Incheon, Korea, 404-220

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

14.10.1977

 

 

Com. Reg. No.:

137-81-00562

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Synthetic Colouring Matter, Tanning Materials and Other Coloring Agents

 

 

No. of Employees :

443

 

 

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 :

Slow but correct

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

KYUNG-IN SYNTHETIC CORPORATION

(Trade Name: KISCO)

(Korean Company Name : “()경인양행”)

Registered Address

199, Geonji-ro, Seo-gu, Incheon, Korea

(Old Address System : 223-52, Seongnam-dong, Seo-gu, Incheon, Korea)

Building

 

Zip Code

404-220

Tel

+82-32-571-7498

Fax

+82-32-571-7497

E-mail

kisco@kyungin.co.kr

Website

www.kyungin.co.kr

Trading Address

69, Yangcheon-ro 75-gil, Gangseo-gu, Seoul, Korea

(Old Address System : 112-31, Yeomchang-dong, Gangseo-gu, Seoul, Korea)

Tel

+82-2-3665-4001

Fax

+82-2-3660-8539

Other Address-Siheung Factory

1Ra-706, Sihwa Industrial Complex, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea

Tel

+82-31-499-4020

Fax

+82-31-499-2155

Other Address-Ansan Factory

785-7, Wonsi-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-491-0111

Fax

+82-31-495-3521

Type

Export/Import

Industry

Manufacture of Synthetic Colouring Matter, Tanning Materials and Other Coloring Agents

  Main Business

Reactive Dyestuffs, Disperse Dyestuffs, Acid Dyestuffs, Direct Dyestuffs, Fluorescent Dyestuffs, Solvent Dyestuffs

  Sub Business

Food, Food Additives, Ginseng Products

Established (mm/dd/yyyy)

10/14/1977

The Subject owns the premises of registered address/ Factory(4,826.0), Siheung Factory(6,694) and Ansan Factory (5,600).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Dyes(12171500)

-Colorants

Sell

Reactives (Bifunctional, Vinylsulfone)

Sell

Disperse(Synolon Dyes, Papilion Dyes)

Sell

Direct(Fast yellow, Black)

Sell

Acid(Syno Acid Dyestuffs)

Sell

For Leather(Brown, Black, Others)

Sell

OBA (Cotton & Rayon, Nylon, Pulp & Paper, Detergent, Polyester)

Sell

Solvent Dyes

Buy

P-Base

Buy

H-ACID

 

 

CEO’s

 

Name

Cho Sung-Yong

Address

-

Date of Birth

11/04/1968

Title

Vice President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

20,198,182,500

Employees

443

Formation

Listed Company (Korea Stock Exchange : 012610 ) as of 10/05/1995

Foreign Direct Investment Corporation

Bank Details

Industrial Bank of Korea-Youngdungpo Branch

Citibank, Korea-Youngdungpo Branch

Shinhan Bank

Corporate Registered No.

120111-0005703

Business Registered No.

137-81-00562

Permit & Licenses

05/31/1995 ISO 9002

11/30/1997 ISO 14001

 

Int’l Trade No.: 860477

Shareholder Position

Name

Shares

%

KIM HEUNG-JOON

8,508,260

21.06

KIM DONG-KIL

602,801

1.49

SUMITOMO CORP(JAPAN)

4,159,180

10.30

SUMITOMO CORPORATION KOREA LTD.(110111-1043267)

1,789,790

4.43

TREASURY STOCK

1,359,956

3.37

OTHERS

23,976,378

59.35

TOTAL

40,396,365

100.00

Company History

10/1971 Established Syno Chemical Industrial Co., Ltd.

08/1976 Founded Samjung Industrial Co., Ltd.

10/1976 Renamed Syno Chemical Industrial Co., Ltd. to Kyung-In Chemical Co., Ltd.

10/1977 Changed Kyung-In Chemical Co., Ltd. to Kyung-In Synthetic Corporation (KISCO)

01/1978 Changed Samjung Industrial Co., Ltd. to Kyung-In Synthetic Co., Ltd. (KISC)

01/1978 Kim Dong-Gil inaugurated as chairman of the board of directors

06/1980 Dedicated KISCO's Seoul office building and the Dyestuff Research and Development Institute

03/1983 KISCO installed a spray dryer for the first time in Korea.

08/1984 KISCO designated as an outstanding small and medium-sized industrial firm by Korea Industrial Research Institute

09/1984 Dedicated the Ansan Factory of KISC

11/1987 KISCO awarded US$5 Million Export Tower from the government and the Prime Minister Award

12/1987 KISCO presented the Best Industry Award (at the award ceremony of the first National Science Award)

02/1988 Dedicated the expanded Ansan Factory of KISC

04/1988 KISC signed a technical cooperation agreement with Showa Kako Corporation of Japan.

10/1988 KISCO'S Dyestuff Institute designated by the government as a research institute whose workers are exempted from the active military service

11/1988 KISCO received the US$10 Million Export Tower

12/1988 KISCO's new chemical product registered with Japanese government according to Japan'schemical substance control law.

08/1989 KISCO acquired Samwon Chemical Industrial Co., Ltd.

10/1989 KISCO dedicated low-cost apartments for the employees in Inchon; KISC built low-cost apartments for the employees in Ansan

11/1989 KISC received the US$5 Million Export Tower

12/1989 Dedicated the expanded Seoul office of KISCO

08/1992 KISC acquired equity of Rachada Chemicals Co., Ltd. based in Thailand

11/1992 Founded Eastwell Co., Ltd.

12/1994 KISCO received the 12th Venture Business Award

05/1995 KISCO acquired ISO 9002 Quality Assurance Certificate from Lloyd's Register Q.A. of the United  Kingdom

07/1995 KISCO awarded the Korea Textile Grand Prize in the Dyestuff and Pigment Division

10/1995 KISCO stocks listed on the Korea Stock Exchange (Paid-in capital: 6.5 billion won)

04/1996 KISCO acquired equity of Namo Interactive Inc.

06/1996 KISCO won Textile Industry Grand Award in Dyestuff and Pigment Division

03/1997 KISCO received a citation from the West Inchon Tax Office on Taxation Day.

05/1997 KISCO received a citation from the Prime Minister on Labor Day.

05/1997 KISCO established Turkey joint ventures Kimsoy Chemical Industries, Inc. and Kimsoy Exim, Inc.

05/1997 KISCO established United States joint-venture KISCO USA, Inc.

06/1997 KISCO signed a Strategic Alliance Agreement with Sumitomo Chemical Co., Ltd. of Japan for  overall cooperation in dyestuff technology and production

06/1997 KISCO established Joint Ventures PAPITECH.CO., Ltd.

11/1997 KISCO received Bronze Tower Medal on Export Award Day.

12/1997 KISCO received ISO 14001 (KSA QA)

08/1998 KISCO signed the sale contract for Disperse dyestuffs with Ciba-Geigy of Switzerland.

12/1998 KISC merged into KISCO.

07/1999 KISCO was admitted to the membership of ETAD

07/1999 KISCO launched in an environmental business (Green Systems Engineering Services)

05/2000 KISCO made the investment into YangWoo corporation

01/23/2013 Acquired EASTWELL CO., LTD.(110111-0900525)

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education & Career

Chairman

Mr.

Kim Heung-Joon

Korean

1967.06.14

Hanyang University, Korea

Honored Chairman

Mr.

Kim Dong-Kil

Korean

1938.03.03

Seoul National University, Korea

Vice President & CEO

Mr.

Cho Sung-Yong

Korean

1968.11.04

University of Cambridge, USA

Director

Mr.

Lee Hee-Bok

Korean

1964.11

Chungnam National University, Korea

Outside Director

Mr.

Chang Sang-Jae

Korean

1936.10.10

Seoul National University, Korea

Outside Director

Mr.

Kim Jeong-Hong

Korean

1937.08.08

Seoul National University, Korea

Auditor

Mr.

Kim Byung-Jin

Korean

1970.03

Hanyang University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2015

45,558,905,401

276,995,987,057

-548,329,075

(*)2014

190,395,046,673

267,331,084,178

9,090,269,159

(*)2013

183,106,757,457

274,570,962,783

12,327,176,732

(*)2012

141,304,458,809

241,045,607,999

4,475,440,855

(*)2011

128,707,611,144

245,825,939,561

2,788,642,280

(*)2010

149,007,815,759

250,809,033,564

3,367,162,134

2009

129,006,385,709

218,551,978,762

11,569,545,044

2008

125,462,289,226

163,333,430,906

12,873,680,246

2007

93,016,593,682

120,854,546,914

4,246,011,551

2006

84,978,240,253

95,503,927,506

883,371,290

2005

88,050,292,316

100,565,451,354

2,533,411,044

2004

95,832,343,219

92,524,130,882

4,301,525,438

2003

129,006,385,709

218,551,978,762

11,569,545,044

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

 

Financial Description

 

Authorized Capital(KRW)

25,000,000,000

Paid-Up Capital(KRW)

20,198,182,500

Total Issues Shares

40,396,365

 

Balance Sheet

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

276,995,987,057

267,331,084,178

274,570,962,783

Current Assets

116,535,245,503

107,227,114,583

123,143,649,720

Cash & Cash Equivalents

11,121,149,567

6,209,702,398

4,827,046,722

Current Financial Instruments

86,839,759

86,839,759

86,839,759

Trade Receivables & Other Receivables

48,515,277,028

40,378,430,642

53,318,598,078

Inventories

53,257,588,704

57,418,065,662

60,685,131,900

Other Current Financial Instruments

1,209,676,393

1,072,591,768

893,941,602

Other Current Non-Financial Instruments

2,344,714,052

2,061,484,354

3,332,091,659

Non-Current Assets

160,460,741,554

160,103,969,595

151,427,313,063

Trade Receivables

10,052,395,381

9,641,798,849

6,776,932,202

Non-Current Financial Instruments

38,620,820

25,075,303

45,252,357

Marketable Financial Instruments

912,515,302

891,026,768

825,485,956

Investment_Related Companies

63,066,544,266

63,066,544,266

63,066,544,266

Tangibles

77,676,495,473

77,811,393,156

72,282,758,959

Investment_Real Estates

1,853,210,190

1,855,844,931

1,866,383,901

Intangibles

2,068,412,522

2,047,582,722

2,047,582,722

Other Non-Current Financial Instruments

4,792,547,600

4,764,703,600

4,516,372,700

Total Liabilities

92,854,950,935

80,897,578,070

96,496,450,130

Current Liabilities

76,471,502,030

64,009,840,754

88,530,619,118

Trade Payables & Other Payables

15,195,492,419

9,993,574,521

19,935,349,112

Short-Term Borrowings

53,149,394,010

47,461,532,243

60,151,839,975

Current Portion of Long-Term Debts

1,000,000,000

1,000,000,000

600,000,000

Other Current Financial Debts

5,373,558,923

3,110,198,225

3,072,637,158

Accrued Income Tax

1,130,664,222

1,765,131,083

3,818,744,996

Other Current Liabilities

622,392,456

679,404,682

952,047,877

Non-Current Liabilities

16,383,448,905

16,887,737,316

7,965,831,012

Long-Term Borrowings

10,000,000,000

10,000,000,000

0

Deferred Income Tax Credit

6,383,448,905

6,887,737,316

7,965,831,012

Capital Stock

20,198,182,500

20,198,182,500

20,198,182,500

Capital Surplus

34,846,040,998

34,834,173,229

34,562,751,252

Others

-2,902,645,467

-3,081,196,180

-3,970,197,115

Installments

-40,237,378

-56,998,435

-108,120,269

Profit Surplus

132,039,695,469

134,539,344,994

127,391,896,285

Total Equity

184,141,036,122

186,433,506,108

178,074,512,653

Liab. & Shareholder’s Equity

276,995,987,057

267,331,084,178

274,570,962,783

 

Income Statement

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

45,558,905,401

190,395,046,673

183,106,757,457

Cost of Sold Goods

39,869,428,425

153,646,031,170

147,883,856,030

Gross Profit

5,689,476,976

36,749,015,503

35,222,901,427

Selling & Admin. Expenses

6,902,583,770

25,778,430,213

23,144,837,531

Operating Income

-1,213,106,794

10,970,585,290

12,078,063,896

Finance Income

185,718,252

597,040,970

888,703,650

Finance Expenses

273,130,048

1,365,661,905

1,313,166,956

Non-Operating Income

926,386,729

5,818,549,708

7,497,809,260

Non-Operating Expenses

615,707,799

4,385,688,681

2,686,656,992

Income Before Taxes

-989,839,660

11,634,825,382

16,464,752,858

Income Taxes Expenses

-441,510,585

2,544,556,223

4,137,576,126

Net Income

-548,329,075

9,090,269,159

12,327,176,732

 

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

443,406,485

15,097,173,630

-1,601,345,973

Net Income

-548,329,075

9,090,269,159

12,327,176,732

Adjustment

1,829,611,006

12,827,933,901

-11,116,863,729

Interests Received

4,611,369

47,675,649

81,885,199

Dividends Received

133,266,000

348,376,747

656,961,220

Interests Paid

-270,433,331

-1,449,844,100

-1,354,325,470

Income Taxes

-705,319,484

-5,767,237,726

-2,196,179,925

Cash Flows from Investing

-1,133,630,083

-9,760,460,772

-515,259,633

Cash Flows from Financing

5,601,670,767

-3,954,057,182

1,570,496,735

Increase/Decrease in Cash

4,911,447,169

1,382,655,676

-546,108,871

Cash at the Beginning of Year

6,209,702,398

4,827,046,722

5,366,236,825

Cash at the End of Year

11,121,149,567

6,209,702,398

4,827,046,722

 

 

Products, Technologies, Services Description

 

Main Products & Services

Manufacturer of Reactive dyes for cotton, rayon & wool, Disperse dyes for polyester, acetate, triacetate & micro fiber, O.B.A. for paper, pulp, cotton, polyester, nylon, acrylic & detergent, Acid dyes for nylon, silk, wool & leather, Direct dyes for paper, leather & cotton, Solvent dyes for polyester fiber, plastic, resin, master batch, Ink for color ink jet printer."

 

Brand Name : Synozol

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

CIBA SPECIALTY CHEMICALS INC

EASTWELL CO., LTD.(110111-0900525)

YANGWOO CO., LTD.(115911-0018773)

Competitors

OH YOUNG INDUSTRIAL CO., LTD.(115611-0001071)

RIFA INDUSTRIAL CO., LTD.(110111-0018138)

M.DOHMENKOREA, LTD.(110111-2189953)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

JMC CO., LTD.(124611-0284494)

(79.52%held by the subject company)

 

WISE CHEM CO., LTD.(KOREA)

(48.13% held by the subject company)

 

DAITO-KISCO CORPORTION(120111-0368466)

(50.00% held by the subject company)

 

KISCO SHANGHAI(CHINA)

(100.00% held by the subject company)

 

LIANYUNGANG KISCO(CHINA)

(100.00% held by the subject company)

 

KISCO USA(USA)

(35.00% held by the subject company)

 

KIMSOY EXIM(TURKEY)

(50.00% held by the subject company)

 

RACHADA CHEMICAL(THAILAND)

(14.00% held by the subject company)

 

NAMO IT(THAILAND)

(49.00% held by the subject company)

 

KISCO INDIA

(97.00% held by the subject company)

 

KIMSOY ADANA(TURKEY)

(50.00% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

JMC CO., LTD.(124611-0284494)

(79.52% held by the subject company)

 

WISE CHEM CO., LTD.(KOREA)

(48.13% held by the subject company)

 

LIANYUNGANG KISCO CHEMICAL CO., LTD.(CHINA)

(100.0% held by the Subject Company)

 

KISCO INT’L TRADE SHANGHAI CO., LTD.(CHINA)

(100.0% held by the Subject Company)

 

KISCO INDIA PRIVATE LIMITED

(97.00% held by the Subject Company)

HSPL HOUSE, 1ST FLOOR,, SCO 121-123, SECTOR 34A, CHANDIGARH - 160022, CHANDIGARH, INDIA

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

SUMITOMO CHEMICAL-JAPAN

T.H INT-USA

 

-Insured Company

GREEN NON-LIFE INSURANCE CO., LTD.(110111-0007082)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : KRW

03/2010

2009

2008

Export

22,637,000,000

81,251,470,091

81,456,569,665

Domestic

11,916,000,000

47,754,915,618

44,005,719,561

Total

34,553,000,000

129,006,385,709

125,462,289,226

The subject deals with the companies in Pakistan, USA, Asian Countries and European Countries.

 

 

Court Action

 

No.

 

News Clipping

 

---------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.82

UK Pound

1

Rs.101.26

Euro

1

Rs.72.36

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

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.