MIRA INFORM REPORT

 

 

Report No. :

324861

Report Date :

30.05.2015

 

IDENTIFICATION DETAILS

 

Name :

YK STEEL CORPORATION

 

 

Registered Office :

760, Eulsukdo-daero, Saha-gu, Busan, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

19.11.2002

 

 

Com. Reg. No.:

603-81-51627

 

 

Legal Form :

Co., Ltd by shares

Foreign Direct Investment Corporation

 

 

Line of Business :

Manufacture of Hot Rolled, Drawn and Extruded Iron or Steel Products

 

 

No. of Employees :

410

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 – 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

YK STEEL CORPORATION

(Korean Company Name : “와이케이스틸()”)

Registered Address

760, Eulsukdo-daero, Saha-gu, Busan, Korea

(Old Address System : 90, Gupyeong-dong, Saha-gu, Busan, Korea)

Building

 

Zip Code

604-817

Tel

+82-51-260-2114

Fax

+82-51-262-2294

E-mail

wbchoi@yksteel.co.kr

Website

www.yksteel.co.kr

Trading Address

7FL., LK Bldg., 91, Baekjegobun-ro, Songpa-gu, Seoul, Korea

(Old Address System : 7FL., LK Bldg., 196-8, Jamsil-dong ,Songpa-gu, Seoul, Korea)

Tel

+82-2- 414-2710

Fax

+82-2- 414-2900

Other Address-Gwangju Office

147, Mareukbokgae-ro, Seo-gu, Gwangju, Korea

(Old Address System : 241-3, Chipyeong-dong, Seo-gu, Gwangju, Korea)

Tel

+82-62-362-4460~1

Fax

+82-62-362-4462

Type

Export/Import

Industry

Manufacture of Hot Rolled, Drawn and Extruded Iron or Steel Products

  Main Business

Concrete Reinforcing Bar, Billet, Angle, Round Bar

  Sub Business

 

Established (mm/dd/yyyy)

11/19/2002

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Steel Bar for Concrete

Sell

Billet

Sell

Angle

Sell

Round Bar

 

 

CEO’s

 

Name

Lee Jong-Woong

Address

Suite 303-703, 51, Myeongji ocean city 11-ro, Gangseo-gu, Busan, Korea

Date of Birth

05/04/1961

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

5,937,820,000

Employees

410

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Kookmin Bank

Woori Bank

Hana Bank

SC First Bank of Korea

Corporate Registered No.

180111-0429539

Business Registered No.

603-81-51627

Permit & Licenses

08/23/2004 ISO 14001

08/23/2004 ISO 9001

10/29/2009 K-OHSMS 18001

 

Int’l Trade No.: 11051916

Shareholder Position

Name

Shares

%

YAMATO KOGYO(U.S.A.) CORPORATION

587,723

75.00

YAMATO KOGYO CO., LTD.(JAPAN)

195,908

25.00

TOTAL

783,631

100.00

Company History

11/19/2002 Incorporated as YAMATO KOREA STEEL CO., LTD.

11/22/2002 Increased the authorized shares to 20,000,000 shares from 40,000 shares

11/26/2002 Registered as a Foreign Direct Investment Corporation

02/13/2003 Increased capital to 5,049,165,000 KRW from 3,029,500,000 KRW

06/30/2005 Changed company name to the present name

02/13/2008 Decreased the issued shares to 605,900 shares from 1,009,833 shares but same capital 5,049,165,000 KRW

05/12/2012 Increased capital to 5,937,820,000 KRW from 5,049,165,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lee Jong-Woong

Male

Korean

03/25/2015

Director

Mr.

Sigeo Kawada

Male

Japanese

01/27/2003

Director

Mr.

Takkahumi Yoshida

Male

Japanese

03/09/2010

Auditor

Mr.

Lee Yang-Ho

Male

Korean

03/25/2015

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

546,991,997,451

392,233,422,598

-33,738,291,317

2013

638,121,238,426

479,388,415,480

-45,514,187,884

2012

700,673,242,623

505,059,961,282

-4,921,169,828

2011

698,430,035,593

483,062,706,549

3,502,157,703

2010

624,733,209,304

433,221,820,039

2,551,101,173

2009

701,212,237,351

452,703,033,970

56,382,139,458

2008

866,958,892,095

447,589,142,942

82,066,211,213

2007

583,674,764,522

397,181,252,265

30,284,248,164

2006

468,895,519,153

386,484,410,782

31,296,733,827

2005

484,560,583,017

376,017,805,613

40,863,814,809

2004

 448,707,716,859

 316,600,563,472

 32,109,222,958

2003

388,314,563,303

241,149,594,246

29,785,181,083

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

5,937,820,000

Total Issues Shares

783,631(Common : 605,900 / Preferable : 177,731)

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

392,233,422,598

479,388,415,480

505,059,961,282

Current Assets

213,176,290,597

287,541,837,075

283,280,403,288

-Quick Assets

136,905,716,139

205,644,306,919

203,419,992,769

-Inventories

76,270,574,458

81,897,530,156

79,860,410,519

Fixed Assets

179,057,132,001

191,846,578,405

221,779,557,994

-Investment

 

 

505,990,000

-Tangibles

176,688,494,930

190,369,150,905

216,431,876,454

-Intangibles

311,043,152

342,408,848

373,774,544

-Others

2,057,593,919

1,135,018,652

4,467,916,996

Total Liabilities

110,959,957,832

158,324,705,570

138,482,063,488

Current Liabilities

95,360,625,482

143,193,014,970

123,215,342,568

Fixed Liabilities

15,599,332,350

15,131,690,600

15,266,720,920

Capital Stock

5,937,820,000

5,937,820,000

5,937,820,000

Capital Surplus

178,564,773,139

178,564,773,139

178,564,773,139

Profit Surplus

96,770,871,627

136,561,116,771

182,075,304,655

Capital Adjustment

 

 

 

Total Equity

281,273,464,766

321,063,709,910

366,577,897,794

Liab. & Shareholder’s Equity

392,233,422,598

479,388,415,480

505,059,961,282

 

Current Liabilities

95,360,625,482

143,193,014,970

123,215,342,568

Trade Payables

64,808,470,909

112,344,805,488

85,795,265,453

Account Payables

23,138,680,921

25,027,292,663

30,050,203,746

Advance Receipts

1,949,422,369

1,015,505,096

1,387,019,125

Withholdings

258,201,588

352,446,167

326,082,913

Accrued Expenses

3,442,562,395

3,303,718,238

3,856,637,923

VAT Withhold

1,763,287,300

1,149,247,318

1,800,133,408

Fixed Liabilities

15,599,332,350

15,131,690,600

15,266,720,920

Provision for Severance & Retirement

15,599,332,350

15,131,690,600

15,266,720,920

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

546,991,997,451

638,121,238,426

700,673,242,623

Cost of Sold Goods

561,763,274,723

653,448,318,307

680,751,973,487

Gross Profit

-14,771,277,272

-15,327,079,881

19,921,269,136

Selling & Admin. Expenses

21,741,917,071

23,281,760,681

24,838,438,131

Operating Income

-36,513,194,343

-38,608,840,562

-4,917,168,995

Non-Operating Income

4,068,836,725

3,460,293,794

7,638,304,375

Non-Operating Expenses

1,045,376,159

7,034,657,781

9,953,511,650

Income Before Taxes

-33,489,733,777

-42,183,204,549

-7,232,376,270

Income Taxes Expenses

248,557,540

3,330,983,335

-2,311,206,442

Net Income

-33,738,291,317

-45,514,187,884

-4,921,169,828

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

-15,782,870,169

9,146,857,091

2,014,705,701

-Net Income

-33,738,291,317

-45,514,187,884

-4,921,169,828

-Exp. without Cash Outflow

31,729,887,437

41,354,542,379

32,476,196,091

-Revenue without Cash Inflows

-1,326,780,000

-653,937,174

-1,603,878,207

-Changes in Asset/ & Liability

-12,447,686,289

13,960,439,770

-23,936,442,355

Cash Flows from Investing

-9,739,192,560

-10,405,927,300

-18,402,070,067

-Cash Inflow from Investing

1,379,590,000

709,083,260

193,571,029,028

-Cash Outflows for Investing

-11,118,782,560

-11,115,010,560

-211,973,099,095

Cash Flows from Financing

-6,051,953,827

-

45,112,354,473

-Cash Inflows from Financing

183,000,000,000

117,000,000,000

205,112,354,473

-Cash Outflows from Financing

-189,051,953,827

-117,000,000,000

-160,000,000,000

Increase/Decrease in Cash

-31,574,016,556

-1,259,070,209

28,724,990,107

Cash at the Beginning of Year

47,659,574,121

48,918,644,330

20,193,654,223

Cash at the End of Year

16,085,557,565

47,659,574,121

48,918,644,330

 

 

Products, Technologies, Services Description

 

Main Products & Services

Concrete Reinforcing Bar, Billet, Angle, Round Bar

Annual Production Capacity

Re-Bar : 1,025,000ton/year

Billet : 1,127,000ton/year

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

DYWIDAG SYSTEMS KOREA CO., LTD.

5TH FL., BOMNALACHIM BLDG., 249-2, YANGJAE 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3472-0141~4  FAX:+82-2-3472-0145

 

DAEHAN STEEL CO., LTD.

370-16, SINPYEONG 1-DONG, SAHA-GU, BUSAN, KOREA

TEL:+82-51-220-3300  FAX:+82-51-220-3398

 

KOREA STEEL SHAPES CO., LTD.

727-3, HAKJANG-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-323-2611  FAX:+82-51-325-5713

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

YAMATO KOGYO CO., LTD.(JAPAN)

NUCOR YAMATO STEEL COMPANY(USA)

YAMATO STEEL CO., LTD.(JAPAN)

YAMATO TRACK WORK SYSTEM CO., LTD.(JAPAN)

YAMATO SHOJI CO., LTD.(JAPAN)

HOKUTO TSUSHIN CO., LTD.(JAPAN)

FAIRWAY CO., LTD.(JAPAN)

OUTREAU TECHNOLOGIES JAPAN CO., LTD.(JAPAN)

HIMEJI TEKKO REFINE CO., LTD.(JAPAN)

KIBI CO., LTD.(JAPAN)

YAMATO KOGYO AMERICA, INC. (USA)

YAMATO HOLDING CORPORATION(USA)

NUCOR YAMATO STEEL COMPANY(USA)

ARKANSAS STEEL ASSOCIATE LLC(USA)

ADVANCED STEEL RECOVERY, LLC(USA)

SIAM YAMATO STEEL CO., LTD.(THAILAND)

SULB COMPANY BSC(BAHRAIN)

UNITED STEEL COMPANY BAHRAIN VENTURE CO.WLL(BAHRAIN)

UNITED SULB COMPANY LLC(SAUDI ARABIA)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

YAMATO KOGYO CO., LTD(JAPAN)

YAMATO KOGYO(U.S.A) CORPORATION

Major Shareholders

YAMATO KOGYO(U.S.A) CORPORATION

Cooperative Enterprise

-Insured Company

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Japan, Netherlands, USA and Thailand.

 

 

Court Action

 

No.

 

 

News Clipping

 

-------

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.76

UK Pound

1

Rs.97.80

Euro

1

Rs.69.91

 

 

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%)

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