MIRA INFORM REPORT

 

 

Report No. :

349110

Report Date :

07.11.2015

           

IDENTIFICATION DETAILS

 

Name :

KOREA NICKEL CORP.

 

 

Registered Office :

400, Dunchon-Daero, Jungwon-Gu, Seongnam-Si, Gyeonggi-Do, 8th Fl., Starwood Plaza, Korea 13229

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

01.05.1987

 

 

Com. Reg. No.:

211-81-36261

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Other Smelting, Refining and Alloys of Non-ferrous Metals

 

 

No. of Employees :

33

 

 

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

KOREA NICKEL CORP.

Registered Address

400, Dunchon-daero, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea

Building

8th Fl., Starwood Plaza

Zip Code

13229

Tel

+82-31-737-0920

Fax

+82-31-737-0950

E-mail

thnam@koreazinc.co.kr

Website

www.korea-nickel.co.kr

 

 

Trading Address

8th Fl., Starwood Plaza, 400, Dunchon-daero, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea

(Old Address System : 8th Fl., Starwood Plaza, 5439-1, Sangdaewon 2-dong, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea)

Tel

+82-31-737-0954

Fax

+82-31-737-0950

 

 

Other Address-Onsan Factory

318, Gongdan-ro, Onsan-eup, Ulju-gun, Ulsan, Korea

Tel

+82-52-237-0071

 

 

Type

Export/Import

Industry

Manufacture of Other Smelting, Refining and Alloys of Non-ferrous Metals

  Main Business

Nickel, Electrolytic Nickel for Melting

  Sub Business

 

Established (mm/dd/yyyy)

05/01/1987

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Nickel(11101706)

Sell

Cobalt ore(11101615)

Sell

Copper(11101715)

Sell

Tin ore(11101610)

Sell

Chromium ore(11101612)

Sell

Chemicals including Bio Chemicals and Gas Materials(12000000)

 

 

CEO’s

 

Name

Choi Chang-Young

Address

Suite 1-202, 33, Apgujeong-ro 75-gil, Gangnam-gu, Seoul, Korea

Date of Birth

07/07/1944

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

5,400,000,000

Employees

33

Formation

Co., Ltd by Shares

A Company of YOUNG POONG GROUP

Foreign Direct Investment Corporation

Bank Details

KEB Hana Bank-Young Dong Branch

Shinhan Bank

Woori Bank

Corporate Registered No.

110111-0529482

Business Registered No.

211-81-36261

Permit & Licenses

02/22/2002 ISO 9001

08/19/2002 ISO 14001

 

Int’l Trade No.: 539083

Shareholder Position

Name

Shares

%

VALE LTD.(CANADA)

135,000

25.00

KOREA ZINC INC.(110111-0168404)

102,600

19.00

POSCO PROCESSING & SERVICE CO., LTD.(110111-0344591)

75,600

14.00

YOUNG POONG CORPORATION(110111-0003824)

70,200

13.00

OTHERS

156,600

29.00

TOTAL

540,000

100.00

Company History

05/01/1987 Incorporated as the present name

02/28/2009 Moved to the present HQ address from 142, Nonhyeon-dong, Gangnam-gu, Seoul, Korea

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Choi Chang-Young

Male

Korean

02/15/1993

Co-President & CEO

Mr.

Choi Nae-Hyun(James Soung)

Male

Korean

02/26/2015

Director

Mr.

Stuart Allan Harshaw

Male

Canadian

06/30/2014

Director

Mr.

Robert Allan Morris

Male

Canadian

11/12/2014

Director

Mr.

Kang Seok-Phil

Male

Korean

02/26/2015

Auditor

Mr.

Noh Sang-Wook

Male

Korean

03/03/2011

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2014

108,289,031,804

111,409,838,924

1,039,447,002

(*)2013

137,784,251,829

111,470,581,391

-9,436,961,487

(*)2012

259,375,041,417

155,828,977,159

-5,812,129,140

2011

313,027,273,401

173,051,417,103

6,583,569,532

2010

282,931,789,098

135,794,559,672

3,425,647,288

2009

194,485,897,015

130,246,646,763

-5,601,580,285

2008

462,639,917,561

184,382,446,559

23,515,770,127

2007

895,110,116,673

270,605,712,476

27,603,217,701

2006

574,062,226,199

191,892,493,668

-6,041,939,374

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

 

 

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

5,400,000,000

Total Issues Shares

540,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

111,409,838,924

111,470,581,391

155,828,977,159

Current Assets

81,666,432,384

75,438,341,414

101,417,035,253

Cash & Cash Equivalents

24,485,756,679

28,849,156,463

15,532,287,981

Current Financial Instruments

4,000,000,000

-

 

Trade Receivables & Other Receivables

7,077,658,770

2,878,510,806

9,249,607,582

Inventories

36,245,824,065

29,852,503,305

71,283,708,247

Deferred Income Tax Assets

262,808,363

143,120,470

196,690,140

Other Financial Assets

9,478,800,000

13,600,000,000

5,000,000,000

Other Current Assets

115,584,507

115,050,370

154,741,303

Non-Current Assets

29,743,406,540

36,032,239,977

54,411,941,906

Non-Current Financial Instruments

11,000,000

11,000,000

11,000,000

Long-Term Trade Receivables & Other Long-Term Receivables

-

713,856,000

647,275,200

Deferred Income Tax Assets

57,368,214

630,758,782

1,824,994,676

Investment_Related Companies

9,185,030,875

13,416,879,732

20,401,815,635

Tangibles

7,184,524,914

7,557,367,650

7,994,105,286

Investment_Real Estates

12,091,938,786

12,488,834,062

12,885,729,339

Intangibles

1,188,985,501

1,188,985,501

1,522,463,520

Other Non-Current Finance Assets

24,558,250

24,558,250

9,124,558,250

Total Liabilities

1,311,653,608

1,046,528,201

35,040,706,882

Current Liabilities

912,395,532

772,620,993

34,650,475,673

Trade Payables & Other Payables

321,010,883

652,958,605

1,540,891,833

Short-Term Borrowings

 

 

33,000,000,000

Other Current Financial Debts

400,643,879

33,554,708

-

Other Current Liabilities

190,740,770

86,107,680

109,583,840

Non-Current Liabilities

399,258,076

273,907,208

390,231,209

Confirmed Salaries

209,258,076

90,007,208

206,331,209

Other Non-Current Financial Debts

190,000,000

183,900,000

183,900,000

Capital Stock

5,400,000,000

5,400,000,000

5,400,000,000

Others

-293,171,241

-234,177,941

-372,679,577

Profit Surplus

104,991,356,557

105,258,231,131

115,760,949,854

Total Equity

110,098,185,316

110,424,053,190

120,788,270,277

Liab. & Shareholder’s Equity

111,409,838,924

111,470,581,391

155,828,977,159

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

108,289,031,804

137,784,251,829

259,375,041,417

Cost of Sold Goods

-101,588,609,977

-136,454,307,853

254,239,962,436

Gross Profit

6,700,421,827

1,329,943,976

5,135,078,981

Selling & Admin. Expenses

-2,415,370,830

-2,493,783,419

570,720,370

Operating Income

4,285,050,997

-1,163,839,443

2,052,164,193

Non-Operating Profits

-2,609,100,342

-7,181,251,085

2,512,194,418

Finance Income

2,284,527,806

1,516,268,261

2,138,375,524

Finance Expenses

-1,473,354,726

-1,805,107,914

-3,839,497,965

Other Expenses

684,979,045

679,868,096

708,877,295

Operating Income

-17,640,033

-444,046,138

-2,134,343,356

Profits from Equity Method Investment

 

 

-5,751,538,800

Profits from Investment on Related Companies

-4,087,612,434

-7,128,233,390

2,010,549,031

Income Before Taxes

1,675,950,655

-8,345,090,528

-4,355,383,853

Income Taxes Expenses

-636,503,653

-1,091,870,959

1,456,745,287

Income from Continuous Business

 

-9,436,961,487

-5,812,129,140

Net Income

1,039,447,002

-9,436,961,487

-5,812,129,140

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

-4,172,201,793

46,896,868,482

5,004,525,510

-Net Income

1,039,447,002

-9,436,961,487

-5,812,129,140

-Exp. without Cash Outflow

6,296,180,665

10,086,461,603

10,063,940,904

-Revenue without Cash Inflows

-4,908,038,541

-1,759,267,201

-7,926,670,728

-Changes in Asset/ & Liability

-8,081,465,303

47,367,919,097

13,495,484,076

Interests Received

1,618,849,604

1,041,361,739

1,275,721,697

Interests Paid

-

-532,748,479

-1,647,851,935

Dividends Received

5,834,400

10,296,000

13,728,000

Income Taxes

-143,009,620

119,807,210

-4,457,697,364

Cash Flows from Investing

882,702,009

500,000,000

-99,763,480

Cash Inflow from Investing

4,937,991,511

500,000,000

72,500,000

Cash Outflows for Investing

-4,055,289,502

-

-172,263,480

Cash Flows from Financing

-1,073,900,000

-34,080,000,000

-3,656,262,430

Cash Inflows from Financing

6,100,000

-

340,520,000,000

Cash Outflows from Financing

-1,080,000,000

-34,080,000,000

-344,176,262,430

Increase/Decrease in Cash

-4,363,399,784

13,316,868,482

1,248,499,600

Cash at the Beginning of Year

28,849,156,463

15,532,287,981

14,283,788,381

Cash at the End of Year

24,485,756,679

28,849,156,463

15,532,287,981

 

 

Products, Technologies, Services Description

 

Main Products & Services

Nickel, Electrolytic Nickel for Melting

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

POSCO(174611-0000741)

SEAH CHANGWON INTERGRATED SPECIAL STEEL CO., LTD.(194211-0025248)

Competitors

YOO CHANG METAL INDUSTRIAL CO., LTD.

245, NAE-DONG, OJEONG-GU, BUCHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-32-674-1231  FAX:+82-32-674-8191

 

TORECOM CORP.

180, UNYONG-RI, DUNPO-MYEON, ASAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-537-6114  FAX:+82-41-534-2136

 

SAMJI METAL INDUSTRIAL CO., LTD.

4MA-815, SIHWA INDUSTRIAL COMPLEX, 712, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-319-8811  FAX:+82-31-319-8233

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

YOUNG POONG CORPORATION(110111-0003824)

KOREA ZINC INC.(110111-0168404)

KOREA CIRCUIT CO., LTD.(130111-0026749)

INTERFLEX CO., LTD.(135011-0042924)

YOUNG POONG ELECTRONICS CO., LTD.(135011-0032106)

YOUNG POONG BOOK STORE CO., LTD.(110111-0855530)

SIGNETICS CORP.(110111-0070815)

KG INTERNATIONAL CORPORATION(110111-4252807)

YOUNGPOONG CORPORATION(110111-0003824)

YOUNG POONG PRECISION CORPORATION(110111-0342496)

SEWON TEXTILE CO., LTD.(110111-0318760)

TERRANIX CO., LTD.(135011-0042950)

YOUNG POONG DEVELOPMENT CO., LTD.(110111-0612914)

YOOMI DEVELOPMENT CO., LTD.(110111-0235542)

SORIN INVESTMENT DEVELOPMENT CORPORATION(110111-0074544)

STI CORP.(115611-0019652)

KOREA NICKEL CORP.(110111-0529482)

SORIN I & T CO., LTD.(110111-1260077)

KG GREENTECH CO.,LTD.(230111-0164077)

CLEAN KOREA CO., LTD.(134711-0004996)

SORIN CORPORATION(110111-0365068)

KORYO HEAVY EQUIPMENT CO., LTD.(181211-0020558)

KG ENGINEERING CO., LTD.(110111-2102153)

 

ALANTUM CORPORATION(131111-0215078)

(17.97% held by the subject company)

 

XMETECH CO., LTD.(131111-0238400)

(10.00% held by the subject company)

Affiliates-Overseas

KZ - PRANDA CO., LTD.(THAILAND)

KZ MINERALS BOLIVIA S.A.(BOLIVIA)

KZ MINERALS HOLDINGS PTE.LTD.(SINGAPORE)

MINOCQUA METALS CORP.(AUSTRALIA)

PAN PACIFIC METAL MINING CORP.(CANADA)

COLWELL KENNEDY AUSTRALIA PTY., LTD.(AUSTRALIA)

SUN METALS HOLDING PTY., LTD.(AUSTRALIA)

YP JAPAN CORP.(JAPAN)

CHINA CIRCUIT(TIANJIN) CO., LTD.(CHINA)

SUN METALS CORP., PTY., LTD.(AUSTRALIA)

ALANTUM EUROPE GMBH(GERMANY)

IATM(DALIAN) CO., LTD.(CHINA)

IATM(SHENYANG) CO., LTD.(CHINA)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

LIG INSURANCE CO., LTD.(110111-0017859)

 

 

Sales by Region (Activity & Markets)

 

The Subject exports to Asia and North America.

 

 

Court Action

 

No.

 

 

News Clipping

 

--------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.79

UK Pound

1

Rs.99.95

Euro

1

Rs.71.55

 

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%)

 

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.