MIRA INFORM REPORT

 

 

Report No. :

350121

Report Date :

16.11.2015

 

IDENTIFICATION DETAILS

 

Name :

TK CHEMICAL CORPORATION

 

 

Registered Office :

128, Wondae-Ro, Buk-Gu, Daegu, 3FL., Yeonwoo Bldg., Korea 41590

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

07.11.2007

 

 

Com. Reg. No.:

107-87-01960

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Synthetic Fibers. (Polyester Yarn, Spandex Yarn, Cotton Yarn, PET Resin, Chip)

 

 

No. of Employees :

729

 

 

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

TK CHEMICAL CORPORATION

Registered Address

128, Wondae-ro, Buk-gu, Daegu, Korea

(Old Address System : 416-8, Chimsan 3-dong, Buk-gu, Daegu, Korea)

Building

3FL., Yeonwoo Bldg.

Zip Code

41590

Tel

+82-53-252-4177

Fax

+82-53-253-5216

E-mail

webmaster@tkchemi.co.kr;philiplee@tkchemi.co.kr

Website

www.tkchemi.co.kr

Trading Address

9FL., Jinduk Bldg., 22, Seonyudong 1-ro, Yeongdeungpo-gu, Seoul, Korea

(Old Address System : 9FL., Jinduk Bldg., 160-2, Dangsan-dong 2-ga, Yeongdeungpo-gu, Seoul, Korea)

Tel

+82-2-2001-6000

Fax

+82-2-2001-6180  +82-2-782-1160  +82-2-780-5263

Other Address-Synthetic 1 Factory

298-1, Gongdan-dong, Gumi-si, Gyeongbuk, Korea

Tel

+82-54-461-3401

Fax

+82-54-461-8100

Other Address-Synthetic 2 Factory

291-20, Gongdan-dong, Gumi-si, Gyeongbuk, Korea

Tel

+82-54-461-6055

Fax

+82-54-462-0460

Other Address-Synthetic 3 Factory

520, Jung-ri, Seokjeok-eup, Chilgok-gun, Gyeongbuk, Korea

Tel

+82-54-971-9051

Fax

+82-54-971-9051

Other Address-Resin Factory

300, Gongdan-dong, Gumi-si, Gyeongbuk, Korea

Tel

+82-54-463-0380

Fax

+82-54-461-3922

Other Address-Daegu Office

103-6, Dongsan-dong, Jung-gu, Daegu, Korea

Tel

+82-53-252-4177

Fax

+82-53-252-4177

Type

Export/Import

Industry

Manufacture of Synthetic Fibers

  Main Business

Polyester Yarn, Spandex Yarn, Cotton Yarn, PET Resin, Chip

  Sub Business

 

Established (mm/dd/yyyy)

11/07/2007

The Subject occupies the premises of registered HQ address by leasing base.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Polyester yarn(11151703)

Sell

Cotton yarn(11151702)

Sell

Resins(13111000)

 

 

CEO’s

 

Name

Kim Hae-Kyu

Address

 

Date of Birth

03/1963

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

45,447,717,000

Employees

729

Formation

Listed Company (KOSDAQ : 104480) as of 04/26/2011

Foreign Direct Investment Corporation

A Company of SM GROUP

Bank Details

Woori Bank-Yeoido Central Branch

Korea Development Bank

SC. First Bank of Korea

Corporate Registered No.

110111-3783457

Business Registered No.

107-87-01960

Permit & Licenses

Int’l Trade No.: 45338773

Shareholder Position

Name

Shares

%

SMT CHEMICAL CO., LTD.(170111-0351776)

43,637,380

48.01

DAEWOO INTERNATIONAL CORPORATION(110111-2137358)

8,000,000

8.80

WOOBANG INDUSTRIES CO., LTD.(110111-0002834)

12,499,270

13.75

WOOBANG CONSTRUCTION CO.,LTD.(170111-0352732)

12,499,270

13.75

TREASURY STOCK

4,675,998

5.14

OTHERS

9,583,516

10.54

TOTAL

90,895,434

100.00

Company History

11/07/2007 Incorporated as the present name

12/26/2007 Increased the authorized shares to 20,000,000 shares from 40,000 shares

01/22/2008 Moved to the present address from 17-26, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea

01/31/2008 Acquired Spandex, Polyester, Resin Business from TONGKOOK CORP.(110111-0059950)

02/05/2008 Increased capital to 40,000,000,000 KRW from 50,000,000 KRW

07/17/2008 Registered as a Foreign Direct Investment Corporation

07/18/2008 Changed stock type to 8,000,000 shares (Common:5,300,653, Preferable:2,699,347) from 8,000,000 shares (Common: 8,000,000)

04/26/2011 Increased capital to 45,000,000,000 KRW from 40,000,000,000 KRW

07/01/2011 Moved to the present HQ address registration from 14th Fl., Korea Sinsong Center Bldg., 25-12, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea

03/05/2015 Acquired Construction Business from WOOBANG TOGUN CO., LTD.(174811-0037344)

 

 

 

 

Management

 

Job Description

 

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Kim Hae-Kyu

Male

Korean

1963.03

Chairman

Mr.

Woo Oh-Hyun

Male

Korean

1953.11.06

Director

Mr.

Kim Yong-Wan

Male

Korean

1956.03

Auditor

Mr.

Bae Soon-Ki

Male

Korean

1957.07.08

Auditor

Mr.

Kim Ki-Ho

Male

Korean

1962.10

Director

Mr.

Kwak Jin-Soo

Male

Korean

1964.08

Outside Director

Mr.

Lee Sung-Wook

Male

Korean

1956.09

Outside Director

Mr.

Cho Gye-Yong

Male

Korean

1953.05

 

 

Financials

 

Year / Unit : KRW

 

Sales

Assets

Net Income

(*)06/2015

345,003,854,044

545,673,250,124

3,079,401,199

(*)2014

759,804,642,897

571,072,897,648

11,134,046,008

(*)2013

748,342,401,089

532,727,301,778

11,631,633,966

(*)2012

852,763,702,460

474,029,741,985

-28,503,136,674

(*)2011

1,000,564,178,112

666,314,510,118

38,165,046,662

(*)2010

882,043,327,810

457,268,415,266

26,155,939,425

2009

777,194,493,448

323,556,543,330

25,632,641,591

2008

710,630,616,602

320,963,467,180

-17,308,870,150

2007

-

48,690,862

(-)456,138

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

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

45,447,717,000

Total Issues Shares

90,895,434

 

 

Balance Sheet

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

545,673,250,124

571,072,897,648

532,727,301,778

Current Assets

225,535,475,169

216,633,496,715

159,010,189,397

Cash & Cash Equivalents

9,796,717,185

5,638,761,901

8,169,609,270

Current Financial Instruments

100,000,000

1,064,419,508

2,271,263,158

Trade Receivables & Other Receivables

68,085,933,518

72,813,902,473

79,828,243,326

Inventories

84,929,948,316

96,110,707,165

64,203,602,926

Deferred Income Tax Assets

59,156,090

52,601,740

168,488,570

Other Receivables-Construction

8,837,115,102

31,501,150,878

0

Other Current Non-Financial Assets

2,449,262,786

5,562,062,786

2,206,312,786

Other Current Assets

14,136,582,808

3,889,890,264

2,162,669,361

Assets to be Sold

37,140,759,364

0

0

Non-Current Assets

320,137,774,955

354,439,400,933

373,717,112,381

Non-Current Financial Instruments

5,000,000

3,000,000

103,000,000

Non-Current Marketable Financial Instruments

1,144,374,620

1,184,102,000

1,184,102,000

Investment_Related Companies

169,686,833,791

157,476,859,859

154,854,490,390

Tangibles

146,466,155,616

192,982,569,834

214,366,564,836

Investment_Real Estates

0

837,900,000

837,900,000

Intangibles

1,462,151,390

781,802,738

1,366,937,631

Non-Current Financial Instruments

1,330,287,815

1,130,194,779

958,036,097

Other Non-Current Assets

42,971,723

42,971,723

46,081,427

Total Liabilities

325,867,259,808

358,602,697,072

334,269,810,680

Current Liabilities

294,337,068,228

321,678,430,448

293,259,906,541

Trade Payables & Other Payables

102,153,835,843

110,711,235,284

132,286,846,119

Short-Term Borrowings

188,511,688,212

205,997,823,635

158,571,820,515

Other Payables-Construction

1,570,531,582

0

0

Deferred Income Tax Credit

0

2,595,279,100

0

Other Current Financial Debts

1,129,395,000

1,134,695,000

1,182,741,400

Other Current Liabilities

971,617,591

1,239,397,429

1,218,498,507

Non-Current Liabilities

31,530,191,580

36,924,266,624

41,009,904,139

Long-Term Borrowings

6,730,000,000

9,230,000,000

15,700,000,000

Confirmed Salaries

23,007,580,529

25,944,001,980

24,195,689,459

Other Non-Current Financial Debts

34,969,500

34,969,500

34,969,500

Deferred Income Tax Credit

1,611,219,523

1,715,295,144

1,079,245,180

Other Non-Current Non-Financial Debts

146,422,028

0

0

Capital Stock

45,447,717,000

45,000,000,000

45,000,000,000

Capital Surplus

120,221,847,633

118,784,676,063

118,784,676,063

Profit Surplus

40,053,328,563

36,997,393,292

28,587,178,852

Others

14,083,097,120

11,688,131,221

6,085,636,183

Total Equity

219,805,990,316

212,470,200,576

198,457,491,098

Liab. & Shareholder’s Equity

545,673,250,124

571,072,897,648

532,727,301,778

 

 

Income Statement

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

345,003,854,044

759,804,642,897

748,342,401,089

Cost of Sold Goods

320,180,144,039

714,647,999,780

719,251,570,633

Gross Profit

24,823,710,005

45,156,643,117

29,090,830,456

Selling & Admin. Expenses

15,298,123,130

29,251,785,120

25,890,980,126

Operating Income

9,525,586,875

15,904,857,997

3,199,850,330

Non-Operating Income

148,914,905

174,066,480

199,590,998

Non-Operating Expenses

1,630,330,255

1,270,912,513

3,939,926,330

Finance Income

4,052,040,289

4,620,295,965

7,175,204,703

Finance Expenses

6,800,401,589

17,655,960,997

15,138,561,346

Profits from Equity Method & Other Profits

7,339,100,520

33,283,249,881

26,473,353,507

Income Before Taxes

12,634,910,745

35,055,596,813

17,969,511,862

Income Taxes Expenses

-582,670,475

3,242,178,160

3,484,291,246

Income from Continuous Business

13,217,581,220

31,813,418,653

14,485,220,616

Income from Stopped Business

-10,138,180,021

-20,679,372,645

-2,853,586,650

Net Income

3,079,401,199

11,134,046,008

11,631,633,966

 

 

Cash Flows

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

34,305,761,424

-54,985,629,603

56,182,717,438

Changes in Asset/ & Liability

22,211,080,325

-91,885,102,759

32,479,013,893

Cash Flows from Investing

-5,075,060,705

22,770,581,946

-91,400,997,973

Cash Inflow from Investing

47,836,528,581

79,940,220,501

28,227,051,747

Cash Outflows for Investing

-52,911,589,286

-57,237,638,555

-119,628,049,720

Cash Flows from Financing

-25,104,123,234

29,699,582,177

-8,452,495,603

Cash Inflows from Financing

233,187,870,934

510,929,043,092

1,137,514,147,999

Cash Outflows from Financing

-258,291,994,168

-481,229,460,915

-1,145,966,643,602

Increase/Decrease in Cash

4,126,577,485

-2,515,465,480

-43,670,776,138

Cash at the Beginning of Year

5,638,761,901

8,169,609,270

51,840,353,962

Cash at the End of Year

9,796,717,185

5,638,761,901

8,169,609,270

 

 

Products, Technologies, Services Description

 

Main Products & Services

Polyester Yarn (Full Dull, Middle Dull, Cation Dyable, High Shrinkage, Supper Bright, Bright)

SPANDEX Yarn

CHIP(FD, CD, HS)

Resin for PET Bottle

 

Brand Name: TexPet, ARACHRA, TEXLON

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

SAMSUNG PETROCHEMICAL CO., LTD.(181211-0000435)

Customers

DAEWOO INTERNATIONAL CORPORATION(110111-2137358)

LG INTERNATIONAL CORP(110111-0004632)

BURIM CHEMICAL CO., LTD.(111511-0005508)

KIPSCO(KOREA)

YOONSE TONGSANG CO., LTD.(KOREA)

Competitors

TAEKWANG INDUSTRIAL CO., LTD.

162-1, JANGCHUNGDONG 2-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-3406-0300  FAX:+82-2-2273-9166

 

HUVIS CORP.

HUVIS BLDG., 151-7, SAMSEONG 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2189-4567 FAX:+82-2-2189-4569

 

WOONGJIN CHEMICAL CO., LTD.

287, GONGDAN 2-DONG, GUMI-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-469-4114  FAX:+82-54-469-4444

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

NAMSUN ALUMINIUM CO.,LTD.(170111-0005042)

KOREA LINE CORPORATION(110111-0008212)

WOOBANG CONSTRUCTION CO., LTD.(110111-0380610)

WOOBANG INDUSTRIAL CO., LTD.(110111-0002834)

WOOBANG ENGINEERING & CONSTRUCTION CORP(200111-0026017)

RADO CO., LTD.(210111-0044835)

CHOYANG CO., LTD. (130111-0009662)

BEXEL CORPORATION(176011-0028438)

SAMRA CONSTRUCTION CO., LTD. (200111-0013220)

KYUNGNAM WOOL TEXTILE CO., LTD(190111-0004107)

SEOULIM HIGHPACK CO., LTD.(154511-0012867)

GEUMJIN LIFE SCIENCE CO. LTD.(110111-2937203)

HIPLUSCARD CO., LTD.(131111-0191187)

SANBON DEPARTMENT STORE(135111-0040869)

KORIKO ENTERPRISE CO., LTD.(180111-0040559)

KOREA MARINE LIMITED(110111-0211683)

SMT CHEMICAL CO., LTD.(170111-0351776)

SAMRA MIDAS CO., LTD.(200111-0069330)

KL HOLDINGS CO., LTD.(200111-0378319)

SMHOLDINGS CORPORATION(176011-0028438)

SAMRA NONGWON CO., LTD.(110111-5126598)

SAMRA RESOURCES DEVELOPMENT CO., LTD.(110111-5183184)

WOOBANG TOGUN CO., LTD.(174811-0037344)

SAMRA INDUSTRIAL DEVELOPMENT CO., LTD.(200111-0071319)

SC POWERTEC CO., LTD.(134111-0149183)

HANTONG ENGINEERING CO., LTD.(110111-0204654)

KYUNGNAM E&D CO., LTD.(170111-0390766)

Affiliates-Overseas

QINGDAO KYUNGNAM WOOL TEXTILE CO., LTD.(CHINA)

BEST CHEMICALS & PLASTICS, INC.(BCPI)

BESTCHEM, INC(BCI)

Overseas Office

TK CHEMICAL CORP. ISTANBUL OFFICE

BESIKTAS LEVENT NISPETIYE CAD. NO.30 C BLOCK D.23 ISTANBUL, TURKIYE

TEL:+90-212-3257861/3257862  FAX:+90-212+3258242

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

HIPLUSCARD CO., LTD.(131111-0191187)

(100.0% held by the subject company)

Corporate Ownership

SAMRA CONSTRUCTION CO., LTD.(200111-0013220)

SMT CHEMICAL CO., LTD.(170111-0351776)

Major Shareholders

SMT CHEMICAL CO., LTD.(170111-0351776)

Cooperative Enterprise

-Insured Company

HYUNDAIMARINE&FIREINSURANCECO., LTD.(110111-0035893)

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2015

2014

2013

Export

194,060

464,814

533,082

Domestic

150,944

294,991

215,261

Total

345,004

759,805

748,342

The Subject exports to Asia, USA, Middle East and Europe.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

Supreme Court, Korea

The Subject Company

ASAM Investment Advisory(110111-1295850) & Others(4)

Refund of Stock Transferring amount

1,499,997,000

The Subject has won at 2nd round, and the 3rd round is proceeding.

 

 

News Clipping

 

---------

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.14

UK Pound

1

Rs.100.55

Euro

1

Rs.71.26

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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.