MIRA INFORM REPORT

 

 

Report No. :

346522

Report Date :

21.10.2015

 

IDENTIFICATION DETAILS

 

Name :

OWENS CORNING KOREA CO., LTD.

 

 

Registered Office :

156, Gongdan 3-gil, Gimcheon-si, Gyeongsangbuk-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

15.05.1990

 

 

Com. Reg. No.:

510-81-02033

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Subject is manufacture of glass fibers and optical glass

 

 

No. of Employee :

278

 

 

 

 

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

 

Basic

 

Company Name

OWENS CORNING KOREA CO., LTD.

(Korean Company Name : “한국오웬스코닝()”)

Registered Address

156, Gongdan 3-gil, Gimcheon-si, Gyeongsangbuk-do, Korea

(Old Address System : 1013-1, Eungmyeong-dong, Kimcheon-si, Gyeongsangbuk-do, Korea)

Building

 

Zip Code

39537

Tel

+82-54-429-5757  +82-54-439-5724  +82-54-429-5714

Fax

+82-54-433-7432

E-mail

yhkim@owenscorning.com

Website

www.owenscorning.co.kr

Trading Address

18FL., Ilsong Bldg., 157-37, Samseong-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-2050-7400

Fax

+82-2-2050-7409

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Glass Fibers and Optical Glass

  Main Business

Fiber Glass, Chopped Strand, Multi End Roving, Single End Roving, Wet-use Chopped Strand Mat, Wonen Roving, Roving Cloth

  Sub Business

 

Established (mm/dd/yyyy)

05/15/1990

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Fiber straps(31151903)

Sell

Glass fibers(11151512)

Buy

Stone(11111600)

Buy

Emulsions(12161804)

Buy

Silica sand(11111701)

Buy

Semi precious stones(54121600)

Buy

Limestone(11111608)

 

 

CEO’s

 

Name

Song Sang-Ho

Address

Suite 103-1002, 417, Samseong-ro, Gangnam-gu, Seoul, Korea

Date of Birth

01/21/1962

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

69,430,000,000

Employees

278

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation(Netherlands)

Bank Details

Shinhan Bank-Sunnung Branch

Korea Development Bank

Corporate Registered No.

171311-0001996

Business Registered No.

510-81-02033

Permit & Licenses

12/13/2000 ISO 9002

09/11/2001 ISO 14001

 

Int’l Trade No.: 910183

Shareholder Position

Name

Shares

%

OWENS CORNING KOHOLD B.V.

3,932,780

56.64

LG CORP.(110111-0003543)

1,620,220

23.34

OTHERS

1,390,000

20.02

TOTAL

6,943,000

100.00

Company History

05/15/1990 Incorporated as Lucky Fiber Glass Co., Ltd.

12/23/1992 Registered as a Foreign Direct Investment Corporation(K0003136)

03/03/1993 Changed company name to Lucky Owens Corning Co., Ltd.

01/25/1995 Changed company name to LG Owens Corning Co., Ltd.

03/10/1999 Changed company name to the present name

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Song Sang-Ho

Male

Korean

03/28/2015

Director

Mr.

Alan Ray Foster

Male

USA

03/27/2015

Director

Mr.

Paul Wei

Male

USA

12/10/2013

Auditor

Mr.

You Ji-Young

Male

Korean

03/18/2011

Auditor

Mr.

Jian Yong Lur

Male

Chinese

03/28/2012

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

117,342,306,741

114,269,606,426

2,759,546,366

2013

120,991,173,544

109,075,118,152

852,770,380

2012

125,129,800,713

109,818,358,738

4,525,759,877

2011

115,825,106,655

107,888,400,705

6,718,237,597

2010

110,450,578,197

105,099,284,622

5,239,212,333

2009

97,332,795,858

96,390,551,505

-4,059,202,761

2008

103,309,467,449

104,161,557,334

10,798,798,822

2007

83,765,551,643

96,161,008,508

-7,345,985,728

2006

89,202,013,106

93,632,634,253

1,933,377,274

2005

89,829,741,159

96,450,150,790

4,586,970,123

 

 

Financial Description

 

Authorized Capital(KRW)

88,900,000,000

Paid-Up Capital(KRW)

69,430,000,000

Total Issues Shares

6,943,000(Common : 5,553,000 / Preferable : 1,390,000)

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

114,269,606,426

109,075,118,152

109,818,358,738

Current Assets

49,654,240,787

41,670,531,331

61,346,693,565

-Quick Assets

25,447,754,393

26,027,138,401

46,458,849,129

-Inventories

24,206,486,394

15,643,392,930

14,887,844,436

Fixed Assets

64,615,365,639

67,404,586,821

48,471,665,173

-Investment

133,351,200

138,947,190

132,396,273

-Tangibles

59,462,180,725

61,413,006,462

42,032,770,852

-Intangibles

2,826,536,117

3,466,506,557

4,106,476,997

-Others

2,193,297,597

2,386,126,612

2,200,021,051

Total Liabilities

33,078,241,727

30,643,299,819

26,966,583,512

Current Liabilities

30,330,074,071

27,680,211,972

23,818,794,433

Fixed Liabilities

2,748,167,656

2,963,087,847

3,147,789,079

Capital Stock

69,430,000,000

69,430,000,000

69,430,000,000

Capital Surplus

3,873,649,999

3,873,649,999

3,873,649,999

Profit Surplus

7,887,714,700

5,128,168,334

9,548,125,227

Capital Adjustment

 

 

 

Total Equity

81,191,364,699

78,431,818,333

82,851,775,226

Liab. & Shareholder’s Equity

114,269,606,426

109,075,118,152

109,818,358,738

 

Current Liabilities

30,330,074,071

27,680,211,972

23,818,794,433

Short-Term Borrowings

1,000,000,000

-

 

Trade Payables

14,599,873,319

10,968,342,591

11,998,033,594

Account Payables

8,718,474,687

12,176,413,393

6,553,056,573

Accrued Expenses

4,437,147,485

3,951,963,680

3,783,804,860

Advance Receipts

4,192,232

3,240,851

12,744,454

Withholdings

496,107,496

402,748,189

308,382,670

Current Portion of Finance Lease Debts

193,478,563

177,503,268

162,847,035

Accrued Income Tax

880,800,289

-

999,925,247

Fixed Liabilities

2,748,167,656

2,963,087,847

3,147,789,079

Provision for Severance & Retirement

2,140,015

23,581,642

30,779,605

Finance Lease Debts

2,746,027,641

2,939,506,205

3,117,009,474

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

117,342,306,741

120,991,173,544

125,129,800,713

Cost of Sold Goods

106,261,483,927

112,514,184,579

111,295,951,833

Gross Profit

11,080,822,814

8,476,988,965

13,833,848,880

Selling & Admin. Expenses

7,300,976,624

6,958,372,546

7,899,993,230

Operating Income

3,779,846,190

1,518,616,419

5,933,855,650

Non-Operating Income

1,523,658,522

2,344,063,393

2,139,086,856

Non-Operating Expenses

1,779,356,374

2,775,440,700

2,268,428,191

Income Before Taxes

3,524,148,338

1,087,239,112

5,804,514,315

Income Taxes Expenses

764,601,972

234,468,732

1,278,754,438

Net Income

2,759,546,366

852,770,380

4,525,759,877

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

8,226,030,038

4,204,787,526

10,250,825,420

-Net Income

2,759,546,366

852,770,380

4,525,759,877

-Exp. without Cash Outflow

9,383,560,306

7,142,744,271

6,380,606,909

-Revenue without Cash Inflows

-135,598,076

-248,714,576

-103,938,541

-Changes in Asset/ & Liability

-3,781,478,558

-3,542,012,549

-551,602,825

Cash Flows from Investing

-9,137,728,085

-3,434,234,042

-16,164,672,853

-Cash Inflow from Investing

660,590,350

15,216,769,442

72,130,479

-Cash Outflows for Investing

-9,798,318,435

-18,651,003,484

-16,236,803,332

Cash Flows from Financing

822,496,731

-5,435,574,309

-6,513,037,313

-Cash Inflows from Financing

79,700,000,000

18,000,000,000

-

-Cash Outflows from Financing

-78,877,503,269

-23,435,574,309

-6,513,037,313

Increase/Decrease in Cash

89,201,316

4,665,020,825

12,426,884,746

Cash at the Beginning of Year

2,233,646,991

6,898,667,816

19,325,552,562

Cash at the End of Year

2,144,445,675

2,233,646,991

6,898,667,816

 

 

Products, Technologies, Services Description

 

Main Products & Services

Fiber Glass, Chopped Strand, Multi End Roving, Single End Roving, Wet-use Chopped Strand Mat, Wonen Roving, Roving Cloth

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

KOREA INDUSTRIAL GASES LTD.(124311-0002719)

OWENS CORNING TOLEDO (USA)

Customers

LG CHEM LTD.(110111-2207995)

LG HAUSYS,LTD.(110111-4071207)

Competitors

HANKUK FIBER GLASS CO., LTD.

181-1, YONGJI-RI, BUBUK-MYEON, MIRYANG-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-355-0081  FAX:+82-55-353-4924

 

KPI CO., LTD.

197-3, GAYA 2-DONG, BUSANJIN-GU, BUSAN, KOREA

TEL:+82-51-898-3746  FAX:+82-51-898-3749

 

SK CHEMICALS CO., LTD.

600, JEONGJA 1-DONG, JANGAN-GU, SUWON-SI, GYEONGGI-DO, KOREA

TEL:+82-31-245-3131  FAX:+82-31-247-2004

 

 


Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

OWENS CORNING TOLEDO (USA)

OWENS CORNING AUSTRALIA PTY LIMITED

OC NL INVEST COOPERATIEF U.A.

LG CHEM LTD.(110111-2207995)

LG HAUSYS,LTD.(110111-4071207)

LG CHEM. (TIANJIN) ENGINEERING

LG CHEMICAL CHINA

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

OWENS CORNING TOLEDO(USA)

OWENS CORNING KOHOLD B.V.

Major Shareholders

OWENS CORNING KOHOLD B.V.

Cooperative Enterprise

-Exclusive Domestic Production & Sales Rights

OC NL INVEST COOPERATIEF U.A.

 

-Insured Company

LIG INSURANCE CO., LTD(110111-0017859)

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 

 

SALES BY REGION (ACTIVITY & MARKETS)

 

The Subject deals with the companies in Australia, Japan, USA and Europe.

 

COURT ACTION

 

No.

 

NEWS CLIPPING

-------

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.89

UK Pound

1

Rs.100.39

Euro

1

Rs.73.52

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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.