MIRA INFORM REPORT

 

 

Report No. :

346480

Report Date :

24.10.2015

 

IDENTIFICATION DETAILS

 

Name :

KUMHO MITSUI CHEMICALS CORP.

 

 

Registered Office :

100, Cheonggyecheon-ro, Jung-gu, Seoul

 

 

Country :

Korea (South)

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

03.02.1989

 

 

Com. Reg. No.:

102-81-31282

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Petrochemical Products.

 

 

No. of Employee :

171

 

 

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)

Korea (South)

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

KOREA (SOUTH) 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

KUMHO MITSUI CHEMICALS CORP.

Registered Address

100, Cheonggyecheon-ro, Jung-gu, Seoul, Korea

Building

11FL., Signature Towers East Annex

Zip Code

04542

Tel

+82-2-6961-3791~2

Fax

+82-2-6961-3779

E-mail

master@kmci.co.kr

Website

www.kmci.co.kr

Trading Address

11FL., Signature Towers East Annex, 100, Cheonggyecheon-ro, Jung-gu, Seoul, Korea

(Old Address System : 11FL., Signature Towers East Annex, 99, Supyo-dong, Jung-gu, Seoul, Korea)

Tel

+82–2–6961–3750

Fax

+82–2–6961–3779

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Petrochemical Products

  Main Business

MDI (Methylene Diphenyl Diisocyanate)

  Sub Business

 

Established (mm/dd/yyyy)

03/02/1989

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Chemicals including Bio Chemicals and Gas Materials(12000000)

Sell

Chemistry reagents or solutions(41116105)

Sell

Thermoplastic plastics(13102000)

 

 

CEO’s

 

Name

Park Chan-Koo

Address

12, Itaewon-ro 55ra-gil, Yongsan-gu, Seoul, Korea

Date of Birth

08/13/1948

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

35,000,000,000

Employees

171

Formation

Co., Ltd by Shares

Bank Details

Shinha Bank

Woori Bank-Hoihyun Dong Branch

Korea Exchange Bank

Korea Development Bank

Mitsui-Sumitomo Bank

Tokyo Mitsubishi UFJ Bank

Corporate Registered No.

110111-0612980

Business Registered No.

102-81-31282

Permit & Licenses

Int’l Trade No.: 526168

Shareholder Position

Name

Shares

%

KUMHO PETRO CHEMICAL CO., LTD.(110111-0205975)

1,750,000

50.00

MITSUI CHEMICALS, INC.(JAPAN)

1,750,000

50.00

TOTAL

3,500,000

100.00

Company History

03/02/1989 Incorporated as KUMHO MITSUI DOAS CORP.

03/21/1996 Increased the authorized shares to 5,000,000 shares from 3,000,000 shares

10/01/1997 Changed company name to the present name

01/16/2005 Decreased capital to 35,000,000,000 KRW from 50,000,000,000 KRW

09/01/2012 Moved to the present HQ address from 115, Sinmunno 1(il)-ga, Jongno-gu,Seoul, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Chairman & CEO

Mr.

Park Chan-Koo

Male

Korean

03/22/2010

President & CEO

Mr.

Ando Sinji

Male

Japanese

03/12/2015

Director

Mr.

Kim Sung-Chae

Male

Korean

03/22/2010

Director

Mr.

Han Dong-Hwa

Male

Korean

03/14/2013

Director

Mr.

Koshibe Minoru

Male

Japanese

07/10/2015

Director

Mr.

Hiruma Makoto

Male

Japanese

07/10/2015

Auditor

Mr.

Kim Min-Ho

Male

Korean

01/08/2015

Auditor

Mr.

Makita Kohichiro

Male

Japanese

07/10/2015

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

632,564,653,393

410,142,115,209

16,125,877,591

2013

664,117,455,347

395,746,779,632

28,050,044,714

2012

545,052,962,560

408,241,576,447

18,371,982,817

2011

414,876,238,156

390,801,048,665

7,019,907,293

2010

381,894,399,469

357,251,120,968

11,141,988,629

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

35,000,000,000

Total Issued Shares

3,500,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

410,142,115,209

395,746,779,632

408,241,576,447

Current Assets

153,007,526,869

135,455,920,299

136,214,165,225

Inventories

32,289,304,144

32,273,632,558

34,284,494,065

Derivatives

29,014,978

-

 

Trade Receivables

110,415,562,819

94,958,987,121

91,086,843,393

Other Receivables

4,524,803,278

3,877,719,890

2,524,808,830

Cash & Cash Equivalents

5,269,753,145

3,973,426,670

7,946,114,564

Other Current Assets

479,088,505

372,154,060

371,904,373

Non-Current Assets

257,134,588,340

260,290,859,333

272,027,411,222

Tangibles

250,719,041,627

254,282,708,481

256,788,567,731

Intangibles

1,394,511,330

1,473,511,330

6,870,441,907

Deferred Income Tax Assets

1,407,460,486

1,133,436,917

3,848,425,658

Derivatives

 

 

1,158,659,752

Long-Term Trade Receivables

562,196,997

774,245,515

976,004,334

Other Long-Term Receivables

3,051,377,900

2,626,957,090

2,385,311,840

Total Liabilities

229,544,342,575

219,212,879,272

253,748,660,483

Current Liabilities

147,757,572,351

129,371,637,169

181,604,341,549

Trade Payables

43,674,140,663

46,842,572,205

47,175,485,377

Other Payables

15,497,020,590

14,642,063,621

16,403,540,227

Short-Term Borrowings

86,338,227,226

63,897,021,006

113,636,037,968

Derivatives

7,355,000

-

 

Deferred Income Tax Credit

1,748,722,573

3,871,740,696

4,170,442,724

Other Current Liabilities

492,106,299

118,239,641

218,835,253

Non-Current Liabilities

81,786,770,224

89,841,242,103

72,144,318,934

Long-Term Borrowings

76,159,569,771

84,900,917,978

65,130,250,000

Derivatives

2,041,469,482

2,600,817,375

4,096,260,164

Confirmed Salaries

3,180,267,543

1,898,482,391

2,360,680,072

Long-Term Accrued Expenses

405,463,428

441,024,359

557,128,698

Capital Stock

35,000,000,000

35,000,000,000

35,000,000,000

Capital Surplus

27,019,634

27,019,634

27,019,634

Others

-775,307,448

-679,902,581

-1,131,212,222

Profit Surplus

146,346,060,448

142,186,783,307

120,597,108,552

Total Equity

180,597,772,634

176,533,900,360

154,492,915,964

Liab. & Shareholder’s Equity

410,142,115,209

395,746,779,632

408,241,576,447

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

632,564,653,393

664,117,455,347

545,052,962,560

Cost of Sold Goods

590,833,567,041

605,598,999,482

503,207,024,536

Gross Profit

41,731,086,352

58,518,455,865

41,845,938,024

Selling & Admin. Expenses

13,709,895,806

14,557,469,133

11,524,034,104

Operating Income

28,021,190,546

43,960,986,732

30,321,903,920

Other Income

8,094,698,574

7,116,081,487

5,209,530,729

Other Expenses

9,601,812,524

10,213,878,588

7,829,681,296

Finance Income

2,815,349,687

5,312,989,222

12,971,814,890

Finance Expenses

8,813,875,275

10,119,089,888

19,032,564,094

Income Before Taxes

20,515,551,008

36,057,088,965

21,641,004,149

Income Taxes Expenses

4,389,673,417

8,007,044,251

3,269,021,332

Net Income

16,125,877,591

28,050,044,714

18,371,982,817

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

18,525,360,451

48,696,005,970

10,079,709,693

Cash Flows from Operating

29,378,526,014

60,007,744,705

17,897,502,496

Interests Received

157,011,279

151,165,906

254,387,757

Interests Paid

-4,676,978,363

-5,455,256,191

-6,152,250,113

Income Tax

-6,333,198,479

-6,007,648,450

-1,919,930,447

Cash Flows from Investing

-19,190,292,107

-16,390,143,833

-42,972,922,606

Cash Flows from Financing

1,959,402,272

-36,279,839,809

14,977,494,348

Increase/Decrease in Cash

1,296,326,475

-3,972,687,894

-17,919,857,035

Cash at the Beginning of Year

3,973,426,670

7,946,114,564

25,865,971,599

Cash at the End of Year

5,269,753,145

3,973,426,670

7,946,114,564

 

 

Products, Technologies, Services Description

 

Main Products & Services

MDI

Production Capacity : 200,000ton/Yr.

Detailed Products Spec.

--

Technologies Acquired

--

 

 

Trade Partners & Competitors

 

Suppliers

--

Customers

--

Competitors

FINETEC CORP.

345, BOCHE-RI, MIYANG-MYEON, ANSEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-677-7000  FAX:+82-31-677-7007

 

KUKDO CHEMICAL CO., LTD.

345-35, GASAN-DONG, GEUMCHEON-GU, SEOUL, KOREA

TEL:+82-2-3282-1400  FAX:+82-2-869-0101

 

HOSUNG CHEMEX CO., LTD.

18TH FL., SAMHWA BLDG., 144-17, SAMSEONG 2-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-3450-4200  FAX:+82-2-553-5922

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KUMHO P&B CHEMICALS, INC.(206211-0018313)

KUMHO TRADING CO., INC.(110111-2079641)

KUMHO ASIANA MAIN TOWER CO., INC.(110111-3207712)

Overseas Office

--

Liaison Office

--

Overseas Branch

--

Joint Venture

--

Subsidiary

--

Corporate Ownership

KUMHO PETRO CHEMICAL CO., LTD.(110111-0205975)

MITSUI CHEMICALS, INC.(JAPAN)

Major Shareholders

KUMHO PETRO CHEMICAL CO., LTD.(110111-0205975)

MITSUI CHEMICALS, INC.(JAPAN)

Cooperative Enterprise

-Technical Support from

MITSUI CHEMICALS, INC.(JAPAN)

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

----

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.88

UK Pound

1

Rs.99.89

Euro

1

Rs.72.06

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

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.