MIRA INFORM REPORT

 

 

Report No. :

341160

Report Date :

15.09.2015

 

IDENTIFICATION DETAILS

 

Name :

SEAH BESTEEL CORPORATION

 

 

Registered Office :

45, Yanghwa-Ro, Mapo-Gu, Seoul, 29th Fl., Seah Tower, Korea 04027

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

05.04.1955

 

 

Com. Reg. No.:

113-81-06798

 

 

Legal Form :

Listed Company

 

 

Line of Business :

·         Manufacture of Basic Iron and Steel.

·         Manufacture of Other Parts and Accessories for Motor Vehicles n. e. c.

 

 

No. of Employees :

1,527

 

 

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 :

--

 

 

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

SEAH BESTEEL CORPORATION

Registered Address

45, Yanghwa-ro, Mapo-gu, Seoul, Korea

Building

29th Fl., Seah Tower

Zip Code

04027

Tel

+82-2-6970-2000

Fax

+82-2-6970-2181

E-mail

hnyoon@seahbesteel.co.kr

Website

www.seahbesteel.co.kr

Trading Address

29th Fl., Seah Tower, 45, Yanghwa-ro, Mapo-gu, Seoul, Korea

(Old Address System : 29th Fl., Seah Tower, 490, Seogyo-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-6970-2000

Fax

+82-2-6970-2181

Other Address-Gunsan Factory

522, Oehang-ro, Gunsan-si, Jeollabuk-do, Korea

(Old Address System : 1-6, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea)

Tel

+82-63-460-8114

Fax

+82-63-460-8560

Other Address-Busan Office

159-4, Gamjeon-dong, Sasang-gu, Busan, Korea

Tel

+82-51-312-8522

Fax

+82-51-311-2105

Type

Export/Import

Industry

Manufacture of Basic Iron and Steel

  Main Business

Specialty Steel, Automotive Parts

  Sub Business

Manufacture of Other Parts and Accessories for Motor Vehicles n. e. c.

Established (mm/dd/yyyy)

04/05/1955

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Transportation components and systems(25170000)

Sell

Steel(11101704)

Sell

Train wheels(25171902)

Buy

Electrodes(39121436)

Buy

Metal scrap(11191600)

Buy

Ferrous alloy(11101712)

 

 

CEO’s

 

Name

Lee Sung-Hwi

Address

 

Date of Birth

02/04/1950

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

219,310,595,000

Employees

1,527

Formation

Listed Company (Korea Stock Exchange : 001430) as of 03/12/1991

A Company of SeAH Group

Bank Details

Korea Development Bank-Finance 1 Dept.

Hana Bank

Corporate Registered No.

110111-0035794

Business Registered No.

113-81-06798

Permit & Licenses

1985 KS

1988 JIS

1995 ISO 9002

1999 QS 9000

1999 KT

1999 ISO 9002

2005 KT

12/07/2005 ISO 9001

2/01/2006 ISO/TS 16949:2002

 

Int’l Trade No.: 720799

Shareholder Position

Name

Shares

%

SEAH HOLDINGS CORP(110111-2276809)

19,500,000

54.37

SEAH STEEL CORPORATION(110111-0118996)

2,163,186

6.03

HAIDUK CORPORATION(110111-0038011)

1,635,633

4.56

NATIONAL PENSION SERVICE(110171-0007134)

3,061,510

8.54

TREASURY STOCK

266,470

0.74

OTHERS

9,235,320

25.75

TOTAL

35,862,119

100.00

Company History

1937 Established as GWANDONG MACHINE MANUFACTORY

04/05/1955 Incorporated and Changed company name to KOREA HEAVY MACHINERY INDUSTRY CO., LTD.

1978 Merged with Incheon Casting Plant of Won Poong Industry Co., Ltd.

1986 Joined to KIA Group

1990 Changed company name to KIA STEEL CO., LTD.

1991 Listed at Korea Stock Exchange

1993 Moved Head Office to Gunsan

1996 Awarded US$50 Million Export Top Prize

02/03/1999 Decided to be managed and operated by Court

2003 Joined to SeAH Group

2003 Awarded US$100 Million Export Top Prize

12/26/2003 Discharged of managing by Court

2004 Changed company name to the present name

2008 Awarded US$300 Million Export Top Prize

2012 Moved to the present HQ address from 26-2, Guro 5-dong, Guro-gu, Seoul, Korea

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Lee Soon-Hyung

Korean

1949.02.

Hanyang University, Korea

President & CEO

Mr.

Lee Sung-Hwi

Korean

1950.02.04

Seoul National University, Korea

Vice President & CEO

Mr.

Yoon Ki-Soo

Korean

1956.09.03

Hongik University, Korea

Outside Director

Mr.

Chae Bang-Eun

Korean

1946.05.31

Seoul National University, Korea

Outside Director

Mr.

Jung Yong-Hee

Korean

1944.10.

Hanyang University, Korea

Outside Director

Mr.

Kim Chang-Do

Korean

1950.02.26

Seoul National University, Korea

Outside Director

Mr.

Park In-Mok

Korean

1951.08.

Kunkuk University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2015

1,010,083,106,650

2,566,682,817,895

84,624,831,320

(*)2014

2,202,367,042,934

2,424,743,837,719

123,518,831,731

(*)2013

2,112,649,587,661

2,204,800,352,049

102,304,188,281

(*)2012

2,194,080,927,379

2,159,086,176,283

119,182,019,385

(*)2011

2,484,734,008,766

1,999,402,384,509

226,558,728,481

(*)2010

1,867,538,671,152

1,909,295,729,574

149,026,404,566

2009

1,245,359,976,570

1,697,962,001,325

-38,680,863,688

2008

1,840,728,419,741

1,681,299,268,997

101,694,543,435

2007

1,195,387,344,807

1,339,894,395,686

41,126,496,193

2006

967,358,415,494

1,138,843,285,053

60,217,991,212

2005

1,002,705,294,421

986,945,040,122

67,763,780,544

2004

926,423,705,351

916,008,512,067

50,544,157,989

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

 

 

Financial Description

 

Authorized Capital(KRW)

750,000,000,000

Paid-Up Capital(KRW)

219,310,595,000

Total Issues Shares

35,862,119

 

Balance Sheet

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

2,566,682,817,895

2,424,743,837,719

2,204,800,352,049

Current Assets

780,471,916,615

1,139,920,530,080

863,988,945,023

Cash & Cash Equivalents

29,984,077,405

262,362,687,139

4,871,295,393

Trade Receivables & Other Receivables

268,317,492,809

311,909,546,713

326,317,543,473

Current Financial Instruments

118,672,465

15,346,661,950

4,967,624,140

Current Non-Financial Instruments

1,288,592,563

62,247,956,996

2,392,234,941

Inventories

480,763,081,373

488,053,677,282

525,440,247,076

Non-Current Assets

1,786,210,901,280

1,284,823,307,639

1,340,811,407,026

Tangibles

1,169,205,008,336

1,202,613,674,239

1,261,571,571,957

Investment_Real Estate

19,378,798,048

19,428,028,576

19,526,489,632

Intangibles

3,593,755,766

4,419,877,617

4,201,626,229

Long-Term Trade Receivables & Other Receivables

10,856,869,613

10,378,742,413

7,507,058,767

Non-Current Financial Instruments

32,039,059,306

28,418,329,150

28,485,256,820

Investment_Related Companies

18,131,645,143

18,131,645,143

18,131,645,143

Investment_Subsidiaries

531,543,214,345

0

0

Non-Current Non-Financial Instruments

1,462,550,723

1,433,010,501

1,387,758,478

Total Liabilities

1,018,635,592,318

924,655,913,484

785,332,045,325

Current Liabilities

333,064,510,571

521,074,937,367

410,715,934,646

Trade Payables & Other Payables

182,132,667,315

162,813,574,855

172,502,733,466

Short-Term Borrowings

119,068,335,741

329,918,925,129

215,607,857,977

Accrued Income Tax

25,314,972,802

22,420,447,533

17,618,131,956

Other Current Non-Financial Debts

6,548,534,713

5,921,989,850

4,987,211,247

Non-Current Liabilities

685,571,081,747

403,580,976,117

374,616,110,679

Long-Term Trade Payables & Other Payables

9,906,094,618

7,860,095,838

7,792,265,685

Long-Term Borrowings

562,121,173,544

361,971,548,981

332,302,325,901

Other Non-Current Financial Debts

84,257,936,560

0

 

Deferred Income Tax Credit

27,324,832,960

26,815,960,965

26,988,847,966

Confirmed Salaries

1,937,615,788

6,910,652,467

7,346,850,698

Other Non-Current Non-Financial Debts

23,428,277

22,717,866

185,820,429

Capital Stock

219,310,595,000

219,310,595,000

219,310,595,000

Capital Surplus

30,172,223,578

30,172,223,578

30,172,223,578

Others

268,737,990,119

268,737,990,119

268,737,990,119

Installments

-984,347,102

-262,162,602

-544,174,195

Profit Surplus

1,030,810,763,982

982,129,278,140

901,791,672,222

Total Equity

1,548,047,225,577

1,500,087,924,235

1,419,468,306,724

Liab. & Shareholder’s Equity

2,566,682,817,895

2,424,743,837,719

2,204,800,352,049

 

Income Statement

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

1,010,083,106,650

2,202,367,042,934

2,112,649,587,661

Cost of Sold Goods

847,639,413,567

1,938,206,884,594

1,888,744,775,023

Gross Profit

162,443,693,083

264,160,158,340

223,904,812,638

Selling & Admin. Expenses

45,770,061,899

88,904,287,468

80,052,681,654

Operating Income

116,673,631,184

175,255,870,872

143,852,130,984

Other Operating Income

2,519,882,699

5,379,051,924

5,172,768,312

Other Operating Expenses

1,091,084,867

4,098,586,400

2,505,640,943

Finance Income

6,974,783,162

11,171,423,375

6,578,206,481

Finance Expenses

13,714,234,256

24,338,273,021

25,632,701,031

Income Before Taxes

111,362,977,922

163,369,486,750

127,464,763,803

Income Taxes Expenses

26,738,146,602

39,850,655,019

25,160,575,522

Net Income

84,624,831,320

123,518,831,731

102,304,188,281

 

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

206,034,781,631

245,177,555,435

142,195,347,300

Net Income

111,362,977,922

163,369,486,750

127,464,763,803

Exp. without Cash Outflow

64,581,079,919

123,501,351,117

122,404,183,919

Revenue without Cash Inflows

-6,100,812,399

-5,703,884,330

-2,176,877,650

Changes in Asset/ & Liability

66,808,761,744

7,959,117,179

-66,937,300,593

Interests Received

2,338,108,869

1,516,980,462

829,246,393

Dividends Received

1,667,657,901

3,060,143,818

819,888,383

Interests Paid

-11,629,814,485

-16,772,589,224

-20,711,823,065

Income Taxes Paid

-22,993,177,840

-31,753,050,337

-19,496,733,890

Cash Flows from Investing

-391,928,152,252

-99,183,727,991

-86,436,645,078

Cash Inflow from Investing

16,152,423,027

4,515,814,529

6,376,499,277

Cash Outflows for Investing

-408,080,575,279

-103,699,542,520

-92,813,144,355

Cash Flows from Financing

-46,528,986,622

111,497,314,837

-58,361,228,243

Cash Inflows from Financing

279,066,662,378

842,409,500,000

1,031,013,520,712

Cash Outflows from Financing

-325,595,649,000

-730,912,185,163

-1,089,374,748,955

Increase/Decrease in Cash

-232,422,357,243

257,491,142,281

-2,602,526,021

Cash at the Beginning of Year

262,362,687,139

4,871,295,393

7,473,821,414

Cash at the End of Year

29,984,077,405

262,362,687,139

4,871,295,393

 

 

Products, Technologies, Services Description

 

Main Products & Services

Special Steel

-Carbon Steel

-Alloy Steel

-Steel

-Nitriding Steel

-Spring Steel

-Bearing Steel

-Boron Steel

-High Strength Steel

-Microalloying Steel

-Free-Cutting Steel

 

Automotive Parts

Crank Shaft

-Axle Shaft

-Tripod Housing-Outer Race

-Inner Race

-Front Driving Differential Assembly-Rear Axle Assembly

-Axle Casting

-Brake Drum & Disc

-Hub Casting

-Differential Carrier & Differentia Case

 

Railway Wheels

 

Brand Name : Besteel, Shine Mold

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

SEJONG RESOURCES CO., LTD.(160111-0079891)

DONGBU METAL CO., LTD.(110111-3836678)

HANWHA TECHM CO., LTD(194211-0056095)

VALDUNES(FRANCE)

Customers

KIA MOTORS CORPORATION(110111-0037998)

Competitors

G & C HEAVY INDUSTRY CO., LTD.

2NA-203, SIHWA INDUSTRIAL COMPLEX, 1260-2, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-358-1011  FAX:+82-31-358-9617

 

YONG JIN SPECIALTY STEEL CO., LTD.

980-59, BANGBAE 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-32-680-3000  FAX:+82-32-678-8520

 

POSCO SPECIALTY STEEL CO., LTD.

65, SINCHON-DONG, CHANG-WON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-269-6114  FAX:+82-55-269-6901

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

SEAH HOLDINGS CORP(110111-2276809)

SEAH METAL CO., LTD.(194311-0003292)

SEAH SPECIAL STEEL CO., LTD.(174611-0005478)

KANG NAM CITY GAS CO., LTD.(110111-0385199)

KOREA BUNDY CORP.(134711-0001266)

ESAB SEAH CORP.(180111-0059047)

SEAH LOGISTICS CORP.(151111-0000847)

SEAH ENT CO., LTD(110111-0740707)

SEAH INVESTMENT DEVELOPMENT CO., LTD(120111-0039489)

SEAH COMMUNICATIONS CO., LTD.(110111-0862519)

SEAH INFORMATION SYSTEM CO., LTD.(110111-0613855)

DREAMLINE CORPORATION(110111-1447021)

SEAH TECHNICS CO., LTD.(110111-1243875)

SEAH SOLAR SYSTEMS CO., LTD.(110111-3788655)

HAIDUK CORPORATION(110111-0038011)

HAIDUK STEEL CO.,LTD(110111-2121145)

HOYEON TOURIST LEISURE INDUSTRY CO., LTD.(131411-0176612)

SEAHBNK CO.,LTD.(135111-0084924)

OSAN PRECISION CORP.(131311-0029293)

 

JEENYANG INDUSTRIAL CO., LTD.(110111-0091613)

(35.0% held by the subject company)

 

JEONGSEON LIME CO., LTD.(144911-0009652)

(22.0% held by the subject company)

Affiliates-Overseas

PT.SEAH STEEL INDONESIA

SEAH STEEL AMERICA, INC.

STATE PIPE & SUPPLY, INC.

SEAH STEEL CALIFORNIA LLC.

SEAH STEEL VINA CORP.

SEAH JAPAN CO., LTD.

SEAH STEEL UAE LLC.

LANDMARK STEEL CORP.

VIETNAM STEEL PIPE CO., LTD.

SEAH STEEL EUROPE S.R.L

INOX TECH S.P.A.

ESAB SEAH WELDING PRODUCT(YANTAI) CO., LTD.

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

ESAB SEAH CORP.(180111-0059047)

Subsidiary

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

(54.82% held by the subject company)

Corporate Ownership

SEAH HOLDINGS CORP(110111-2276809)

Major Shareholders

SEAH HOLDINGS CORP(110111-2276809)

Cooperative Enterprise

-Technical Support from

VALDUNES(FRANCE)

 

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : Mil KRW

06/2015

2014

2013

Export

147,984

353,384

286,192

Domestic

862,099

1,848,983

1,826,458

Total

1,010,083

2,202,367

2,112,650

The Subject exports to USA, Oceania, Europe and Asia.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

 

 

The Subject Company

Claim for Compensation from Damages

9,760,472,000

3rd round is proceeding

 

 

 

The Subject Company

Refund

2,666,926,000

2nd round is proceeding

 

 

 

The Subject Company

-

41,690,000

2nd round is proceeding

 

 

 

The Subject Company

Claim for Compensation from Damages

100,000,000

1st round is proceeding

 

 

 

The Subject Company

Salaries

120,000,000

1st round is proceeding

 

 

News Clipping

 

---------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.37

UK Pound

1

Rs.102.54

Euro

1

Rs.75.32

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.