MIRA INFORM REPORT

 

 

Report No. :

342042

Report Date :

23.09.2015

 

IDENTIFICATION DETAILS

 

Name :

YONGSAN CHEMICALS, INC.

 

 

Registered Office :

273, Hangang-daero, Yongsan-gu, Seoul, Korea 10th Fl., Yongsan Bldg. 04321

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

05.12.1973

 

 

Com. Reg. No.:

105-81-37077

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Other Basic Organic Chemicals

 

 

No. of Employee :

127

 

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 :

Slow but correct

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

YONGSAN CHEMICALS, INC.

Registered Address

273, Hangang-daero, Yongsan-gu, Seoul, Korea

Building

10th Fl., Yongsan Bldg.

Zip Code

04321

Tel

+82-2-3274-9100

Fax

+82-2-718-7330

E-mail

recruit@yci.co.kr

Website

www.yci.co.kr

Trading Address

10th Fl., Yongsan Bldg., 273, Hangang-daero, Yongsan-gu, Seoul, Korea

(Old Address System : 10th Fl., Yongsan Bldg., 92, Garwol-dong, Yongsan-gu, Seoul, Korea)

Tel

+82-2-3274-9125

Fax

+82-2-718-7330

Other Address-Ulsan Plant

636, Bugok-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-226-8800

Fax

+82-52-226-8859

Type

Export/Import

Industry

Manufacture of Other Basic Organic Chemicals

  Main Business

Maleic Anhydride, Fumaric Acid, Tetrahydrophthalic Anhydride, DL-Malic Acid

  Sub Business

 

Established (mm/dd/yyyy)

05/12/1973

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Organic derivatives and substituted compounds(12352100)

Sell

Additives(12160000)

Sell

Amides or imides(12352111)

Sell

Organic acids or its substitutes(12352106)

Sell

Chemistry reagents or solutions(41116105)

Sell

Aromatic or heterocyclic compounds(12352005)

Sell

Amides or imides(12352111)

 

 

CEO’s

 

Name

Kim Kee-Joon

Address

64, Itaewon-ro 27-gil, Yongsan-gu, Seoul, Korea

Date of Birth

10/31/1949

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

6,000,000,000

Employees

127

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank

Kookmin Bank

KEB Hana Bank-Namyoungdong Branch

Corporate Registered No.

110111-0145709

Business Registered No.

105-81-37077

Permit & Licenses

09/26/1999 ISO 9001 by DNV

 

Int’l Trade No.: 935034

Shareholder Position

Name

Shares

%

KIM KEE-JOON

630,550

52.55

KIM KEE-SOO

187,390

15.62

MITSUI CHEMICALS CO., LTD.(JAPAN)

120,000

10.00

MITSUI&CO KOREA LTD(110111-0989628)

30,000

2.50

YONG SAN CO., LTD.(230111-0050359)

30,000

2.50

OTHERS

202,060

16.83

TOTAL

1,200,000

100.00

Company History

05/12/1973 Incorporated as DAEGYO YUHWA CO., LTD.

08/06/1974 Changed company name to DAENONG YUHWA CO., LTD.

03/10/1976 Registered as a Foreign Direct Investment Corporation

07/15/1997 Moved to the present HQ address from 33-1, Mapo-dong, Mapo-gu, Seoul, Korea

12/01/1997 Changed company name to the present name

01/01/2003 Increased capital to 6,000,000,000 KRW from 3,960,000,000 KRW

12/2004 Awarded US$ 30 Million Export Top Prize

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Kim Kee-Joon

Male

Korean

07/15/1997

Co-President & CEO

Mr.

Lee Jong-Hwan

Male

Korean

02/24/2015

Co-President & CEO

Mr.

Kim Hyung-Joo

Male

USA

07/14/2015

Director

Mr.

Kim Kee-Soo

Male

Korean

07/14/2009

Director

M/S.

Nam Susan Eunsook

Female

USA

08/28/2008

Director

Mr.

Sasanumato Sahiko

Male

Japanese

07/13/2015

Auditor

Mr.

Park Jae-Hwi

Male

Korean

01/04/2010

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

88,796,320,880

88,554,045,202

4,474,515,106

2013

106,417,350,676

97,780,176,248

7,622,427,411

2012

96,891,116,123

94,600,296,149

4,509,824,895

2011

88,259,519,041

91,465,423,216

6,830,180,760

2010

80,317,837,095

78,216,449,115

7,362,727,872

2009

61,105,311,809

76,577,181,026

455,021,951

2008

66,606,155,817

85,050,700,496

345,088,205

2007

61,356,095,813

72,483,021,328

499,447,129

2006

52,436,262,979

77,613,119,235

-1,709,800,573

2005

64,300,481,904

78,767,201,881

4,497,999,375

 

 

Financial Description

 

Authorized Capital(KRW)

10,000,000,000

Paid-Up Capital(KRW)

6,000,000,000

Total Issued Shares

1,200,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

88,554,045,202

97,780,176,248

94,600,296,149

Current Assets

21,362,468,879

27,558,469,739

27,689,003,880

-Quick Assets

13,649,150,116

19,827,670,920

19,173,474,441

-Inventories

7,713,318,763

7,730,798,819

8,515,529,439

Fixed Assets

67,191,576,323

70,221,706,509

66,911,292,269

-Investment

38,711,812,966

39,247,239,860

36,150,147,880

-Tangibles

28,030,317,154

30,584,099,278

30,197,618,548

-Intangibles

218,772,015

154,941,885

151,027,855

-Others

230,674,188

235,425,486

412,497,986

Total Liabilities

34,410,229,331

46,149,312,114

48,721,187,922

Current Liabilities

32,229,458,607

41,692,218,105

43,927,382,622

Fixed Liabilities

2,180,770,724

4,457,094,009

4,793,805,300

Capital Stock

6,000,000,000

6,000,000,000

6,000,000,000

Capital Surplus

7,235,027,724

7,235,027,724

7,235,027,724

Profit Surplus

41,319,947,782

38,645,432,676

32,823,005,265

Capital Adjustment

-411,159,635

-249,596,266

-178,924,762

Total Equity

54,143,815,871

51,630,864,134

45,879,108,227

Liab. & Shareholder’s Equity

88,554,045,202

97,780,176,248

94,600,296,149

 

Current Liabilities

32,229,458,607

41,692,218,105

43,927,382,622

Trade Payables

3,199,191,524

5,441,477,556

4,347,888,842

Short-Term Borrowings

22,500,000,000

29,110,000,000

32,700,000,000

Account Payables

2,966,775,602

3,252,128,035

3,236,371,450

Accrued Expenses

640,622,886

682,523,977

708,788,472

Advanced Receipts

59,059,219

-

 

Withholdings

522,424,192

621,120,224

757,119,510

Deferred Income Tax Credit

705,795,184

966,928,313

478,664,348

Current Portion of Long-Term Debts

1,635,590,000

1,618,040,000

1,698,550,000

Fixed Liabilities

2,180,770,724

4,457,094,009

4,793,805,300

Long-Term Borrowings

956,600,000

2,592,190,000

4,210,230,000

Provision for Severance & Retirement

426,098,744

969,511,175

353,417,713

Non-Current Portion of Deferred Income Tax Credit

798,071,980

895,392,834

230,157,587

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

88,796,320,880

106,417,350,676

96,891,116,123

Cost of Sold Goods

77,491,258,667

93,506,091,854

85,398,852,916

Gross Profit

11,305,062,213

12,911,258,822

11,492,263,207

Selling & Admin. Expenses

5,264,302,258

4,741,792,308

4,221,549,766

Operating Income

6,040,759,955

8,169,466,514

7,270,713,441

Non-Operating Income

1,345,198,547

5,543,766,553

1,228,330,363

Non-Operating Expenses

1,770,417,822

3,949,654,654

2,905,186,977

Income Before Taxes

5,615,540,680

9,763,578,413

5,593,856,827

Income Taxes Expenses

1,141,025,574

2,141,151,002

1,084,031,932

Net Income

4,474,515,106

7,622,427,411

4,509,824,895

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

11,493,096,953

9,923,349,727

-1,560,107,272

-Net Income

4,474,515,106

7,622,427,411

4,509,824,895

-Exp. without Cash Outflow

5,675,902,716

5,550,960,606

4,414,072,273

-Revenue without Cash Inflows

-741,820,822

-4,817,925,741

-512,814,092

-Changes in Asset/ & Liability

2,084,499,953

1,567,887,451

-9,971,190,348

Cash Flows from Investing

-555,776,447

-3,356,407,814

-3,770,961,720

-Cash Inflow from Investing

1,459,190,928

1,187,573,251

4,414,695,723

-Cash Outflows for Investing

-2,014,967,375

-4,543,981,065

-8,185,657,443

Cash Flows from Financing

-10,028,040,000

-7,088,550,000

3,772,870,000

-Cash Inflows from Financing

6,450,000,000

6,260,000,000

13,741,000,000

-Cash Outflows from Financing

-16,478,040,000

-13,348,550,000

-9,968,130,000

Increase/Decrease in Cash

909,280,506

-521,608,087

-1,558,198,992

Cash at the Beginning of Year

400,198,906

921,806,993

2,480,005,985

Cash at the End of Year

1,309,479,412

400,198,906

921,806,993

 

 

Products, Technologies, Services Description

 

Main Products & Services

Maleic Anhydride, Fumaric Acid, Tetrahydrophthalic Anhydride, DL-Malic Acid

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

SK GAS LTD.(110111-0413247)

HUMADE CORPORATION(110111-3000538)

Customers

 

Competitors

KYUNGDONG CHEMICALS CORP.

RM. 704, BYUCKSAN SEONYEONG TECHNOPIA, 196-5, OJEON-DONG, UIWANG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-387-3573~5  FAX:+82-31-387-3576

 

DAEHAN PARKERIZING CO., LTD.

4TH FL., UDO BLDG., 363-5, SEOGYO-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-333-5821  FAX:+82-2-333-6092

 

SAMWANG CHEMICAL CORPORATION

348, MYOBONG-RI, IDONG-MYEON, CHEOIN-GU, YONGIN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-336-3873  FAX:+82-31-336-3876

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KOREA PTG CO., LTD.(230111-0060548)

(44.72 % held by the subject company)

 

YONGSAN MITSUI CHEMICAL CO., LTD.(110111-1852600)

(30.00% held by the subject company)

 

YONGSAN CO., LTD.(110111-0019813)

(25.60% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

KOREA PTG CO., LTD.(230111-0060548)

(33.33% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

-Technical Support from

SCIENTIFIC DESIGN COMPANY, INC.

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2014

2013

2012

Export

 

 

 

Domestic

 

 

 

Total

 

 

 

The Subject deals with the companies in Japan.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No.

 

 

News Clipping

 

Not Available


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.63

UK Pound

1

Rs.101.73

Euro

1

Rs.73.26

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

Report Prepared by :

SDA

 

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.