|
|
|
MIRA INFORM REPORT
|
Report No. : |
502972 |
|
Report Date : |
09.04.2018 |
IDENTIFICATION DETAILS
|
Name : |
DONGKUK INDUSTRIES CO., LTD. |
|
|
|
|
Registered Office : |
46, Dadong-gil, Jung-gu, Seoul, Korea, 9th
Fl., Dadong Bldg. 04522 |
|
|
|
|
Country : |
South Korea |
|
|
|
|
Financials (as on) : |
31.12.2017 |
|
|
|
|
Date of Incorporation : |
01.09.1967 |
|
|
|
|
Com. Reg. No.: |
202-81-47522 |
|
|
|
|
Legal Form : |
Listed Company |
|
|
|
|
Line of Business : |
Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products |
|
|
|
|
No. of Employees : |
407 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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
|
Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
South Korea |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
SOUTH KOREA - ECONOMIC OVERVIEW
After emerging from the 1950-53 war with North Korea, South Korea
emerged as one of the 20th century’s most remarkable economic success stories, becoming
a developed, globally connected, high-technology society within decades. In the
1960s, GDP per capita was comparable with levels in the poorest countries in
the world. In 2004, South Korea joined the trillion-dollar club of world
economies.
Beginning in the 1960s under President PARK Chung-hee, the government
promoted the import of raw materials and technology, encouraged saving and
investment over consumption, kept wages low, and directed resources to
export-oriented industries that remain important to the economy to this day.
Growth surged under these policies, and frequently reached double-digits in the
1960s and 1970s. Growth gradually moderated in the 1990s as the economy
matured, but remained strong enough to propel South Korea into the ranks of the
advanced economies of the OECD by 1997. These policies also led to the
emergence of family-owned chaebol conglomerates such as Daewoo, Hyundai, and
Samsung, which retained their dominant positions even as the government
loosened its grip on the economy amid the political changes of the 1980s and
1990s.
The Asian financial crisis of 1997-98 hit South Korea’s companies hard
because of their excessive reliance on short-term borrowing, and GDP ultimately
plunged by 7% in 1998. South Korea tackled difficult economic reforms following
the crisis, including restructuring some chaebols, increasing labor market
flexibility, and opening up to more foreign investment and imports. These steps
lead to a relatively rapid economic recovery. South Korea also began expanding
its network of free trade agreements to help bolster exports, and has since
implemented 16 free trade agreements covering 58 countries—including the United
State and China—that collectively cover more than three-quarters of global GDP.
In 2017, the election of President MOON Jae-in brought a surge in
consumer confidence, in part, because of his successful efforts to increase
wages and government spending. These factors combined with an uptick in export
growth to drive real GDP growth to more than 3%, despite disruptions in South
Korea’s trade with China over the deployment of a US missile defense system in
South Korea.
In 2018 and beyond, South Korea will contend with gradually slowing
economic growth - in the 2-3% range - not uncommon for advanced economies. This
could be partially offset by efforts to address challenges arising from its
rapidly aging population, inflexible labor market, continued dominance of the
chaebols, and heavy reliance on exports rather than domestic consumption.
Socioeconomic problems also persist, and include rising inequality, poverty
among the elderly, high youth unemployment, long working hours, low worker
productivity, and corruption.
|
Source
: CIA |
Basic
Information
|
Company Name |
DONGKUK INDUSTRIES CO., LTD. (Korean Company Name : “동국산업(주)") |
|
Registered Address |
46, Dadong-gil, Jung-gu, Seoul, Korea |
|
Building |
9th Fl., Dadong Bldg. |
|
Zip Code |
04522 |
|
Tel |
+82-2-316-7500 |
|
Fax |
+82-2-316-7892~3 |
|
E-mail |
master0@dkis.co.kr;webmaster@dongkukins.co.kr;leesy@dkis.co.kr; mspark@dkis.co.kr |
|
Website |
www.dkis.co.kr;www.dongkukins.co.kr |
|
Trading Address |
9th Fl., Dadong Bldg., 46, Dadong-gil,
Jung-gu, Seoul, Korea (Old Address System : 9th Fl., Dadong Bldg.,
92, Da-dong, Jung-gu, Seoul, Korea) |
|
Tel |
+82-2-316-7500 |
|
Fax |
+82-2-316-7892~3 |
|
Other Address-Pohang Factory |
57, Goedong-ro, Nam-gu, Pohang-si,
Gyeongsangbuk-do, Korea (Old Address System : 547, Jangheung-dong,
Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea) |
|
Tel |
+82-54-285-7501 |
|
Fax |
+82-54-285-6161 |
|
Other Address-Siheung Factory |
233, Huimanggongwon-ro, Siheung-si,
Gyeonggi-do, Korea (Old Address System : 1259-5, Jeongwang-dong, Siheung-si,
Gyeonggi-do, Korea) |
|
Tel |
+82-31-432-6521 |
|
Fax |
+82-31-477-5684 |
|
Other Address-Hwangryong Branch |
40, EXPO-ro, Gyeongju-si, Gyeongsangbuk-do, Korea (Old Address System : 150-8, Sinpyeong-dong, Gyeongju-si,
Gyeongsangbuk-do, Korea) |
|
Tel |
|
|
Fax |
|
|
Type |
Export/Import |
|
Industry |
Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products |
|
Main Business |
Hot Dip Galvanized Steel, Cold Rolled Steel, Picked & Oilde Hot
Rolled Steel Coil & Sheet, Iron Oxide |
|
Sub
Business |
Wholesale of Metal Plates, Bars, Pipes, and Basic Metals |
|
Established (mm/dd/yyyy) |
09/01/1967 |
Detailed
Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Ferrites(32121703) |
|
Sell |
Refractories(31370000) |
|
Sell |
Steel plate(30102204) |
|
Buy |
Aluminum(11101705) |
|
Buy |
Inorganic compounds(12352300) |
|
Buy |
Silica(12352309) |
|
Buy |
Magnesite(11101509) |
|
Buy |
Inorganic oxides(12352303) |
|
Buy |
Hot Coil |
CEO’s
|
Name |
Chang Se-Hee |
|
Date of Birth |
03/12/1968 |
|
Title |
Vice Chairman & CEO |
|
Nationality |
Korean |
Profiles
|
Capital (KRW) |
54,244,482,000 |
|||||||||||||||||||||||||||||||||||||||
|
Employees |
407 |
|||||||||||||||||||||||||||||||||||||||
|
Formation |
Listed Company (KOSDAQ: 005160)
as of 06/23/1999 A Company of DONGKUK INDUSTRIES GROUP |
|||||||||||||||||||||||||||||||||||||||
|
Bank Details |
KEB Hana Bank-Sales 2 Branch Shinhan Bank Woori Bank Korea Development Bank Busan Bank Kookmin Bank |
|||||||||||||||||||||||||||||||||||||||
|
Corporate Registered No. |
110111-0085583 |
|||||||||||||||||||||||||||||||||||||||
|
Business Registered No. |
202-81-47522 |
|||||||||||||||||||||||||||||||||||||||
|
Permit & Licenses |
11/14/1997 ISO 9002 12/15/1997 ISO 9002 07/23/1999 ISO 9001 Int’l Trade No.: 751177 Construction Business Reg. No.: 84 |
|||||||||||||||||||||||||||||||||||||||
|
Shareholder Position |
|
|||||||||||||||||||||||||||||||||||||||
|
Company History |
09/01/1967 Incorporated as the present name 03/20/2003 Increased the authorized shares to 100,000,000 shares from
20,000,000 shares 04/26/2003 Split off the par value to 1,000 KRW from 5,000 KRW 02/12/2008 Increased capital to 50,000,000,000 KRW from 34,500,000,000
KRW 07/02/2014 Acquired DAEWON STEEL CO., LTD. 12/26/2016 Increased capital to
54,244,482,000 KRW from 50,000,000,000 KRW |
Detailed
Information
Management
|
Job Description |
Name |
Nationality |
Date of Birth |
Inauguration Date |
|
Vice Chairman & CEO |
Chang Se-Hee |
Korean |
03/12/1968 |
10/01/2007 |
|
President & CEO |
Ahn Sang-Cheol |
Korean |
10/28/1958 |
03/25/2014 |
|
Vice President |
Chang Hye-Won |
Korean |
12/21/1970 |
03/18/2011 |
|
Executive Director |
Lee Sang-Cheol |
Korean |
05/11/1960 |
03/22/2013 |
|
Director |
Cho Sung-Rae |
Korean |
05/10/1967 |
03/24/2017 |
|
Outside Director |
Kang Ki-Bong |
Korean |
02/09/1956 |
03/24/2017 |
|
Outside Director |
Cho Noi-Ha |
Korean |
01/27/1953 |
04/03/2015 |
|
Auditor |
Cha Min-Do |
Korean |
06/05/1940 |
03/18/2011 |
Financials
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
2017 |
382,352,944,037 |
535,654,733,576 |
19,349,910,695 |
|
2016 |
353,056,998,286 |
554,497,823,482 |
25,129,686,227 |
|
2015 |
350,208,469,093 |
555,830,656,461 |
8,478,436,505 |
|
2014 |
348,321,185,643 |
597,468,265,763 |
9,277,160,240 |
|
2013 |
330,412,812,613 |
592,669,815,924 |
7,326,331,958 |
|
2012 |
352,155,928,801 |
563,522,087,360 |
6,603,677,901 |
|
2011 |
379,372,785,276 |
561,038,062,184 |
18,361,109,875 |
Financial
Description
|
Authorized Capital(KRW) |
100,000,000,000 |
|
Paid-Up Capital(KRW) |
54,244,482,000 |
|
Total Issued Shares |
54,244,482 |
|
Balance Sheet |
|||
|
Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Total Assets |
535,654,733,576 |
554,497,823,482 |
555,830,656,461 |
|
Current
Assets |
170,098,812,610 |
174,061,954,158 |
149,384,275,467 |
|
Cash & Cash Equivalents |
4,767,106,683 |
19,395,423,325 |
5,981,284,346 |
|
Held-to-Maturity Financial Assets |
461,094,672 |
|
135,930,000 |
|
Trade Receivables |
79,129,579,178 |
75,537,441,250 |
61,077,303,611 |
|
Inventories |
83,686,920,908 |
77,035,400,893 |
79,711,763,723 |
|
Other Receivables |
469,198,181 |
181,418,190 |
1,208,005,462 |
|
Unearned Income |
2,355 |
4,594,766 |
184,971 |
|
Advance Payments |
374,611,291 |
766,642,285 |
435,032,697 |
|
Prepaid Expenses |
907,599,342 |
909,713,449 |
623,950,657 |
|
Short-Term Receivables |
302,700,000 |
231,320,000 |
210,820,000 |
|
Non-Current
Assets |
365,555,920,966 |
380,435,869,324 |
406,446,380,994 |
|
Tangibles |
177,506,092,370 |
191,280,738,646 |
200,068,225,643 |
|
Intangibles |
2,830,481,421 |
3,003,764,996 |
2,223,544,072 |
|
Investment_Real Estates |
39,893,299,205 |
39,993,165,605 |
42,275,066,912 |
|
Marketable Financial Instruments |
268,687,438 |
268,687,438 |
464,272,438 |
|
Held-to-Maturity Financial Assets |
22,100,000 |
22,100,000 |
22,100,000 |
|
Non-Current Financial Instruments |
561,022,816 |
1,452,769,099 |
1,033,490,951 |
|
Investment_Related Companies |
144,257,877,295 |
144,257,877,295 |
160,115,539,570 |
|
Other Non-Current Assets |
216,360,421 |
156,766,245 |
244,141,408 |
|
Total
Liabilities |
153,675,516,503 |
185,311,549,253 |
220,648,348,383 |
|
Current
Liabilities |
96,165,984,388 |
101,616,489,886 |
140,521,974,704 |
|
Trade Payables |
21,769,762,070 |
31,770,048,980 |
25,240,546,813 |
|
Account Payables |
3,964,714,024 |
3,889,503,979 |
4,147,233,443 |
|
Advance Receipts |
27,836,299 |
39,887,133 |
1,024,292,487 |
|
Withholdings |
1,079,131,028 |
729,303,458 |
524,499,852 |
|
Guarantees |
748,127,480 |
932,623,480 |
957,883,480 |
|
Accrued Expenses |
3,015,689,599 |
2,884,493,637 |
5,121,458,700 |
|
Short-Term Borrowings |
32,604,261,577 |
37,716,435,220 |
32,584,053,285 |
|
Current Portion of Long-Term
Debts |
30,000,000,000 |
15,000,000,000 |
65,861,785,369 |
|
Deferred Income Tax Credit |
2,379,120,941 |
8,076,852,629 |
4,779,007,028 |
|
Other Current Financial Debts |
577,341,370 |
577,341,370 |
281,214,247 |
|
Non-Current
Liabilities |
57,509,532,115 |
83,695,059,367 |
80,126,373,679 |
|
Long-Term Borrowings |
22,000,000,000 |
47,000,000,000 |
42,000,000,000 |
|
Long-Term Account Payables |
17,463,863 |
14,433,275 |
3,042,894 |
|
Provision for Severance & Retirement |
2,945,342,147 |
4,601,193,322 |
3,347,951,419 |
|
Deferred Income Tax Credit |
31,784,885,720 |
31,443,337,455 |
34,192,436,322 |
|
Provision for Repairing |
761,840,385 |
636,095,315 |
582,943,044 |
|
Capital
Stock |
54,244,482,000 |
54,244,482,000 |
50,000,000,000 |
|
Capital Surplus |
193,791,168,027 |
193,794,478,027 |
181,116,668,167 |
|
Capital Adjustment |
-12,989,871,689 |
-12,989,871,689 |
-12,989,871,689 |
|
Others |
-708,482,613 |
-708,482,613 |
-579,846,791 |
|
Profit Surplus |
147,641,921,348 |
134,845,668,504 |
117,635,358,391 |
|
Total Equity |
381,979,217,073 |
369,186,274,229 |
335,182,308,078 |
|
Liab. & Shareholder’s Equity |
535,654,733,576 |
554,497,823,482 |
555,830,656,461 |
|
Income Statement |
|||
|
Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Sales |
382,352,944,037 |
353,056,998,286 |
350,208,469,093 |
|
Cost of Sold Goods |
328,965,373,592 |
302,709,680,175 |
310,422,501,228 |
|
Gross Profit |
53,387,570,445 |
50,347,318,111 |
39,785,967,865 |
|
Selling & Admin. Expenses |
26,927,915,531 |
25,546,237,856 |
22,396,472,938 |
|
Operating Income |
26,459,654,914 |
24,801,080,255 |
17,389,494,927 |
|
Finance Income |
4,798,291,110 |
5,687,439,564 |
198,432,668 |
|
Finance Expenses |
5,031,897,646 |
6,302,723,272 |
6,355,649,464 |
|
Non-Operating Income |
365,426,797 |
9,884,086,267 |
5,531,645,632 |
|
Non-Operating Expenses |
842,429,861 |
603,114,355 |
4,868,386,284 |
|
Income Before Taxes |
25,749,045,314 |
33,466,768,459 |
11,895,537,479 |
|
Income Taxes Expenses |
6,399,134,619 |
8,337,082,232 |
3,417,100,974 |
|
Net Income |
19,349,910,695 |
25,129,686,227 |
8,478,436,505 |
|
Cash Flows |
|||
|
Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Operating
Activities Cash Flows |
10,954,604,518 |
26,366,426,846 |
44,207,784,340 |
|
Net Income |
19,349,910,695 |
25,129,686,227 |
8,478,436,505 |
|
-Exp. without Cash Outflow |
25,426,717,967 |
19,551,234,282 |
36,011,493,916 |
|
-Changes in Asset/ & Liability |
-22,876,335,021 |
-10,600,313,917 |
5,756,785,966 |
|
Dividends Received |
3,541,301,400 |
3,221,077,400 |
2,529,554,900 |
|
Interests Received |
246,948,295 |
147,937,471 |
199,933,660 |
|
Interests Paid |
-2,647,209,448 |
-3,697,860,163 |
-5,435,946,309 |
|
Income Taxes |
-12,086,729,370 |
-7,385,334,454 |
-3,332,474,298 |
|
Cash
Flows from Investing |
-2,645,889,082 |
18,559,228,398 |
2,027,988,525 |
|
Cash
Flows from Financing |
-22,844,145,293 |
-31,511,516,265 |
-44,089,538,195 |
|
Increase/Decrease
in Cash |
-14,628,316,642 |
13,414,138,979 |
2,146,078,280 |
|
Cash at
the Beginning of Year |
19,395,423,325 |
5,981,284,346 |
3,835,206,066 |
|
Cash at
the End of Year |
4,767,106,683 |
19,395,423,325 |
5,981,284,346 |
Products,
Technologies, Services Description
|
Main Products & Services |
STEEL PRODUCTS WIRE PRODUCTS CASTING PRODUCTS MINI MILL PLANT AND MACHINERY CONTAINER PARTS GOLF ACCESSORIES BILLET SLAB BAR CARVING KNIFE MONITOR HOME APPLIANCE |
|
Detailed Products Spec. |
|
|
Technologies Acquired |
|
Trade
Partners & Competitors
|
Suppliers |
POSCO(174611-0000741) JFE NSSMC NANJING IRON AND STEEL GROUP AIER GROUP(HK)LIMITED |
|
Customers |
Major Auto Parts Manufacturers, Home Alliance
Manufacturers, Fabricated Metal and Construction Companies HYUNDAI MOTOR CO(110111-0085450) HYUNDAI STEEL CO., LTD.(171211-0028281) TRANS-PACIFIC RESOURCES
LTD.(110111-0986640) ENERCON |
|
Competitors |
HANKOOK METAL CO., LTD.(134111-0026597) NASTECH CO.,LTD(164811-0002167) DAEWON STEEL CO., LTD.(120111-0123711) POSCO(174611-0000741) HYUNDAI HYSCO(110111-0302416) HYUNDAI HYSCO(110111-0302416) JINBANG STEEL COMPANY
LIMITED.(174611-0006062) |
Related
Parties (Subsidiaries, Joint-Venture & Affiliates)
|
Affiliates |
DONGKUK R&S
CO., LTD.(195511-0069249) (7.2% held by the
subject company) BURI CO., LTD.(171211-0090470) (45.00% held by the
subject company) CHOSUN STEELWIRE CO.,LTD(110111-0008486) HANRYO ENERGY DEVELOPMENT CO., LTD.(206211-0026796) SHINAN WIND POWER CO., LTD.(201111-0023666) GO DEOK WIND POWER CO.,
LTD.(161311-0017432) DONGYEON S&T CO., LTD.(110111-3401059) CHUNGSEOK DEVELOPMENT CO., LTD.(115611-0003879) DK WIND POWER CO., LTD.(234111-0045158) NAMWON SOLAR POWER CO., LTD.(211311-0005428) CHUNGAN CO., LTD.(171111-0017038) KEUM WHA STEEL CO., LTD.(204311-0017795) DAEWON STEEL CO., LTD.(120111-0123711) BIGEUM WIND POWER CO>, LTD.(201111-0040496) GYEONGJU WIND POWER CO.,LTD.(171211-0064045) |
|
Overseas Branch |
|
|
Joint Venture |
|
|
Subsidiary |
DK DONGSHIN CO., LTD.(110111-3850959) (20.41% held by the
subject company) DONGKUK S&C CO., LTD.(110111-2276784) (49.99% held by the
subject company) DK AMERICA, INC. (100.0%% held by the
subject company) 23133 HAWTHORNE BLVD. STE.301 TORRANCE, CA
90505, USA TEL : 1-310-375-2222, FAX : 1-310-375-2221 DONGKUK INDUSTRIES(SHANGHAI) CO.,
LTD.(CHINA) (100.0% held by the
subject company) DONGKUK INDUSTRIES(JAPAN) CO., LTD. (100.0% held by the
subject company) |
|
Major Shareholders |
|
|
Cooperative Enterprise |
-Insured Company HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456) |
Sales
by Region (Activity & Markets)
|
Sales/ Unit :Thousand KRW |
2017 |
2016 |
2015 |
|
Export |
108,470,679 |
85,970,363 |
70,840,557 |
|
Domestic |
273,882,265 |
267,086,635 |
279,367,912 |
|
Total |
382,352,944 |
353,056,998 |
350,208,469 |
The Subject deals with the companies China, Indonesia, Japan, USA, Middle
East and South Asia. It imports the rw materials from Japan and China.
Court
Action
No.
News
Clipping
-------
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.98 |
|
|
1 |
INR 90.95 |
|
Euro |
1 |
INR 79.51 |
|
KRW |
1 |
INR 0.061 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.