3decades

MIRA INFORM REPORT

Report No. :	506146
Report Date :	30.04.2018

IDENTIFICATION DETAILS

Name :	MIWON CHEMICALS CO., LTD.

Registered Office :	247, Jangsaengpo-Ro, Nam-Gu, Ulsan, Korea 44781

Country :	South Korea

Financials (as on) :	31.12.2017

Date of Incorporation :	06.01.2011

Com. Reg. No.:	610-86-04700

Legal Form :	Listed Company

Line of Business :	Manufacture of Surface-Active Agents

No. of Employees :	173

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Acceptable Risk

Business dealings permissible with moderate 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

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	MIWON CHEMICALS CO., LTD.
Registered Address	247, Jangsaengpo-ro, Nam-gu, Ulsan, Korea (Old Address System : 410-1, Maeam-dong, Nam-gu, Ulsan, Korea)
Building	--
Zip Code	44781
Tel	+82-52-261-7988
Fax	+82-52-269-8413
E-mail	pcbu@mwc.co.kr
Website	www.miwonchemicals.com
Trading Address	464, Anyang-ro, Manan-gu, Anyang-si, Gyeonggi-do, Korea (Old Address System : 325-1, Seoksu-dong, Manan-gu, Anyang-si, Gyeonggi-do, Korea)
Tel	+82-31-479-9200
Fax	+82-31-472-9233
Type	Export
Industry	Manufacture of Surface-Active Agents
Main Business	Surface-Active Agents
Sub Business	--
Established (mm/dd/yyyy)	01/06/2011

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Inorganic compounds(12352300)
Sell	Surfactants(12161900)
Sell	Wetting agents(12161906)
Sell	Inorganic acids(12352301)

CEO’s

Name	Kim Jung-Man
Date of Birth	07/1955
Title	Co-President & CEO
Nationality	Korean

Profiles

Capital (KRW)

2,384,812,000

Employees

173

Formation

Listed Company (Korea stock Exchange : 134380) as of 02/15/2011

A Company of MIWON COMMERCIAL GROUP

Bank Details

KEB Hana Bank-Beomgye Station Branch

Woori Bank

Corporate Registered No.

230111-0172244

Business Registered No.

610-86-04700

Permit & Licenses

Int’l Trade No.: 30682759

Shareholder Position

Name	Shares	%
KIM JUNG-DON	102,200	4.68
JUNG KYUNG-SOON	68,240	3.12
KIM MYUNG-HEE	62,200	2.85
MISUNG TRADING CO., LTD.(134111-0025929)	642,079	29.38
MIWON COMMERCIAL CO., LTD.(130111-0007707)	100,000	4.58
THE SUBJECT'S EMPLOYEE STOCK OWNERSHIP ASSOCIATION	177,288	8.11
TREASURY STOCK	180,000	8.24
OTHERS	853,173	39.04
TOTAL	2,185,180	100.00

Company History

01/06/2011 Incorporated as the present name, after split off from MIWON COMMERCIAL CO., LTD.(130111-0007707)

04/06/2011 Increased the authorized shares to 9,100,000 shares from 1,820,000 shares

05/13/2011 Split off the par value to 1,000 KRW from 5,000 KRW

12/14/2015 Increased capital to 2,366,860,000 KRW from 2,347,435,000 KRW

12/12/2016 Increased capital to 2,384,812,000 KRW from 2,366,860,000 KRW

03/22/2017 Increased capital to 2,384,812,000 KRW from 2,384,812,000 KRW

12/11/2017 Increased capital to 2,389,992,000 KRW from 2,384,812,000 KRW

Management

Job Description	Name	Nationality	Date of Birth	Inauguration Date
Co-President & CEO	Kim Jung-Man	Korean	07/26/1955	02/26/2014
Co-President & CEO	Jung Kyu-Sik	Korean	03/06/1957	02/26/2014
Director	Hong Jong-Gon	Korean	03/01/1963	02/28/2017
Outside Director	Kim Sun-Wook	Korean	12/21/1954	02/26/2014
Auditor	Sohn Eung-Joo	Korean	03/29/1961	02/26/2014

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2017	151,063,206,905	95,655,841,750	13,579,196,507
2016	139,901,001,047	98,229,528,999	13,734,688,549
2015	145,730,164,666	96,403,994,055	11,764,307,247
2014	151,806,783,252	90,882,279,515	8,927,018,023
2013	144,246,653,549	82,110,790,074	10,490,229,815
2012	121,285,087,025	73,859,719,429	7,750,840,263
2011	121,172,921,431	73,108,212,925	9,702,941,322

Financial Description

Authorized Capital(KRW)	9,100,000,000
Paid-Up Capital(KRW)	2,389,992,000
Total Issued Shares	2,389,992

Balance Sheet
Unit : Korean Won	As of 12/31/2017	As of 12/31/2016	As of 12/31/2015
Total Assets	95,655,841,750	98,229,528,999	96,403,994,055
Current Assets	37,578,438,082	45,565,717,642	47,176,641,717
Cash & Cash Equivalents	7,250,739,888	13,130,211,900	15,969,746,154
Trade Receivables & Other Receivables	17,921,544,886	16,815,003,037	17,062,331,079
Marketable Financial Instruments	0	4,008,595,010	4,238,653,390
Inventories	11,765,351,127	10,220,114,811	9,491,952,447
Other Current Assets	640,802,181	1,391,792,884	413,958,647
Non-Current Assets	58,077,403,668	52,663,811,357	49,227,352,338
Long-Term Trade Receivables & Other Receivables	739,977,242	725,861,296	840,897,439
Marketable Financial Instruments	6,142,363,780	13,386,000,000	10,225,000,000
Tangibles	48,725,496,288	38,166,230,827	37,113,800,463
Intangibles	721,168,122	385,719,234	518,786,386
Investment_Real Estates	1,748,398,236	0	528,868,050
Total Liabilities	12,326,859,489	9,869,844,000	13,587,499,849
Current Liabilities	7,182,150,033	4,372,103,234	7,783,673,295
Trade Payables & Other Payables	4,073,193,787	1,111,097,984	3,539,198,389
Short-Term Borrowings	961,608,285	856,749,760	967,971,677
Deferred Income Tax Credit	1,997,002,302	2,212,610,917	2,419,148,507
Provisions	0	89,033,355	139,972,695
Other Current Liabilities	150,345,659	102,611,218	717,382,027
Non-Current Liabilities	5,144,709,456	5,497,740,766	5,803,826,554
Long-Term Trade Payables & Other Payables	1,425,000,000	630,000,000	1,380,000,000
Confirmed Salaries	3,086,115,620	2,804,033,038	2,510,184,919
Deferred Income Tax Credit	633,593,836	2,063,707,728	1,913,641,635
Capital Stock	2,389,992,000	2,384,812,000	2,366,860,000
Capital Surplus	34,576,828,222	34,219,255,862	32,997,859,662
Others	-11,231,509,059	-31,361,959	-31,361,959
Installments	1,104,818,424	4,166,945,038	1,447,549,847
Profit Surplus	56,488,852,674	47,620,034,058	46,035,586,656
Total Equity	83,328,982,261	88,359,684,999	82,816,494,206
Liab. & Shareholder’s Equity	95,655,841,750	98,229,528,999	96,403,994,055

Income Statement
Unit : Korean Won	As of 12/31/2017	As of 12/31/2016	As of 12/31/2015
Sales	151,063,206,905	139,901,001,047	145,730,164,666
Cost of Sold Goods	122,098,433,338	110,160,623,099	118,836,208,327
Gross Profit	28,964,773,567	29,740,377,948	26,893,956,339
Selling & Admin. Expenses	15,399,749,117	13,714,455,247	13,219,944,252
Operating Income	13,565,024,450	16,025,922,701	13,674,012,087
Other Income	358,510,660	475,001,572	419,465,137
Other Expenses	402,364,950	317,374,994	175,668,327
Finance Income	5,299,632,861	2,644,143,519	1,555,287,158
Finance Expenses	1,698,111,187	1,218,018,122	703,492,352
Income Before Taxes	17,122,691,834	17,609,674,676	14,769,603,703
Income Taxes Expenses	3,543,495,327	3,874,986,127	3,005,296,456
Net Income	13,579,196,507	13,734,688,549	11,764,307,247

Cash Flows
Unit : Korean Won	As of 12/31/2017	As of 12/31/2016	As of 12/31/2015
Operating Activities Cash Flows	14,443,956,039	12,211,351,739	14,386,336,048
Net Income	13,579,196,507	13,734,688,549	11,764,307,247
Adjustment	5,036,712,634	8,592,283,308	7,879,527,825
Changes in Asset/ & Liability	187,279,442	-5,283,592,815	-2,566,065,291
Income Taxes	-4,359,232,544	-4,832,027,303	-2,691,433,733
Cash Flows from Investing	-4,486,658,735	-2,957,651,755	-7,839,036,984
Cash Flows from Financing	-15,608,885,955	-12,107,355,257	-1,552,470,457
Increase/Decrease in Cash	-5,879,472,012	-2,839,534,254	5,016,376,921
Cash at the Beginning of Year	13,130,211,900	15,969,746,154	10,953,369,233
Cash at the End of Year	7,250,739,888	13,130,211,900	15,969,746,154

Products, Technologies, Services Description

Main Products & Services

Surface Active Agent

Brand Name : MIDAS, MICOLIN, LAS, IP CLEAN LX

Trade Partners & Competitors

Suppliers	NAMHAE CHEMICAL CORPORATION(110111-0164717)
Customers	MIWON COMMERCIAL CO., LTD.(130111-0007707) DONGNAMCHEMICALCO.,LTD.(110111-0057012) MISUNG TRADING CO., LTD.(134111-0025929)
Competitors	HUCHEMS FINE CHEMICAL CORPORATION 5TH FL., KUKDONG BLDG., 60-1, CHUNGMURO 3-GA, JUNG-GU, SEOUL, KOREA TEL:+82-2-2262-0600 FAX:+82-2-2265-9381 COSMO CHEMICAL CO., LTD. 1534-5, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA TEL:+82-32-451-6100 FAX:+82-32-451-6119 FOOSUNG CO., LTD. 427-9, NOHA-RI, PALTAN-MYEON, HWASEONG-SI, GYEONGGI-DO, KOREA TEL:+82-31-495-7243 FAX:+82-31-491-1649

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

MIWON COMMERCIAL CO., LTD.(130111-0007707)

TAEKWANG FINE CHEMICAL CO., LTD.(120111-0052142)

ASIA STABILIZERS CO., LTD.(ASCL: 134711-0016596)

MIWON SPECIALTY CHEMICAL CO., LTD.(210111-0063190)

MISUNG TRADING CO., LTD.(134111-0025929)

MISUNG TOTAL CORPORATION(180111-0167832)

MIWHA LOGISTICS CO., LTD.(230111-0072014)

MIWOO SILUP CO., LTD.(KOREA)

MIWON EOD CO., LTD.(161411-0023544)

QIDONG QINGYUN FINE CHEMICAL CO., LTD.(CHINA)

MIWON NORTH AMERICA. INC.(USA)

MIWON EUROPE GMBH(GERMANY)

MIWON SPAIN S.L.U.(SPAIN)

MIWON AUSTRIA F&E GMBH(AUSTRIA)

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO.,LTD.(110111-0095285)

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

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

Sales by Region (Activity & Markets)

Sales/ Unit :Thousand KRW	2017	2016	2015
Export	91,757,818	82,749,591	83,743,281
Domestic	59,305,389	57,151,410	61,986,884
Total	151,063,207	139,901,001	145,730,165

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.78
UK Pound	1	INR 92.89
Euro	1	INR 80.74
KRW	1	INR 0.062

Note: Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIS

Report Prepared by :	NIT

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)

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.