KG Chemical: Q1 Sales Up, OP Down; Expansion via K-Car Acquisition

Consolidated Q1 2026 revenue KRW 2.39 trillion (+12.8% YoY), operating profit KRW 64.6 billion (-39.4%), net income KRW 92.0 billion (+46.2% due to increased financial income)
Business diversification: planned acquisition of 52.5% stake in used car platform 'K-Car' for KRW 400 billion (closing June 30), plus 100% of K-Car Capital for KRW 200 billion
Steel subsidiary KG Steel to absorb KG Steel S&D and KG Steel S&I (effective June 1, 2026)
Financial subsidiary KG Capital: adjusted equity ratio 27.13%, substandard loan ratio 3.64%, delinquency ratio 2.96%, allowance coverage ratio 117.43%
Derivative liabilities of KRW 27.3 billion, 53 pending lawsuits (claim amount KRW 32.0 billion) – contingent liability risks
Operating profit decline due to weaker profitability in steel and other core segments; net income improved on higher financial gains