Lithium-for-earth Extends 6.2 Billion Won Loan to Hwayang Grand Park Housing Association by 3 Months: High Interest Rate (19.99%) but Counterparty Negative Equity Raises Credit Risk
The company decided to extend the maturity of an existing loan of 6.2 billion won by 3 months to November 26, 2026, with the same amount and interest rate (19.99% per annum).
The purpose is to finance the Hwayang Grand Park regional housing project and secure financial income through idle fund management, which is unrelated to the company's core business.
Total loan balance reaches 11.1 billion won, representing about 20.9% of the company's equity (53.1 billion) and 30.9% of its market cap (approx. 35.9 billion), indicating significant credit exposure.
The borrower (Hwayang Grand Park Regional Housing Association Promotion Committee) had negative equity of -16.4 billion won as of end-2024, suggesting very weak financial health and high default risk.
Only one outside director attended the board meeting (three absent), while the auditor was present, raising potential governance concerns regarding the decision.
KOSDAQ Filing Information
Filing: Decision On Monetary Loan (Extension Of Lending Period)