HanJoo Light Metal Corrects Loan to Slovak Subsidiary: Loan Amount 23.37B KRW at 48.22% of Equity, Continued Financial Exposure

HanJoo Light Metal corrected its decision on a loan to its Slovak subsidiary, HANJOO LIGHT METAL S.R.O.
The loan amount is 23,367,868,154 KRW (approx. 23.37B KRW), slightly down from the previous 23.49B KRW, but still 48.22% of equity (48.46B KRW), indicating high financial exposure.
Purpose: extension of existing loan of 7,314,000 EUR and conversion of unrecovered sales proceeds of 6,422,108.72 EUR into loan; no additional cash outflow.
Loan period: May 31, 2026 to March 31, 2034, interest rate 4.6% per annum.
The subsidiary's 2024 financials: assets 40.95B KRW, liabilities 37.09B KRW, equity 3.86B KRW, net profit 0.3B KRW, reflecting weak financial health.
Total loan balance: 26.77B KRW, based on initial exchange rate (1,701.20 KRW/EUR).
[AI Summary]This correction involves restructuring existing loans with no new cash outflow, but the loan amount is nearly half of equity and the subsidiary is financially weak, sustaining investment risk. This may pressure consolidated financials long-term and negatively impact the stock outlook.