Dongwon Industries Provides 18B KRW Collateral to Affiliate Dongwon Loex, Total Guarantees Reach 204B KRW

Dongwon Industries provided its land and buildings (in Yangsan, Gyeongnam) as collateral to Shinhan Bank for a 15B KRW loan by affiliate Dongwon Loex Refrigeration Investment, with a collateral limit of 18B KRW (120% of the loan).
This brings the total outstanding guarantees from Dongwon Industries to Dongwon Loex to 204B KRW.
The decision was approved by the Internal Transaction Committee (all three outside directors present) and the auditor attended.
The collateral period lasts until the loan is repaid.
[AI Summary]The additional collateral increases Dongwon Industries' contingent liabilities by 18B KRW, with total guarantees reaching 204B KRW, elevating financial risk. However, the amount is modest relative to market cap (1.52T KRW) at 1.2%, and the process was properly approved. For shareholders, while default risk exists, short-term stock price impact is likely limited.