LOTTE CHEMICAL Corrects Related Party Transaction: Fee to Lotte Property & Development Increases from 15.5B to 24.2B KRW

LOTTE CHEMICAL disclosed a correction to its fee payment agreement for real estate collateral provided by related party Lotte Property & Development to credit-enhance its corporate bonds.
The total fee was revised upward from 1,554 billion KRW (fee rate 0.32%) to 2,422 billion KRW (fee rate 0.26%) due to changes in the collateral agreement and fee rate reassessment.
Collateral value decreased from 2.1736 trillion KRW to 1.3655 trillion KRW, yet the fee increased, raising cost concerns for shareholders.
The board (Transparent Management Committee) approved the amendment on May 29, 2026, with execution delegated to the CEO.
The revised collateral limit is 1.6386 trillion KRW and collateral amount 1.3655 trillion KRW, consistent with the prior related party collateral disclosure amended on April 14, 2026.
[AI Summary]This corrected related party transaction increases fees by approximately 86.8 billion KRW, a limited 0.26% of market cap, so the stock price impact is likely minimal. However, the simultaneous decrease in collateral and increase in fee may be perceived as unfavorable terms for minority shareholders.