LOTTE CHEMICAL Provides 221.4 Billion Won SBLC Collateral for Subsidiary Lotte Daesan Petrochemical, Short-Term Guarantee

Collateral Provision Overview: LOTTE CHEMICAL provides SBLC (Standby L/C) collateral to Mitsubishi International Corporation for the benefit of its affiliate (to be) Lotte Daesan Petrochemical, from June 1 to August 31, 2026.
Collateral Amount: Limit and amount are 221,353 million KRW (approximately 147 million USD), converted at exchange rate of 1,505.8 KRW/USD.
Purpose: To guarantee the performance of a silver lease contract for the smooth operation of the newly established wholly-owned subsidiary Lotte Daesan Petrochemical following the Daesan plant split. The collateral supports the subsidiary's receipt of silver leased by the parent from the lessor.
Transaction Terms: LOTTE CHEMICAL will receive a collateral provision fee of 0.51% per annum from Lotte Daesan Petrochemical during the collateral period, making this an income-generating intra-group transaction.
Shareholder Impact: This short-term collateral provision supports subsidiary operations without diluting shareholder value or requiring additional capital. Impact on LOTTE CHEMICAL's financial structure is limited.
[AI Summary]This disclosure concerns a short-term collateral provision for a wholly-owned subsidiary, primarily for operational support and generating fee income. The financial burden is minimal, and the event is neutral to shareholder value.