LOTTE CHEMICAL Lends 50 Billion KRW to Wholly-Owned Subsidiary LOTTE DAESAN PETROCHEMICAL for Working Capital – Routine Support, Limited Impact on Shareholder Value
LOTTE CHEMICAL decided to lend 50 billion KRW as operating funds to its wholly-owned subsidiary LOTTE DAESAN PETROCHEMICAL, newly established from the spin-off of its Daesan plant.
Loan terms: amount 50 billion KRW, interest rate 4.6%, loan period from June 1 to August 31, 2026 (approx. 3 months).
Approved by the Transparent Management Committee (delegated by the board) on May 29, 2026, with all three outside directors present.
This is a temporary liquidity support to stabilize the subsidiary's initial operations, not a factor that impairs shareholder value through long-term financial risk or equity dilution.
[AI Summary]LOTTE CHEMICAL's short-term working capital loan to its subsidiary carries an interest rate (4.6%) in line with market rates, and while no collateral is specified, it is a support for a wholly-owned subsidiary, raising no significant fairness concerns. Therefore, it is neither a clear positive nor negative for minority shareholders, warranting a neutral monitoring stance.