Daegu Department Store Extends Collateral Guarantee for Subsidiary DaeBaek Outlet's 30 Billion Won Debt, Amounting to 26.26% of Equity

Daegu Department Store corrected its previous disclosure on June 18, 2026, extending the collateral guarantee period for its subsidiary DaeBaek Outlet's 30 billion won loan until October 30, 2026.
The collateral amount is 36 billion won, equivalent to 26.26% of the parent's consolidated equity as of end-2025, which stood at 137.1 billion won. The creditor changed to IM Bank.
DaeBaek Outlet has recorded net losses for three consecutive years and showed a negative equity position in 2024. Although equity turned positive in 2025, the debt ratio remains high.
[AI Summary]Daegu Department Store's decision to provide collateral amounting to 26% of equity for a loss-making subsidiary involves significant risk. While the extension avoids immediate default, without a turnaround in the subsidiary's performance, further financial strain is possible. Investors should monitor potential restructuring.