Deutsch Motors Increases Joint Guarantee to 37 Billion KRW for Subsidiary DT Networks' Inventory Financing

Deutsch Motors decided to increase its joint guarantee for subsidiary DT Networks' inventory financing from Hana Capital, raising the guarantee amount from 32.5 billion KRW to 37 billion KRW, resolved by the board on June 23, 2026.
This increase brings the total debt guarantee balance for related parties to 492.9 billion KRW, with the guarantee ratio rising to 9.85% of equity capital of 376.3 billion KRW, potentially pressuring financial soundness.
DT Networks reported assets of 62.8 billion KRW, liabilities of 43.9 billion KRW, and a net loss of 5.5 billion KRW in fiscal 2025, showing weak financials, but as a wholly owned subsidiary, the guarantee reflects parent support.
Hana Capital, a subsidiary of a major Korean financial group, is a credible counterparty, but the large guarantee scale may be perceived as a contingent liability risk by investors.
[AI Summary]Deutsch Motors increased its joint guarantee for subsidiary DT Networks' inventory financing, but the guarantee ratio of 9.85% of equity heightens financial risk, and DT Networks' persistent losses could trigger actual liability, negatively impacting the stock.