LS Securities Receives Court Recommendation to Pay 24.6 Billion Won in ABCP Default Lawsuit, 2.8% of Equity

The Seoul High Court issued a reconciliation recommendation in the lawsuit related to the CERCG ABCP default, ordering LS Securities and other defendants to jointly pay Hyundai Motor Securities 24.56 billion won, representing 2.8% of LS Securities' equity based on the 2025 annual consolidated financial statements.
The decision will become final and effective two weeks after service, with the same effect as a final judgment. LS Securities will pay its portion according to the agreed allocation among defendants.
This lawsuit originated from an ABCP default in 2018, and after multiple court rulings, the reconciliation recommendation marks the final stage.
Upon payment, the case will be closed, and the financial impact is expected to be limited.
[AI Summary]LS Securities' ABCP-related lawsuit is approaching its final resolution via a court reconciliation recommendation. The payment amounts to 2.8% of equity, posing no significant threat to financial health. The resolution of litigation risk could positively impact investor sentiment.