Amended Debt Guarantee: Subsidiary Loan Extended 6 Months, Amount Reduced
Original: [기재정정]타인에대한채무보증결정
Summary
The company amended its prior debt guarantee for its 60%-owned subsidiary LB Litech, extending the maturity by six months (from June 9, 2026 to December 10, 2026) and reducing the guaranteed amount. The underlying loan from Kookmin Bank for LB Litech's industrial complex interim payment was cut from KRW 28.4 billion to KRW 18.9 billion, with the guarantee amount falling from KRW 31.2 billion to KRW 20.79 billion. The ratio to equity dropped meaningfully from 14.6% to 7.4%, reflecting both the smaller guarantee and a larger equity base (KRW 281.4 billion as of Q1 2026 vs. KRW 213.5 billion previously). A separate USD 1.1 million foreign-currency payment guarantee to LG Energy Solution has expired at maturity. LB Litech remains loss-making (2025 net loss of KRW 1.62 billion on KRW 5.57 billion revenue), so continued parent support is still required, but the lower exposure is a mild positive.
Full Translation
[Amendment Filing] Decision on Debt Guarantee for Third Party
Amendment Report
Amendment Date: 2026-06-09
1. Filing subject to amendment: Decision on Debt Guarantee for Third Party
2. Original filing date: 2024-06-07
3. Reason for amendment: Extension of guarantee period, change in loan amount and guarantee amount
4. Amended items:
| Item | Before | After |
|---|---|---|
| Debt (loan) amount (KRW) | 28,377,430,000 | 18,900,000,000 |
| Debt guarantee amount (KRW) | 31,215,173,000 | 20,790,000,000 |
| Equity (KRW) | 213,470,638,108 | 281,378,644,400 |
| Ratio to equity (%) | 14.6 | 7.4 |
| Guarantee period — end date | 2026-06-09 | 2026-12-10 |
| Total outstanding guarantee balance (KRW) | 36,312,173,000 | 23,166,000,000 |
7. Other matters for investment decisions:
[Before amendment]
(1) This debt guarantee relates to a new agreement of LB Litech Co., Ltd.
<Joint guarantee for LB Litech's industrial complex interim payment>
1. Subject company: LB Litech Co., Ltd.
2. Lender: Kookmin Bank
3. Guarantee amount: KRW 29,700,000,000
4. Execution date: June 10, 2024
5. Maturity date: June 9, 2026
<Joint guarantee for LB Litech's FX payment guarantee to LG Energy Solution>
1. Subject company: LB Litech Co., Ltd.
2. Lender: Kookmin Bank
3. Guarantee amount: USD 1,100,000
4. Execution date: June 1, 2024
5. Maturity date: May 31, 2025
(2) KRW conversion of the above debt amount applied the initial market rate of 1,377.43/USD as of June 5, 2024.
(3) Equity figure is from the consolidated financial statements of the FY2023 annual report.
(4) The total outstanding guarantee balance includes this guarantee.
(5) Execution dates and other periods of the guarantee may change subject to relevant approval processes following the company's board resolution date.
[After amendment]
(1) This debt guarantee relates to the extension of LB Litech Co., Ltd.'s agreement.
<Joint guarantee for LB Litech's industrial complex interim payment>
1. Subject company: LB Litech Co., Ltd.
2. Lender: Kookmin Bank
3. Guarantee amount: KRW 20,790,000,000
4. Execution date: June 10, 2024 (original execution date)
5. Original maturity date: June 9, 2026
6. Extended maturity date: December 10, 2026 (6-month extension from June 10, 2026)
(2) Equity figure is from the consolidated financial statements of the Q1 2026 quarterly report (as of 2026-03-31).
(3) The total outstanding guarantee balance includes this guarantee.
(4) Execution dates and other periods of the guarantee may change subject to relevant approval processes following the company's board resolution date.
(5) The originally co-disclosed <Joint guarantee for LB Litech's FX payment guarantee to LG Energy Solution> (USD 1,100,000, maturity 2025-05-31) terminated upon maturity.
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Decision on Debt Guarantee for Third Party
1. Debtor: LB Litech Co., Ltd.
- Relationship with company: Subsidiary
2. Creditor: Kookmin Bank
3. Debt (loan) amount (KRW): 18,900,000,000
4. Guarantee details:
- Guarantee amount (KRW): 20,790,000,000
- Equity (KRW): 281,378,644,400
- Ratio to equity (%): 7.4
- Large enterprise: Applicable
- Guarantee period: Start 2024-06-01, End 2026-12-10
5. Total outstanding guarantee balance (KRW): 23,166,000,000
6. Board resolution date: 2026-06-09
- Outside director attendance: 1 present, 0 absent
- Auditor (audit committee member) attendance: Present
[Outstanding guarantee balance by debtor]
| Debtor | Relationship | Balance (KRW) | Period | Notes |
|---|---|---|---|---|
| LB Litech Co., Ltd. | Subsidiary | 32,076,000,000 | - | - |
Related disclosure regulation: Capital Markets Act
[Debtor Information]
1. Basic information:
- Name: LB Litech Co., Ltd.
- Nationality: Republic of Korea
- Address: Ochang-eup, Cheongwon-gu, Cheongju-si, Chungcheongbuk-do
- Business registration number: 317-81-32904
- Business: Intermediate processing of secondary battery waste and resource recycling
- Largest shareholder: LB Semicon Co., Ltd. — 510,000 shares, 60% stake
- CEO: Kim Tae-hyung
- Financial status (KRW million, FY2025, Dec year-end):
- Total assets: 47,891
- Capital stock: 1,000
- Total liabilities: 37,953
- Revenue: 5,572
- Total equity: 9,938
- Net income: -1,617
- External auditor: Samduk Accounting Corporation
- Audit opinion: Unqualified
- Suspension/closure: No
2. Relationship with debtor: Subsidiary; largest shareholder of debtor is LB Semicon (parent).
3. Transaction history (last 3 years, excluding ordinary transactions):
- Current year (2026): Outstanding guarantee balance of KRW 32,076,000,000
- Prior year (2025): KRW 33,654,390,000
- 2 years prior (2024): KRW 35,214,000,000