KRW 213B Semiconductor Plant Expansion by Subsidiary Daeduck Electronics — Daeduck Electronics

Summary

Daeduck's subsidiary Daeduck Electronics has approved a KRW 213 billion (approx. USD 155 million) investment to expand its semiconductor product manufacturing facility, equivalent to 23.74% of the subsidiary's equity. The board resolved the decision on May 11, 2026, with construction running through December 31, 2027. The capacity expansion is positioned as a response to rising semiconductor market demand, signaling management's confidence in a multi-year demand cycle. Funding will come from internal cash and external borrowings, introducing some leverage risk but spreading capex over roughly 20 months. The scale is material but does not classify as a large-scale corporate transaction under Korean disclosure rules.

Full Translation

Daeduck / New Facility Investment / (2026.05.11) New Facility Investment New Facility Investment Report on key management matters of subsidiary Daeduck Electronics Co., Ltd. 1. Investment Type Facility Expansion - Investment Target: Expansion of semiconductor product manufacturing plant 2. Investment Details Investment Amount (KRW): 213,000,000,000 Shareholders' Equity (KRW): 897,305,160,164 Ratio to Shareholders' Equity (%): 23.74 Large-scale Corporation: Not applicable 3. Investment Purpose Expansion of production facilities to respond to growing semiconductor market demand 4. Investment Period Start Date: 2026-05-11 End Date: 2027-12-31 5. Board Resolution Date (Decision Date): 2026-05-11 - Outside Directors Attendance: Attended: 1, Absent: - - Auditor (non-outside-director audit committee member) Attendance: Attended 6. Disclosure Deferral Reason for deferral: - Deferral deadline: - 7. Other Material Matters Related to Investment Judgment 1. The above investment amount of KRW 213.0 billion covers the expansion of the semiconductor product manufacturing plant and related ancillary facilities. 2. The shareholders' equity figure above is based on the 2025 consolidated financial statements prepared in accordance with K-IFRS. 3. The above investment start date is the board resolution date; the investment amount and period may change during execution. 4. The funds required for this investment will be sourced from the company's cash on hand and external borrowings. ※ Related Disclosures: -