Subsidiary DB World to Temporarily Halt Ferroalloy Business
Original: 영업정지(종속회사의주요경영사항)
Summary
Subsidiary DB World will temporarily suspend its ferroalloy division effective September 30, 2026, due to a steel industry downturn and persistent accumulated losses. The halted business represents KRW 40.06 billion, or 28.9% of the most recent consolidated revenue (2025 basis). Management expects short-term revenue declines but anticipates improved profitability, cash flow, and debt ratios from cutting fixed costs in the loss-making segment. The suspension date may shift depending on raw material and product inventory depletion. DB World is a major subsidiary engaged in real estate development and golf course operations, with total assets representing 18.7% of the parent's consolidated assets.
Full Translation
Business Suspension (Material Matter of Subsidiary)
Report on material management matter of subsidiary DB World Co., Ltd.
1. Area of Business Suspension
Temporary suspension of the ferroalloy division
2. Suspension Details
- Suspension amount (KRW): 40,064,375,440
- Most recent parent consolidated total revenue (KRW): 138,743,639,539
- Ratio to revenue (%): 28.9
3. Content of Suspension
Ferroalloy division
4. Reason for Suspension
Downturn in the related steel industry and continued accumulated losses
5. Future Measures
Reduction of fixed costs and improvement of financial structure through temporary business suspension
6. Impact of Suspension
A short-term decline in revenue is unavoidable, but the temporary halt of the loss-making business division is expected to improve profitability, cash flow, and the debt-to-equity ratio, thereby strengthening the financial structure.
7. Suspension Date
2026-09-30
8. Board Resolution Date (Decision Date)
2026-05-29
- Outside directors attendance: 1 attended, 0 absent
- Auditor (non-outside-director audit committee member) attendance: Attended
9. Other Material Matters Relevant to Investment Judgment
1) The suspension amount in item 2 above represents the 2025 ferroalloy division revenue, and the most recent total revenue is based on the 2025 consolidated financial statements.
2) The suspension date in item 7 above is the sales termination date based on depletion of raw materials and product inventory, and may change in accordance with future business plans.
※ Related Disclosures: None
[Matters Concerning the Subsidiary]
- Subsidiary name: DB World Co., Ltd. (DB WORLD CO., LTD.)
- Representative: Yoon Soon-gyun
- Main business: Real estate development, golf course operations
- Major subsidiary status: Yes
- Subsidiary's total assets (KRW): 558,881,347,708
- Parent's consolidated total assets (KRW): 2,992,581,747,645
- Ratio to parent's consolidated total assets (%): 18.7