Shinsegae Construction Assumes 99.6 Billion KRW Debt for Cheonan Baekseok-dong PF... "No Impact on Liquidity"

Inevitable Debt Acquisition Due to Declaration of Loss of Benefit of Term
Minimizing Losses by Securing Disposal Rights to Project
"With 570 Billion KRW in Cash Equivalents, Limited Impact on Liquidity"

Shinsegae Construction announced on the 7th that it will acquire the outstanding loan principal of the Cheonan Baekseok-dong apartment development project operator. The acquisition amount is 99.6 billion KRW, accounting for 85.16% of its equity capital of 116.9 billion KRW.

The reason for the debt acquisition is the declaration of loss of benefit of term due to non-payment of project financing (PF) interest by the operator, Hana Global Project. Shinsegae Construction explained, "This is planned as a business normalization measure for low-profit PF projects," adding, "By acquiring the debt, we intend to proactively secure disposal rights to the project rights and minimize our losses."

Shinsegae Construction also added, "Currently, we hold approximately 570 billion KRW in cash equivalents, so we believe the impact on liquidity will not be significant."

The 2022 Cheonan Baekseok-dong apartment development project has been promoted since 2022 through a partnership between Shinsegae Construction and Hana Global Project. The project involves constructing residential and neighborhood living facilities on a site with a total floor area of 65,109㎡ at 330 Baekseok-dong, Seobuk-gu, Cheonan-si, Chungnam Province. The contract amount was 89.639 billion KRW. The responsibility completion deadline was the 31st of this month.