Hyosung Advanced Materials : Decision on Provision of Debt Guarantee for Others

Decision on Provision of Debt Guarantee for Others

1. Debtor	Hyosung Steel Cord(Qingdao) Co., Ltd.
- Relationship to company	Affiliated company
2. Creditor	The Korea Development Bank, Qingdao Branch
3. Amount of debt (borrowing) (KRW)	22,397,200,000
4. Details of debt guarantee	Amount of debt guaranteed (KRW)	22,397,200,000
Equity capital (KRW)	381,110,809,280
Ratio to equity capital (%)	5.88
Classified as a large-sized corporation?	Yes
Guarantee period	Start date	2021-12-17
End date	2022-12-16
5. Total balance of debt guarantee (KRW)	1,015,563,550,000
6. Date of board resolution (decision date)	2021-12-14
- Attendance of outside directors	Present (No.)	-
Absent (No.)	-
- Attendance of auditors (members of Audit Committee who are not outside directors)	-
7. Other matters to be factored into investment decisions
- The debt guarantee above is a result of the extension of the maturity of existing borrowings of Hyosung Steel Cord(Qingdao) Co., Ltd. - The amount of debt (borrowing) of 3 above is the amount converted by applying the standard exchange rate on the date of 12/14(1USD = KRW 1,178.80) for USD 19,000,000. - The amount of debt guarantee of 4 above is the amount converted by applying USD 19,000,000 at the standard exchange rate as of 12/14, and the scope of debt guarantee includes USD 19,000,000 along with the interest, overdue interest, fees and all other expenses thereto. Furthermore, equity capital is based on the consolidated audit report at the end of December 2020. - The total balance of debt guarantee (KRW) of 5 above is the guarantee limit, which includes the unused balance, and is also converted by applying the standard exchange rate as of 12/14. - The date of board resolution (decision date) of 6 above is the date of decision of the Management Committee. - The current fiscal year of the 'Condensed Financial Statements of Debtor' is based on 2020, the previous fiscal year is based on 2019, and two fiscal years prior is based on 2018 (however, the sales and net income are the performance results from June 1, 2018, which is the date of division, through December 31, 2018 based on the consolidated audit report). - The following period of debt guarantee for the overseas entity has been omitted since there are multiple debt guarantees made within the same entity (each period of guarantee is different).
※ Related disclosure	-

【Condensed Financial Statements of Debtor】(in KRW mn)

Category	Total assets	Total liabilities	Total shareholders' equity	Capital stock	Sales	Net income
Current fiscal year	95,570	105,952	-10,382	166,849	80,317	143
Previous fiscal year	101,111	111,597	-10,486	166,849	85,285	-11,904
Two fiscal years prior	118,518	117,387	1,131	166,849	50,354	-32,169

[Balance of Debt Guarantee per Debtor]

Debtor	Relationship	Balance of debt guarantee (KRW)	Period of debt guarantee	Remarks
Hyosung Chemical Fiber (Jiaxing) Co., Ltd.	Affiliated company	70,728,000,000	-	-
Hyosung Steelcord (Qingdao) Co., Ltd.	Affiliated company	116,989,972,000	-	-
Hyosung Vietnam Co., Ltd.	Affiliated company	289,631,160,000	-	-
Hyosung Quang Nam Co., Ltd.	Affiliated company	195,680,800,000	-	-
GST Global GmbH	Affiliated company	191,108,768,000	-	-
GST Automotive Safety(Changshu) Co., Ltd.	Affiliated company	42,672,560,000	-	-
Global Safety Textiles LLC	Affiliated company	11,788,000,000	-	-
GST Safety Textiles RO S.R.L.	Affiliated company	68,899,180,000	-	-
Hyosung Luxembourg S.A.	Affiliated company	28,065,110,000	-	-

※ Relevant statutes

Financial Investment Services and Capital Markets Act