DA Tech CEO Jongwook Lee Completes 4.2 Billion Won Capital Increase Payment... "Strengthening Responsible Management"

[Asia Economy Reporter Jang Hyowon] As the three domestic battery companies announced aggressive investments this year, the CEO of DA Technology (hereinafter DA Tech) stated that they have strengthened responsible management by completing the payment for a paid-in capital increase.

DA Tech announced on the 23rd that the payment for a third-party allotment paid-in capital increase worth 4.2 billion KRW targeting the largest shareholder, CEO Lee Jong-wook, has been completed. The company plans to take responsible management measures by completing the capital increase payment as it is poised for full-scale growth this year due to effects such as LG Energy Solution's factory expansion.

According to related industries, the total investment scale for new and expanded battery factories by the three domestic battery companies is expected to reach 12 trillion KRW this year. Among them, LG Energy Solution, which successfully completed its IPO last month and secured about 10 trillion KRW in funds, plans to invest 6.3 trillion KRW in facility investment alone this year. This investment scale has expanded compared to 3 trillion KRW in 2020 and 4 trillion KRW in 2021.

Against this investment plan background, DA Tech, which derives 70% of its total sales from LG Energy Solution, also expects to benefit. In the first half of this year, some sales from LG Energy Solution's expansion and sequential reflection of sales from stacking and notching equipment ordered last year from GM Research Center are also scheduled.

A DA Tech official explained, "Last year, we focused on improving our financial structure through subsidiary sales, overseas corporation liquidation, and disposal of non-performing assets," adding, "This year, through the CEO's capital increase, we are actively strengthening responsible management and enhancing shareholder value by expanding the shareholding ratio."

He continued, "As we are also focusing on R&D to lead the rapidly changing secondary battery equipment market, we expect to complete the development of next-generation equipment starting this year and link it to mass production sales," and added, "We plan to disclose achievements related to used battery recycling in the second half of the year along with orders from LG Energy Solution and overseas automakers, and will continue various investments to enhance business competitiveness."

This content was produced with the assistance of AI translation services.