Lotte Tour Development "Jeju Dream Tower Land Revaluation... Book Value Increases 5 Times"

104.7 Billion → 568 Billion, Asset Value Increase
Equity Capital Rose from 91.1 Billion to 417 Billion as of Q1 This Year

Jeju Dream Tower Complex Resort.

[Asia Economy Reporter Yuri Kim] Lotte Tour Development announced on the 20th that it improved its financial structure through asset revaluation of land in Nohyeong-dong, Jeju, which it has held for over 40 years.

Lotte Tour Development held a board meeting on the same day and disclosed that it decided to reflect the asset revaluation of its land share (59.02%) in the Jeju Dream Tower Complex Resort in the first half financial statements. Through the asset revaluation, the book value of the site increased from the previous 104.7 billion KRW to 568 billion KRW.

Lotte Tour Development purchased the Dream Tower site in Nohyeong-dong, Jeju City, through a public bid in 1980 and has held it for over 40 years. The company stated, "In accordance with the Korean International Financial Reporting Standards (K-IFRS), we reflected the actual value of the asset and requested an appraisal firm to conduct an asset revaluation targeting the land share excluding buildings to improve the financial structure."

The company explained that through this asset revaluation, equity capital increased 4.6 times from 91.1 billion KRW as of the end of the first quarter to 417 billion KRW, and the debt ratio dropped from 1358% to 322%. The company expects that if the remaining convertible bonds of 197.8 billion KRW are converted into capital, equity capital will increase to 614.8 billion KRW and the debt ratio will further decrease to 186%.

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