[Special Stock] Lotte Chemical Falls Over 5% Following Lotte Construction's Capital Increase and 500 Billion Won Loan

[Asia Economy Reporter Kwon Jae-hee] Lotte Chemical is showing a decline of over 5% in the early trading session on the 21st. This follows its participation in a 200 billion KRW rights offering by Lotte Construction and a decision to lend an additional 500 billion KRW.

As of 10:26 AM on the 21st, Lotte Chemical is trading at 143,500 KRW on the KOSPI, down 5.28% from the previous day. Lotte Chemical also fell 3.61% and 5.31% on the 19th and 20th respectively, marking a three-day consecutive decline.

The previous day, Lotte Chemical announced that it had decided to lend 500 billion KRW to its affiliate, Lotte Construction, for three months.

Earlier, on the 18th, Lotte Construction announced it would raise 200 billion KRW through a rights offering by issuing 1,714,634 new shares for operating funds. The largest shareholder of Lotte Construction is Lotte Chemical, holding a 43.79% stake. Hotel Lotte holds 43.07% of the shares. Lotte Chemical will need to invest approximately 87.5 billion KRW in this capital increase.

Lotte Construction stated that the capital increase is a preemptive measure to maintain a stable financial structure amid concerns over rising raw material prices and a downturn in the real estate market.

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