KG Eco Solutions announced in a regulatory filing on the 22nd that it plans to sign a 200 billion won 'capital supplementation agreement' to help its affiliate KG Mobility secure operating funds and stabilize its financial structure.

This agreement is linked to the 'future credit card receivables securitization financing (ABL·ABS)' that KG Mobility is currently pursuing. Specifically, KG Eco Solutions will provide a capital supplementation agreement for a financing contract that a securitization SPC (Special Purpose Company), which is expected to acquire Class-1 beneficial rights, will enter into using those beneficial rights as the underlying asset.

The capital supplementation agreement is triggered when the SPC lacks sufficient repayment resources. If funds are insufficient to pay creditors when the principal and interest payment date under the financing contract arrives or when a loss of the benefit of time occurs, KG Eco Solutions will lend the shortfall to the SPC.

The debt subject to the agreement is 200 billion won based on the principal of the financing contract, and the formal signing of the agreement is scheduled to take place in July of this year. The capital supplementation period runs from the date of the agreement until the full repayment of the targeted debt is completed.

In terms of financial impact, KG Eco Solutions' equity capital stands at 3.1198 trillion won as of the filing date. The 200 billion won principal of the debt covered by this agreement represents 6.41% of its equity capital. The company plans to receive fees and other compensation based on a fair valuation from KG Mobility in return for this support.

Meanwhile, the company added, "Some details may change depending on the preconditions for entering into the financial agreement and the progress of the financing contract," stating, "We plan to make additional disclosures should any changes occur in the future."