Cha Biotech will conduct a third-party allocated paid-in capital increase worth 153.9 billion won to secure the management stability of its subsidiary, Cha Healthcare. The method involves converting loans extended for U.S. corporate operation funds into capital.

According to a Cha Biotech regulatory filing on the 26th, Cha Healthcare will carry out a third-party allocated paid-in capital increase totaling 153,913,032,000 won, targeting its largest shareholder, Cha Biotech. The new shares to be issued amount to 5,919,732 common shares, with an issue price of 26,000 won per share. The payment date is June 26, 2026, and the scheduled date for delivering new share certificates is July 6.

The purpose of the capital raise is listed as 'other funds totaling 153,913,032,000 won,' with the specific use of proceeds being 'conversion of loans into capital.' The company explained that it selected Cha Biotech, its largest shareholder, as the allottee based on Article 10 of Cha Healthcare's articles of incorporation, in accordance with business needs.

• In the first half of this year (January through June), Cha Biotech lent a total of 151.6 billion won to Cha Healthcare under the names of U.S. operating funds and construction costs. Through this paid-in capital increase, the loans will be converted entirely into capital. The monthly loan details disclosed are as follows:
• January: 29.7 billion won
• February: 27.5 billion won
• March: 24.8 billion won
• April: 11.1 billion won
• May: 27.5 billion won
• June: 31.0 billion won

Meanwhile, Cha Healthcare is a core subsidiary of Cha Biotech whose main business is operating and investing in overseas healthcare networks. As of the most recent fiscal year (2025), Cha Healthcare's total assets stand at 430,150,284,390 won, accounting for 16.88% of Cha Biotech's consolidated total assets.