Lotte Biologics, a subsidiary of Lotte Holdings, will carry out a shareholder-allocated paid-in capital increase worth approximately 255.3 billion won to raise funds for the construction of the 'Songdo Bio Campus Plant 1.'

All funds raised through this capital increase will be used as facility investment funds. The key details of the paid-in capital increase are as follows:

• Newly issued shares: 4,209,000 common shares
• Final issue price: 60,658 won per share
• Total amount to be raised: 255,309,522,000 won
• Pre-increase number of shares issued: 18,292,169 shares

The record date for the new share allocation of this capital increase is July 20, 2026. Existing shareholders will be allocated 0.2300985 new shares per share held, and the subscription and payment date for existing shareholders will take place on August 19, 2026.

The company plans to leave fractional shares and unsubscribed shares resulting from the existing shareholders' subscription unissued. Therefore, the actual number of shares issued and the final amount raised may vary depending on the subscription results.

Meanwhile, the new share issue price was calculated through an evaluation by an external appraisal organization as of the end of March 2026. As an unlisted company, Lotte Biologics is exempt from filing a securities registration statement.

This information was disclosed through a report on major management matters of a subsidiary of Lotte Holdings. Lotte Biologics currently has total assets of 1,979,933,424,978 won, accounting for 8.58% of Lotte Holdings' consolidated total assets.