Daegu Department Store has signed a contract to sell its main store property, located on Dongsung-ro in Daegu, for 130 billion won. This sale is an asset disposal aimed at improving the company's financial structure and management efficiency, and includes conditions under which the actual purchase price varies depending on when the balance is paid.

■ Buyer Is Real Estate Firm Daegu Medi-City K Global

Daegu Department Store announced through a disclosure on the decision to transfer tangible assets on the 13th that it will transfer 18 parcels of land, including 166-1 Dongsung-ro 2-ga, Jung-gu, Daegu Metropolitan City, along with the buildings on the site, to Daegu Medi-City K Global Co., Ltd. According to the disclosure, the transfer amount is 130 billion won, equivalent to 30.90% of the company's total assets of 420.746 billion won based on its consolidated financial statements at the end of the most recent fiscal year.

The buyer, Daegu Medi-City K Global, is a real estate company headquartered on Dalgubeol-daero in Jung-gu, Daegu Metropolitan City, with a reported capital of 30 million won. Daegu Department Store explained that the purpose of the transfer is to improve asset management efficiency and its business environment through asset disposal.

■ Down Payment of 1.5 Billion Won; 95 Billion Won Balance to Be Paid in Installments by December 2027

The contract was signed on October 13, 2026, with the transfer reference date and scheduled registration date set for December 15, 2027. The purchase price will be paid in multiple installments. Starting with a down payment of 1.5 billion won on the 13th, the contract signing date, a first installment of 2.5 billion won is scheduled for October 23, followed by a second installment of 3 billion won on November 27. Subsequently, a third installment of 28 billion won is due on February 12, 2027, with the remaining balance of 95 billion won to be paid on December 15 of the same year.

■ Up to 10 Billion Won Discount for Early Balance Payment

The key feature of this contract is the price reduction condition tied to early payment of the balance. If the buyer pays the balance early by April 15, 2027, the total purchase price will be reduced from 130 billion won to 120 billion won, with the balance amounting to 85 billion won. If the balance is paid by August 20, 2027, the purchase price will be adjusted to 125 billion won, with the balance at 90 billion won. Conversely, if the buyer fails to pay the balance by the specified deadline, it will be regarded as a breach of contract and handled according to the procedures stipulated in the contract.

■ Building Demolition Conditional on Approval by Creditor Financial Institutions; Costs Borne by Buyer

Conditions for building demolition were also specified. As the property is subject to a security trust agreement related to financial institution loans, the demolition process will proceed on the premise of approval from the creditor financial institutions. Upon the buyer's full payment of the down payment, the seller will provide the documents necessary for demolition, and the buyer must submit a demolition plan and expected construction schedule, obtain approval, and complete the demolition at its own cost and responsibility. Demolition costs are to be paid in advance into a bank account in the seller's name, and may be replaced by a performance guarantee bond issued by a surety insurance company.

■ Penalty Clause; 5 Billion Won to Be Refunded in Case of Permit or PF Issues

Penalty clauses for contract non-fulfillment were also established. If the buyer fails to pay all or part of the down payment, installments, or balance, the contract will be automatically terminated, and amounts already paid will, in principle, be forfeited to the seller as a penalty. However, a separate condition stipulates that if the project becomes impossible to proceed due to issues such as business permits or project financing (PF) after full payment of the down payment and installments, 5 billion won of the amounts already paid will be refunded. Costs and responsibilities required for permits and financing rest with the buyer, and the seller bears no responsibility for them.

■ Unqualified (Appropriate) Opinion From Jiam Accounting Firm; Plan Finalized Following June Inquiry Disclosure

This transaction received an unqualified (appropriate) opinion from external appraisal firm Jiam Accounting Firm, with the appraisal period running from October 1 to 13, 2026. This sale finalizes the main store disposal plan that Daegu Department Store had stated was under review in its June 11 response to an inquiry disclosure regarding significant market fluctuations.

Daegu Department Store stated that the transfer schedule and payment conditions may be changed through mutual agreement between the company and the buyer, and that it will issue corrective disclosures if changes occur. While the specific terms of the main store sale have been finalized through this contract, the actual completion date of the transfer and the final purchase price may vary depending on the future balance payment schedule.

[This article is based on Daegu Department Store's disclosure on its decision to transfer tangible assets dated October 13, 2026. The contract execution schedule and final transaction amount are subject to change. This article is not intended to solicit investment, and investment decisions and responsibilities rest solely with the investor. AI assistance was used in the writing of this article.]