Kukdo International, a subsidiary of Kukdo Chemical, has decided to acquire LG Chem's Daesan BPA (bisphenol A) production and sales business for 78.437 billion won.

Kukdo Chemical announced in a regulatory filing on the 26th that Kukdo International had decided to acquire the BPA business operated at LG Chem's Daesan plant, along with the assets necessary for operating the business.

The company presented the purpose of the business acquisition as enhancing epoxy cost and margin stability by securing BPA supply stability and strengthening its capacity to respond to market volatility, citing these same effects as the expected impact of the acquisition.

According to the filing, the annual revenue of LG Chem's Daesan BPA business division to be acquired by Kukdo International exceeds 69.8 billion won, equivalent to 5% of Kukdo Chemical's consolidated revenue.

The acquisition is scheduled for the first half of 2027, though a specific date has not yet been determined. The company explained that the schedule may change depending on permits and approvals under relevant laws, consultations with relevant authorities, and other factors, and that a corrective disclosure will be made once the schedule is finalized. The acquisition price may also be revised later.

The acquisition will proceed as a simplified business transfer requiring the consent of all shareholders under Article 374-3 of the Commercial Act. Accordingly, board approval will substitute for shareholder meeting approval, and the date of Kukdo International's board resolution is October 26, 2026.

Meanwhile, Kukdo International's main business is the manufacturing, wholesale, and trading of chemical products. Based on its separate financial statements at the end of 2025, its total assets stand at 970,731,045 won, accounting for 0.06% of Kukdo Chemical's consolidated total assets of 1,749,499,131,148 won.

Kukdo Chemical stated that the details and schedule of this business acquisition may change depending on contracts between the parties, consultations with relevant authorities, and the progress of approvals.