KBI Metal has decided to lend KRW 15 billion in funds to its wholly-owned subsidiary, KBI Electric.

According to KBI Metal on the 17th, the company held a board of directors meeting that day and passed a resolution to lend KRW 15 billion to its subsidiary, KBI Electric. This amount is equivalent to 10.62% of KBI Metal's equity capital (KRW 141,237,762,985).

According to the loan terms, the interest rate is 4.6% per annum, and the loan period is five years, from June 29, 2026, to June 28, 2031. Including this transaction, KBI Metal's total outstanding loan balance will reach KRW 15.2 billion. The company explained that the purpose of this loan is to support the subsidiary's new factory expansion and operating funds.

Regarding the source of funds, KBI Metal stated, "This loan will utilize funds raised through the issuance of the fifth series of convertible bonds disclosed on the same day, and will be executed for the subsidiary's facility investment and operating fund support in accordance with the disclosed purpose of fund usage."

KBI Electric, the loan recipient, is a company engaged in the manufacturing of transformers and electronic devices. In terms of its financial status, as of the end of 2025, total assets stand at KRW 13.198 billion and total liabilities at KRW 20.257 billion. Total equity is recorded at a negative KRW 7.059 billion, with a net loss for the period totaling KRW 6.187 billion.