Source: Financial Supervisory Service Dart System / 2025-09-10
Disclosure Type: Decision on Financial Loan (Correction)
💡 3-Second Summary
Hanwha Ocean has filed a correction disclosure to increase the financial loan amount from the previously scheduled KRW 461.9 Billion to KRW 471.8 Billion for its affiliate Tidal Action LLC, with the interest rate set at 4.6% and the loan period running until April 22, 2040.
📊 1. [Key Disclosure Details & Major Figures Summary]
- Subject of Correction Filing: Decision on Financial Loan disclosure originally corrected on 2025-06-30 (First filed on 2025-03-21)
- Reason for Correction: Changes in the loan amount and the total outstanding balance of the financial loan
- Details of Loan Amount and Ratio Correction:
- Before Correction (Loan Amount & Ratio to Self-Equity): KRW 461,900,000,000 (KRW 461.9 Billion) / 10.7%
- After Correction (Loan Amount & Ratio to Self-Equity): KRW 471,800,000,000 (KRW 471.8 Billion) / 10.9% of Hanwha Ocean’s consolidated equity capital of KRW 4.31 Trillion as of year-end 2023
- Total Outstanding Balance of Financial Loan: KRW 471,800,000,000 (Corrected from KRW 461.9 Billion to KRW 471.8 Billion, representing the total loan balance including this transaction)
- Borrower: Tidal Action LLC (Affiliate of Hanwha Ocean)
- Transaction Date (Start Date of Loan): 2025-04-22
- Loan End Date: 2040-04-22 (The loan is to be fully repaid on the end date of the loan period, with options for early full or partial repayment upon mutual agreement)
- Interest Rate: 4.6% per annum (Applying the standard overdraft interest rate under Article 43, Paragraph 2 of the Enforcement Rules of the Corporate Tax Act)
- Purpose of Loan: Shareholder loan to support affiliate’s business operations (Intended for remaining construction payments and operational expenses under the drillship sale and modification agreement)
- Board Resolution Date: 2025-03-21 (All 5 independent directors attended)
- Financial Status of the Borrower (Tidal Action LLC) (Separate basis, Unit: Million KRW):
- Current Year (As of Year-end 2024): Total Assets: 145,496, Total Liabilities: 1, Total Equity: 145,495, Share Capital: 137,557, Revenue: Not specified, Net Income: -33 (Established in 2024, reporting no financial records for previous years)
Conversion Base: The pre-correction loan amount (KRW 461.9 Billion) was translated from USD 316,514,119, whereas the corrected loan amount (KRW 471.8 Billion) was translated from USD 323,299,119 using the Seoul Money Brokerage base rate of 1 USD = 1,459.20 KRW as of the board resolution date (March 21, 2025), rounded to the nearest hundred million KRW. Decision and execution of detailed terms are delegated to the Representative Director and may change depending on progress.
📈 2. [Expert’s Perspective: What This Disclosure Means for Investors]
- Adjustment in Foreign Currency Denominated Value: The amendment officially reflects an increase in the loan principal from USD 316,514,119 to USD 323,299,119 (an increase of USD 6,785,000). Applying the fixed exchange rate of 1,459.20 KRW per USD as of March 21, 2025, the KRW-expressed loan value increased by approximately KRW 9.9 Billion to a total of KRW 471.8 Billion.
- Off-setting Structure of the Loan: As explicitly detailed in the disclosure notes, the loan will be offset against the remaining construction balances due to Hanwha Ocean from the drillship sales and modification contract, with the remaining balance utilized for operational expenses by the affiliate.
- Financial Baseline of Borrower and Loan Term: The borrower, Tidal Action LLC, is a newly established entity in 2024, reporting approximately KRW 1 Million in liabilities and a net loss of KRW 33 Million at year-end 2024. The contract represents a long-term loan spanning approximately 15 years from April 22, 2025, to April 22, 2040.
📝 Editor’s Comment (by K-STOCK Editor)
This correction filing details a scale adjustment in Hanwha Ocean’s shareholder loan to its affiliate, Tidal Action LLC, increasing the total value from the previously translated KRW 461.9 Billion to KRW 471.8 Billion (an increase of approximately KRW 9.9 Billion) due to an increase in the underlying foreign currency amount.
Going forward, investors should monitor two objective checkpoints. First is the accounting execution of the offset structure. Because the filing explicitly notes that a portion of the loan is scheduled to be offset against the remaining drillship transaction balances owed to Hanwha Ocean, market participants should cross-reference upcoming quarterly reports to confirm that these receivables and loan items are adjusted and balanced accordingly. Second is the long-term interest collection and the borrower’s operational status. The contract represents a multi-year loan running until 2040 at a 4.6% annual interest rate, while the borrower, Tidal Action LLC, is a new entity established in 2024 that recorded a net loss of KRW 33 Million at year-end. Investors should cross-examine future periodic filings to verify the actual recording of interest income and monitor any changes in the financial position of the borrower over time.
📢 Disclaimer & Source Information
Source: This content was newly structured and written based on official data submitted to the Financial Supervisory Service’s Electronic Disclosure System (DART).
Investment Advisory Warning: This material is provided for informational and language reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell specific securities. All investment decisions and financial responsibilities rest solely with the individual investor.
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