Source Fact: Financial Supervisory Service DART / 2024-11-21
Disclosure Type: Decision on Debt Guarantee for Others
💡 3-Second Summary
Regarding the ‘Yangyang Suri Onshore Wind Power Project’ acquired through the wind power business acquisition contract executed with Hanwha Corporation, Hanwha Ocean has decided to provide a conditional performance guarantee with a limit of KRW 325 billion based on a completion covenant.
📊 1. [Key Disclosure Content & Major Figures Summary]
- Debtor & Relationship: Yangyang Suri Wind Power Co., Ltd. (No separate equity relationship with Hanwha Ocean is explicitly recorded).
- Creditor (Guarantor): Kookmin Bank, Shinhan Bank, Kyobo Life Insurance Co., Ltd., Private Investment Trusts, and Policy Fund Loan Lenders.
- Debt Value & Debt Guarantee Limit: KRW 325,000,000,000 (KRW 325.0B / Calibrated based on the loan agreement principal).
- PF Framework Type: Other PF Loan related project financing guarantee.
- Proportion to Equity: 7.5% against the controlling company’s (Hanwha Ocean) consolidated total equity of KRW 4,312,157,120,697.
- Guarantee Period:
- Commencement Date: 2024-12-01 (Stipulated based on the scheduled closing date of the wind power business acquisition contract).
- Expiry Date: 2027-04-05 (Stipulated based on the designated completion covenant deadline).
- Outstanding Debt Guarantee Balance: KRW 27,149,920,981 (This baseline excludes the value of this specific KRW 325 billion transaction).
- Nature of Obligation & Special Clauses: This transaction stems from the completion covenant agreement included in the wind power business acquisition framework. Hanwha Ocean bears liability for damages if it fails to execute full completion by the target completion deadline. This potential indemnity liability legally dissolves upon successful compliance with the construction completion covenant. The exact volume of potential damages cannot be quantified at this stage and remains subject to future consultation with creditors if an actual default manifests.
- Debtor Financial Summary (Current Year): Total Assets: KRW 114,713 million, Total Liabilities: KRW 79,521 million, Total Equity: KRW 35,192 million, Capital Stock: KRW 36,200 million, Sales: KRW 0, Net Income: KRW -823 million. (Previous Year Total Assets: KRW 10,295 million, Total Liabilities: KRW 0, Total Equity: KRW 10,295 million, Capital Stock: KRW 10 million, Sales: KRW 0, Net Income: KRW -1 million).
- Additional Note: All recorded parameters remain subject to change depending on subsequent progress.
📈 2. [Expert View: Significance for Investors]
This regulatory filing indicates that Hanwha Ocean has formalized a Board resolution regarding a completion covenant linked to the Yangyang Suri Onshore Wind Power Project as an acquisition-based obligation, rather than executing a direct liquidity payment guarantee. The formal limit of this legal parameter is calibrated at 7.5% of the controlling company’s consolidated total equity, translating into KRW 325.0 billion.
Investors must precisely recognize the structural fact that this transaction builds a conditional indemnity framework linked to construction execution default, which operates differently from unconditional debt assumptions that activate immediate payment obligations upon borrower default. The original disclosure avoids addressing potential engineering delay probabilities, specific internal projections of actual damage values, or financial advantages and disadvantages stemming from the execution of the covenant. Therefore, using external references to assume severe PF distress risks or definitive balance sheet degradation is inappropriate. Market participants should track the closing status of the business acquisition contract scheduled for December 1, 2024, and objectively monitor the factual progression of the engineering project toward its targeted April 2027 completion deadline based entirely on objective data.
📝 Editor’s Comment (by K-STOCK Editor)
This update logs that Hanwha Ocean’s wind power acquisition framework has integrated a conditional financial framework with a maximum limit of KRW 325 billion, anchoring its contractual liability to an upcoming onshore wind power development. While the commencement window is preliminarily slated for early December 2024 based on the transaction closing schedule, its operational activation remains dependent on the final execution of the business transfer, signaling that the chronological timeline of this structural financial parameter can experience administrative adjustments.
However, the disclosure text avoids detailing the underlying commercial viability of the debtor beyond the recorded financial summaries, nor does it present micro-level construction milestones. Consequently, readers must exercise caution and refrain from incorporating external narratives to label this conditional covenant limit as an immediate surge in volatile liabilities, or conversely, to prematurely evaluate completion as an absolute certainty. Market observers should treat the actual completion of the business transfer and potential follow-up amendment filings as the primary checkpoints, maintaining an objective stance while observing the real engineering progression across the designated schedule.
📢 Disclaimers and Source Information
Source: This content has been newly structured and written based on official data submitted to the Financial Supervisory Service’s Electronic Disclosure System (DART).
Investment Risk Notice: This content is provided solely for informational and linguistic reference purposes. Under no circumstances does it constitute financial advice or a recommendation to buy or sell specific stocks. All investment decisions and financial responsibilities rest entirely with the investor.
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