Source of Facts: Financial Supervisory Service DART / 2026-02-13
Disclosure Type: Decision on Provision of Debt Guarantee for Others
💡 3-Second Summary
Hanwha Ocean has resolved to provide a conditional debt guarantee valued at approximately KRW 2.64 trillion (representing 54.28% of its equity capital) for its affiliate, Shinan Wooi Offshore Wind Power Co., Ltd., under which the company assumes joint liability to compensate creditors for damages only in the event of non-performance of targeted completion, with the guarantee period scheduled from March 31, 2026, to May 30, 2029.
📊 1. [Key Disclosure Content & Major Figures Summary]
- Debtor: Shinan Wooi Offshore Wind Power Co., Ltd. (Relationship: Affiliate)
- Creditors (Lenders): Korea Development Bank, Kookmin Bank, KB Insurance, KB Life Insurance, Shinhan Bank, Hana Bank, Hana Life Insurance, Hana Insurance, Woori Bank, Tongyang Life Insurance, Nonghyup Bank, Nonghyup Insurance, Busan Bank, Samsung Fire & Marine Insurance, Kyobo Life Insurance, Hyundai Marine & Fire Insurance, Lotte Insurance, Industrial Bank of Korea, etc.
- Debt (Borrowing) Amount & Debt Guarantee Amount: KRW 2,640,000,000,000 (Approx. KRW 2.64T)
- Ratio to Equity Capital: 54.28% (Calculated based on the company’s 2024 consolidated equity capital of KRW 4,863,349,890,725).
- Calculation of Guarantee Amount: Since the exact damage compensation amount for the non-performance of targeted completion cannot be determined at this time, the total construction cost of the project (Hanwha Ocean’s share: KRW 1.9716T, Hyundai Construction’s share: KRW 668.4B) has been recorded as the initial reference.
- Debt Guarantee Period: March 31, 2026 ~ May 30, 2029
- The start date represents the scheduled execution date of the investor agreement (scheduled for re-disclosure upon execution), and the end date represents the scheduled comprehensive completion date of the project.
- Conditional Nature of the Guarantee: As a construction investor in the Shinan Wooi offshore wind power project, Hanwha Ocean assumes the obligation to compensate creditors for damages jointly with other construction investors only if it fails to perform targeted completion. This obligation is automatically extinguished upon the successful performance of targeted completion.
- Total Balance of Debt Guarantees: KRW 766,475,468,081 (Approx. KRW 766.5B, excluding the amount resolved in this transaction).
- Key Balances: Yangyang Suri Wind Power Co., Ltd. (KRW 325B), Hyundai Oil Terminal Ulsan Co., Ltd. (KRW 180B), Hanwha Philly Shipyard Inc. (Approx. KRW 258.9B), etc.
- Board Resolution Date: February 13, 2026 (5 outside directors present, 0 absent, Audit Committee members present).
- Summary Financial Status of Debtor (As of end of 2024): Total Assets KRW 4,023M, Total Liabilities KRW 16M, Total Equity KRW 4,006M, Net Income KRW -421M.
- Project Variability Clause: The aforementioned schedule and details remain subject to change during the project implementation.
📈 2. [Expert View: What This Disclosure Means for Investors]
- Conditional Guarantee Structure Tied to Targeted Completion Obligations: This filing officially registers the structural parameters established to support the construction phase of Shinan Wooi Offshore Wind Power Co., Ltd., where Hanwha Ocean acts as a construction investor providing a targeted completion commitment. The recorded guarantee limit of KRW 2.64 trillion represents a contingent liability that is triggered only if the construction investors fail to complete the project, leading to financial damage for the lenders.
- Nominal Reference Values Based on Construction Costs: The recorded debt guarantee amount does not represent an immediately active liability; rather, it reflects the total nominal construction costs (KRW 1.9716T for Hanwha Ocean and KRW 668.4B for Hyundai Construction) set as a reference parameter. The actual compensation amount, if any liabilities are triggered, is scheduled to be determined through subsequent negotiations with the creditors.
- Balance Sheet Parameters and Subsidiary Framework: The KRW 2.64 trillion is excluded from the company’s pre-existing outstanding debt guarantee balance parameter of approximately KRW 766.5 billion. The debtor, Shinan Wooi Offshore Wind Power Co., Ltd., is an unlisted affiliate closing fiscal 2024 with total equity of KRW 4.0 billion against a net loss of KRW 421 million, and this transaction is structured alongside the affiliate’s underlying PF Loan procurement of KRW 2.89 trillion.
📝 Editor’s Comment (by K-STOCK Editor)
Hanwha Ocean’s regulatory filing regarding its decision to provide a debt guarantee for others outlines the administrative parameters established to support a project financing (PF) loan of its affiliate, Shinan Wooi Offshore Wind Power Co., Ltd. According to the document, the company plans to assume joint liability for damages in case of a non-performance of targeted completion, assigning a nominal guarantee limit of KRW 2.64 trillion based on the project’s construction costs, representing 54.28% of Hanwha Ocean’s equity capital.
The critical variables and primary checkpoints for investors to analyze moving forward are the ‘actual execution and subsequent filing of the investor agreement on the scheduled start date’ and the ‘subsequent completion status of the project scheduled through May 30, 2029.’ This filing outlines a transaction involving joint damage liability for non-completion rather than an unconditional debt principal assumption or immediate cash disbursements, and the long-term status of this contingent liability remains subject to the successful execution of the physical construction schedule.
Consequently, investors should avoid drawing definitive analytical conclusions regarding immediate balance sheet distress or guaranteed cash outflows based solely on the nominal scale of the debt guarantee or the 54.28% ratio to equity capital. It remains essential to monitor the program under the explicit conditions stated in the filing, tracking how the physical execution of the investor agreement is finalized and how subsequent project milestones develop within the approved framework, under which the details and schedules remain subject to change during the project implementation.
📢 Disclaimer & Source Information
Source: This content was newly structured and written based on the official data submitted to the Financial Supervisory Service’s Electronic Disclosure System (DART).
Investment Risk Advisory: This information is provided for informational and linguistic reference purposes only. 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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