SKC

• Final offering price set at 99,500 KRW, issuing 11.73 million shares to raise 1.1671 trillion KRW

• Increased proceeds to expand debt repayment; Debt-to-equity ratio projected to drop sharply from 230% to 129%

• Market confidence bolstered by Q1 turnaround and U.S. IR activities; Focus on progress in next-gen glass substrate commercialization

SEOUL, South Korea – SKC (CEO Kim Jong-woo) is set to accelerate investment in its core future business, glass substrates, while significantly improving its financial structure through a rights offering totaling 1.1671 trillion KRW.

On the 12th, SKC announced that the final issuance price for the rights offering was confirmed at 99,500 KRW. Consequently, SKC will issue 11.73 million new shares to raise a total of 1.1671 trillion KRW. The market expects this capital injection to serve as powerful momentum for securing future growth engines and establishing financial stability.

The funds secured through this offering will be strategically utilized for new business investments and strengthening financial soundness. Initially, SKC planned to allocate approximately 590 billion KRW to the glass substrate business and 410 billion KRW to debt repayment. However, as the total proceeds increased due to a rise in stock price, the capacity for debt repayment expanded significantly. Since the investment for glass substrates—set at 589.6 billion KRW—proactively covers the maximum capital required for the next three years, the company plans to use the excess proceeds to increase the scale of debt repayment.

As a result, the improvement in key financial indicators, such as the debt-to-equity ratio, is expected to be maximized. While the ratio was projected to be in the low 140% range if 410 billion KRW were repaid, the increased repayment of 577.5 billion KRW is expected to drastically lower the ratio from approximately 230% at the end of last year to around 129%. This allows the company to preemptively reduce interest expenses amid high-interest rates while simultaneously bolstering internal stability and growth.

The backdrop of this increased funding lies in the recovery of SKC's fundamental competitiveness and proactive communication by management. Despite short-term stock price adjustments in March due to external factors like geopolitical risks in the Middle East, the company signaled a clear performance turnaround in its recent Q1 earnings report, achieving a positive EBITDA of 10 billion KRW for the first time in 10 quarters.

Furthermore, the recent global Investor Relations (IR) tour held for institutional investors in four cities, including New York, proved effective. Led by CEO Kim Jong-woo, the management actively communicated plans for profitability recovery, semiconductor-centered business restructuring, and glass substrate progress, successfully building firm market trust and consensus on the company’s strategic direction.

The progress in commercializing glass substrates by Absolics, an SKC subsidiary, also played a decisive role in the stock price rebound. Absolics recently launched a new project by supplying prototypes of next-generation "non-embedding" glass substrates for network semiconductors to a U.S. telecommunications chipmaker.

Designed to significantly enhance performance in high-frequency and high-density environments compared to conventional substrates, the product is currently showing tangible results in the client's reliability evaluations. If it passes, mass production preparations could begin as early as the end of this year, further raising market expectations.

An SKC official stated, "This result is a testament to the deep resonance among shareholders and investors regarding SKC’s fundamental competitive recovery and the future value of our next-generation glass substrate business. With the secured funds, we will ensure the seamless commercialization of glass substrates and accelerate our 'Stability, Recovery, and Leap' strategy through groundbreaking financial restructuring."

Meanwhile, the subscription for existing shareholders will take place on May 14 and 15, with the new shares scheduled to be listed on June 8. [End]