HD Hyundai cuts petrochemical JV guarantee as Oilbank stake falls

HD Hyundai (267250) said in an amended filing that subsidiary HD Hyundai Oilbank's funding-support guarantee to its petrochemical joint venture — recently renamed from HD Hyundai Chemical to H&L Advanced — falls to KRW 250 billion from KRW 300 billion, as Oilbank's ownership in the venture drops to 50% from 60%.

The guarantee amount is contractually tied to Oilbank's ownership share, the filing said. Oilbank's total outstanding guarantees across its affiliates now stand at KRW 2,455.6 billion, still dominated by a KRW 1,500 billion facility backing HD Hyundai E&F's natural-gas purchase contract with state gas utility KOGAS through 2034.

The filing traces to a Korean government "corporate vitality" restructuring program under which HD Hyundai Chemical and Lotte Chemical have been consolidating overlapping petrochemical capacity. The renaming to H&L Advanced alongside the ownership shift toward a 50-50 split points to Oilbank and Lotte Chemical rebalancing toward equal partnership in what was previously an HD Hyundai-controlled entity.

Oilbank's KRW 2,455.6 billion in total guarantees is about 14.8% of HD Hyundai's own KRW 16,549.1 billion market capitalization.

16,549.1 billion won market cap.

Written from the filing or the Korean-language report it cites, not translated from it. Figures against this company's own statements are computed from DART data on kstock. kstock does not issue buy, sell or hold ratings and this is not investment advice.

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