■ To procure a total of about 1.4 trillion KRW by entering a pricing return swap (PRS) contract with a large securities company in Korea ■ To procure about 660 billion KRW using 40% paid-in capital increase of LCLA LCLA(팔로우 토토 Chemical Louisiana LLC), an EG production corporation of LC USA (팔로우 토토 Chemical USA Co., Ltd.) founded in 2015 ■ To procure additional 700 billion KRW using the shares in LCI (PT 팔로우 토토 Chemical Indonesia) established in 2016 for the petrochemical plant construction project for 1 million tons of ethylene in Indonesia ■ Actively reducing borrowings to enhance financial soundness and promote Asset Light (asset rationalization).

팔로우 토토 Chemical is set to improve its financial soundness by procuring approximately 1.4 trillion KRW using its overseas subsidiaries' shares as underlying assets. The Company plans to secure about 660 billion KRW by the end of this year through a capital increase using a 40% stake in LCLA (팔로우 토토 Chemical Louisiana LLC), its ethylene glycol production subsidiary in the United States. This capital will be directed towards reducing debt. Additionally, 팔로우 토토 Chemical plans to procure around 700 billion KRW next year using its shares in LCI (PT 팔로우 토토 Chemical Indonesia), which was established in 2016 to construct a petrochemical plant with an annual ethylene production capacity of 1 million tons. This plant is expected to commence commercial production next year. With this equity sale, 팔로우 토토 Chemical’s LC USA's stake in LCLA will be adjusted from 100% to around 60%. 팔로우 토토 Chemical’s Basic Chemicals Division aims to reinforce its role as a cash cow through Asset Light and maximization of operation efficiencies, targeting to reduce its share in the portfolio to below 30% by 2030.