SKC : Decision on Capital Reduction (Material Business Matters of Subsidiary Company)

Report of Disclosure Revision

Revision Date

2022-06-10

1. Disclosure Documents in relation with Revision	Decision on Capital Reduction (Material Business Matters of Subsidiary Company)
2. Submission date of documents	2022-05-30
3. Reason for Revision	To reflect changes in detailed schedule
4. Revised Information
information	before revision	after revision
9. Schedule for capital reduction - Period for submission of old share certificates	May 30, 2022 - July 4, 2022	June 9, 2022 - July 11, 2022
14. Other matters to be factored into investment decisions	4. The "10. Period for filing objection by creditor" above runs from May 30, 2022 until July 4, 2022.	4. The "10. Period for filing objection by creditor" above runs from June 09, 2022 until July 11, 2022.

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Decision on Capital Reduction (Material Business Matters of Subsidiary Company)

Subsidiary company

Mitsui Chemicals & SKC Polyurethanes Inc.

's material business matters to report

1. Class and number of shares to be reduced	Common stock (shrs.)	7,000,640
Different classes of stocks (shrs.)	-
2. Par value per share (KRW)	5,000
3. Changes in capital stock	Before capital reduction (KRW)	After capital reduction (KRW)
70,006,400,000	35,003,200,000
4. Change in number of shares issued	Category	Before capital reduction (shrs.)	After capital reduction (shrs.)
Common stock (shrs.)	14,001,280	7,000,640
Different classes of stocks (shrs.)	-	-
5. Capital reduction ratio (%)	Common stock	50.00
Different classes of stocks	-
6. Record date of capital reduction	2022-05-26
7. Method of capital reduction	Voluntary onerous retirement (stock retirement)
8. Reasons for capital reduction	The joint venture by and between SKC, the controlling shareholder, and Mitsui Chemicals, Inc. ("MCI") was terminated.
9. Schedule for capital reduction	Scheduled date of shareholders' meeting	2022-05-26
Book closure period	-
Period for submission of old share certificates	June 9, 2022 - July 11, 2022
Scheduled delivery date of new share certificates	-
10. Period for filing statement of objections by creditors	-
11. Place for submitting old share certificates and delivery of new share certificates	-
12. Date of board resolution (decision date)	2022-05-26
- Attendance of outside directors	Present (No.)	-
Absent (No.)	-
- Attendance of auditors (members of Audit Committee who are not outside directors)	Present
13. Subject to reporting to the Fair Trade Commission?	No
14. Other matters to be factored into investment decisions	- This disclosure is being made since the amount converted into the Korean Won for the capital reduction with consideration for Mitsui Chemicals & SKC Polyurethanes Inc, the subsidiary (KRW 370.9 billion) corresponds to more than 2.5% of the equity capital of SKC, the parent company (KRW 2.2824 trillion) for the latest fiscal year. 1. 1. Mitsui Chemicals & SKC Polyurethanes Inc, a joint venture (JV) between the Company and MCI. (hereinafter, "MCNS-K"), agreed to terminate the joint venture on September 29, 2021, and hence, all shares owned by MCI (valuation of KRW 52,978 per share) under the premise that the company combination report in each relevant country is completed, MCNS-K will purchase and retire them. 2. After the capital reduction takes effect, the Company plans to hold a 100% stake in MCNS-K. 3. The payment of capital reduction will be made after the submission of old share certificates to MCI and the expiration of period for filing statement of objections by creditors, the completion of the corporate combination report in each relevant country, and the return of the certificate of non-issuance of share certificates. 4. The "10. Period for filing objection by creditor" above runs from June 9, 2022 until July 11, 2022. 5. The contents and schedule above may be changed depending on the progress of the corporate combination report in relevant each country and the progress of consultation and approval with the other related organizations, etc. 6. The total assets of the following subsidiaries and the parent company are based on the financial statements as of the end of 2021.
※ Related disclosure	2021-09-30 기타 경영사항(자율공시)

[Details of Subsidiary Company]

Name of subsidiary company	미쓰이케미칼앤드에스케이씨폴리우레탄㈜	Name in English	Mitsui Chemicals & SKC Polyurethanes Inc.
- Representative	Ui-jun Im
- Main business	Manufacturing and sales of Polyol
- Major subsidiary company?	Yes
Total assets of subsidiary company (KRW)	1,002,192,398,179
Consolidated total assets of parent company (KRW)	6,180,132,503,610
Ratio to consolidated total assets of parent company (%)	16.22