 |
LG Electronics’ Twin Towers headquarters in Yeouido, Seoul. (Photo = Yonhap News Agency) |
[Alpha Biz= Kim Jisun] LG Electronics has secured 400 billion won ($300 million) in short-term funding from a Japanese bank as it prepares to meet upcoming bond repayments.
According to industry sources on March 11, the company borrowed the funds last month from Sumitomo Mitsui Banking Corp. (SMBC) as working capital. The amount exceeds the roughly 260 billion won currently borrowed from domestic lenders such as Woori Bank and KB Kookmin Bank.
Unlike LG Electronics’ previous loans from Korean banks, which typically had maturities of more than two years, the new borrowing has a maturity of less than three months.
The short-term financing is intended to help cover corporate bond repayments due in the first half of the year, which total about 520 billion won.
While companies often refinance maturing bonds with new debt of similar size, LG Electronics opted to secure short-term liquidity first amid ongoing market uncertainty and monitor conditions before proceeding with refinancing.
The company also faced increased funding needs early in the year due to payments to suppliers. Last month, eight LG Group affiliates, including LG Electronics, made early payments totaling about 600 billion won to vendors.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
