E MART : Decision on Paid-in Capital Increase (Material Business Matters of Subsidiary Company)

Decision on Paid-In Capital Increase (Material Business Matters of Subsidiary Company)

Subsidiary company

Starfield Properties, Inc.

's material business matters to report

1. Class and number of new shares	Common stock (shrs.)	-
Different classes of stocks (shrs.)	-
2. Par value per share (KRW)	0.01
3. Total number of shares issued before increase of capital stock	Common stock (shrs.)	100
Different classes of stocks (shrs.)	-
4. Purpose of financing	Facility investment (KRW)	-
Business acquisition (KRW)	-
Operating capital (KRW)	-
Debt repayment (KRW)	-
Acquisition of securities issued by other corporations (KRW)	244,977,213,627
Other purposes (KRW)	54,647,786,373
5. Method of capital increase	Rights offering

[Rights Offering]

6. Issuing price of new shares	Final Issuing price	Common stock (KRW)	-
Different classes of stocks (KRW)	-
Expected issuing price	Common stock (KRW)	-	Expected date of finalization	-
Different classes of stocks (KRW)	-	Expected date of finalization	-
7. Calculation method of issuing price	Issued at par value
8. Record date for new share allotment	-
9. Number of new shares per outstanding share	-
10. Preferential allotment ratio for employee stock ownership association (%)	-
11. Scheduled date of subscription	Employee shares ownership association	Start date	-
End date	-
Existing shareholders	Start date	-
End date	-
12. Date for payment of subscription money	-
13. Plan for handling forfeited shares	Forfeited stocks are not issued
14. Record date of dividend payout	-
15. Scheduled delivery date of new share certificates	-
16. Lead underwriter (in case of indirect offering)	-
17. Transfer of preemptive rights to new shares?	No
18. Date of board resolution (decision date)	2022-02-16
- Attendance of outside directors	Present (No.)	1
Absent (No.)	-
- Attendance of auditors (members of Audit Committee who are not outside directors)	-
19. Subject to filing of securities registration statement?	No
20. Reasons for exemption from filing securities registration statement, if exempted	It is not applicable under the public offering of Article 9 Paragraph 7 of the Financial Investment Services and Capital Markets Act, and the subsidiary is an un-listed company.
21. Subject to reporting to the Fair Trade Commission?	No
22. Other matters to be factored into investment decisions	○ This paid-in capital increase aims to take over 100% of equities in Shafer Vineyards, Shafer Family, LLC in the United States and related real estate through Starfield Properties, Inc., a US subsidiary wholly owned by Shinsegae Properties, Inc. ○Shafer Vineyards Overview o Date of incorporation : October 18, 1979 o Main business : Premium Wine Manufacturing/Sales o Place of business operation : USA (California) ○Shafer Family, LLC Overview o Date of incorporation : August 5, 2003 o Main business : Asset holding corporations such as Vineyard o Place of business operation : USA (California) ○ Contract date : February 16, 2022 ○ Acquisition price : USD 250 mn (KRW 299.6 bn) * Equity KRW 245 bn, Real estate KRW 54.6 bn * The above price is the total planned amount including the acquisition of equity and is subject to change in the future ○ Starfield Properties, Inc. was incorporated on December 19, 2021. The "Total assets of subsidiary company" is the amount as of the date of incorporation, and is the amount converted by applying the basic exchange rate (USD 1 = KRW 1,198.50) of the Seoul Money Brokerage Services as of the date of disclosure, and the "Consolidated total assets of parent company" is based on the financial statements as of December 31, 2020. ○ "2. Par value per share (KRW)" is USD 0.01, "4. Purpose of financing- Acquisition of securities issued by other corporations (KRW)" is USD 204,403,182, which is the total price of equity acquisition, and "Other purposes (KRW)" is USD 45,596,818 including the acquisition price of real estate and other incidental expenses. The total amount is USD 250 mn. This was converted by applying the basic exchange rate (USD 1 = KRW 1,198.50) of the Seoul Money Brokerage Services as of the date of disclosure. ○ With respect to "12. Date for payment of subscription money," USD 250 mn is scheduled to be paid in February 2022, and the payment amount and schedule are subject to change later. ○ The details of this paid-in capital increase will be decided through the necessary internal approval process in accordance with relevant laws and regulations.
※ Related disclosure	-

[Details of Subsidiary Company]

Name of subsidiary company	Starfield Properties, Inc.	Name in English	Starfield Properties, Inc.
- Representative	Sung Tae Kim
- Main business	Investment in and management of other companies
- Major subsidiary company?	No
Total assets of subsidiary company (KRW)	1,199
Consolidated total assets of parent company (KRW)	22,340,423,719,351
Ratio to consolidated total assets of parent company (%)	0.00