Merger decision (subsidiary)

What happened

KR Motors / Merger Decision (Subsidiary's Material Management Matter) / (2026.07.27) Report on a material management matter of the subsidiary (Dynamec Inc.)

1. Merger method: KR Motors Co., Ltd. absorbs its subsidiary Dynamec Inc. - Surviving company: KR Motors Co., Ltd. (KOSPI-listed) - Dissolved company: Dynamec Inc. * Surviving company's name after the merger: KR Motors Co., Ltd.

2. Purpose: to improve management efficiency and strengthen business competitiveness through business integration; to speed up decision-making via organizational/operational integration and to minimize unnecessary costs through combined purchasing, thereby expanding competitiveness in domestic and overseas markets and enhancing responsiveness to potential customers, ultimately maximizing corporate value.

3. Merger ratio: 0.0000000 4. Basis for the merger ratio: since the merging company, KR Motors Co., Ltd., owns 100% of the dissolved company Dynamec Inc., no new shares will be issued to the dissolved company's shares in the merger, so the ratio is calculated as 1:0. - Entity value: surviving company - not disclosed; dissolved company - not disclosed

5. New merger shares: common shares - none; class shares - none

6. Merger counterparty Company name: KR Motors Co., Ltd.; main business: manufacture of motorcycles; relationship: parent company Financial details, most recent fiscal year (KRW million): total assets 94,555; capital stock 43,188; total liabilities 50,841; sales 13,823; total equity 43,714; net income -1,781

7. Newly incorporated merger company: not applicable

8. Merger schedule: shareholders' meeting expected 2026-08-26; period for submitting old share certificates 2026-08-27 to 2026-09-29; creditor objection period 2026-08-27 to 2026-09-29; merger effective date 2026-09-30; merger registration date 2026-10-01; new-share delivery date: not applicable

9. Appraisal rights: not applicable

10. Board resolution date: 2026-07-27; outside director attendance: not applicable; audit committee member who is not an outside director: present

11. Future corporate restructuring plans: as of this report's filing date, no confirmed plans for corporate restructuring after the merger.

12. Other matters of reference for investment decisions 1) Although structured as a small-scale merger, under Commercial Act Article 527-3, Paragraph 4, the merger cannot proceed as a small-scale merger if shareholders holding at least 20% of the surviving company's total issued shares give written notice of opposition within two weeks of the public notice of the merger. 2) The merger counterparty's financial details above are as of the 2025 year-end financial statements. 3) The merger agreement may be amended or terminated if, between the agreement date and the merger date (or any deadline set in the agreement), grounds for termination or loss of effect under the agreement arise, including required governmental approvals, consultation with or requirements of relevant authorities, unforeseeable force majeure, sharp changes in economic conditions, material changes in business condition, or other circumstances requiring amendment. 4) The schedule above is an expected schedule as of this disclosure and may change depending on consultations and approvals with relevant authorities and the circumstances of the merging companies. 5) The closing report meeting in the schedule above will be replaced by a board resolution and public notice, pursuant to Commercial Act Article 526, Paragraph 3.

Related disclosure: 2026-07-27, merger decision. Related regulation: Financial Investment Services and Capital Markets Act.

[Subsidiary information] Subsidiary name: Dynamec Inc. (English: DYNAMEC Inc.); representatives: Jang Pil-won (co-CEO), Jeong Jae-gyeong (co-CEO); main business: manufacture of automotive parts; major subsidiary: Yes; subsidiary's total assets (KRW): 66,382,363,756; parent's consolidated total assets (KRW): 94,195,951,474; ratio to parent's consolidated total assets: 70.47%