BaekHak Beverage, a privately held bottle water company of Lotte Chilsung Beverage, said that it has borrowed 13 billion won ($11.3 million) from Lotte Capital.
With an annual interest rate of 3 percent, the loan is due in April 2017. BaekHak said in a regulatory filing that the inter-affiliate loan is an extension of its previous loan from Lotte Capital.
Lotte Chilsung Beverage, a soda giant of Lotte Group, has an 86.06 percent in BaekHak, while the Military Mutual Aid Association, a pension for soldiers, owns the remaining shares, according to an audit filing.
BaekHak posted an operating profit of 1.2 billion won last year, from 377 million a year ago, according to its audit filing.
By Park Hyong-ki (hkp@heraldcorp.com)