Korea Stock Market Insights

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Surplus Global Announces Treasury Stock Disposal: Impact on Stock Price and Investment Strategy
Surplus Global’s Treasury Stock Disposal: Opportunity or Risk?

Surplus Global’s decision to dispose of treasury stock worth 6.5 billion won has garnered significant attention from investors. Does this decision signal a turnaround for the company, or is it a precursor to financial distress? This article analyzes the background and implications of Surplus Global’s treasury stock disposal, its potential impact on investors, and suggests future investment strategies.
1. What Happened? : Decoding the Treasury Stock Disposal

On September 23, 2025, Surplus Global announced its decision to dispose of 2,160,000 common shares, representing 5.84% of its total outstanding shares. This equates to approximately 6.5 billion won and aims to secure funds for issuing exchangeable bonds (EB).

2. Why This Decision? : Uncovering the Background and Implications

Surplus Global is currently facing financial challenges, including declining sales, operating losses, and weakened cash flow. In this context, the decision to raise capital through treasury stock disposal is interpreted as a necessary step to secure short-term liquidity and fund new business ventures. The company appears to be prioritizing investment in new growth engines such as the used semiconductor equipment parts business and the establishment of a global marketplace.

3. So, What About the Stock Price? : Market Impact Analysis
- Positive Aspects: Securing short-term liquidity and the potential for growth momentum through new business investments.
- Negative Aspects: Potential stock dilution from EB issuance and the possibility of continued struggles in existing businesses.
Ultimately, this treasury stock disposal could have both positive and negative short-term impacts on the stock price. The key lies in how effectively the raised funds are utilized. Successful new business ventures and financial restructuring could act as catalysts for stock price appreciation. Conversely, failure to achieve these goals could exacerbate downward pressure on the stock.

4. What Should Investors Do? : Investment Strategy Recommendations

Investors should closely monitor the following:
- Terms and outcome of the EB issuance
- Specific use and execution of the raised funds
- Performance of new businesses and recovery of existing businesses
- Overall market conditions and macroeconomic indicator changes
It’s crucial to focus on the company’s long-term growth potential rather than short-term stock price volatility when making investment decisions. Investment strategies should be formulated based on careful analysis and prudent judgment.
Frequently Asked Questions

What is treasury stock disposal?

Treasury stock disposal refers to a company selling its own repurchased shares back into the market. This can be done to increase the value of remaining shares by reducing the number outstanding or to raise capital.

What are exchangeable bonds (EB)?

Exchangeable bonds are bonds that give the holder the right to exchange them for shares of a company other than the issuer, or for another asset. Investors receive interest payments until maturity and have the option to exchange the bonds for stock, potentially profiting from price appreciation.

What is the outlook for Surplus Global’s stock price?

Raising capital through treasury stock disposal can have both positive and negative effects on the stock price in the short term. The success of new business ventures and financial restructuring will be key factors in determining the stock’s direction. Investors should closely monitor the company’s future business strategy and performance.
09/23/2025
Surplus Global Issues ₩6.5B Convertible Bonds: A Strategic Move or a Desperate Gamble?
Semiconductor equipment company Surplus Global has announced the issuance of ₩6.5 billion in convertible bonds. This move is interpreted as a way to secure funds amidst declining performance, but the high debt ratio and conversion price are raising concerns among investors. This article analyzes the background of Surplus Global’s convertible bond issuance and key points from an investment perspective, and presents an action plan for investors.
1. What Happened at Surplus Global?

On September 23, 2025, Surplus Global announced the issuance of ₩6.5 billion in convertible bonds. The conversion price is set at ₩3,018, approximately 18.4% higher than the current stock price. Key investors include Korea Investment & Securities, Shinhan Investment Corp., and IBK Capital.

2. Why Issue Convertible Bonds?

Surplus Global’s performance in the first half of 2025 was weak. Sales decreased by 58.8% year-on-year, and both operating income and net income turned to losses. The high debt ratio and increasing inventory levels raise concerns about financial soundness. In this situation, issuing convertible bonds appears to be an inevitable choice to secure short-term working capital and raise funds for new business investments.

3. Convertible Bonds: Opportunity or Risk?
- Positive Aspects:
  Securing short-term liquidity.
  Potential for securing growth engines through investment in new businesses.
- Negative Aspects:
  Increased financial burden due to a higher debt ratio.
  Pressure on stock price due to the high conversion price compared to the current market price.
  Risk of future interest rate hikes and exchange rate fluctuations.
4. What Should Investors Do?

While the issuance of convertible bonds can provide a short-term cash injection, long-term growth cannot be guaranteed without fundamental improvements in business competitiveness. Investors should carefully monitor the following:
- Conversion of convertible bonds.
- Performance of new businesses (used semiconductor equipment cluster, global open market).
- Recovery trend of the semiconductor market.
- Future profitability improvement.
Currently, it is advisable to maintain a cautious wait-and-see approach and take a conservative perspective, considering the additional financial burden and the high conversion price.
FAQ

What are convertible bonds?
Convertible bonds are bonds that give the holder the right to convert them into shares of the issuing company’s stock. Investors can hold the bonds to maturity and receive principal and interest, or they can convert them into stock within a specified period.

How will this convertible bond issuance affect Surplus Global’s stock price?
In the short term, it could be positive due to increased liquidity. However, in the long term, there is the possibility of stock dilution due to bond conversion. The company’s earnings improvement will likely have a greater impact on the stock price.

What should investors be aware of?
It’s important to consider the company’s financial restructuring efforts, the performance of new businesses, and the overall semiconductor market conditions when making investment decisions.
09/23/2025
Surplus Global Issues ₩8.3B Convertible Bonds: Dilution Risk or Growth Catalyst?
Surplus Global, a leader in the used semiconductor equipment market, has announced the issuance of ₩8.3 billion in convertible bonds (CBs). With mixed interpretations viewing this as a necessary cash injection or a potential dilution risk, investors face a critical decision. This article analyzes the reasons behind Surplus Global’s CB issuance, its potential impact on investors, and suggests successful investment strategies.
1. Surplus Global’s ₩8.3B CB Issuance: What Happened?
On September 23, 2025, Surplus Global announced the issuance of ₩8.3 billion worth of convertible bonds (CBs). The conversion price is set at ₩2,602, with payment due on October 1st. This CB issuance will be conducted privately, with the primary investors being KOSDAQ venture-related private equity trusts.

2. Why Issue CBs?: Background and Objectives
Surplus Global recorded an operating loss of ₩18.3 billion in the first half of 2025, marking a shift into the red. This is a direct result of the semiconductor downturn. The CB issuance is analyzed as a move to secure operating funds and investment resources for new businesses. In particular, investments to secure new growth engines, such as the launch of the ‘Semimarket’ online platform and the Parts business, are urgent.

3. Impact on Investors: Opportunity vs. Risk
- Positive Aspects:
  Improving financial structure and expanding investment in new businesses through secured funding
- Negative Aspects:
  Potential stock dilution due to conversion of bonds
  Increase in short-term financial burden
4. Investment Strategy: How Should Investors Respond?
Investors should be wary of increased stock volatility in the short term. In the medium to long term, the success of new businesses and the recovery of the semiconductor industry will determine the stock’s direction. Before making investment decisions, a thorough review of the specific use plan for the CB funds and the growth roadmap for new businesses is essential.
FAQ
What are Convertible Bonds (CBs)?
Convertible Bonds (CBs) are issued as debt but give the holder the option to convert them into shares of the issuing company’s stock after a certain period.
How will Surplus Global’s CB issuance affect its stock price?
In the short term, there are concerns about stock dilution due to potential conversion. However, in the long term, business expansion through funding could drive stock price increases.
What is the outlook for Surplus Global?
The recovery of the semiconductor market and the success of new businesses are expected to significantly impact Surplus Global’s future performance and stock price.
09/23/2025