Korea Stock Market Insights

Tag: Convertible Bonds

Daewha Pharmaceuticals Issues 6.1 Billion KRW Convertible Bonds: Impact on Stock Price
Daewha Pharmaceuticals Announces 6.1 Billion KRW Convertible Bond Issuance: What Does it Mean for Investors?
Daewha Pharmaceuticals has captured the attention of investors with its recent announcement to issue 6.1 billion KRW worth of convertible bonds. Is this fundraising a positive or negative sign, especially considering the positive momentum from Liporaxel’s approval in China? This article analyzes the background and implications of the convertible bond issuance and highlights the key points investors should focus on.
1. What’s happening with Daewha Pharmaceuticals’ Convertible Bond Issuance?

Daewha Pharmaceuticals announced on September 19, 2025, the issuance of convertible bonds worth 6.1 billion KRW. Issued privately, the conversion price is set at 15,724 KRW per share, with payment due on September 26th. The bonds are being issued to Hosan-Meritz New Technology Investment Association No. 1 and are convertible from October 26, 2025, to August 26, 2030.

2. Why is Daewha Pharmaceuticals issuing these bonds?

Despite positive R&D achievements like Liporaxel’s approval in China and the new drug application for breast cancer indication, Daewha is facing financial challenges, including declining sales, continued net losses, and a high debt burden of approximately 123.2 billion KRW. This bond issuance is likely aimed at securing short-term operating funds and financing investments in future growth drivers, such as the commercialization of Liporaxel.

3. How will this impact the stock price?
- Positive Impacts: Improved short-term financial liquidity, potential long-term increase in enterprise value through investments in growth drivers, and potential stock price appreciation.
- Negative Impacts: Potential stock dilution upon conversion, increased debt burden, and potential deterioration of financial structure if profitability doesn’t improve.
4. What should investors do?

Investors should pay close attention to the following:
- Monitor how the funds from the bond issuance are used and their effectiveness.
- Track the progress of Liporaxel’s commercialization and other R&D achievements.
- Follow changes in Daewha’s financial health indicators and risk management strategies.
- Evaluate management’s communication with investors and the transparency of information disclosure.
The future trajectory of Daewha’s stock price will largely depend on the effective use of the funds raised and the successful commercialization of its R&D pipeline, especially Liporaxel.
Frequently Asked Questions (FAQ)

What are convertible bonds?

Convertible bonds are debt securities that give the holder the option to convert them into shares of the issuing company’s stock. Investors can either hold them to maturity and receive the principal and interest or convert them into stock within a specified period.

Is this convertible bond issuance positive for the stock price?

In the short term, raising capital can improve financial liquidity. However, the long-term potential for stock dilution upon conversion exists. It’s important to consider both the potential positive and negative impacts.

What is the outlook for Daewha Pharmaceuticals?

The successful commercialization of Liporaxel and the development of new pipelines are key factors for future growth. However, the high debt burden remains a significant risk factor.
09/19/2025
Welcron (065950) Issues KRW 2.3 Billion Convertible Bonds: What’s Next for the Stock?
Welcron has decided to issue KRW 2.3 billion worth of convertible bonds. Raising capital is a crucial event for corporate growth, but it also brings changes to the financial structure. Check out the analysis now to see how this convertible bond issuance will affect Welcron’s stock price and what investors should pay attention to!
What Happened?

Welcron announced on September 19, 2025, that it would issue KRW 2.3 billion in convertible bonds. The conversion price is KRW 2,331, with a 0% coupon and maturity rate, and it will be issued privately. The conversion start date is September 30, 2025, and the conversion end date is August 29, 2028.

Why Does It Matter?

This convertible bond issuance affects Welcron’s fundraising and financial structure. The raised funds can be used for investment activities, securing operating funds, or repaying existing debt. The 0% interest rate reduces the burden of interest expenses, but increased debt can impact financial soundness. The fact that the conversion price is higher than the current price (KRW 2,020) can raise expectations for future stock price increases.

So What’s Next?
- Positive aspects: Business expansion, expectations of stock price increase
- Negative/Neutral aspects: Possibility of increased debt, gap between current price and conversion price, uncertainty regarding the use of funds
Currently, Welcron is facing the challenges of declining sales and a high debt ratio. The key is how Welcron will utilize the funds raised through the convertible bond issuance to improve its fundamentals and secure growth engines. External factors such as exchange rates, interest rates, and oil prices can also affect Welcron’s business.

What Should Investors Do?

The current investment recommendation is to wait and see. Short-term stock price volatility is expected, so a cautious approach is necessary. In the mid- to long-term, investors should closely monitor the performance of new renewable energy and secondary battery material businesses, improvement in profitability of the construction/plant sector, and management of the debt ratio.
Frequently Asked Questions (FAQ)

What are convertible bonds?

Convertible bonds are a type of bond that gives the holder the right to convert them into shares of the issuing company’s stock.

Will this convertible bond issuance have a positive impact on Welcron’s stock price?

It could be positive in that it can secure growth engines through fundraising, but increased debt is a burden. It is necessary to monitor the future use of funds and improvement of fundamentals.

What are Welcron’s main businesses?

Welcron operates in the textile, construction, plant, and new renewable energy businesses.
09/19/2025
Playwith’s Convertible Bond Exercise: Short-term Pain, Long-term Gain?
Playwith’s announcement to exercise convertible bonds for 140,000 shares has investors on alert. This raises concerns about short-term stock price declines while also hinting at potential long-term financial improvements. What investment strategy should you adopt in this situation? This article analyzes the background of the convertible bond exercise, its short-term and long-term impacts, and provides key considerations and investment implications.
1. What Happened? Overview of Playwith’s Convertible Bond Exercise
On September 19, 2025, Playwith announced the exercise of convertible bonds for 143,740 shares. This represents 1.64% of the current market capitalization, with a conversion price of 4,522 KRW. The converted shares are scheduled to be listed sequentially on October 1 and 10, 2025.

2. Why Does it Matter? Impact Analysis of the Convertible Bond Exercise
The exercise of convertible bonds can lead to short-term downward pressure on the stock price due to the increased number of shares. However, it can also lead to improved financial structure through debt reduction and capital increase. The key point is that the current stock price (5,250 KRW) is higher than the conversion price (4,522 KRW). This implies the possibility of profit-taking through the exercise of convertible bonds, and investors should be wary of potential selling pressure.

3. So What? Investment Implications and Action Plan
- Short-term Investors: Be cautious of increased stock price volatility due to the influx of converted shares. Careful investment decisions are necessary, considering the possibility of short-term price declines.
- Long-term Investors: Focus on the positive impact of the improved financial structure. However, continuous monitoring of Playwith’s fundamentals is crucial, particularly focusing on improvements in operating profit.
4. Playwith Company Analysis
Playwith is a game developer that services online games such as Rohan Online and Seal Online, and mobile games like Seal M and Rohan 2. Despite recent growth in mobile game sales, the company continues to experience operating losses, with high royalties, payment fees, and intangible asset amortization expenses acting as major risk factors.
Frequently Asked Questions (FAQ)
What are convertible bonds?
Convertible bonds (CBs) are a type of bond that gives the holder the right to convert the bond into a predetermined number of shares of the issuer’s common stock at a specified price (conversion price) within a particular period.
How does the exercise of convertible bonds affect stock prices?
In the short term, it can put downward pressure on stock prices due to increased share supply. However, in the long term, it can positively impact the financial structure by reducing debt and increasing capital.
What should I be aware of when investing in Playwith?
Be mindful of increased short-term stock price volatility, and continuously monitor the company’s fundamentals, particularly the improvement in operating profit and the success of new game releases.
09/19/2025
Seegene AI Issues $5B Convertible Bonds: Opportunity or Risk? An In-depth Analysis for Investors
Seegene AI has announced the issuance of $5 billion in convertible bonds (CBs). While there’s anticipation of growth fueled by this new funding, concerns about the company’s financial health are also being raised. This article provides an in-depth analysis of Seegene AI’s CB issuance and its potential impact, highlighting key points for investors to consider.
What Happened?
Seegene AI announced on September 19, 2025, the issuance of $5 billion in private convertible bonds (CBs). This represents 9.61% of the company’s market capitalization, with a payment date of September 29th. The coupon rate is 0%, with a maturity rate of 5%, and the conversion price is set at ₩3,629, close to the current market price.

Why Issue Convertible Bonds?
Seegene AI is facing challenges due to a sharp decline in sales and continued operating losses. This CB issuance is likely intended to secure operating funds and invest in its future growth engine, the medical AI business.

What Impact Will the CB Issuance Have?
Positive Aspects:
- Secures operating and R&D funds
- Strengthens investment in new business (Medical AI)
Negative Aspects:
- Potential dilution of existing shareholder value upon conversion
- 5% interest payment burden at maturity
- Continued concerns about financial health
- Increased stock price volatility
What Should Investors Do?
Key Investment Points:
- Maintain a conservative perspective: Verify sales recovery and profitability improvement.
- Monitor the transparency and efficiency of fund utilization.
- Consider the long-term growth potential (Medical AI).
- Monitor CB conversion conditions and timing.
This report is for investment reference only, and the responsibility for investment decisions rests with the individual investor.
FAQ
What are Seegene AI’s main businesses?
Seegene AI’s core businesses are AI facial recognition systems and AI object recognition solutions. They are also actively developing medical AI solutions.
What are convertible bonds?
Convertible bonds are issued as debt but give the bondholder the option to convert them into shares of the issuing company’s stock under certain conditions.
How will this convertible bond issuance affect the stock price?
In the short term, it could negatively impact the stock price due to the possibility of share dilution. In the long term, however, it could positively impact the price depending on the company’s growth. Investors should carefully consider these factors.
What is the investment outlook for Seegene AI?
Seegene AI faces the challenge of addressing declining sales and profitability. The success of their medical AI business will likely significantly influence their future stock price.
09/19/2025
Syntekabio Secures Investment: A Turning Point or a Temporary Reprieve?
AI drug discovery company Syntekabio has secured an investment from Ssangyong Savings Bank. Is this a much-needed lifeline for the financially struggling company, or simply the calm before the storm? We analyze the implications of this investment and provide a clear outlook for investors.
What Happened?

On September 19, 2025, Syntekabio secured a 9.44% equity investment through a convertible bond issuance to Ssangyong Savings Bank.

Why Does This Investment Matter?

Syntekabio has been facing financial difficulties due to continuous operating losses and increasing debt. This investment provides an opportunity to improve the company’s financial structure through short-term funding and secure capital necessary for business operations. Furthermore, investment from a financial institution can positively impact market confidence.

What’s Next?
- Positive Scenario: The influx of funds could improve the financial structure and accelerate the growth of the AI drug discovery platform and data center business.
- Negative Scenario: There is a possibility of stock dilution due to the conversion of convertible bonds into shares, and potential short-term stock price volatility. Also, if fundamental profitability does not improve, long-term growth could be challenging.
What Should Investors Do?

Investors should look beyond short-term stock price fluctuations and closely monitor the company’s fundamental improvements. It’s crucial to observe the commercialization and revenue generation of the AI drug discovery platform, the performance of the data center business, and changes in key financial health indicators.
Frequently Asked Questions

What are convertible bonds?
Convertible bonds are a type of debt security that can be converted into shares of the issuing company’s stock after a certain period.

How will this investment affect Syntekabio’s stock price?
Short-term volatility may increase, but the long-term impact will depend on the company’s fundamental improvements.

What are Syntekabio’s main businesses?
Syntekabio focuses on AI drug discovery platform and data center business.
09/19/2025
Cellbio Human Tech Issues ₩3.5B Convertible Bonds: What’s Next for Stock Price?
Cellbio Human Tech has announced the issuance of ₩3.5 billion in convertible bonds, marking a significant shift in the company’s growth and financial strategy. This article delves into the reasons and implications of this decision, providing investors with valuable insights into the potential impact on Cellbio Human Tech’s stock price and future prospects. Read on to find out more.
1. Cellbio Human Tech Issues ₩3.5B in Convertible Bonds: What Happened?

Cellbio Human Tech has decided to issue ₩3.5 billion worth of convertible bonds. These bonds offer the holder the option to convert them into company stock. The bonds carry a 0% coupon rate, with payment due on September 26, 2025, and a conversion period from October 26, 2025, to August 26, 2032. The conversion price is set at ₩10,236, higher than the stock price of ₩9,410 at the time of the announcement.

2. Why the Convertible Bond Issuance?

Officially, the funds are intended for further investment and improvement of the company’s financial structure. While the specific use of the funds hasn’t been disclosed, it’s expected they will be allocated towards new business ventures, research and development, or operating expenses. Considering Cellbio Human Tech’s ongoing expansion into wound dressings, medical fields, and business diversification, this funding could be a crucial step in securing future growth drivers.

3. What Does This Mean for the Stock Price?
- Short-term impact: The increased liquidity and low borrowing costs are positive. The conversion price being higher than the current market price also suggests potential short-term stock price appreciation. However, the possibility of future dilution could negatively impact the share price.
- Long-term impact: If the procured funds are successfully invested in new ventures and yield positive results, it can secure long-term growth. Conversely, failed investments or significant dilution could put downward pressure on the stock price. The recent correction regarding mask pack material production capacity is not expected to significantly impact the stock price in the short term.
4. What Should Investors Do?

Investors should focus on the company’s fundamentals and growth potential of new businesses, rather than reacting to short-term stock price fluctuations. Closely monitoring the use of the funds, the progress of new ventures, and the potential for dilution is crucial.
Frequently Asked Questions (FAQ)

What are convertible bonds?
Convertible bonds are a type of debt security that gives the holder the option to convert them into a predetermined number of shares of the issuing company’s common stock.
How will this bond issuance affect the stock price?
In the short term, improved liquidity, low borrowing costs, and the conversion premium could positively impact the stock price. However, the potential for dilution could negatively affect it in the long term.
What is the outlook for Cellbio Human Tech?
The efficient utilization of the funds and the success of new ventures will be key to Cellbio Human Tech’s future. Investors should continue to monitor the company’s fundamentals and progress in new business areas.
09/18/2025
AprilBio’s Convertible Bond Exercise: Impact on Investors
AprilBio’s recent exercise of convertible bonds has caught the attention of investors. How will the issuance of over 230,000 new shares impact the stock price? This article delves into the background and implications of this event, analyzing its short-term and long-term effects, and outlining key considerations for investors. If you’re considering investing in AprilBio, read on!
AprilBio’s Convertible Bond Exercise Explained
On September 18, 2025, AprilBio announced the exercise of its first convertible bond (CB). This signifies that CB holders have opted to convert their bonds into shares, resulting in the issuance of 233,105 new shares, representing approximately 1.03% of the company’s market capitalization. The conversion price is set at ₩12,828, significantly higher than the current stock price of ₩234.

Why is the Convertible Bond Exercise Important?
The exercise of convertible bonds can lead to a dilution effect, decreasing the value of existing shares. Additionally, the substantial gap between the current stock price and the conversion price may negatively impact investor sentiment. However, the relatively small number of shares issued compared to the market capitalization and the fact that this reflects the decisions of existing CB holders suggest that the market impact might be limited.

What Should Investors Do?
- Short-term perspective: Concerns about dilution could increase stock price volatility. Maintaining a cautious stance and monitoring the market situation is advisable.
- Long-term perspective: AprilBio’s core value lies in its innovative SAFA platform technology and promising pipeline. Investment decisions should be based on a long-term view, considering clinical trial results, new licensing agreements, and other positive business outcomes.
Key Pipeline and Future Outlook
AprilBio boasts a diverse pipeline, including APB-A1 for autoimmune diseases (licensed to Lundbeck) and APB-R3 for inflammatory diseases (licensed to Evommune Inc.). Future clinical progress and licensing agreements are expected to significantly influence the stock price. Furthermore, investors should monitor the company’s collaborations with global pharmaceutical companies and its efforts to improve its financial health.
FAQ
Does the exercise of convertible bonds only have a negative impact on the stock price?
Not necessarily. While there are short-term concerns about dilution, the company’s fundamentals and growth potential have a greater long-term impact on the stock price.
What is AprilBio’s core technology?
It’s the SAFA (Serum Albumin Fab-Associated) platform technology, which extends the serum half-life of therapeutic proteins, reducing the frequency of administration and improving efficacy.
What should investors be cautious about?
It’s crucial to carefully review clinical trial results, licensing agreement outcomes, and financial health, making investment decisions from a long-term perspective.
09/18/2025
ToolGen’s Convertible Bond Exercise: Stock Dilution and Investor Implications
ToolGen’s recent convertible bond exercise has caught the attention of investors. What impact will the listing of 92,840 new shares have on the stock price? This article provides an in-depth analysis of ToolGen’s fundamentals, the implications of the convertible bond exercise, and key considerations for investors. If you’re considering investing in ToolGen, read on to inform your investment strategy.
What Happened? ToolGen’s Convertible Bond Exercise
On September 18, 2025, ToolGen announced the exercise of convertible bonds for 92,840 shares. The conversion price is 29,620 KRW, and the new shares are scheduled to be listed on September 29 and October 13. This represents 1.08% of the company’s market capitalization.

Why Does This Matter?
The exercise of convertible bonds leads to an increase in the number of outstanding shares, raising the possibility of stock dilution. The significant gap between the current stock price (7 KRW) and the conversion price (29,620 KRW) can create unease among investors. Additionally, the increase in circulating supply can amplify stock price volatility.

ToolGen’s Current State and Future Outlook
- Declining Revenue and Structural Changes: Based on the 2025 semi-annual report, ToolGen experienced a decline in revenue from its patent monetization business and a sharp drop in license income. The increase in other revenue streams is a positive sign.
- R&D Investment: High R&D investment relative to revenue is positive but contributes to short-term profitability challenges.
- Financial Status: Negative operating cash flow and continued net loss. Convertible bond issuance adds to financial burden.
- Intellectual Property: A rich portfolio of intellectual property, including CRISPR gene editing technology, offers long-term growth potential.
What Should Investors Do?
While the immediate risk of stock dilution is limited, the existence of convertible bonds can weigh on market sentiment. ToolGen investors should consider the following:
- Recovery of the patent monetization business and growth of new business areas.
- Progress in pipeline development and the potential for successful commercialization.
- Securing financial soundness and improving R&D investment efficiency.
- Adapting to changes in the macroeconomic environment.
Careful monitoring of ToolGen’s fundamentals and stock price movements is crucial before making investment decisions.
FAQ

What is ToolGen’s convertible bond exercise?
A convertible bond gives the bondholder the right to convert the bond into shares of the company’s stock at a predetermined price (conversion price) after a specific period. In ToolGen’s case, convertible bonds for 92,840 shares have been exercised, leading to the issuance of new shares.
How does the convertible bond exercise impact the stock price?
The exercise of convertible bonds increases the number of outstanding shares, potentially diluting the value of existing shares. The listing of new shares also increases the circulating supply, which can lead to greater stock price volatility.
What should investors consider when investing in ToolGen?
ToolGen is currently facing challenges such as declining revenue and continued losses. Investors should carefully evaluate the company’s fundamentals, pipeline development progress, and financial health. Monitoring the impact of convertible bond issuance and stock price movements is also crucial.
09/18/2025
LTC Convertible Bond Issuance: Short-term Pain, Long-term Gain?
LTC Issues Convertible Bonds: Opportunity or Threat?
LTC’s announcement of a convertible bond issuance has investors on high alert. How will the issuance of over 420,000 new shares impact the market? Is a short-term stock price decline inevitable? This article analyzes the background and impact of LTC’s convertible bond issuance and highlights key points for investors.
What’s Happening? LTC Announces Convertible Bond Issuance

LTC announced a new convertible bond issuance on September 18, 2025. Bondholders are exercising their conversion rights, leading to the issuance of 420,756 new shares. This represents 4.32% of the current market capitalization. The scheduled issuance date is October 2, 2025, with a conversion price of ₩11,693. The lower conversion price compared to the current stock price (₩19,650) raises concerns about potential profit-taking.

Why the Issuance? LTC’s Financial Strategy

LTC achieved a turnaround in the first half of 2025, demonstrating positive fundamentals. The company has secured growth momentum based on strong performance in its equipment division and the potential of new businesses (SOFC, OLED materials). This convertible bond issuance is interpreted as a strategy to improve financial structure by converting debt into equity and to enhance profitability by reducing interest expenses.

What’s the Impact? Short-term Pain vs. Long-term Gain
- Short-term Impact: The increased supply of shares and potential profit-taking may exert downward pressure on the stock price in the short term.
- Long-term Impact: The issuance is expected to improve financial health by reducing debt and increasing capital, and enhance profitability by lowering interest expenses. Considering LTC’s solid fundamentals and growth potential, there is a possibility of stock price recovery in the long run.
What Should Investors Do? Prudent Approach and Long-term Perspective

The investment recommendation is ‘Neutral’ or ‘Hold’. Investors should approach with caution, mindful of short-term price volatility. Those who believe in LTC’s growth potential may consider a dollar-cost averaging strategy in case of price declines. Continuous monitoring of post-conversion stock movements, new business performance, and industry trends is crucial.
Frequently Asked Questions (FAQ)

What are convertible bonds?

Convertible bonds are a type of debt security that gives the holder the option to convert the bond into a predetermined number of shares of the issuer’s common stock.

Does LTC’s convertible bond issuance only have negative impacts on its stock price?

In the short term, increased share supply can put downward pressure on the stock price. However, in the long term, improved financial structure is expected, and depending on the company’s growth, there is a possibility of a stock price increase.

Should I invest in LTC?

Investment decisions should be based on your own judgment. This analysis is not investment advice, and investment involves inherent risks.
09/18/2025
Tae Kwang Industry (003240) Convertible Bond Issuance Dispute: Impact on Investors
Tae Kwang Industry is facing a legal challenge from Truston Asset Management regarding its plan to issue convertible bonds worth 318.6 billion won. How will this injunction affect Tae Kwang Industry, a company showing signs of improving fundamentals? This article analyzes the core of the convertible bond issuance dispute and its impact on investors, highlighting key points to watch for in the future.
What Happened?
Tae Kwang Industry planned to issue convertible bonds worth 318.6 billion won, with treasury shares as the underlying asset. However, Truston Asset Management filed an injunction against this plan, seeking to suspend the issuance and the resolution to dispose of treasury shares.

Why Did This Happen?
Truston Asset Management argues that Tae Kwang Industry’s board resolution is disadvantageous to shareholders, specifically objecting to the method of issuing convertible bonds and disposing of treasury shares. Concerns have been raised that the issuance of convertible bonds through the disposal of treasury shares could benefit specific shareholders.

How Will This Affect Investors?
This event is likely to act as a short-term negative factor for Tae Kwang Industry’s stock price. Increased uncertainty could dampen investor sentiment, and the court’s decision could lead to increased stock price volatility. Furthermore, if the convertible bond issuance fails, Tae Kwang Industry’s mid-to-long-term financial plans could be disrupted.
- Short-term impact: Potential stock price decline if the injunction is granted
- Long-term impact: Disruption of funding plans and delay in new business investments
What Should Investors Do?
Investors should closely monitor the court’s decision on the injunction and Tae Kwang Industry’s subsequent response. It is crucial to consider short-term price volatility while making investment decisions based on a comprehensive assessment of the company’s fundamentals and long-term growth potential.
- Key observation points: Court decision, Tae Kwang Industry’s response, future shareholder activities
- Investment strategy: Caution against short-term volatility, consider fundamentals and growth potential
Frequently Asked Questions (FAQ)
What are convertible bonds?
Convertible bonds are bonds that can be converted into shares of the issuing company’s stock. Investors can receive bond interest until maturity or convert the bonds into stock under specified conditions to seek capital gains.
Why is the disposal of treasury shares problematic?
The disposal of treasury shares can dilute the ownership of existing shareholders, and if disposed of at a favorable price to specific shareholders, it may violate the principle of shareholder equality.
How are Tae Kwang Industry’s fundamentals?
Tae Kwang Industry’s fundamentals have been improving since 2022, and a positive earnings outlook is projected for 2025. However, this lawsuit creates short-term uncertainty.
09/17/2025