Korea Stock Market Insights

Tag: Convertible Bonds

SMCG Issues KRW 3.4B Convertible Bonds: What’s Next for the Stock?
SMCG Issues KRW 3.4B in Convertible Bonds: Impact on Stock Price?
Cosmetic container manufacturer SMCG has announced the issuance of KRW 3.4 billion in convertible bonds. This presents both an opportunity for growth through funding and a risk of increased financial burden. This article analyzes the background of the bond issuance, its potential positive/negative impacts on the stock price, and key points for investors to consider.
1. What Happened? SMCG Announces Convertible Bond Issuance
On September 22, 2025, SMCG announced the issuance of KRW 3.4 billion in convertible bonds. The conversion price is set at KRW 7,518 (higher than the current stock price of KRW 6,300), with payment due on September 30th. The conversion period is from October 30, 2025, to August 30, 2029.
2. Why the Bond Issuance? Funding Objectives and Background
SMCG aims to secure funds for R&D, facility investment, business expansion, and improve its financial structure through this bond issuance. Considering the declining stock price since its KOSDAQ listing, opting for convertible bonds instead of issuing new shares seems strategic.
3. What’s the Impact on the Stock? Positive/Negative Analysis
- Positive Aspects:
- Potential Negative Aspects:
4. What Should Investors Do? Key Checkpoints
- Monitor the use of funds and execution of plans
- Keep an eye on future earnings announcements (revenue growth, operating margin improvement, net income turning to profit)
- Check changes in financial soundness indicators (debt ratio, interest coverage ratio, etc.)
- Understand the trends in exchange rates and raw material prices
- Analyze global economic and cosmetics market trends
Investors should be aware of potential short-term stock price volatility and make investment decisions based on a comprehensive assessment of the company’s long-term growth potential and risks.
FAQ
What are convertible bonds?
Convertible bonds are bonds that can be converted into shares of the issuing company’s stock. Investors can either receive bond interest until maturity or convert them into shares within a specified period.
How will the SMCG convertible bond issuance affect the stock price?
In the short term, there may be downward pressure on the stock price due to concerns about stock dilution. However, in the long term, there is also the possibility of stock price appreciation due to improved performance resulting from the use of funds.
What are the key points to consider when investing?
Investment decisions should be made after considering various factors such as fund utilization plans, earnings trends, changes in financial soundness indicators, and changes in the external environment.
09/22/2025
NEXEN Issues KRW 23.5 Billion in Convertible Bonds: Impact on Stock Price?
Tire manufacturer NEXEN has announced the issuance of KRW 23.5 billion worth of convertible bonds. What does this mean for investors? While there’s anticipation of growth fueled by the new funding, there are also concerns about potential stock dilution. This post delves into the background of the bond issuance, its impact, and key considerations for investors.
1. NEXEN’s Convertible Bond Issuance: What Happened?

On September 22, 2025, NEXEN decided to issue KRW 23.5 billion in convertible bonds. The conversion price is set at KRW 7,686, with a 0% coupon and maturity rate. Major investors include NH Investment & Securities and Soosung Asset Management.

2. Why Issue Convertible Bonds?
- Secure Operating Funds: The funds will be used to secure future growth engines such as R&D and facility investment.
- 0% Interest Rate: This is a strategy to minimize short-term financial burden.
- Potential Investment Attraction: The conversion price is set higher than the current stock price, allowing investors to profit if the stock price rises.
3. Impact on Investors
- Positive Aspects: Increased corporate growth is expected through investments in new businesses and R&D using the funds raised. The low interest rate reduces the financial burden.
- Negative Aspects: There is a possibility of stock dilution upon conversion of the bonds. If the stock price fails to reach the conversion price, investors may incur losses.
4. Investor Action Plan

Investment decisions should be made after comprehensive analysis of NEXEN’s fundamentals, growth potential, and risk factors. In particular, careful consideration should be given to the tire industry outlook, NEXEN’s competitiveness, and the macroeconomic environment. This analysis is not an investment recommendation, and the responsibility for investment decisions lies with the individual investor.
FAQ

What are convertible bonds?

Convertible bonds are bonds that can be converted into shares of the issuing company’s stock. Investors can either hold the bonds to maturity and receive interest or convert them into shares to realize profits if the share price rises.

How will NEXEN’s convertible bond issuance affect the stock price?

In the short term, positive news about fundraising can boost stock prices. However, in the long term, the potential for stock dilution due to bond conversions could have a negative impact on stock prices.

What precautions should investors take?

Investors should carefully consider NEXEN’s financial status, business outlook and conversion terms. Ongoing monitoring of market conditions and competitor trends is also critical.
09/22/2025
Devsisters to Sell Treasury Shares Worth ₩39.5B: Taking Cookie Run to New Heights?
Devsisters, the company behind the popular mobile game Cookie Run, has announced a decision to sell treasury shares worth ₩39.5 billion. What does this mean for the company after its surprising turnaround in Q1 2025? Is it simply a funding strategy or a springboard for greater growth? This article analyzes Devsisters’ decision and provides key information for investors.
1. What Happened? : Devsisters Announces ₩39.5B Treasury Share Sale
On September 22, 2025, Devsisters announced its decision to sell 638,376 treasury shares, equivalent to ₩39.5 billion. The proceeds will be used to issue convertible bonds.
2. Why? : Strengthening Finances and Fueling Growth
The sale aims to improve the company’s financial structure and secure funds for business expansion. The capital raised through convertible bonds is expected to be used for new game development, IP acquisition, and global market expansion.
3. What’s Next? : Analyzing Opportunities and Risks
- Positive Impacts: Strengthened financial health, increased investment capacity, new growth drivers, enhanced market trust
- Potential Risks: Terms of convertible bond issuance, efficiency of fund utilization, market volatility
Devsisters showed robust growth in Q1 2025 with revenue of ₩181.058 billion and operating profit of ₩19.517 billion (turning to profit). However, uncertainties remain, including the terms of the convertible bond issuance and the effectiveness of its fund utilization plan.
4. What Should Investors Do? : A Long-Term Perspective
Devsisters’ treasury share sale can be interpreted as a strategic move for growth. The company’s solid fundamentals and the success of its new game are positive factors. However, investors should be mindful of short-term stock price volatility and consider a long-term investment horizon. Carefully reviewing the disclosed information and market conditions before making investment decisions is crucial.
Frequently Asked Questions (FAQ)
How will the sale of treasury shares affect Devsisters’ stock price?
While short-term volatility may increase, it could positively impact the company’s value in the long run.
What are convertible bonds?
Convertible bonds are bonds that can be converted into the issuing company’s stock after a certain period.
What is the outlook for Devsisters?
A positive outlook can be expected based on its strong performance and growth strategy, but monitoring market conditions and changes in the competitive landscape is essential.
09/22/2025
Devsisters Issues $300M Convertible Bonds: Will Cookie Run Rise or Fall?
Devsisters has decided to issue $300 million in convertible bonds. This move presents both an opportunity – securing funds for new investments based on the Cookie Run IP – and a risk – potential stock dilution. Let’s delve into the potential impact of this decision on Devsisters’ future and what investors should watch out for.
1. Devsisters’ $300M Convertible Bond Issuance: What’s Happening?
Devsisters plans to strengthen its financial structure and invest in new businesses by issuing $300 million worth of convertible bonds. These funds are intended for developing new games based on the Cookie Run IP, expanding into the global market, and establishing new business models.
2. Why Issue Convertible Bonds?
The company currently needs to secure cash flow due to share repurchases. Issuing convertible bonds is a way to raise necessary capital while minimizing shareholder backlash compared to issuing stocks. This is interpreted as a strategic choice to secure long-term growth momentum.
3. What Will Be the Impact?
- Positive Effects: Increased potential for securing growth engines, such as developing new Cookie Run IP-based games and expanding into the global market.
- Potential Risks: The current stock price is significantly lower than the conversion price of ₩61,800, posing a risk of diluting existing shareholder value upon future conversion to stocks. Concerns about increased financial burden if the funds are not utilized effectively.
- Macroeconomic Impact: Devsisters, with a high proportion of overseas sales, is sensitive to exchange rate fluctuations. Careful attention should be paid to exchange rate and interest rate volatility.
4. What Should Investors Do?
- Closely monitor Devsisters’ investor relations activities and fund utilization plans.
- Continuously check new game release schedules, game operation performance, and changes in the value of the Cookie Run IP.
- Consider the gap between stock price trends and the conversion price, and monitor market reactions to the possibility of conversion rights exercise.
Frequently Asked Questions (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 after a certain period. Investors can earn interest income from the bonds or convert them to stocks to profit from stock price increases.
How will Devsisters’ convertible bond issuance affect the stock price?
In the short term, the stock price is likely to remain largely unaffected or neutral. However, in the long term, depending on the performance of the fund utilization, the stock price may rise or fall due to the dilution effect of stock conversion.
What should investors be aware of?
Investors should comprehensively consider the difference between the conversion price and the current stock price, fund utilization plans, the competitive landscape of the game industry, and macroeconomic volatility. Thoroughly reviewing the company’s IR materials and disclosure information is crucial.
09/22/2025
JSLink Issues ₩12B Convertible Bonds: Growth Opportunity or Investment Risk?
JSLink’s announcement of a ₩12 billion convertible bond (CB) issuance has caught the attention of investors. Will this fundraising boost JSLink’s growth or become a financial burden? This article analyzes the background and purpose of the CB issuance, its potential positive/negative impacts, and key points for investors to consider.
1. JSLink’s ₩12 Billion CB Issuance: What Happened?
On September 22, 2025, JSLink announced its decision to issue ₩12 billion worth of private convertible bonds. The bonds carry a coupon rate of 2% and a maturity rate of 8%, with ‘Rare Earth Mobility Investment Association’ as the main investor. The payment date is October 2, 2025, and the conversion period is from October 2, 2026, to September 2, 2028.

2. Why Issue Convertible Bonds?
According to the disclosure, JSLink plans to use the funds raised through this CB issuance to invest in its new permanent magnet manufacturing business and strengthen its existing genomics and healthcare business. Having recently achieved profitability and secured growth momentum, JSLink is interpreted as seeking to secure future growth engines and strengthen its market competitiveness through this investment.

3. So, What’s the Impact on Company Value?
- Positive aspects: Securing funds for business expansion and R&D investment, potential debt reduction upon conversion, increased growth expectations
- Negative aspects: Potential equity dilution upon conversion, interest expense burden due to the 8% maturity rate, possibility of conversion price adjustments, impact of macroeconomic variables
4. What Should Investors Watch Out For?
Investors should carefully analyze the impact of the CB conversion ratio, conversion timing, and potential conversion price adjustments on future shareholder value. It’s also crucial to continuously monitor the performance of the new business, macroeconomic variables (exchange rates and interest rates), and the profitability of the existing business. Considering JSLink’s history of financial difficulties, investment decisions should be made cautiously.
FAQ
What are convertible bonds?
Convertible bonds (CBs) are issued as debt but give the holder the right to convert them into shares of the issuing company’s stock after a certain period.
How does a CB issuance affect stock prices?
In the short term, concerns about increased stock supply can lead to price declines, but in the long term, stock prices may rise due to company growth.
What is JSLink’s new business?
In addition to its existing genomics and healthcare business, JSLink is pursuing a permanent magnet manufacturing business, essential for future industries such as electric vehicles and robotics.
09/22/2025
Simmtech’s Convertible Bond Exercise: Impact on Stock Price and Investment Strategy
Simmtech Announces Convertible Bond Exercise: What Does It Mean for Investors?
On September 22, 2025, Simmtech announced the exercise of its convertible bonds. How will this impact the stock price? This article provides an in-depth analysis of the background of the exercise, stock price outlook, and investment strategies. By considering positive and negative factors, market conditions, and financial structure changes, we aim to provide valuable insights for your investment decisions.
What Happened? – Simmtech’s Convertible Bond Exercise Overview

Simmtech announced the issuance of 606,229 new shares through the exercise of convertible bonds on September 22, 2025. This represents 1.82% of the current market capitalization. The new shares will be listed on October 1st and 14th. The conversion price is ₩21,194.

Why the Exercise? – Background and Analysis

The exercise of convertible bonds allows bondholders to convert their holdings into common stock. While the current stock price is lower than the conversion price, making short-term profit unlikely, the exercise could indicate expectations of long-term stock price appreciation.

Simmtech’s Future? – Fundamental and Market Analysis
- Positive Factors: Solid revenue growth, maintained market dominance, and proactive investments to secure future growth engines.
- Negative Factors: Short-term decline in profitability, increased financial burden due to rising debt, and macroeconomic uncertainties.
- Market Conditions: Stock price volatility, rising exchange rates, and fluctuating interest rates.
Impact on Stock Price?

With the current stock price below the conversion price, the direct downward pressure on the stock price is expected to be limited. However, the potential increase in circulating supply due to large-scale conversion should be considered. EPS dilution and changes in financial ratios are also anticipated.

What Should Investors Do? – Investment Strategy Recommendations
- Short-Term Perspective: Monitor potential release of converted shares, trends in fundamental improvement, and macroeconomic indicators.
- Long-Term Perspective: Analyze Simmtech’s competitiveness in the semiconductor market, its System IC market expansion strategy, and the effectiveness of its R&D investments.
Frequently Asked Questions (FAQ)

Does the exercise of convertible bonds negatively impact the stock price?

The current stock price being lower than the conversion price suggests that the immediate downward pressure will be limited. However, the potential increase in the circulating supply should be considered.

What is the long-term investment outlook for Simmtech?

Simmtech possesses positive fundamentals, aligned with the growth of the semiconductor industry. However, short-term profitability improvement and alleviation of financial burden are key variables. The success of its System IC market expansion strategy should also be closely monitored.

What are the key factors to consider when investing in Simmtech?

It’s crucial to continuously monitor changes in the macroeconomic environment, exchange rate volatility, and the potential release of converted shares, enabling informed and prudent investment decisions.
09/22/2025
Deoksung Issues 9.8 Billion Won Convertible Bonds: What’s Next for the Stock?
Deoksung’s 9.8 Billion Won Convertible Bond Issuance: Opportunity or Risk?

Deoksung’s decision to issue 9.8 billion won worth of convertible bonds has captured the attention of investors. Hopes for growth fueled by the influx of capital coexist with concerns about the company’s already high debt-to-equity ratio. This article analyzes the background and impact of Deoksung’s convertible bond issuance, highlighting key points for investors to consider.
1. Deoksung’s 9.8 Billion Won Convertible Bond Issuance: What Happened?

On September 22, 2025, Deoksung announced its decision to issue 9.8 billion won in convertible bonds through private placement. The conversion price is set at 6,540 won (current market price: 5,500 won), with the conversion period starting on October 14, 2025, and ending on September 23, 2030. Key investors include Shinhan Investment Corp. and CS Advisors.

2. Why Issue Convertible Bonds?

Deoksung aims to secure funds for operating expenses and investments in new business ventures through this convertible bond issuance. The company is expected to focus on bolstering its synthetic leather division, which has seen declining sales, and accelerating investments in future growth engines such as new materials and secondary battery films.

3. What’s the Impact on the Stock Price?
- Positive Factors:
  
  Expectations of new business investments fueled by increased capital.
  
  Potential for short-term stock price increase due to the conversion price being higher than the current market price.
- Negative Factors:
  
  Concerns about increased financial burden due to the already high debt-to-equity ratio (266.90%).
  
  Risk of non-conversion if the stock price falls.
  
  Macroeconomic uncertainties (high interest rates, exchange rate fluctuations, etc.).
In conclusion, this convertible bond issuance presents both opportunities and risks. While there’s potential for a short-term stock price boost, long-term performance hinges on Deoksung’s success in its new business ventures and maintaining financial health. Continuous monitoring is crucial.

4. What Should Investors Do?

Investors should make informed decisions by considering Deoksung’s financial status, business outlook, and the macroeconomic environment. Rather than reacting to short-term stock price fluctuations, a thorough analysis of Deoksung’s long-term growth potential is essential.
What are convertible bonds?

Convertible bonds are bonds that can be converted into shares of the issuing company’s stock. Investors can receive interest payments until maturity or convert the bonds into stock if the share price rises, potentially earning a profit.

Will this convertible bond issuance positively impact Deoksung’s stock price?

It could act as a short-term catalyst for stock price appreciation, but the long-term impact depends on Deoksung’s performance in new businesses and its financial health.

What are the key considerations for investors?

Investors should carefully consider the high debt-to-equity ratio, the risk of non-conversion if the stock price falls, and macroeconomic uncertainties before making investment decisions.
09/22/2025
DreamCIS Issues ₩15B Convertible Bonds: Investment Opportunity or Risk? Key Analysis and Outlook
DreamCIS (223250) has announced a ₩15 billion convertible bond issuance. Is this simply a fundraising effort or a strategic move for growth? This report provides a key analysis of DreamCIS’s decision and examines its potential impact on investors. We cover both positive and negative factors, including new business investments in AI big data and the pet industry, as well as potential stock dilution, to provide you with the information you need for informed investment decisions.
What Happened?

DreamCIS has decided to issue ₩15 billion worth of convertible bonds. The conversion price is set at ₩3,847, with a payment date of September 30, 2025. Key investors include CCGI Life Growth Private Equity Fund and Hongkong Tigermed Co., Limited.

Why Issue Convertible Bonds?

DreamCIS plans to invest the proceeds in new businesses, including AI-based big data analytics and the pet industry. This strategic move aims to secure future growth engines and diversify the company’s business portfolio. Improving the financial structure and securing liquidity are also key objectives.

How Will This Impact the Stock Price?
- Positive Impacts:
- Negative/Concerns:
What Should Investors Do?

This convertible bond issuance has the potential to enhance DreamCIS’s mid- to long-term growth prospects. However, investors should also consider the potential stock dilution from the issuance. Before making any investment decisions, carefully consider the performance of new businesses, market conditions, and stock price volatility.
Frequently Asked Questions

What are convertible bonds?

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

What is DreamCIS’s main business?

DreamCIS’s primary business is Contract Research Organization (CRO) and medical consulting. They are expanding into AI-based big data analytics and the pet industry.

Can issuing convertible bonds negatively impact the stock price?

Yes, when convertible bonds are converted into shares, the number of outstanding shares increases, potentially diluting the value of existing shares. This can negatively affect the stock price.

How will the funds from this convertible bond issuance be used?

The funds will be used for investments in new businesses, including AI-based big data analytics and entry into the pet industry.
09/22/2025
SCM Life Science Stock Forecast: Jin-sol Kim Acquires 7.43% Stake – Is it a Buy Signal?
Have you heard about Jin-sol Kim’s recent investment in SCM Life Science? Acquiring a significant 7.43% stake through convertible bonds, this move has captured the attention of investors. If you’re wondering how this investment will impact SCM Life Science’s stock price and whether it presents a buying opportunity, read on. This article provides all the information you need for your investment decision, from key pipeline analysis and financial health checks to future stock forecasts.
Jin-sol Kim Acquires 7.43% of SCM Life Science: What Happened?
On September 22, 2025, Jin-sol Kim announced the acquisition of a 7.43% stake in SCM Life Science through the purchase of convertible bonds. This move has sparked market interest, as it could signify more than just a passive investment.
Why is This Stake Acquisition Important?
This stake acquisition can be interpreted as a positive signal for SCM Life Science’s future value. Following recent positive momentum, including a successful capital increase and progress in clinical trials for stem cell therapies, the arrival of a new investor further boosts expectations for growth potential. However, there are factors to consider, such as the potential stock dilution from convertible bonds and the new investor’s intentions regarding management participation.
Impact on Investors
- Positive Aspects:
- Negative Aspects:
Investment Action Plan: What to Watch
Before making an investment decision, carefully review the following:
- Jin-sol Kim’s future stake increase and management participation plans
- Clinical progress and commercialization strategy of key pipelines
- Risks related to Coimmune and financial impact
- SCM Life Science’s financial soundness and profitability improvement efforts
Frequently Asked Questions (FAQ)
Will Jin-sol Kim’s investment positively impact SCM Life Science’s stock price?
While the investment can be seen as a positive market signal, the actual impact on the stock price depends on various factors. Thoroughly analyzing the company’s fundamentals and market conditions before investing is crucial.
What are SCM Life Science’s key pipelines?
SCM Life Science’s main pipelines include treatments for chronic Graft-versus-Host Disease (SCM-CGH) and acute pancreatitis and atopic dermatitis (SCM-AGH).
What are the key considerations for investing in SCM Life Science?
Investors should consider the company’s high R&D expenses, affiliate risks, and potential dilution from convertible bonds. Additionally, the inherent uncertainty of clinical trial results in the biotech industry should be acknowledged.
09/22/2025
Hyungji Global’s ₩5 Billion Convertible Bond Issuance: Impact on Stock Price and Investment Strategies
Hyungji Global Issues ₩5 Billion in Convertible Bonds: What’s Next for the Stock Price?

Hyungji Global, seeking transformation through its entry into the sports marketing business, has decided to issue ₩5 billion worth of convertible bonds. This is a significant event that could cause short-term stock price volatility. This article analyzes the background and purpose of the convertible bond issuance, its impact on the stock price, and key points for investors to consider. Check out this essential guide for successful investment now!
1. What Happened? Hyungji Global Announces ₩5 Billion Convertible Bond Issuance

On September 19, 2025, Hyungji Global announced the issuance of ₩5 billion in convertible bonds. The conversion price is set at ₩2,008, with payment due on September 29. Major investors include Synergy Turnaround No. 31 New Technology Business Investment Association, among others.

2. Why Issue Convertible Bonds? Investment in New Business and Financial Restructuring

Hyungji Global recently added ‘sports marketing and sports management’ as a new business objective, pursuing business diversification. The funds raised from this convertible bond issuance will be used for investments in new businesses, securing operating funds for existing businesses, and are expected to contribute to improving the financial structure.

3. So, What Happens to the Stock Price? Short-term Decline vs. Long-term Growth Potential
- Positive Impacts:
  
  Securing operating funds and investment resources
  
  Potential for financial structure improvement
  
  Attracting professional investors
- Negative Impacts:
  
  Possibility of stock dilution
  
  Short-term downward pressure on stock price
  
  Incurring interest expenses
In addition, fluctuations in macroeconomic indicators such as exchange rates, interest rates, and raw material prices can also affect Hyungji Global’s business and financial status.

4. What Should Investors Do? Key Checkpoints

Investors should consider the following points and make prudent investment decisions.
- Actual performance of the new business
- Whether financial soundness is restored
- Possibility and impact of convertible bond conversion
- Changes in the macroeconomic environment
Hyungji Global faces both growth potential and financial challenges. Investors need to consider these factors comprehensively and develop their investment strategies.
Frequently Asked Questions

What are convertible bonds?

Convertible bonds (CBs) are bonds that pay interest like regular bonds, but also give the holder the right to convert them into shares of stock after a certain period.

Why can issuing convertible bonds negatively impact stock prices?

When convertible bonds are converted into shares, the number of outstanding shares increases, which can dilute the value of existing shareholders’ equity.

What is Hyungji Global’s new business?

Hyungji Global is pursuing ‘sports marketing and sports management’ as its new business.
09/20/2025