National Treasure "Secures Total Funding of 10 Billion KRW through 유증 and CB Subscription"

[Asia Economy Reporter Hyunseok Yoo] Kukbo announced on the 25th that the convertible bonds (CB) worth 5 billion KRW on the 11th and the paid-in capital increase funds of 5 billion KRW on the 19th were successfully paid. The CB was subscribed by multiple parties including Within Investment Association and Taeseong Ecoms Co., Ltd., and the paid-in capital increase included 3.5 billion KRW from KB Kukbo and 11 individuals.

For the convertible bonds, the interest rate is 1% per annum, and the conversion request period starts one year later, from June 11, 2021. The scheduled listing date for the new shares from the paid-in capital increase is July 9 of next month, and all these shares will be under a one-year lock-up period.

With the completion of the payment for the convertible bonds and the paid-in capital increase, Kukbo has secured more than 10 billion KRW in cash assets. The funds secured this time are expected to be used for operating capital, debt repayment, and new business ventures. In particular, the current bank debt is only 3 billion KRW, making debt-free management possible.

A company official stated, “Thanks to the active support of major shareholders and the current management, financial soundness has been sufficiently secured, and with the stabilization of the governance structure of management rights, mid- to long-term investments have become possible,” adding, “The participation of the current management in the paid-in capital increase demonstrates strengthened responsible management, confidence in performance, and strong determination.”

Recently, Kukbo has carried out management innovation through large-scale restructuring and organizational reorganization. Until last year, Kukbo boldly reorganized loss-making business sectors and clients, and completed the recovery of 6 billion KRW in non-performing loans from Heung-A Shipping, focusing its capabilities on increasing profitability and change across all business sectors.

Additionally, Buxi, a subsidiary of Kukbo providing vehicle-sharing services, has expanded its service area beyond airports to not only Seoul but also Gyeonggi-do, Gangwon-do, Chungcheong-do, and Jeolla-do with the launch of the ‘Buxi Trip’ service and opened the differentiated golf service ‘Buxi Golf’.

The ‘Buxi Golf’ service offers differentiated golf services and various events in partnership with Kukbo’s subsidiary BOGNER. Amid the COVID-19 pandemic, golf has been spotlighted as a leisure activity allowing social distancing, and golf courses are thriving, but transportation options are hard to find. In this situation, the ‘Buxi Golf’ service provides Carnival limousines (recommended for 4 passengers), Solati limousines, and Mercedes-Benz Sprinters (recommended for 8 passengers) with professional chauffeur drivers. The basic price is set based on a 10-hour usage. According to the company, through this service, users can focus solely on their rounds without worrying about driving, receiving premium care such as having a professional driver load and unload their caddy bags before and after the round.

Also, the ‘Buxi Trip’ service allows domestic travel by riding vehicles like Carnival and Solati. It offers the convenience of boarding comfortably at home and traveling to desired destinations without driving, with the advantage of traveling with multiple people. Vehicles (Carnival, Solati) are dispatched according to the number of reserved passengers, and professional drivers trained in protocol provide the service. With the surge in demand for domestic travel over overseas trips due to COVID-19, usage is expected to be very high starting this summer. Thorough disinfection of vehicles and drivers is conducted before each operation to ensure customers can use the service safely without COVID-19 concerns.

Recently, as part of the opening event, a promotion is underway giving away TaylorMade golf balls with the Buxi logo, and during the period, customers are entered into a draw to win autographed BOGNER hats by famous PGA players (Jason Day, Matthew Wolff, Ian Poulter), a subsidiary of Kukbo.

Kukbo’s subsidiary ‘Buxi Busan’ is also preparing new services in Gyeongnam and Busan, and Kukbo is focusing its capabilities on changes and innovations toward a profitable structure. CEO Hyun Ha-yeon said, “We are thoroughly analyzing the profitability and future growth potential of all Kukbo business sectors to establish strategies and will achieve a turnaround to profitability through management innovation as soon as possible,” adding, “We will also secure future competitiveness in the existing logistics business and work to enhance shareholder value.”

This content was produced with the assistance of AI translation services.