Kumho Electric Converts 5 Billion KRW Convertible Bonds to Strengthen Governance and Responsible Management

[Asia Economy Reporter Yoo Hyun-seok] LED specialist company Kumho Electric announced on the 28th that Jeong Gyu-yong (Chairman of Kumho Electric) converted convertible bonds (CB) worth 5 billion KRW that he held into stocks.

The stocks were converted from the first series of convertible bonds, with 3 billion KRW and 2 billion KRW face value converted on the 24th and 26th respectively. The number of shares held increased by 2,508,780 shares. Accordingly, Jeong Gyu-yong's stake rose to 16.27%. CEO Lee Hong-min also acquired 121,477 shares through off-market purchases.

Through this exercise of conversion rights and off-market purchases, the shareholding ratio of Kumho Electric's largest shareholder and related parties expanded from 26.53% to 45.00%. A company official stated, "This was pursued to stabilize management rights and strengthen corporate governance," adding, "It also has the effect of lowering the debt ratio."

As of the end of the first quarter this year, Kumho Electric's debt ratio was 2725.36%, but this conversion lowered the debt ratio to the 600% range. The company expects the debt ratio to decrease further with additional CB conversions during the remaining period.

A company official added, "Based on the brand power of our 86-year history, we will actively target not only the domestic market but also overseas markets," and "We are also preparing to launch new products."

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