This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:48 p.m. on Mar. 9, 2026.
Home appliance corporations WINIX scrapped a self-tendered exchangeable bond (EB) issuance. With the third Commercial Act amendment, centered on the mandatory cancellation of treasury shares, taking effect, it became the first listed company to cancel a plan to dispose of treasury shares. The move had been aimed at shoring up cash on hand after the acquisition of Parata Airlines (formerly Fly Gangwon) and continued lending, but financing has hit a snag.
According to the Financial Supervisory Service's electronic disclosure system on the 9th, WINIX withdrew a 6 billion won EB issuance. WINIX released an EB issuance on the 24th of last month based on a portion of its 2,065,521 treasury shares held. Subscribers included financial firms and individuals such as JB Woori Capital, Bookook Securities, and Life Asset Management. Funds raised via the EB were planned to be used to pay for raw material purchases for product manufacturing.
Behind WINIX's EB issuance was Parata Airlines, acquired in 2024. WINIX acquired Fly Gangwon in Jul. 2024 and changed its name to Parata Airlines. Fly Gangwon had pursued corporate rehabilitation and a public sale due to a liquidity crunch from decreased sales caused by COVID-19 and accumulated liability, but had struggled to find a buyer. The sale went through only after WINIX stepped in during the third round of bidding.
Parata Airlines began full-fledged operations in Oct. last year in an attempt to normalize operations, but it is currently unable to cover operating funds on its own. As a result, WINIX has been continuously injecting funds to secure operating capital.
Funds WINIX has provided to Parata Airlines so far amount to 114.5 billion won. Of that, 95 billion won was converted to equity through a paid-in capital increase, and only 2 billion won has been repaid. The outstanding lending balance currently stands at 17.5 billion won.
The problem is that WINIX's own finances are also tight. As of the third quarter of last year, WINIX's standalone cash and cash equivalents stood at 6.9 billion won. Borrowing fund was also around 44 billion won, making it difficult even to secure expenses for raw material purchases to produce home appliances.
With this EB issuance blocked, WINIX must prepare alternative financing measures. However, it said it will disclose follow-up financing plans later. A WINIX official said, "We are currently reviewing various options, and it is difficult to disclose specific financing plans as they have not yet been finalized."
Some say WINIX's belated response disrupted its financing. As the passage of the third Commercial Act amendment had become a fait accompli, most corporations launched a "treasury share disposal rally" from the second half of last year, directly selling treasury shares or issuing EBs preemptively. WINIX unveiled its EB plan only at the end of last month. This withdrawal of the EB issuance is the only case in which corporations voluntarily halted an EB issuance due to the third Commercial Act amendment.
The third Commercial Act amendment, led by the Democratic Party, passed the National Assembly on the 25th of last month and was promulgated at a provisional Cabinet meeting on the 6th of this month. It took effect upon promulgation. With the passage of the Commercial Act amendment, treasury shares held by corporations must be canceled within one year of acquisition. Dispositions other than cancellation are limited to certain purposes such as compensation for executives and employees and grants to employee stock ownership associations. Since the EB planned by WINIX would indirectly dispose of treasury shares to outside investors, the amended Commercial Act, in principle, prohibits it.