Taekwang Industrial will hold a board meeting at 5 p.m. on the 1st to confirm the targets for the issuance of exchange bond based on its own shares. On the 27th of last month, the board resolved to issue exchange bonds worth 318.6 billion won, which can be exchanged for 271,769 units (24.41%) of its own shares, but the decision to set the targets has not yet been made, leading to the judgment that this could violate the Commercial Act.
Truston Asset Management, the second-largest shareholder of Taekwang Industrial, filed a request for a provisional disposition with the Seoul Central District Court on the 30th of last month, stating that the issuance of exchange bonds is illegal. According to Article 22 of the Enforcement Decree of the Commercial Act, when issuing exchange bonds to individuals other than shareholders, the board must clearly define the transaction counterpart and issuance conditions, and they raised this as an issue.
The Financial Supervisory Service also announced that "Taekwang Industrial will be subject to a correction order due to significant omissions regarding the issuance parties in the disclosure statement for the exchange bond issuance decision it submitted." A representative of Taekwang Group noted, "I understand there will be discussions to clarify the targets for the exchange bond issuance."