1. JS Link’s 20 Billion KRW Convertible Bond Issuance: What Happened?

On July 22, 2025, JS Link issued 20 billion KRW worth of convertible bonds. This represents 5.57% of the company’s market capitalization at the time of issuance. The bonds were privately placed with MG Value Up No. 2 Private Equity Fund. The conversion price is set at 13,249 KRW, with a maturity interest rate of 6%.

2. Why the Convertible Bond Issuance? Diversification and Funding

JS Link issued the convertible bonds to secure funding for its new permanent magnet business and offset the decline in its existing genomics business. The company faces challenges due to decreased sales of COVID-19 diagnostic kits and increased market competition. Securing future growth engines is crucial for the company’s survival.

3. Impact of the Convertible Bond Issuance

  • Positive Aspects: Securing investment funds for the new business offers potential for long-term growth. The conversion price is set lower than the market price, minimizing the dilution of shareholder value.
  • Negative Aspects: The 6% maturity interest rate could increase the financial burden. There’s a possibility of shareholder value dilution upon conversion.

4. Investor Action Plan

Investors considering JS Link should carefully analyze the impact of the convertible bond issuance on the company’s value. It’s crucial to consider the growth potential of the permanent magnet business, the recovery potential of the genomics business, and the overall financial stability before making investment decisions. Closely monitor future business reports and financial data, and pay attention to changes in market conditions.