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Interest Rate Lower than that of regular corporate bonds Lower than that of regular corporate bonds (however, if the detachable warrant premium is high, it can be lower than the rate of the CB)
Maturity Generally exceeding three years Generally exceeding three to five years
Exercise of Right One month following the date of issue to the maturity of the bond (in the case of private offering, the right is exercised after one year) Automatic
No. of Shares Acquired per Bond Face value of bond X’s fixed exchange rate / convertible price Face value of bond X’s fixed exchange rate x invested ratio / exercise price (the invested ratio is 100%)
Financial Structure The issuer’s shareholder’s equity increases with the exercise of the investor’s conversion right, which significantly decreases the debt. Additional flow of capital through the acquisition of new shares, thus increasing the capital while the bond holds until maturity, and lowering the reliability of the shareholder’s equity
Call-and-Put Option Generally established
(the call option generally forces conversion)		 Exists for the bond, but the warrant is generally held until maturity
Foreign-Exchange-Rate Risk In case the bond is not converted until its maturity, there is a foreign-exchange-rate risk. However, if converted, the bond expires, thus eliminating the foreign-exchange-rate risk. A foreign-exchange-rate risk exists since the bond is held until its maturity (the foreign-exchange-rate risk, however, can be hedged with a currency swap)
Convertible New Share Dividend Not influenced due to payment in KRW Automatic
배당금    
Repayment Responsibility of repaying the non-converted parts Due to the fact that the bond exists until its maturity despite the exercise of acquisition rights, the total amount in the issued currency must be repaid.
Investment Benefit Bond stability and capital gain with the rise of the stock price Gearing effect of the exercise of acquisition rights, and a steep downward slope of loss upon a fall in stock prices (the maximum value of loss is the value of the warrant upon the fall in stock prices, and a misappropriation of the expected profit up to the warrant value during an increase in stock prices)
 
 

 
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