Kyobo Securities will carry out a third-party allocation paid-in capital increase totaling 300 billion won to secure operating funds. The company announced these details on the 22nd through disclosures on two separate capital increase decisions.

◆ Raised in Two Tranches... Totaling 299,999,893,944 Won

Through this capital increase, Kyobo Securities will raise 99,999,955,830 won and 199,999,938,114 won respectively. The combined total of the two tranches is 299,999,893,944 won. Both tranches will be conducted through the issuance of redeemable convertible preferred shares (RCPS). The number of shares to be issued is 3,781,045 and 7,562,091 respectively, totaling 11,343,136 shares. The new share issue price for both tranches is 26,454 won per share, reflecting a 200% premium on the base share price of 8,818 won.

◆ Redemption and Conversion Terms Differ by Tranche

The two capital increases differ in their redemption and conversion terms. The RCPS of approximately 100 billion won can be redeemed starting October 30, 2028, two years after the payment date, with a conversion claim period from April 30, 2029 to September 30, 2046. The RCPS of approximately 200 billion won can be redeemed starting October 30, 2029, with a conversion claim period from April 30, 2030 to September 30, 2046.

◆ Initial Preferred Dividend Rate of 5.814% to 5.993% Per Annum... Additional 1.5 Percentage Points Added Each Year Thereafter

The preferred dividend rates also differ by tranche. An annual preferred dividend rate of 5.814% for the first two years applies to the approximately 100 billion won RCPS, while 5.993% for the first three years applies to the approximately 200 billion won RCPS. After the initial periods, the preferred dividend rate increases by 1.5 percentage points from the day each period expires, with an additional 1.5 percentage points added each year thereafter in the same manner.

The RCPS to be issued this time are non-voting, non-listed class shares. Regarding dividends, they are non-participating, cumulative preferred shares with a structure in which dividends accrue at the preferred dividend rate and are paid on a priority basis. The company has the right to redeem all or part of the shares on the designated redemption dates.

◆ Payment Date of October 30, 2026... Securities Registration Statement Filing Exempted

For both tranches, the payment date is October 30, 2026, and the new share certificates are scheduled to be delivered on November 18. The share certificate delivery schedule may be postponed depending on the schedules of the relevant institutions. The filing of a securities registration statement is exempted on the grounds of the third-party allocation private placement method and a one-year lock-up period.

Kyobo Securities completed board resolutions on the two capital increases on the same day and plans to use all of the raised funds as operating capital.