Daeyang Metal will respond, through legal counsel, to a third party's demand for early redemption and payment order application concerning its 22nd series convertible bonds. The company disclosed this on the 5th.

The 22nd series convertible bonds at the center of the dispute are unregistered, warrant-attached, unsecured privately placed convertible bonds. The issuance was decided on October 20, 2022, with an issuance amount of 15 billion won. The purpose of the fundraising was to acquire securities of other corporations, with the payment date of November 10, 2022, and the maturity date of November 10, 2026.

Daeyang Metal previously acquired the full remaining amount of the convertible bonds, 8 billion won, before maturity. Subsequently, for fundraising purposes, the company entered into a loan agreement on March 31, 2026 with DYPartners, its largest shareholder prior to a change, and pledged 5 billion won of the convertible bonds as collateral. On June 18 of the same year, it additionally pledged 2 billion won, and the outstanding loan currently stands at 500 million won.

As a result, Daeyang Metal directly holds 1 billion won of the convertible bonds, while, according to the company's understanding, the remaining 7 billion won is held by DYPartners, its largest shareholder prior to the change, under the collateral agreement.

However, Daeyang Metal stated that individuals and corporations with no relationship whatsoever with the company, including debt relationships, are claiming to have acquired the convertible bonds as creditors of DYPartners. The company added that it also confirmed receiving a formal notice and a payment order application from them regarding the early redemption of the 22nd series convertible bonds.

Daeyang Metal stated that it will thoroughly review matters related to this issue and respond actively through its legal representatives.