A Company Paid a 9.6% Premium to Cancel a Convertible Bond It Had Sold Three Months Earlier
Emgen Solution sold a private convertible bond in June 2026. In September it bought the whole issue back for 9.6% over face value -- canceling 8.3% worth of potential dilution, 32 months before the bond was due.
AI-assisted, human-reviewed sourcing. Figures are pulled programmatically from the official sources listed at the end of this article and checked by an editor before publication.
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Emgen Solution, a KOSDAQ-listed company, issued a KRW 3.01 billion private convertible bond on 9 June 2026. On 18 September – about three months later, and roughly two years and eight months before the bond’s 2029 maturity – its board decided to buy the entire issue back for KRW 3.3 billion, a premium of 9.6 percent over face value.
What the filing says
The bond, the company’s 24th convertible-bond series, was unsecured, privately placed, and carried a conversion price of KRW 1,297 a share. Had it run to term and been converted, DART’s own filing states it would have created 2,320,740 new shares – 8.29 percent of Emgen Solution’s total shares outstanding. The buyback, funded from the company’s own cash and paid the same day the board approved it, retires that dilution risk entirely, for now: the filing lists the bond’s post-buyback face value outstanding as zero, and leaves open whether the company will cancel the retired bond or resell it later.
| Value | |
|---|---|
| Face value | KRW 3.01 billion |
| Buyback price | KRW 3.3 billion |
| Premium over face | 9.6% |
| Issued | 9 June 2026 |
| Original maturity | 9 June 2029 |
| Bought back | 18 September 2026 |
| Shares avoided (if converted) | 2,320,740 (8.29% of total) |
The seller is named in the filing as “Quantum Deep-Tech Growth Investment Fund No.1,” identified only as the bond’s current holder. The filing includes a standard disclosure section for corporate sellers and notes the fund is newly formed this year, with no prior financial statements to report.
Why we’re flagging the timing
Three months from issuance to full early buyback is a short life for a three-year bond. The filing gives a reason for the buyback – a redemption agreement with the bondholder – but not a reason for the agreement itself: no put-option clause is cited, and the filing does not say which side proposed unwinding the deal. What is disclosed and verifiable is the arithmetic: the company paid roughly KRW 290 million more than it had raised three months earlier to eliminate a potential 8.3 percent dilution before it could happen.
This is not investment advice. Figures are drawn from an official disclosure filing and are presented for data-quality reporting, not as a trading signal.
Data & Verification Notes
- Data as of
- Sources
- Financial Services Commission (Republic of Korea) / DART — Major Report Disclosure — early acquisition of own convertible bond before maturity, filed 18 September 2026
- Cross-checks
- Emgen Solution (KOSDAQ: 032790) issued a KRW 3.01 billion private-placement, unsecured, registered convertible bond (24th series) on 9 June 2026, maturing 9 June 2029.
- On 18 September 2026 -- roughly three months after issuance -- the board resolved to buy back the entire face amount for KRW 3.3 billion, a 9.6% premium over the KRW 3.01 billion face value, funded from the company's own cash and paid the same day.
- The filing states that if the bond had been converted, it would have created 2,320,740 new shares -- 8.29% of total shares outstanding -- at a conversion price of KRW 1,297 a share.
- The seller is listed as 'Quantum Deep-Tech Growth Investment Fund No.1,' described in the filing as the bond's current holder; the filing notes the fund was newly formed this year and has no prior-year financials to report.
- Excluded figures
- Why the bondholder agreed to sell, or whether either side initiated the early buyback -- the filing states only that it followed 'a redemption agreement with the bondholder,' without disclosing which side proposed it or citing a specific put-option clause.
- What the company plans to do with the retired bond -- the filing lists both retirement and resale as still-undecided future options.
- Any assessment of whether this was a good use of KRW 3.3 billion in cash -- we report the terms as disclosed, not a verdict on the decision.
- Instruments
- 032790.KQ
The full dataset behind these figures — every listed company, every row — is available to license. SeoulMarkets data for licence →
Not investment advice. SMarkets publishes data journalism for general information only. Nothing here is investment advice, a recommendation, or an offer to buy or sell any security — any investment you make is at your own risk and responsibility. Figures are derived from official public data sources and may be revised by the issuing agency. Verify independently before acting.
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