Exercise of 3B KRW 10th Convertible Bond Results in 6M New Shares at 500 KRW, Diluting Existing Shareholders by 1.45%

Conversion Exercise Overview: On June 1, 2026, the holder of the 10th unregistered unsecured private convertible bond exercised 3B KRW (conversion price 500 KRW), issuing 6M common shares (1.45% of total outstanding shares of 415,157,579). New shares are scheduled to be listed on June 19, 2026.
The conversion price is set at par (500 KRW), determined under the company's corporate workout process under the Financial Institution Agreement for Corporate Restructuring Facilitation. This is 26.8% below the current stock price (683 KRW), benefiting bondholders upon conversion.
Remaining Convertible Bond Risk: The outstanding unconverted balance of the 10th CB is 30B KRW (60M convertible shares, equivalent to ~14.45% of outstanding shares). Future conversions could lead to significant dilution, warranting investor caution.
This conversion follows the previously disclosed March 29, 2024 decision to issue the CB, with proceeds intended to repay loans and support restructuring.
[AI Summary]This disclosure reflects a partial conversion of an existing CB, resulting in a 1.45% dilution. However, the remaining 30B KRW (60M shares) poses a 14.45% additional dilution risk, totaling 15.9% if fully converted. The conversion price (500 KRW) is below the current market price (683 KRW), incentivizing bondholders to convert, thereby pressuring the stock price and shareholder value amid ongoing restructuring uncertainties.