Exercise of Conversion Rights for 5th CB at 16,278 KRW, 46.6% Discount to Market Price, Diluting Equity

Event: Conversion rights for the 5th private unsecured convertible bond were exercised on May 27 and June 2, 2026, totaling KRW 2.65 billion at a conversion price of KRW 16,278, issuing 162,795 new shares (1.16% of existing 14,010,894 shares).
Cause: The conversion price is 46.6% below the current market price of KRW 30,450, creating a strong incentive for holders to convert immediately.
Risk & Impact: This conversion dilutes existing shareholders' equity. Moreover, the remaining CB balance of KRW 13 billion (convertible into 798,623 shares, or 5.7% of outstanding shares) poses further dilution risk. The low conversion price has been a persistent overhang since issuance in May 2025.
[AI Summary]This disclosure reflects a routine conversion exercise of existing CBs, but the deep discount conversion price amplifies dilution concerns. With KRW 13 billion in remaining CBs, the overhang risk continues, pressuring share price appreciation in the near term.