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Commercial Act — Article 513 (Issuance of Convertible Bonds)

상법 제513조

This English translation is based on the Korean text effective 2018-12-19. The Korean law has since been amended (current version effective 2026-09-10) — check the Korean original.

(1) A company may issue convertible bonds.

(2) In cases falling under paragraph (1), any of the following matters not provided for in the articles of incorporation shall be determined by the board of directors, unless the articles of incorporation provide that it shall be determined by a general meeting of shareholders:

1. The total amount of convertible bonds;

2. Conversion conditions;

3. Details on shares to be issued upon conversion;

4. The period within which conversion may be requested;

5. Details on the preemptive rights of shareholders to subscribe to convertible bonds, and the amount of convertible bonds subject to such rights;

6. Details on issuance of convertible bonds to persons other than shareholders, and the amount of such convertible bonds to be issued.

(3) In cases where convertible bonds are issued to those who are not the shareholders of the company, if the articles of incorporation do not specify the amount of convertible bonds to be issued, conditions of conversion, details of the shares to be issued upon conversion and the period during which the conversion may be requested, such matters shall be determined by a resolution under Article 434. In such cases, the proviso to Article 418 (3) shall apply mutatis mutandis. <Amended by Act No. 6488, Jul. 24, 2001>

(4) In cases of a resolution under paragraph (3), a summary of the agenda relating to the issuance of convertible bonds shall be stated in a notice under Article 363. <Amended by Act No. 12591, May 20, 2014>[This Article Wholly Amended by Act No. 3724, Apr. 10, 1984]

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