(1) When a company intends to issue exchangeable bonds the holder of which may exchange them with shares or any other securities held by the company pursuant to Article 469(2)2 of the Act (hereinafter referred to "exchangeable bonds"), the following matters shall be determined by a resolution of its board of directors:
1. Classes and details of the shares or securities subject to exchange;
2. Conditions for exchange;
3. The period during which exchange may be requested.
(2) When a company intends to issue bonds exchangeable with the issuer's treasury stock, to any person other than a shareholder, matters concerning the party to whom the bonds may be issued shall be determined by its board of directors, if its articles of incorporation do not provide for such matters.
(3) A company that issues exchangeable bonds shall deposit shares or securities necessary for exchange in the Korea Securities Depository until the bond holder requests exchange or the end of the period for request for exchange of the bonds, or shall electronically register such shares or securities with an electronic registry under subparagraph 6 of Article 2 of the Act on Electronic Registration of Stocks and Bonds (hereinafter referred to as "electronic registry"). In such cases, the Korea Securities Depository or an electronic registry shall earmark and manage the shares or securities as trust property. <Amended on Jun. 25, 2019>
(4) A person who requests the exchange of bonds shall submit two sets of written requests to the company, along with the bond certificates.
(5) Written requests made under paragraph (4) shall include the class, descriptions, and number of shares or securities subject to exchange and the date of request, and shall be affixed with the seal or signature of the requesting person.