(1) When a company intends to issue bonds redeemable for shares or other securities held by it pursuant to Article 469(2)2 of the Act (hereinafter referred to as "redeemable bonds"), the following matters shall be determined by its board of directors:
1. The class and descriptions of the shares or securities with which the bonds are to be redeemed;
2. Conditions for redemption;
3. A statement that the bonds shall be redeemed in exchange for shares or other securities at the company's option or upon the fulfillment of a certain condition or at maturity.
(2) Where a company intends to issue bonds that may be redeemed in exchange for the issuer's treasury stock, to any person other than a shareholder, matters concerning the party to whom such 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 bonds redeemable upon fulfillment of a certain condition or at maturity shall deposit shares or securities necessary for redemption in the Korea Securities Depository or electronically register such shares or securities with an electronic registry before the fulfillment of a certain condition or the maturity. 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>