Kum Yang: A Major Capital Raise Possible in 4Q24 Which Is Likely to Dilute Existing Shareholders

• In the past week, there were numerous local news accounts about a rights offering of nearly 800 billion won by Kum Yang. This has not been confirmed by the company.

• Although Kum Yang has not committed to a rights offering, there is a high probability of such capital raise in 4Q24 which is likely to dilute existing shareholders.

• Kum Yang remains a highly speculative stock. The management has lost so much credibility in the past year. We would stay away from it as far as possible.

In the past week, there were numerous local news accounts about a potential rights offering capital raise of nearly 800 billion won by Kum Yang. The company has not confirmed whether it would proceed with such capital raise. It is still in the consideration stage.

Although the company has not committed to a capital raise for now, we believe there is a high probability of the company trying to complete a major capital raise in 4Q24 which is likely to dilute existing shareholders.