Kum Yang: Rights Offering Capital Raise of 450 Billion Won

• Kum Yang announced a rights offering capital raise of 450 billion won which will be used for facility investments and debt repayment.

• The estimated rights offering price is 38,950 won, which is 31% lower than current price (56,500 won).

• We remain negative on Kum Yang. Despite the sharply lower rights offering price relative to current price, we would avoid the rights offering.