償還株式과 轉換株式의 法的 性質

Notwithstanding the provisions of the Korean Commercial Code with respect to redeemable stocks and convertible stocks, it is only in recent years that such stocks have begun to be issued. In fact, Companies that are listed on the Korea Stock Exchange or registered on the KOSDAQ only began to issue redeemable stocks or convertible stocks in the latter half of the year 2000. Even though non-listed or non-registered companies have occasionally issued convertible stocks before the year 2000, such convertible stocks have apparently been issued without a thorough analysis of the legal ramifications of such shares being issued in Korea. The purpose of this article is to provide such a legal analysis with respect to both redeemable stock and convertible stock in Korea and issues related to the issuance thereof. Firstly, with regard to the issuance of redeemable stock, we will study, in this article, the manner and terms of redemption, specifically focusing, among other things, on such variables as redemption price, redemption period and the redemption method, including the cause of redemption, i.e., the person or event that decides whether redemption, or partial redemption is to take place. Further, with regard to the issuance of convertible stocks, we will examine the meaning and ramifications of conversion ratios (including a discussion of whether adjustment of conversion ratios is permissible under certain circumstances and, if so, the applicable restrictions on such adjustment.). In addition, we will study the permissibility of issuing convertible stock at below-par pricing, the key restrictive conditions that are generally applicable to convertible stock, and the possibility of automatic conversion.