Bonus issue

New shares handed to existing shareholders for free by moving retained surplus into capital (무상증자).
Also known as: Free share issue, stock dividend

What it is

The company transfers surplus reserves into share capital and distributes the resulting new shares to existing shareholders at no cost.

Example

In a 1-for-1 bonus issue a holder of 100 shares ends up with 200. An ex-rights adjustment roughly halves the price around the record date.

What to keep in mind

Net assets do not change, so the company is worth the same. Liquidity improves and the move can signal ample reserves, but post-adjustment prices often give back the initial excitement.

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This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.