Third-party allotment (제3자배정 유상증자)

A Korean rights issue in which new shares go to specific investors chosen by the company rather than to existing shareholders.
Also known as: Private placement of new shares

What it is

Korean rights offerings are classified by who receives the new shares: existing shareholders, the general public, or designated third parties. A third-party allotment issues shares only to named individuals, companies or investment partnerships, and requires a basis in the articles of incorporation and a business purpose.

Why companies use it

It raises money quickly from chosen investors and can bring in a strategic partner or change the largest shareholder. The allowed discount to market price is smaller than for shareholder allotments.

What to keep in mind

Check the dilution (new shares as a percentage of existing shares), who the allottees are, and whether the payment date keeps being postponed. Repeated placements to opaque investment partnerships are a warning sign. Allotted shares are usually locked up for a year.

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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.