How is the conversion price of a listed company's convertible bond determined?

Under the Regulations on Securities Issuance and Disclosure, etc., a listed company's conversion price must be at least the highest of the following, counted back from the day before the board resolution: (1) the arithmetic mean of the 1-month, 1-week and latest-day weighted average share prices, (2) the latest-day weighted average share price, and (3) the weighted average share price on the third trading day before the subscription date (or the payment date if there is no subscription date).

For a general public offering it may be set at or above the lowest of these, and for bonds rated speculative grade (BB+ or below) by two or more credit rating agencies, among others, it may be set at 90% or more of the calculated price. For a third-party allotment, item (3) does not apply if less than 1 month passes between the board resolution and the payment date, and if 1 month or more passes, the share price on the third trading day before the actual payment date must be reflected (as of October 2026).