Hanju ART to carry out a paid-in capital increase of 35 billion KRW... begins securing operating funds

KOSDAQ-listed company Hanju ART has decided to implement a paid-in capital increase through a third-party allotment to raise approximately 35 billion KRW in operating funds. All of the new shares will be allotted to a specific investor.

On December 9, 2025, Hanju ART officially announced this paid-in capital increase plan through the Financial Supervisory Service’s electronic disclosure system. The new shares will be issued at 758 KRW per share, with a total of 4,617,414 new common shares to be issued. All new shares are planned to be allotted to a specific investor named “P&A Investment Portfolio,” which is a typical third-party allotment method that allows for a relatively quick fundraising process.

A third-party allotment paid-in capital increase differs from a general public offering in that new shares are preferentially allotted to specific institutional or individual investors. While this method can expedite fundraising for listed companies, it can also pose a burden due to the potential for significant dilution of existing shareholders’ equity. In particular, if the new share issue price is lower than the market price, the value of investors’ equity may decline, so caution is required.

The funds raised through this capital increase are expected to be mainly used to support the company’s daily business operations, such as operating funds. Although the specific usage plan has not been separately detailed, the funds are generally intended for raw material purchases, labor cost payments, production equipment maintenance, and other related purposes.

The market expects that this capital increase will improve Hanju ART’s financial soundness to some extent, though there are also opinions that future stock price volatility is inevitable. In particular, the degree of impact that a large-scale new share issuance will have on the current stock price depends on investors’ judgment.

Such moves are likely to continue among small and medium-sized listed companies currently focused on improving their financial structure and securing liquidity. In an environment of high interest rates and fundraising pressures, raising funds through third-party allotment paid-in capital increases is expected to remain an important financial strategy in the future.