Global Tax Free Raises 12.2 Billion KRW... "Strengthening Major Shareholder's Responsible Management"

[Asia Economy Reporter Hyunseok Yoo] Global Tax Free (hereinafter GTF), the No. 1 tax refund company in Korea, announced on the 14th that it has decided to issue convertible bonds (CB) worth 12.2 billion KRW to special related parties including its largest shareholder and friendly shareholders.

The conversion price of this convertible bond is 3,782 KRW per share. The coupon rate is 0%, with a maturity interest rate of 2%, and the payment date is October 29.

This issuance is a decision to secure liquidity for strengthening the largest shareholder's responsible management and business diversification amid the expectation of GTF's consecutive losses for two years due to the ongoing global COVID-19 pandemic impact since 2020.

GTF recorded an operating profit of 6.9 billion KRW on a consolidated basis in 2019, but its performance sharply deteriorated due to the COVID-19 pandemic last year, resulting in an operating loss of 11.4 billion KRW, and it recorded an operating loss of 6.4 billion KRW in the first half of this year.

Kang Jinwon, CEO of GTF, said, “The decision to issue convertible bonds was made to dispel market concerns about our financial stability and growth potential as the COVID-19 pandemic has prolonged into its second year, and as part of securing liquidity for the largest shareholder's strong commitment to responsible management and for extensive new businesses in the future.” He added, “We plan to continue investing in new businesses and diversifying our operations, which can become future growth engines, through sufficient financial capacity.”