[Reporter’s Note on Securities Filings] Xecure Launches Paid-in Capital Increase After Share Price Surges on SKT Hacking Incident

Share Price Surges from 3,000 KRW to 6,000 KRW
140 Billion KRW Raised to Be Invested in USIM Business
"Major Shareholder Plans 100% Subscription"

Xecure, a company specializing in IoT security solutions, is conducting a paid-in capital increase worth 16.6 billion KRW. Xecure is regarded as a beneficiary of the SK Telecom hacking incident, as one of its main businesses is USIM (Universal Subscriber Identity Module). In fact, due to the SK Telecom hacking incident, Xecure's share price surged from the 3,000 KRW range to the 6,000 KRW range. The company plans to invest approximately 14 billion KRW of the raised funds into its USIM business.

According to the Financial Supervisory Service’s electronic disclosure system (DART) on May 20, Xecure plans to carry out a paid-in capital increase through a rights offering followed by a general public offering of forfeited shares, amounting to 16.556 billion KRW, to secure operating funds and more. The expected issue price is 2,070 KRW per share.

Xecure develops and supplies embedded software for smart cards. The company develops and supplies platforms and solutions in various fields, including telecommunications, finance, and security. In addition, it supplies 5G USIMs in line with the commercialization of 5G mobile communication services by domestic mobile carriers.

After SKT disclosed the USIM information leak on April 22, Xecure’s share price rose from 2,970 KRW on April 22 to 3,860 KRW on April 25, 5,010 KRW on April 26, and 6,510 KRW on April 27. This marked three consecutive days of the upper price limit. However, the share price then plummeted, dropping to 2,665 KRW as of the previous day, returning to its level before the hacking incident.

When determining the issue price for the paid-in capital increase, the company bases its calculation on the share prices from the past month and the past week. Xecure used its share prices from April 16 to May 15, 2025, for this calculation. During this period, the highest price was 6,510 KRW, and the lowest was 2,850 KRW. In March, Xecure’s share price remained in the 2,000 to 2,500 KRW range.

Of the funds raised through this paid-in capital increase, Xecure plans to allocate 14.96 billion KRW for operating funds and 1.6 billion KRW for debt repayment. Of the operating funds, 13.96 billion KRW will be invested in USIM production costs and sales commissions. In its securities registration statement, the company explained, "Due to the SKT USIM information leak, USIM shortages are expected as a result of USIM replacements and carrier switching, which is likely to increase USIM sales."

Ten billion KRW will be used for the production of automated external defibrillator (AED) storage cabinets. The company stated, "After business restructuring, we are targeting increased AED sales this year," and added, "We are planning direct sales expansion in both the public and civilian sectors."

This paid-in capital increase is expected to dilute the share price. Currently, Xecure has 9,928,522 shares issued, and plans to issue 8,000,000 new shares, which is equivalent to 80.58% of the current total.

However, it is a positive sign that the largest shareholder is expected to subscribe for 100% of their allotment. Currently, Xecure’s largest shareholder is AIMindbotEquity, holding a 22.93% stake. In its securities registration statement, the company stated, "The largest shareholder's participation in the rights offering will be determined independently," but also noted, "The largest shareholder plans to subscribe for 100% of their allotted shares in the paid-in capital increase."