L&K Biomed Issues 32 Billion KRW CB to Proactively Respond to Key Business Opportunities

On January 12, L&K Biomed, a company specializing in spinal implants, announced that it has issued convertible bonds (CB) worth approximately 32 billion KRW (about 32 billion won) to secure funds for mid- to long-term business expansion and to proactively respond to key business opportunities.

The funds raised through the issuance of CBs will be used as preparatory capital to establish a foundation for the company’s mid- to long-term growth, including expanding production infrastructure, securing key personnel, and strengthening AI-based digital capabilities. Part of the funds will also be used to restructure certain borrowings for more efficient capital management.

First, about 16 billion KRW will be invested in acquiring land, buildings, and manufacturing facilities for the expansion of a new plant. Through this, the company aims to secure production capacity and quality competitiveness that may be required in the future as its main business expands.

In addition, the company will increase investment in the salaries of key personnel and the recruitment of new employees to drive related business initiatives. It will also invest in building an AI-based digital platform to enhance training and sales education for its medical device products in preparation for mid- to long-term business expansion. This platform will efficiently support training, sales, and marketing activities, including providing surgical information and product guidance.

Along with the new CB issuance, the company will exercise a call option on previously issued convertible bonds, redeeming CBs worth approximately 5 billion KRW. This is expected to alleviate some financial costs and secure flexibility in capital management, enabling more efficient use of funds in future business operations.

A company representative explained, "The issuance of CBs is less about short-term financial objectives and more about proactive investment to prepare for potential changes in the business environment and to meet global standards as the company enters new growth phases." The representative added, "We plan to steadily implement our mid- to long-term growth strategy by gradually strengthening our production infrastructure and human and digital capabilities."

With the issuance of CBs, the company will pursue its mid- to long-term growth strategy in a more systematic manner.