LB Semicon

Non-executive director Koo Bon-cheon filed a pre-trade disclosure to sell 919,950 new share subscription rights certificates via off-market transaction between July 20-23, 2026. The estimated transaction value is approximately KRW 3.79 billion based on the indicative price of KRW 4,125 per certificate, though the actual price will be determined by the 5-day average closing price during the rights certificates' listing period (July 10-16, 2026). After the sale, the reporter's holdings will decrease from 9.11% to 7.67%, representing only the underlying common shares (4,452,789 shares). The rights certificates are being issued in connection with an ongoing rights offering with general public subscription for forfeited shares. This represents an insider choosing not to exercise subscription rights in the capital raise, which can signal personal liquidity needs but does not reduce the insider's underlying equity stake.

The company filed an amendment to its previously announced rights offering, fixing the 1st issue price at KRW 4,125 (down from the indicative KRW 4,150). As a result, the working capital portion of the proceeds was revised down to KRW 19.5 billion from KRW 19.8 billion, while the total offering of 12,000,000 new common shares and the facility-investment portion (KRW 30 billion) remain unchanged. The rights record date is June 19, 2026, with existing-shareholder subscription on July 29-30 and listing scheduled for August 21. KB Securities remains the lead underwriter, and the final issue price will be determined on July 24, 2026.

The first issue price for the rights offering with public subscription of unsubscribed shares has been confirmed at KRW 4,125 per share, down from the previously indicated KRW 4,150. Total offering size decreases slightly to KRW 49.5 billion (from KRW 49.8 billion) for 12,000,000 common shares. Use of proceeds remains KRW 30 billion for facility investment and KRW 19.5 billion for operating capital. KB Securities serves as the lead underwriter on a firm-commitment basis. The existing shareholder subscription period is July 29-30, 2026, with general public subscription on August 3-4 and payment due August 6. The final issue price will be determined three business days before the subscription date.

The company set the first issue price for its rights offering at KRW 4,125 per share, covering 12,000,000 new common shares with a face value of KRW 500. The price was calculated on June 16, 2026 using the standard formula based on volume-weighted average prices with a 20% discount rate. The final issue price will be determined on July 27, 2026, taking the lower of the first and second issue prices, but no lower than 60% of the weighted average price over the 3rd-5th trading days before subscription. Shareholders should note potential dilution from the issuance of 12 million new shares.

The company has set June 18, 2026 as the ex-rights date for its previously announced paid-in capital increase (rights offering). The reference base price has been adjusted to KRW 5,310 to reflect the dilution from new share issuance. Shareholders who do not hold shares before the ex-rights date will not be entitled to subscribe to the new shares. This is a routine procedural step in the rights offering process, but the base price reset typically causes a visible drop in the quoted share price.

LB Corp, the de facto controlling shareholder, filed a trading plan to purchase 2,271,295 subscription warrants (신주인수권증서) through off-exchange (OTC) acquisition between July 20-23, 2026, at an indicative price of KRW 4,125 per share, totaling approximately KRW 9.37 billion. The purpose is to participate in the rights offering (shareholder allocation plus public offering of forfeited shares). Following completion, LB Corp's holdings (common shares + warrants) would rise from 5,823,200 shares (9.86%) to 8,094,495 shares (13.19%) of the issued share count. The actual price will be determined by the 5-business-day average closing price during warrant trading (July 10-16, 2026) and may differ from the indicative figure; actual transaction size can vary within ±30% per regulation.

The company filed a prospectus for a rights offering of 12,000,000 common shares at KRW 4,125 per share, raising approximately KRW 49.5 billion. Existing shareholders may subscribe on July 29-30, 2026, with a general public offering on August 3-4, 2026, and payment due August 6, 2026. KB Securities is acting as lead underwriter. The filing highlights key investment risks including macroeconomic uncertainty, dependence on the semiconductor/display downstream cycle, policy shifts affecting display and system semiconductors, and the risk of customers in-housing OSAT (back-end) operations. DDI bumping accounts for roughly 40% of the company's revenue, tying performance closely to display panel demand.

The company amended its prior debt guarantee for its 60%-owned subsidiary LB Litech, extending the maturity by six months (from June 9, 2026 to December 10, 2026) and reducing the guaranteed amount. The underlying loan from Kookmin Bank for LB Litech's industrial complex interim payment was cut from KRW 28.4 billion to KRW 18.9 billion, with the guarantee amount falling from KRW 31.2 billion to KRW 20.79 billion. The ratio to equity dropped meaningfully from 14.6% to 7.4%, reflecting both the smaller guarantee and a larger equity base (KRW 281.4 billion as of Q1 2026 vs. KRW 213.5 billion previously). A separate USD 1.1 million foreign-currency payment guarantee to LG Energy Solution has expired at maturity. LB Litech remains loss-making (2025 net loss of KRW 1.62 billion on KRW 5.57 billion revenue), so continued parent support is still required, but the lower exposure is a mild positive.

The company filed a first amendment to its equity securities registration statement (originally submitted May 15, 2026), voluntarily supplementing risk disclosures with corrections marked in bold blue. Revisions span business risks (downstream cycle, customer concentration, raw material costs, R&D talent retention, IP), company risks (revenue/profitability, financial stability, cash flow, fixed assets, controlling shareholder stake changes from old-share sale and subscription), other risks (regulatory tightening), underwriter opinion, use of proceeds, and director/employee disclosures. Notably, the business-risk section now explicitly addresses the AI semiconductor super-cycle's uneven impact: HBM and advanced packaging benefit, but the company's core DDI bumping and COF packaging businesses sit outside the direct AI tailwind, facing structural headwinds from Chinese panel makers' domestic DDI shift and weak consumer electronics demand. The amendment positions the new Non-DDI bumping/test business (SoC, PMIC, CIS) as the company's pathway to capture AI/automotive system-semiconductor backend outsourcing from global fabless customers. The added disclosure also flags risk that the current AI semiconductor demand surge may be overheating.

Koo Bon-cheon, the largest shareholder and registered director of LB Semicon, filed an amended large shareholding report triggered by a change in collateral pledge arrangements among special related parties. Total combined holdings remain unchanged at 15,819,778 shares (27.24% of voting shares). However, the number of shares subject to major contracts (collateral pledges) increased materially from 1,082,214 shares (1.86%) to 1,909,608 shares (3.29%), an increase of approximately 827,394 pledged shares. The expanded pledge ratio is noteworthy because a higher proportion of the controlling group's shares is now encumbered as collateral, raising the theoretical risk of forced sales should margin or loan conditions deteriorate.

The company has filed a securities registration statement for an equity offering of 12,000,000 new registered common shares with a total offering value of KRW 49.8 billion. The filing details key business risks tied to the semiconductor back-end (OSAT) business, including exposure to global macroeconomic conditions, downstream display and system semiconductor cycles, and the risk of in-housing by major IDM customers such as Samsung Electronics and SK hynix. Roughly 40% of revenue comes from DDI (display driver IC) bumping, with the remainder from SoC, PMIC, and CIS Non-DDI work, leaving results highly sensitive to display panel demand and non-memory chip cycles. WSTS projects the 2026 global semiconductor market to grow 26.3% YoY to USD 520.1B, and OSAT is expected to grow at a 7.81% CAGR through 2035, but customer concentration and potential policy/support changes remain material risks. KB Securities is listed as the underwriter contact.

The board approved a paid-in capital increase issuing 12,000,000 new common shares (20.66% of existing 58,083,006 shares) at a tentative price of KRW 4,150, raising approximately KRW 49.8 billion. Proceeds will fund KRW 30 billion in facility investment and KRW 19.8 billion in working capital. The offering uses a shareholder-allocation method with public subscription for forfeited shares, with KB Securities as lead underwriter. The record date is June 19, 2026, subscription on July 29-30, payment August 6, and new shares list August 21. A 20% discount applies to the reference price, with the final issue price set on July 27, 2026.