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◇ Facility investments to secure the power semiconductor market for automotive electronics and to meet market demands

KEC (CEO Hwang, Changseop) officially announced on October 14th that it decided to issue convertible bonds worth 40 billion won to finance its facilities and operational expenditures. 

The CB will have 5 years to maturity with the coupon rate and maturity rate at ‘0’ and the lowest limit (downward adjustment of conversion rights) for refixing to 80. Although the terms are not favorable for the investors, such decision was made on the judgment that the issuer has high growth potential.
 
The investors’ decisions are more or less understandable considering the recent moves by KEC. The company has been strengthening its automotive electronics semiconductor business, such as acquiring approval of the parts for Tesla’s cars and entering into the automotive HAVC market. It will also be supplying its Super-Junction MOSFET, a power semiconductor, to leading home appliance companies in Korea. KEC is transforming itself from mainly dealing with small-signal product line ups to include high added-value automotive electronics and power semiconductors. 
 
According to a company official, KEC is diversifying its markets and products based on the ‘Vision 2025 mid-to long-term plan,’ announced on the 50th anniversary of its founding in 2019. With regards to the plan, KEC investors decided to actively participate in the investments based on their high assessment of the company’s future value and positive view on the firm’s transformation and investments in automotive electronics and power semiconductors. 
 
The official also remarked that KEC will utilize the finances to invest in facilities for developing and mass-producing automotive electronics and power semiconductors and secure outstanding core engineering and marketing experts, thereby extending its product and business portfolios to step up as a global power semiconductor company.