유상증자 (yusang jeungja)

A company sells new shares for cash, which usually dilutes existing shareholders.

유상증자 (yusang jeungja) is a capital increase paid in cash: the company issues new shares and sells them, to existing shareholders (주주배정, a rights offering), to chosen investors (제3자배정, third-party allotment) or to the public (일반공모).

New shares are usually sold below the market price and increase the number of shares, so the share price often falls when one is announced. The filing says how much money is being raised and what it is for.

Also called: rights offering · rights issue · share placement