{"id":1439,"date":"2026-07-07T20:43:28","date_gmt":"2026-07-07T20:43:28","guid":{"rendered":"https:\/\/atlaw.kr\/en-blog\/?p=1439"},"modified":"2026-07-07T20:45:34","modified_gmt":"2026-07-07T20:45:34","slug":"venture-refixing-conversion-price-adjustment-south-korea","status":"publish","type":"post","link":"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/","title":{"rendered":"Refixing (Conversion Price Adjustment) Explained \u2014 Full Ratchet, Weighted Average, and Listed-Company Rules in South Korea"},"content":{"rendered":"<p><!-- ATLAS_HREFLANG_START -->\n<link rel=\"alternate\" hreflang=\"ko\" href=\"https:\/\/atlaw.kr\/kr-blog\/venture-refixing-conversion-price-adjustment-kr\/\" \/>\n<link rel=\"alternate\" hreflang=\"en\" href=\"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/\" \/>\n<link rel=\"alternate\" hreflang=\"x-default\" href=\"https:\/\/atlaw.kr\/kr-blog\/venture-refixing-conversion-price-adjustment-kr\/\" \/>\n<!-- ATLAS_HREFLANG_END --><\/p>\n<style>@import url('https:\/\/cdn.jsdelivr.net\/gh\/orioncactus\/pretendard@v1.3.9\/dist\/web\/static\/pretendard.css'); :root { --global-content-narrow-width: 1290px !important; } .entry-content-wrap { max-width: 1290px !important; } *, *::before, *::after { box-sizing: border-box; margin: 0; padding: 0; } :root { --navy:#0a2540; --navy2:#1a3353; --wine:#722f37; --text:#1a1f36; --muted:#697386; --rule:#e3e8ee; } body { font-family:'Pretendard',-apple-system,BlinkMacSystemFont,'Apple SD Gothic Neo',sans-serif; background:#fff; color:var(--text); font-size:18px; line-height:1.82; -webkit-font-smoothing:antialiased; } .hero { max-width:1000px; margin:0 auto; padding:72px 48px 48px; text-align:center; } .category-tag { font-size:11px; font-weight:700; letter-spacing:1.5px; text-transform:uppercase; color:var(--wine); display:block; margin-bottom:20px; } .hero-title { font-size:44px; font-weight:700; line-height:1.22; color:var(--navy); margin-bottom:28px; word-break:keep-all; } .hero-meta { display:flex; align-items:center; justify-content:center; gap:12px; padding-bottom:40px; border-bottom:1px solid var(--rule); } .hero-info { font-size:13.5px; color:var(--text); line-height:1.4; } .hero-info strong { color:var(--text); font-weight:500; } .direct-answer { background:#f6f9fc; border-left:4px solid var(--navy); border-radius:0; padding:20px 24px; margin:32px 0 40px; font-size:17px; line-height:1.75; color:var(--text); } .content { max-width:1000px; margin:0 auto; padding:52px 48px 100px; } .toc-nav { margin-bottom:60px; border:1px solid #d0d5dd; border-radius:6px; padding:28px 32px; } .toc-label { font-size:20px; font-weight:700; color:var(--navy); margin-bottom:14px; } .toc-nav ol { list-style:none; padding-left:0; } .toc-nav ol li { display:flex; gap:14px; align-items:baseline; padding:6px 0; font-size:17px; } .toc-nav ol li::before { content:none; } .toc-nav ol li a { color:var(--text); text-decoration:none; font-weight:400; } .toc-nav ol li a:hover { color:var(--wine); } .lead-text { font-size:20px; font-weight:400; color:var(--text); line-height:1.8; margin-bottom:24px; } .context-text { font-size:17px; color:var(--text); line-height:1.8; margin-bottom:52px; } h2 { font-size:30px; font-weight:700; color:var(--wine); margin:68px 0 16px; word-break:keep-all; } h3 { font-size:17px; font-weight:700; color:var(--wine); margin:38px 0 10px; } p { font-size:18px; color:var(--text); line-height:1.82; margin-bottom:18px; } table { width:100%; border-collapse:collapse; margin:24px 0; font-size:14px; } th { color:var(--navy); font-weight:600; padding:11px 16px; text-align:left; font-size:16px; border-bottom:2px solid var(--navy); } td { padding:12px 16px; border-bottom:1px solid var(--rule); color:var(--text); font-size:16px; } tbody tr:hover { background:#f6f9fc; } ul, ol:not(.toc-nav ol) { padding-left:20px; margin-bottom:16px; } li { font-size:18px; line-height:1.78; margin-bottom:6px; color:var(--text); } .faq-item { border-top:1px solid var(--rule); padding:22px 0; } .faq-item:last-of-type { border-bottom:1px solid var(--rule); } .faq-q { font-size:17px; font-weight:600; color:var(--navy); margin-bottom:8px !important; } .faq-item p:not(.faq-q) { font-size:17px; color:var(--text); margin:0; line-height:1.75; } p.closing { font-size:15.5px; color:var(--text); margin:40px 0 0; padding-top:32px; border-top:1px solid var(--rule); } .author-box { display:flex; align-items:center; gap:14px; padding-top:40px; margin-top:40px; border-top:1px solid var(--rule); } .author-avatar { width:56px; height:56px; border-radius:50%; object-fit:cover; flex-shrink:0; align-self:flex-start; } .author-text { flex:1; } .author-name { font-size:18px; font-weight:600; color:var(--navy); } .author-link { display:inline-block; margin-top:8px; font-size:15px; font-weight:600; color:var(--wine); text-decoration:none; } .author-link:hover { text-decoration:underline; } .author-section-label { font-size:15px; font-weight:700; letter-spacing:1px; text-transform:uppercase; color:var(--muted); margin-bottom:8px; } .author-detail { font-size:16px; color:var(--text); line-height:1.7; margin-bottom:1px; } .dl-wrap { margin:44px 0 24px; border:1px solid var(--rule); border-radius:8px; overflow:hidden; } .dl-head { background:var(--navy); color:#fff; padding:20px 24px; } .dl-head .dl-t { font-size:19px; font-weight:700; color:#fff; } .dl-head .dl-s { font-size:13.5px; color:#c7d2e0; margin-top:4px; } .dl-primary { padding:6px 0; background:#fbf7f8; border-bottom:1px solid var(--rule); } .dl-primary .dl-plabel { font-size:12px; font-weight:700; letter-spacing:.5px; color:var(--wine); padding:12px 24px 2px; } .dl-list { padding:8px 0; } .dl-item { display:flex; align-items:center; gap:16px; padding:14px 24px; border-bottom:1px solid var(--rule); } .dl-item:last-child { border-bottom:none; } .dl-ic { flex-shrink:0; width:40px; height:48px; background:#f6f9fc; border:1px solid var(--rule); border-radius:4px; display:flex; align-items:center; justify-content:center; font-size:11px; font-weight:700; color:var(--wine); } .dl-meta { flex:1; min-width:0; } .dl-name { font-size:16px; font-weight:600; color:var(--navy); line-height:1.4; } .dl-sub { font-size:13px; color:var(--muted); margin-top:2px; } .dl-btn { flex-shrink:0; display:inline-block; padding:9px 18px; background:var(--wine); color:#fff; font-size:14px; font-weight:700; text-decoration:none; border-radius:5px; white-space:nowrap; } .dl-btn:hover { background:#5c252c; } .dl-alllabel { font-size:12px; font-weight:700; letter-spacing:.5px; color:var(--muted); padding:14px 24px 2px; } .dl-note { font-size:13px; color:var(--muted); line-height:1.7; margin:16px 0 0; padding:14px 16px; background:#f6f9fc; border-radius:6px; } .series-box { margin:44px 0; border:1px solid var(--rule); border-radius:8px; padding:24px 28px; background:#fafbfc; } .series-box .s-label { font-size:13px; font-weight:700; letter-spacing:1px; text-transform:uppercase; color:var(--wine); margin-bottom:14px; } .series-box ol { margin:0; padding-left:20px; } .series-box li { font-size:16px; margin-bottom:8px; } .series-box li.cur { font-weight:700; color:var(--navy); list-style:none; margin-left:-20px; padding-left:20px; } .series-box li.cur::before { content:\"\u25b6 \"; color:var(--wine); } .series-box a { color:var(--text); text-decoration:none; } .series-box a:hover { color:var(--wine); } @media (max-width:640px) { body { font-size:15px; } p { font-size:15px; } li { font-size:15px; } .hero { padding:32px 14px 24px; } .hero-title { font-size:22px; } .hero-info { font-size:12px; } .content { padding:28px 0 60px; } .toc-nav { margin-left:-14px; margin-right:-14px; border-radius:0; border-left:none; border-right:none; padding:12px 4px; margin-bottom:28px; } .toc-label { font-size:16px; } .toc-nav ol li { font-size:14px; padding:3px 0; } h2 { font-size:20px; margin:44px 0 10px; } h3 { font-size:15px; margin:24px 0 8px; } .lead-text { font-size:16px; } .context-text { font-size:14px; } th { font-size:13px; padding:8px 10px; } td { font-size:13px; padding:8px 10px; } .faq-q { font-size:14px; } .faq-item p:not(.faq-q) { font-size:14px; } .dl-item { flex-wrap:wrap; padding:14px 16px; } .dl-name { font-size:14px; } .dl-btn { font-size:13px; padding:8px 14px; } .dl-head { padding:16px 16px; } .series-box { padding:18px 16px; } .author-box { display:block; overflow:hidden; } .author-avatar { float:left; width:36px; height:36px; margin-right:10px; } .author-section-label { display:inline; font-size:11px; letter-spacing:0; margin:0 3px 0 0; } .author-name { display:inline; font-size:14px; } .author-detail { clear:both; font-size:13px; line-height:1.55; margin-top:8px; } .author-link { clear:both; display:block; font-size:13px; margin-top:8px; } p.closing { font-size:14px; } }<\/style>\n<p><!-- ATLAS_SEO_BLOCK_START --><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"Article\",\"@id\":\"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/#article\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/#webpage\"},\"headline\":\"Refixing (Conversion Price Adjustment) Explained in South Korea\",\"description\":\"A full explanation of refixing (conversion price adjustment) for convertible bonds, convertible preferred stock, and bonds with warrants in South Korea \u2014 full ratchet vs. weighted average, a worked example, the listed-company 70% floor, and accounting effects.\",\"datePublished\":\"2026-07-08T09:00:00+09:00\",\"dateModified\":\"2026-07-08T09:00:00+09:00\",\"inLanguage\":\"en-US\",\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/atlaw.kr\/taejin-kim\/#person\",\"name\":\"Taejin Kim\",\"alternateName\":\"\uae40\ud0dc\uc9c4\",\"jobTitle\":\"Managing Partner\",\"worksFor\":{\"@id\":\"https:\/\/atlaw.kr\/#legalservice\"}},\"publisher\":{\"@type\":\"LegalService\",\"@id\":\"https:\/\/atlaw.kr\/#legalservice\",\"name\":\"Atlas Legal\",\"url\":\"https:\/\/atlaw.kr\"},\"about\":[\"refixing conversion price adjustment anti-dilution\",\"full ratchet weighted average adjustment methods\",\"Korean securities regulation conversion price 70% floor\",\"upward refixing obligation for convertible bonds 2021 amendment\"]}<\/script><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"@id\":\"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/#faqpage\",\"inLanguage\":\"en-US\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Does refixing always hurt the founder?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Refixing is an investor-protection device, so it fundamentally increases founder dilution. But the burden can be reduced through the adjustment method (weighted average rather than full ratchet), a floor, and carve-outs, so negotiation matters.\"}},{\"@type\":\"Question\",\"name\":\"Which is standard, full ratchet or weighted average?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Weighted average is the standard in venture practice; full ratchet is the most unfavorable to founders and is, as a rule, avoided. Among weighted-average approaches, broad-based favors founders.\"}},{\"@type\":\"Question\",\"name\":\"How far can a listed company lower the conversion price?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Under the Regulation on Issuance, Public Disclosure, etc. of Securities, the floor for downward adjustment is, in principle, 70% of the initial conversion price. Going below that requires a charter basis or a special resolution of the general meeting.\"}},{\"@type\":\"Question\",\"name\":\"What is upward refixing?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It means raising a conversion price \u2014 previously lowered on a price drop \u2014 back up within the cap of the initial conversion price as the share price recovers. A 2021 regulatory amendment made it mandatory for private-placement convertible bonds and similar (public offerings excluded).\"}},{\"@type\":\"Question\",\"name\":\"Does refixing affect accounting?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It can. If refixing varies the conversion price, the fixed-for-fixed requirement under K-IFRS may not be met, so the conversion right may be classified as a derivative liability with valuation gains or losses. Confirm with the auditor in advance.\"}}]}<\/script><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":[\"LegalService\",\"LocalBusiness\"],\"@id\":\"https:\/\/atlaw.kr\/#legalservice\",\"name\":\"Atlas Legal\",\"alternateName\":[\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\",\"Atlas Law Firm\"],\"url\":\"https:\/\/atlaw.kr\/en\/home-en\/\",\"telephone\":\"+82-32-864-8300\",\"email\":\"info@atlaw.kr\",\"priceRange\":\"$$$\",\"address\":{\"@type\":\"PostalAddress\",\"streetAddress\":\"B-2901, 323 Incheon Tower-daero\",\"addressLocality\":\"Yeonsu-gu, Incheon\",\"addressRegion\":\"Incheon Metropolitan City\",\"postalCode\":\"22007\",\"addressCountry\":\"KR\"},\"geo\":{\"@type\":\"GeoCoordinates\",\"latitude\":37.399438,\"longitude\":126.629812},\"openingHoursSpecification\":[{\"@type\":\"OpeningHoursSpecification\",\"dayOfWeek\":[\"Monday\",\"Tuesday\",\"Wednesday\",\"Thursday\",\"Friday\"],\"opens\":\"09:00\",\"closes\":\"18:00\"}],\"areaServed\":[{\"@type\":\"Country\",\"name\":\"South Korea\"},{\"@type\":\"Place\",\"name\":\"Songdo International Business District\"},{\"@type\":\"Place\",\"name\":\"Cheongna International City\"},{\"@type\":\"Place\",\"name\":\"Yeongjong International City\"},{\"@type\":\"Place\",\"name\":\"Incheon\"},{\"@type\":\"Place\",\"name\":\"Seoul Metropolitan Area\"},{\"@type\":\"Place\",\"name\":\"Incheon Free Economic Zone (IFEZ)\"}],\"knowsAbout\":[\"Venture Investment Contracts in South Korea\",\"KVCA Standard Investment Agreements in South Korea\",\"Convertible Preferred Stock (RCPS\/CPS) under Korean law\",\"Convertible Bonds and Bonds with Warrants in South Korea\",\"Shareholders Agreements in South Korea\",\"Startup Financing Legal Services in South Korea\"],\"serviceType\":[\"Venture Investment Contract Review\",\"Shareholders Agreement Negotiation\",\"Startup and Founder Legal Counsel\",\"Foreign Direct Investment Legal Services\",\"Corporate Counseling\"]}<\/script><!-- ATLAS_SEO_BLOCK_END --><\/p>\n<div class=\"hero\">\n<span class=\"category-tag\">Corporate Counseling \u00b7 Venture Investment \u00b7 In depth<\/span><\/p>\n<div class=\"hero-title\">Refixing (Conversion Price Adjustment)<br \/>Explained \u2014 South Korea<\/div>\n<div class=\"hero-meta\">\n<div class=\"hero-info\"><strong>Taejin Kim<\/strong> \u00b7 Managing Partner, Atlas Legal<br \/>Based on the Korea Venture Capital Association (KVCA) standard contracts, revised April 2026<\/div>\n<\/div>\n<\/div>\n<div class=\"content\">\n<div class=\"direct-answer\"><strong>Quick answer:<\/strong> Refixing (conversion price adjustment) is an investor-protection mechanism that <strong>later lowers (or raises) the initial conversion price<\/strong> in convertible bonds, convertible preferred stock, and bonds with warrants. The key is the method: <strong>full ratchet<\/strong> lowers the price straight to the new issue price, while a <strong>weighted average<\/strong> adjusts partially, reflecting the issue size. For listed companies, the downward floor is limited to 70% of the initial conversion price.<\/div>\n<div class=\"toc-nav\">\n<p class=\"toc-label\">Contents<\/p>\n<ol>\n<li><a href=\"#sec-1\">1. What is refixing (conversion price adjustment)?<\/a><\/li>\n<li><a href=\"#sec-2\">2. Why have it? \u2014 protecting the investor&#8217;s downside<\/a><\/li>\n<li><a href=\"#sec-3\">3. What triggers refixing?<\/a><\/li>\n<li><a href=\"#sec-4\">4. How do full ratchet and weighted average differ?<\/a><\/li>\n<li><a href=\"#sec-5\">5. What rules apply to listed companies?<\/a><\/li>\n<li><a href=\"#sec-6\">6. What are the accounting effects?<\/a><\/li>\n<li><a href=\"#sec-7\">7. What are the negotiation points for founders?<\/a><\/li>\n<li><a href=\"#sec-dl\">Download all 8 standard contracts<\/a><\/li>\n<li><a href=\"#sec-faq\">Frequently Asked Questions<\/a><\/li>\n<\/ol>\n<\/div>\n<p class=\"lead-text\">Refixing is the most frequently disputed clause in venture and mezzanine deals. &#8220;Whether there is refixing&#8221; matters far less than &#8220;which method it uses.&#8221;<\/p>\n<p class=\"context-text\">Convertible bonds (CB), convertible and redeemable convertible preferred stock (CPS\/RCPS), and bonds with warrants (BW) almost always carry a refixing clause. This single clause governs the extent of the founder&#8217;s dilution, the company&#8217;s cash burden, and even the profit and loss on the financial statements. This in-depth article gathers, in one place, the methods, math, regulation, and accounting of refixing that earlier articles in the series touched on briefly.<\/p>\n<div class=\"series-box\">\n<div class=\"s-label\">Venture Investment Standard Contracts Series<\/div>\n<ol>\n<li><a href=\"https:\/\/atlaw.kr\/en-blog\/venture-standard-contract-2026-changes-south-korea\/\">2026 Amendments: What Changed<\/a><\/li>\n<li><a href=\"https:\/\/atlaw.kr\/en-blog\/venture-cps-agreement-guide-south-korea\/\">Convertible Preferred Stock (CPS) Agreements<\/a><\/li>\n<li><a href=\"https:\/\/atlaw.kr\/en-blog\/venture-rcps-agreement-guide-south-korea\/\">Redeemable CPS (RCPS) Agreements<\/a><\/li>\n<li><a href=\"https:\/\/atlaw.kr\/en-blog\/venture-common-stock-agreement-guide-south-korea\/\">Common Stock Agreements<\/a><\/li>\n<li><a href=\"https:\/\/atlaw.kr\/en-blog\/venture-cb-agreement-guide-south-korea\/\">Convertible Bond (CB) Agreement<\/a><\/li>\n<li><a href=\"https:\/\/atlaw.kr\/en-blog\/venture-bw-agreement-guide-south-korea\/\">Bond with Warrant (BW) Agreement<\/a><\/li>\n<li class=\"cur\">[In depth] Refixing (Conversion Price Adjustment) (this article)<\/li>\n<\/ol>\n<\/div>\n<p><\/p>\n<h2 id=\"sec-1\">1. What is refixing (conversion price adjustment)?<\/h2>\n<p>Refixing is a clause that <strong>later adjusts the initially agreed conversion price (or warrant exercise price)<\/strong> in convertible bonds, convertible preferred stock, and bonds with warrants when a specified event occurs. It corresponds to what is called an anti-dilution adjustment in the United States and elsewhere.<\/p>\n<p>The mechanics are simple: <strong>shares received on conversion = investment principal \u00f7 conversion price<\/strong>. So when the conversion price falls, the same investment buys more shares \u2014 and existing shareholders, especially the founder, are diluted that much more.<\/p>\n<p><\/p>\n<h2 id=\"sec-2\">2. Why have it? \u2014 protecting the investor&#8217;s downside<\/h2>\n<p>Refixing is purely an investor-protection device, defending against two risks.<\/p>\n<ul>\n<li><strong>Down-round risk<\/strong> \u2014 if the next round is done below my conversion price, I effectively overpaid. Refixing compensates for that loss.<\/li>\n<li><strong>Price-drop risk (listed companies)<\/strong> \u2014 for listed CBs and BWs, if the share price falls below the conversion price, conversion becomes pointless, so the conversion price is lowered to track the market price.<\/li>\n<\/ul>\n<p><\/p>\n<h2 id=\"sec-3\">3. What triggers refixing?<\/h2>\n<table>\n<thead>\n<tr>\n<th>Trigger type<\/th>\n<th>Content<\/th>\n<th>Where it appears<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Down round (dilution)<\/td>\n<td>A later round is done below the existing conversion price<\/td>\n<td>Private (unlisted) ventures<\/td>\n<\/tr>\n<tr>\n<td>Price drop<\/td>\n<td>Listed share price falls \u2192 conversion price lowered to market<\/td>\n<td>Listed CB\/BW<\/td>\n<\/tr>\n<tr>\n<td>Capital transactions<\/td>\n<td>Bonus issues, stock splits, stock dividends, below-market rights offerings, etc.<\/td>\n<td>Common<\/td>\n<\/tr>\n<tr>\n<td>Price rise (upward refixing)<\/td>\n<td>Raising a previously lowered conversion price as the price recovers<\/td>\n<td>Listed private CBs (mandatory since 2021)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/p>\n<h2 id=\"sec-4\">4. How do full ratchet and weighted average differ?<\/h2>\n<p>Down-round refixing splits into two methods by adjustment strength. This is the heart of the negotiation.<\/p>\n<h3>\u2460 Full ratchet \u2014 most favorable to the existing investor<\/h3>\n<p>The conversion price is pulled straight down to the new issue price. It matches the lowest price no matter how small the new issuance, so it is <strong>the most unfavorable to founders and to other existing shareholders without refixing protection (including early investors and employee stock options)<\/strong>, and is, as a rule, avoided in venture practice.<\/p>\n<h3>\u2461 Weighted average \u2014 the practical standard<\/h3>\n<p>It adjusts only partially, reflecting the <strong>size (number of shares) of the new issuance<\/strong>; a small issuance means a small adjustment. A <strong>broad-based<\/strong> approach, which puts fully diluted shares (options, warrants) into the denominator, produces a smaller adjustment and favors founders; a <strong>narrow-based<\/strong> approach, which counts only issued shares, produces a larger adjustment and favors investors.<\/p>\n<h3>When refixing triggers, who gains and who loses<\/h3>\n<p>Refixing protects <strong>the investor who holds the clause<\/strong>. In a down round that investor&#8217;s conversion price falls and they receive more shares on conversion; because no new shares are minted \u2014 the same company is simply split into more pieces \u2014 everyone else&#8217;s stake is diluted accordingly.<\/p>\n<table>\n<thead>\n<tr>\n<th>Party<\/th>\n<th>When down-round refixing triggers<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>(Existing) investor holding the refixing clause<\/td>\n<td>Conversion price falls \u2192 more shares <strong>(gains)<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Founders \/ management (common stock)<\/td>\n<td>Stake diluted <strong>(loses)<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Other existing shareholders without refixing \/ employees (stock options)<\/td>\n<td>Stake diluted <strong>(loses)<\/strong><\/td>\n<\/tr>\n<tr>\n<td>New investors in this round<\/td>\n<td>Already came in at the low price (unaffected)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The same down round yields very different results by method. <strong>Assume: initial conversion price 10,000 KRW \/ 100,000 shares before issuance \/ a new issuance of 20,000 shares at 5,000 KRW (raising 100 million KRW).<\/strong><\/p>\n<table>\n<thead>\n<tr>\n<th>Method<\/th>\n<th>Calculation<\/th>\n<th>Adjusted conversion price<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>No adjustment<\/td>\n<td>\u2014<\/td>\n<td>10,000 KRW<\/td>\n<\/tr>\n<tr>\n<td>Weighted average<\/td>\n<td>10,000 \u00d7 (100,000 + 10,000) \u00f7 (100,000 + 20,000)<\/td>\n<td>\u2248 9,167 KRW<\/td>\n<\/tr>\n<tr>\n<td>Full ratchet<\/td>\n<td>the new issue price itself<\/td>\n<td>5,000 KRW<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Why does this formula come out this way?<\/h3>\n<p>Weighted average boils down to one sentence: <strong>reset the conversion price to the \u201caverage value of all the company&#8217;s shares.\u201d<\/strong><\/p>\n<p>Our example mixes two kinds of shares:<\/p>\n<ul>\n<li>100,000 existing shares \u2014 worth 10,000 KRW each<\/li>\n<li>20,000 new shares \u2014 worth 5,000 KRW each<\/li>\n<\/ul>\n<p>Averaging these 120,000 shares: (100,000 \u00d7 10,000) + (20,000 \u00d7 5,000) = 1 billion + 100 million = <strong>1.1 billion KRW<\/strong>, and 1.1 billion \u00f7 120,000 = <strong>\u2248 9,167 KRW<\/strong>. As cheap shares mix in, the \u201caverage value\u201d of a single share drops from 10,000 to 9,167 KRW, and the conversion price is lowered by exactly that much. That is weighted average.<\/p>\n<p>The textbook formula <code>old price \u00d7 (A+B) \u00f7 (A+C)<\/code> is the same calculation: instead of using the new issue price directly, it substitutes \u201chow many shares would this 100 million KRW have bought at the original 10,000 KRW price (= 10,000 shares, the B in the formula)\u201d \u2014 and the result is still 9,167 KRW.<\/p>\n<p><strong>Why is this fair?<\/strong> If the new issuance is small relative to the whole company, the average barely moves and the adjustment is small; if it is large, the average drops sharply and the adjustment is large. In other words, it reflects how big a shock this down round was relative to the company&#8217;s size. Full ratchet, by contrast, does not average at all: even for a single new share, it snaps the conversion price to that lowest price (5,000 KRW). That is why it ignores scale, always cuts by the maximum, and is the method most favorable to the existing investor.<\/p>\n<p>Weighted average lowers the conversion price only about 8%, while full ratchet halves it, giving the investor nearly twice the shares. That is why &#8220;which method&#8221; matters far more than &#8220;whether there is refixing.&#8221;<\/p>\n<p><\/p>\n<h2 id=\"sec-5\">5. What rules apply to listed companies?<\/h2>\n<p>Unlisted ventures set terms freely by contract, but listed-company CBs and BWs are subject to the Regulation on Issuance, Public Disclosure, etc. of Securities.<\/p>\n<ul>\n<li><strong>Downward floor<\/strong> \u2014 the floor for downward adjustment of the conversion price is, in principle, <strong>70% of the initial conversion price<\/strong>. Going below that requires a charter basis or a special resolution of the general meeting.<\/li>\n<li><strong>Upward refixing (effective December 2021)<\/strong> \u2014 previously, some private CBs lowered the conversion price on a price drop but left it there even after the price recovered, letting certain investors acquire large blocks of shares cheaply. To prevent this, where the price was lowered on a market-price drop, the issuer must <strong>raise the conversion price again as the price recovers, within the cap of the initial conversion price<\/strong> (for private placements; public offerings are excluded). The same amendment also introduced call-option regulation.<\/li>\n<\/ul>\n<p><\/p>\n<h2 id=\"sec-6\">6. What are the accounting effects?<\/h2>\n<p>Refixing can also affect accounting. Under K-IFRS, for a conversion right to be recognized as equity, it must meet the <strong>&#8220;fixed-for-fixed&#8221;<\/strong> requirement \u2014 exchanging a fixed number of shares for a fixed amount \u2014 and refixing, which varies the conversion price (and thus the share count), may fail that requirement.<\/p>\n<p>In that case, the conversion right may be classified not as equity but as a <strong>derivative liability<\/strong>, measured at fair value each reporting period with the change recognized in profit or loss. Paradoxically, when the share price rises the liability grows, which can show up as an accounting loss. Whether this treatment applies depends on the terms and the standard applied, so confirm with the auditor in advance.<\/p>\n<p><\/p>\n<h2 id=\"sec-7\">7. What are the negotiation points for founders?<\/h2>\n<p>Points to check before signing:<\/p>\n<ul>\n<li><strong>Exclude full ratchet; use weighted average (broad-based where possible)<\/strong><\/li>\n<li><strong>Set a floor<\/strong> so the price cannot fall without limit<\/li>\n<li><strong>Carve-outs<\/strong> \u2014 exclude stock option pools and strategic\/M&#038;A issuances from the trigger<\/li>\n<li><strong>Limit the period<\/strong> \u2014 set a validity period to avoid indefinite exposure<\/li>\n<li><strong>Check the interplay with joint-and-several liability<\/strong> and <strong>review the accounting effect (derivative liability) in advance<\/strong><\/li>\n<\/ul>\n<p>In sum, refixing is a device that &#8220;fills the investor&#8217;s downside with the founder&#8217;s equity,&#8221; and its strength is set by the method (full ratchet vs. weighted average), the basis (broad vs. narrow), the floor, and the carve-outs. Atlas Legal reviews the method and scope of refixing clauses one by one and organizes the equity impact and negotiation strategy together.<\/p>\n<div class=\"dl-wrap\" id=\"sec-dl\">\n<div class=\"dl-head\">\n<div class=\"dl-t\">Download the 2026 KVCA Standard Venture Investment Contracts<\/div>\n<div class=\"dl-s\">Source: Korea Venture Capital Association (KVCA), revised April 2026 \u00b7 Word (.docx) format \u00b7 Korean-language documents<\/div>\n<\/div>\n<div class=\"dl-list\">\n<div class=\"dl-item\">\n<div class=\"dl-ic\">DOCX<\/div>\n<div class=\"dl-meta\">\n<div class=\"dl-name\">Convertible Preferred Stock (CPS) Investment Agreement (SPA)<\/div>\n<div class=\"dl-sub\">For executing a CPS investment<\/div>\n<\/div>\n<p><a class=\"dl-btn\" href=\"https:\/\/atlaw.kr\/kr-blog\/wp-content\/uploads\/sites\/2\/2026\/07\/atlas-cps-investment-agreement.docx\" download=\"Convertible Preferred Stock Investment Agreement (KVCA 2026).docx\">Download<\/a><\/div>\n<div class=\"dl-item\">\n<div class=\"dl-ic\">DOCX<\/div>\n<div class=\"dl-meta\">\n<div class=\"dl-name\">CPS Shareholders Agreement (SHA)<\/div>\n<div class=\"dl-sub\">For post-investment shareholder relations<\/div>\n<\/div>\n<p><a class=\"dl-btn\" href=\"https:\/\/atlaw.kr\/kr-blog\/wp-content\/uploads\/sites\/2\/2026\/07\/atlas-cps-shareholders-agreement.docx\" download=\"Convertible Preferred Stock Shareholders Agreement (KVCA 2026).docx\">Download<\/a><\/div>\n<div class=\"dl-item\">\n<div class=\"dl-ic\">DOCX<\/div>\n<div class=\"dl-meta\">\n<div class=\"dl-name\">Redeemable CPS (RCPS) Investment Agreement (SPA)<\/div>\n<div class=\"dl-sub\">For executing an RCPS investment<\/div>\n<\/div>\n<p><a class=\"dl-btn\" href=\"https:\/\/atlaw.kr\/kr-blog\/wp-content\/uploads\/sites\/2\/2026\/07\/atlas-rcps-investment-agreement.docx\" download=\"Redeemable Convertible Preferred Stock Investment Agreement (KVCA 2026).docx\">Download<\/a><\/div>\n<div class=\"dl-item\">\n<div class=\"dl-ic\">DOCX<\/div>\n<div class=\"dl-meta\">\n<div class=\"dl-name\">RCPS Shareholders Agreement (SHA)<\/div>\n<div class=\"dl-sub\">For post-investment shareholder relations<\/div>\n<\/div>\n<p><a class=\"dl-btn\" href=\"https:\/\/atlaw.kr\/kr-blog\/wp-content\/uploads\/sites\/2\/2026\/07\/atlas-rcps-shareholders-agreement.docx\" download=\"Redeemable Convertible Preferred Stock Shareholders Agreement (KVCA 2026).docx\">Download<\/a><\/div>\n<div class=\"dl-item\">\n<div class=\"dl-ic\">DOCX<\/div>\n<div class=\"dl-meta\">\n<div class=\"dl-name\">Common Stock Investment Agreement (SPA)<\/div>\n<div class=\"dl-sub\">For executing a common stock investment<\/div>\n<\/div>\n<p><a class=\"dl-btn\" href=\"https:\/\/atlaw.kr\/kr-blog\/wp-content\/uploads\/sites\/2\/2026\/07\/atlas-common-stock-investment-agreement.docx\" download=\"Common Stock Investment Agreement (KVCA 2026).docx\">Download<\/a><\/div>\n<div class=\"dl-item\">\n<div class=\"dl-ic\">DOCX<\/div>\n<div class=\"dl-meta\">\n<div class=\"dl-name\">Common Stock Shareholders Agreement (SHA)<\/div>\n<div class=\"dl-sub\">For post-investment shareholder relations<\/div>\n<\/div>\n<p><a class=\"dl-btn\" href=\"https:\/\/atlaw.kr\/kr-blog\/wp-content\/uploads\/sites\/2\/2026\/07\/atlas-common-stock-shareholders-agreement.docx\" download=\"Common Stock Shareholders Agreement (KVCA 2026).docx\">Download<\/a><\/div>\n<div class=\"dl-item\">\n<div class=\"dl-ic\">DOCX<\/div>\n<div class=\"dl-meta\">\n<div class=\"dl-name\">Convertible Bond (CB) Investment Agreement<\/div>\n<div class=\"dl-sub\">For a convertible bond investment<\/div>\n<\/div>\n<p><a class=\"dl-btn\" href=\"https:\/\/atlaw.kr\/kr-blog\/wp-content\/uploads\/sites\/2\/2026\/07\/atlas-cb-investment-agreement.docx\" download=\"Convertible Bond Investment Agreement (KVCA 2026).docx\">Download<\/a><\/div>\n<div class=\"dl-item\">\n<div class=\"dl-ic\">DOCX<\/div>\n<div class=\"dl-meta\">\n<div class=\"dl-name\">Bond with Warrant (BW) Investment Agreement<\/div>\n<div class=\"dl-sub\">For a bond-with-warrant investment<\/div>\n<\/div>\n<p><a class=\"dl-btn\" href=\"https:\/\/atlaw.kr\/kr-blog\/wp-content\/uploads\/sites\/2\/2026\/07\/atlas-bw-investment-agreement.docx\" download=\"Bond with Warrant Investment Agreement (KVCA 2026).docx\">Download<\/a><\/div>\n<\/div>\n<p class=\"dl-note\">These files are the standard contract forms distributed by the Korea Venture Capital Association (KVCA), revised April 2026. The documents are in Korean. Actual transactions require review and tailoring to the specifics of each deal; these materials are provided as reference forms and do not constitute legal advice on any particular matter.<\/p>\n<\/div>\n<p><\/p>\n<h2 id=\"sec-faq\">Frequently Asked Questions<\/h2>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. Does refixing always hurt the founder?<\/p>\n<p>A. Refixing is an investor-protection device, so it fundamentally increases founder dilution. But the burden can be reduced through the adjustment method (weighted average rather than full ratchet), a floor, and carve-outs, so negotiation matters.<\/p>\n<\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. Which is standard, full ratchet or weighted average?<\/p>\n<p>A. Weighted average is the standard in venture practice; full ratchet is the most unfavorable to founders and is, as a rule, avoided. Among weighted-average approaches, broad-based favors founders.<\/p>\n<\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. How far can a listed company lower the conversion price?<\/p>\n<p>A. Under the Regulation on Issuance, Public Disclosure, etc. of Securities, the floor for downward adjustment is, in principle, 70% of the initial conversion price. Going below that requires a charter basis or a special resolution of the general meeting.<\/p>\n<\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. What is upward refixing?<\/p>\n<p>A. It means raising a conversion price \u2014 previously lowered on a price drop \u2014 back up within the cap of the initial conversion price as the share price recovers. A 2021 regulatory amendment made it mandatory for private-placement convertible bonds and similar (public offerings excluded).<\/p>\n<\/div>\n<div class=\"faq-item\">\n<p class=\"faq-q\">Q. Does refixing affect accounting?<\/p>\n<p>A. It can. If refixing varies the conversion price, the fixed-for-fixed requirement under K-IFRS may not be met, so the conversion right may be classified as a derivative liability with valuation gains or losses. Confirm with the auditor in advance.<\/p>\n<\/div>\n<p class=\"closing\">To consult Atlas Legal on reviewing or negotiating a refixing clause in South Korea, please contact us at +82-32-864-8300 or info@atlaw.kr.<\/p>\n<div class=\"author-box\">\n  <img decoding=\"async\" class=\"author-avatar\" src=\"https:\/\/atlaw.kr\/wp-content\/uploads\/2022\/12\/\uae40\ud0dc\uc9c4-1.png\" alt=\"Taejin Kim, Managing Partner \u2014 Atlas Legal\"><\/p>\n<div class=\"author-text\">\n<div class=\"author-section-label\">About the Author<\/div>\n<div class=\"author-name\">Taejin Kim | Managing Partner<\/div>\n<div class=\"author-detail\">Corporate Counseling, Corporate Disputes, White-Collar Crime<\/div>\n<div class=\"author-detail\">Former Public Prosecutor | Judicial Research and Training Institute, 33rd Class<\/div>\n<div class=\"author-detail\">Korea University LL.B. &amp; LL.M. (Criminal Law), University of California, Davis LL.M.<\/div>\n<div class=\"author-detail\">Atlas Legal | Incheon Songdo, South Korea<\/div>\n<p>    <a class=\"author-link\" href=\"https:\/\/atlaw.kr\" target=\"_blank\" rel=\"noopener noreferrer\">Visit Atlas Legal Homepage \u2192<\/a>\n  <\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Corporate Counseling \u00b7 Venture Investment \u00b7 In depth Refixing (Conversion Price Adjustment)Explained \u2014 South Korea Taejin Kim \u00b7 Managing Partner, Atlas LegalBased on the Korea Venture Capital Association (KVCA) standard contracts, revised April 2026 Quick answer: Refixing (conversion price adjustment) is an investor-protection mechanism that later lowers (or raises) the initial conversion price in convertible&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[218],"tags":[834,835,836,837,838],"class_list":["post-1439","post","type-post","status-publish","format-standard","hentry","category-corporate-counseling","tag-refixing-2","tag-conversion-price-adjustment","tag-convertible-bond-2","tag-full-ratchet","tag-weighted-average"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>**: Refixing (Conversion Price Adjustment) in South Korea \u2014 Full Ratchet, Weighted Average, 70% Rule | Atlas Legal<\/title>\n<meta name=\"description\" content=\"**: A full explanation of refixing (conversion price adjustment) in South Korea. Full ratchet vs. weighted average, a worked example, the listed-company downward floor of 70% and the 2021 upward-refixing rule, accounting effects, and founder negotiation points.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/\" \/>\n<meta property=\"og:locale\" content=\"ko_KR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"**: Refixing (Conversion Price Adjustment) in South Korea \u2014 Full Ratchet, Weighted Average, 70% Rule | Atlas Legal\" \/>\n<meta property=\"og:description\" content=\"**: A full explanation of refixing (conversion price adjustment) in South Korea. Full ratchet vs. weighted average, a worked example, the listed-company downward floor of 70% and the 2021 upward-refixing rule, accounting effects, and founder negotiation points.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/\" \/>\n<meta property=\"og:site_name\" content=\"Atlas Legal Blog\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-07T20:43:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-07T20:45:34+00:00\" \/>\n<meta name=\"author\" content=\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\uae00\uc4f4\uc774\" \/>\n\t<meta name=\"twitter:data1\" content=\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\" \/>\n\t<meta name=\"twitter:label2\" content=\"\uc608\uc0c1 \ub418\ub294 \ud310\ub3c5 \uc2dc\uac04\" \/>\n\t<meta name=\"twitter:data2\" content=\"9\ubd84\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/venture-refixing-conversion-price-adjustment-south-korea\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/venture-refixing-conversion-price-adjustment-south-korea\\\/\"},\"author\":{\"name\":\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#\\\/schema\\\/person\\\/184bcdecc06f89fd6c36b29781165b55\"},\"headline\":\"Refixing (Conversion Price Adjustment) Explained \u2014 Full Ratchet, Weighted Average, and Listed-Company Rules in South Korea\",\"datePublished\":\"2026-07-07T20:43:28+00:00\",\"dateModified\":\"2026-07-07T20:45:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/venture-refixing-conversion-price-adjustment-south-korea\\\/\"},\"wordCount\":1951,\"publisher\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#organization\"},\"keywords\":[\"**: refixing\",\"conversion price adjustment\",\"convertible bond\",\"full ratchet\",\"weighted average\"],\"articleSection\":[\"Corporate Counseling\"],\"inLanguage\":\"ko-KR\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/venture-refixing-conversion-price-adjustment-south-korea\\\/\",\"url\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/venture-refixing-conversion-price-adjustment-south-korea\\\/\",\"name\":\"**: Refixing (Conversion Price Adjustment) in South Korea \u2014 Full Ratchet, Weighted Average, 70% Rule | Atlas Legal\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#website\"},\"datePublished\":\"2026-07-07T20:43:28+00:00\",\"dateModified\":\"2026-07-07T20:45:34+00:00\",\"description\":\"**: A full explanation of refixing (conversion price adjustment) in South Korea. Full ratchet vs. weighted average, a worked example, the listed-company downward floor of 70% and the 2021 upward-refixing rule, accounting effects, and founder negotiation points.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/venture-refixing-conversion-price-adjustment-south-korea\\\/#breadcrumb\"},\"inLanguage\":\"ko-KR\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/venture-refixing-conversion-price-adjustment-south-korea\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/venture-refixing-conversion-price-adjustment-south-korea\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\ud648\",\"item\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Refixing (Conversion Price Adjustment) Explained \u2014 Full Ratchet, Weighted Average, and Listed-Company Rules in South Korea\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#website\",\"url\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/\",\"name\":\"Atlas Legal English Blog\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"ko-KR\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#organization\",\"name\":\"Atlas Legal English Blog\",\"url\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"ko-KR\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2025\\\/09\\\/\ud3f4\ub354-\uc0c1\ub2e8-\uc9c1\uc0ac\uac01\ud615.png\",\"contentUrl\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2025\\\/09\\\/\ud3f4\ub354-\uc0c1\ub2e8-\uc9c1\uc0ac\uac01\ud615.png\",\"width\":540,\"height\":485,\"caption\":\"Atlas Legal English Blog\"},\"image\":{\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/#\\\/schema\\\/person\\\/184bcdecc06f89fd6c36b29781165b55\",\"name\":\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"ko-KR\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g\",\"caption\":\"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4\"},\"sameAs\":[\"https:\\\/\\\/atlaw.kr\"],\"url\":\"https:\\\/\\\/atlaw.kr\\\/en-blog\\\/author\\\/prinz001\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"**: Refixing (Conversion Price Adjustment) in South Korea \u2014 Full Ratchet, Weighted Average, 70% Rule | Atlas Legal","description":"**: A full explanation of refixing (conversion price adjustment) in South Korea. Full ratchet vs. weighted average, a worked example, the listed-company downward floor of 70% and the 2021 upward-refixing rule, accounting effects, and founder negotiation points.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/","og_locale":"ko_KR","og_type":"article","og_title":"**: Refixing (Conversion Price Adjustment) in South Korea \u2014 Full Ratchet, Weighted Average, 70% Rule | Atlas Legal","og_description":"**: A full explanation of refixing (conversion price adjustment) in South Korea. Full ratchet vs. weighted average, a worked example, the listed-company downward floor of 70% and the 2021 upward-refixing rule, accounting effects, and founder negotiation points.","og_url":"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/","og_site_name":"Atlas Legal Blog","article_published_time":"2026-07-07T20:43:28+00:00","article_modified_time":"2026-07-07T20:45:34+00:00","author":"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4","twitter_card":"summary_large_image","twitter_misc":{"\uae00\uc4f4\uc774":"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4","\uc608\uc0c1 \ub418\ub294 \ud310\ub3c5 \uc2dc\uac04":"9\ubd84"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/#article","isPartOf":{"@id":"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/"},"author":{"name":"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4","@id":"https:\/\/atlaw.kr\/en-blog\/#\/schema\/person\/184bcdecc06f89fd6c36b29781165b55"},"headline":"Refixing (Conversion Price Adjustment) Explained \u2014 Full Ratchet, Weighted Average, and Listed-Company Rules in South Korea","datePublished":"2026-07-07T20:43:28+00:00","dateModified":"2026-07-07T20:45:34+00:00","mainEntityOfPage":{"@id":"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/"},"wordCount":1951,"publisher":{"@id":"https:\/\/atlaw.kr\/en-blog\/#organization"},"keywords":["**: refixing","conversion price adjustment","convertible bond","full ratchet","weighted average"],"articleSection":["Corporate Counseling"],"inLanguage":"ko-KR"},{"@type":"WebPage","@id":"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/","url":"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/","name":"**: Refixing (Conversion Price Adjustment) in South Korea \u2014 Full Ratchet, Weighted Average, 70% Rule | Atlas Legal","isPartOf":{"@id":"https:\/\/atlaw.kr\/en-blog\/#website"},"datePublished":"2026-07-07T20:43:28+00:00","dateModified":"2026-07-07T20:45:34+00:00","description":"**: A full explanation of refixing (conversion price adjustment) in South Korea. Full ratchet vs. weighted average, a worked example, the listed-company downward floor of 70% and the 2021 upward-refixing rule, accounting effects, and founder negotiation points.","breadcrumb":{"@id":"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/#breadcrumb"},"inLanguage":"ko-KR","potentialAction":[{"@type":"ReadAction","target":["https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/atlaw.kr\/en-blog\/venture-refixing-conversion-price-adjustment-south-korea\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\ud648","item":"https:\/\/atlaw.kr\/en-blog\/"},{"@type":"ListItem","position":2,"name":"Refixing (Conversion Price Adjustment) Explained \u2014 Full Ratchet, Weighted Average, and Listed-Company Rules in South Korea"}]},{"@type":"WebSite","@id":"https:\/\/atlaw.kr\/en-blog\/#website","url":"https:\/\/atlaw.kr\/en-blog\/","name":"Atlas Legal English Blog","description":"","publisher":{"@id":"https:\/\/atlaw.kr\/en-blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/atlaw.kr\/en-blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"ko-KR"},{"@type":"Organization","@id":"https:\/\/atlaw.kr\/en-blog\/#organization","name":"Atlas Legal English Blog","url":"https:\/\/atlaw.kr\/en-blog\/","logo":{"@type":"ImageObject","inLanguage":"ko-KR","@id":"https:\/\/atlaw.kr\/en-blog\/#\/schema\/logo\/image\/","url":"https:\/\/atlaw.kr\/en-blog\/wp-content\/uploads\/sites\/3\/2025\/09\/\ud3f4\ub354-\uc0c1\ub2e8-\uc9c1\uc0ac\uac01\ud615.png","contentUrl":"https:\/\/atlaw.kr\/en-blog\/wp-content\/uploads\/sites\/3\/2025\/09\/\ud3f4\ub354-\uc0c1\ub2e8-\uc9c1\uc0ac\uac01\ud615.png","width":540,"height":485,"caption":"Atlas Legal English Blog"},"image":{"@id":"https:\/\/atlaw.kr\/en-blog\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/atlaw.kr\/en-blog\/#\/schema\/person\/184bcdecc06f89fd6c36b29781165b55","name":"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4","image":{"@type":"ImageObject","inLanguage":"ko-KR","@id":"https:\/\/secure.gravatar.com\/avatar\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f03bca99acfafded0c4fa1b01dee8839b10f831ccba39db4d9dc175f44d3d640?s=96&d=mm&r=g","caption":"\ubc95\ubb34\ubc95\uc778 \uc544\ud2c0\ub77c\uc2a4"},"sameAs":["https:\/\/atlaw.kr"],"url":"https:\/\/atlaw.kr\/en-blog\/author\/prinz001\/"}]}},"_links":{"self":[{"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/posts\/1439","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/comments?post=1439"}],"version-history":[{"count":3,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/posts\/1439\/revisions"}],"predecessor-version":[{"id":1454,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/posts\/1439\/revisions\/1454"}],"wp:attachment":[{"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/media?parent=1439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/categories?post=1439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/atlaw.kr\/en-blog\/wp-json\/wp\/v2\/tags?post=1439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}