Seojin System Secures 129.3 Billion Won to Expedite Perpetual Bond Issuance
Seojin System is poised to reduce its planned issuance of 300 billion Korean won in perpetual bonds following a 129.3 billion won capital injection from its largest shareholder. This financial maneuver aims to accelerate fundraising amidst existing tax issues in Vietnam that have complicated the company's investment strategies.
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Seojin System is working to issue 300 billion Korean won in perpetual bonds, facing delays primarily due to tax complications linked to its Vietnamese subsidiary, which owes approximately 100 billion Korean won in VAT. The largest shareholder's recent 129.3 billion won capital infusion may allow for a reduced bond issuance scale, potentially expediting the fundraising process necessary for expansion in energy storage systems and other sectors.
The company's production capacity investments have consistently surpassed 100 billion Korean won annually since 2020, reaching 292.6 billion won in 2025. Sales increased from 321.9 billion won in 2020 to over 1 trillion won by 2025, despite a decline in operating profit. The rising demand for energy storage technologies, especially in AI data centers, presents further growth opportunities for Seojin System, including a recent contract with Bloom Energy worth 78.5 billion won.
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