Warrants are certificates expressing the right to request the issuing company to issue new stocks during a certain period (i.e., during the exercise period). In Korea, it is usually issued with a bond, which entitles the holder to buy a proportionate amount of common stocks at a specified price. Subsequent to the permission to detach warrants from the bonds on January 30, 1999, the KRX opened the warrant market to facilitate their transaction.

Since the warrants and subscription rights are basically similar (except the long trading period of warrants), their trading methods are same. That is, only limited quotation is allowed without applying rules on the price change limit and base price and warrants cannot be used as a substitute security.

classification Subscription rights warrants
Issuance basis Capital increase Attached to bond with warrants
Duration Short Long
Date the market launched Jan. 2, 2002 July 3, 2000