Equity-linked securities such as convertible bonds (CBs) and bonds with warrant (BWs) have been widely issued by Korean companies. On some occasions, CBs and BWs have been issued to those close to the controlling shareholder on unduly favorable terms. In recent years, investors have become less forgiving of such practices and have sometimes resorted to legal recourse. A public interest organization known as the People’s Solidarity for Participatory Democracy is at the center of this new trend. The following decision is the most recent, and perhaps the most controversial, of the lawsuits initiated by this NGO.