The purpose of this study is to analyze the price of publicly offered convertible bonds in Korea using Hung-Wang model (2002). By combining the default probability, stock price process and interest rate process into one tree, Hung-Wang model presents a lattice technique that allows relatively straightforward valuation. The empirical study shows that Hung-Wang model is more accurate to explain market prices of Korean convertible bonds than Tsiveriotis-Fernandes model (1998). But, the theoretical prices of convertible bonds with Hung-Wang model are relatively high by 14.56% in primary market and by 7.26% in secondary market compared to the each market price.