Korea’s major listed firms shed near $4 bn treasury shares to up stock prices

[Provided by Maekyung Media Group]

Major listed companies in Korea have been eagerly retiring treasury shares to buttress sinking stock prices and appease shareholders.

According to corporate data tracker CEO Score on Wednesday, 82 out of 270 listed members among the country’s top 500 companies reduced treasury shares worth 5.12 trillion won ($3.7 billion) from January to October, up from 4.52 trillion won in 2021 and 4.08 trillion won in 2020.

More than half of 51.3 percent, or 2.63 trillion won worth shares were cancelled afterwards.

Of the total, 2.63 trillion won worth shares (51.3 percent) were retired, 1.49 trillion won worth (29.1 percent) used for swaps for business partnership, and 735.1 billion won (14.4 percent) for rewards to employees.

Wireless carrier KT Corp. topped the list, shedding 750.5 billion won worth this year. It entered 745.9 billion won worth equity swap deal to enhance mobility partnership with Hyundai Motor Co. and Hyundai Mobis Co. and doled out 4.6 billion won worth to reward employees.

Hyundai Motor came second with 655.7 billion won, followed by Posco Holdings with 629.1 billion won, Hyundai Mobis with 410.3 billion won, and Kakao with 311 billion won.

From the beginning of 2020 to October this year, SK Telecom reported the largest amount of divesture or 2.18 trillion won worth in treasury shares, Naver second-largest of 1.55 trillion won, and Shinhan Financial Group third-largest of 1.05 trillion won.

Buyback by major companies totaled 3.6 trillion won worth up to October this year, up 5.7 percent from a year ago but down 22.8 percent from two years earlier.

Shinhan Financial Group’s buyback was the largest 300 billion won, followed by Celltrion with 275.8 billion won, and Samsung C&T with 246.4 billion won. Since the beginning of 2020, Posco Holdings repurchased the biggest 1 trillion won, Hyundai Motor 801.7 billion won, and Mirae Asset Securities 663.9 billion won.

By Pulse