Mirae Asset Securities, Kiwoom Securities and other brokerages have begun canceling treasury shares. As a result, efforts in the securities industry to raise corporate value appear to be gaining momentum.
On the 7th, according to the financial investment industry, Mirae Asset Securities canceled 80 billion won worth of treasury shares on the 5th. Earlier, on the 27th of last month, Mirae Asset Securities disclosed that it had completed the acquisition of about 80 billion won in treasury shares, including 72.15 billion won in common shares and 7.93 billion won in preferred shares.
In Aug. last year, Mirae Asset Securities released a mid- to long-term plan to enhance corporate value, raising its shareholder return ratio to 35% or more by 2026 and canceling 100 million treasury shares by 2030. Through last year, it canceled 27.5 million shares.
Kiwoom Securities likewise said early last year that it would partitioning and cancel about 2.09 million already-held treasury shares over three years and has been carrying it out. Kiwoom Securities plans to cancel 2,095,345 shares, equal to 7.99% of total outstanding shares, in one-third installments every March through 2026.
Early this year, it canceled 1.05 million shares, including 350,000 newly acquired treasury shares, and next year it plans to cancel about 900,000 shares by adding already-held and newly acquired treasury shares.
Accordingly, the securities community is watching whether brokerages with high treasury share ratios, such as Daishin Securities Co. (25.1%), Shinyoung Securities (53.1%) and BOOKOOK Securities (42.7%), will join this move.
Earlier, the Democratic Party of Korea also said on the 25th of last month that it would handle within the year the third amendment to the Commercial Act that mandates the cancellation of treasury shares. However, some note that if treasury shares are canceled on a large scale, tools for defending management control could be weakened.