After President Lee Jae-myung criticized KOSDAQ-listed companies' issuance of exchangeable bonds (EB) using treasury shares as "pressing down the stock price," listed companies appear to have become more active in buying back their own shares.
According to the Financial Supervisory Service's electronic disclosure system on the 11th, from on the 8th to the day, a total of 24 corporations disclosed a "report on key matters (decision to sign a trust contract for acquisition of treasury shares)." A trust contract for acquisition of treasury shares is a system in which a listed company signs a contract with a financial institution such as a securities firm, deposits a set amount, and has the institution buy back the company's shares. Most corporations stated the purpose of the contract as "enhancing shareholder value."
This has already surpassed the number of corporations that made the same disclosure last month (17). Including the 12 corporations that disclosed in the first week of this month (1-5), a total of 36 companies have decided to sign trust contracts for acquisition of treasury shares in June alone. This is also the highest monthly figure this year. Monthly disclosure counts this year were 15 in January, 25 in February, 32 in March, and 16 in April.
Corporations that have begun buying back their own shares this month include Pearl Abyss (100 billion won), Hanssem (50 billion won), KISCO Holdings (10 billion won), T. K. Corporation (10 billion won), KISCO (10 billion won), SOCAR (3 billion won), Asia Holdings (8 billion won), DigiCAP (3 billion won), Dong-Ah Geological Engineering (7.5 billion won), Huvitz (5 billion won), Huonsdic? (5 billion won), BBIA (3 billion won), Incar Financial Service (7 billion won), Newtree (1.5 billion won), Daehan Information Communication (2 billion won), Nuvotec (1.4 billion won), and others.
Earlier, on the 8th, the president shared on social media (SNS) a story about INTOPS issuing EBs using treasury shares and wrote, "Isn't this stock manipulation?" The article raised suspicions that the call option (purchase claim) structure of the EB issued by INTOPS could induce a decline in the stock price for bondholders.
As the president effectively issued a public criticism of EB issuance based on treasury shares, the market is taking it as a message to strengthen shareholder returns rather than to raise funds using treasury shares. Accordingly, there is an interpretation that listed companies are actively pursuing shareholder-friendly policies such as buybacks and cancellations.