KOSDAQ-listed company JK Synapse(060230) executives moved to buy treasury shares to strengthen accountable management and boost corporate value.
JK Synapse said on the 30th that Chief Executive Hwang Kevin In-seok and Deputy CEO Lim Ji-hyun acquired a total of 126,872 treasury shares through open-market purchases, including 64,372 shares (about 0.45%) and 62,500 shares (about 0.44%), respectively.
JK Synapse noted that after securing financial stability through a paid-in capital increase for Hyulim Robot, the key executives leading the business intend to signal to the market a strong commitment to enhancing shareholder value and accountable management by expanding their equity stakes.
JK Synapse has laid the groundwork for a full-fledged turnaround by improving its financial structure and recovering operating results. The company believes that despite efforts to preemptively resolve risks related to falling short of the market capitalization requirement to maintain listing—through large-scale investment attraction and repayment of borrowing fund—its current share price is undervalued compared with the company's value and future growth potential.
JK Synapse CEO Hwang Kevin In-seok said, "This equity purchase shows management's deep trust and confidence in the company's clear earnings improvement trend and sustained growth," adding, "We will achieve a turnaround to an operating profit for the year by ensuring the smooth launch of new businesses this year, and we will do our best to be properly valued in the market for our corporate value."
JK Synapse plans to establish stable governance by bringing in Hyulim Robot as the sole largest shareholder and to accelerate securing new growth drivers along with recovering profitability in existing businesses. After successfully turning to profit in the first quarter, the strategy is to continue the overall growth trend throughout this year.