SK Co., the holding company of SK Group, will cancel 4.8 trillion won worth of treasury shares. The amount is about 20% of all shares outstanding. SK Co. said it aims to maximize shareholder value through an aggressive corporations value-up that reflects the intent of the amended Commercial Act.
SK Co. said in a filing that on the 10th its board decided to cancel all treasury shares (about 14.69 million shares) except those reserved for employee compensation from the 17.98 million shares it holds. Based on the previous day's closing prices (common 329,000 won, preferred 237,500 won), the value of the shares to be canceled is 4.8343 trillion won.
The shares to be canceled include not only treasury shares purchased to enhance shareholder value but also "specific-purpose acquisition" treasury shares that arose during past efforts to improve the holding company's governance structure. In 2015, SK Co. merged with SK C&C (now SK AX) to simplify governance and increase transparency.
An SK Co. official said, "After multiple in-depth discussions at the board, we concluded that canceling all treasury shares best serves the interests of all shareholders and is the optimal way to raise corporations value," adding, "With the Commercial Act amendment allowing board approval to cancel specific-purpose acquisition treasury shares, we actively reflected the amendment's intent of boosting shareholder value."
An SK Co. official also said that significantly strengthening financial soundness over the past two years through active "portfolio rebalancing (business restructuring)" was a reason behind the decision to cancel all treasury shares. On a separate financial statement basis, SK Co.'s net debt decreased from 10.5 trillion won at the end of 2024 to 8.4 trillion won in the third quarter of 2025. Over the same period, the liability ratio improved from 86.3% to 77.4%.