Koh Young Technology said on the 14th that it decided to cancel 450,542 of its 2,493,005 treasury shares held as of the disclosure date. Based on the previous day's closing price, that amounts to about 19.1 billion won.
This treasury share cancellation carries out an item approved at the shareholders meeting under the amended Commercial Act, implemented in Mar. 2026, to enhance shareholder value. It will proceed as a profit cancellation, which reduces the total number of outstanding shares without reducing capital.
Of the treasury shares the company holds, 901,084 shares were classified for cancellation and disposal in accordance with the shareholders meeting resolution. Of that amount, 450,542 shares were decided to be canceled as a profit cancellation to enhance shareholder value, and the remainder will be used to secure funding for future growth investments, including the introduction of new technologies and expansion into new businesses.
In addition, 1,591,921 treasury shares are under contract as restricted stock units (RSUs) for employee compensation and will be granted sequentially in line with the previously disclosed schedule within the scope approved at prior shareholders meetings. Accordingly, the company said there is no overhang issue related to the treasury shares.
A Koh Young official said, "The company's treasury shares will be used only for already contracted employee compensation, and there are no additional plans to dispose of them in the market," adding, "We will continue capital policies that balance enhancing shareholder value with sustainable growth."