Kakao Games will transfer about 1.54 trillion won of capital surplus to retained earnings and use it as resources for mid- to long-term shareholder returns. Co-CEOs Kim Tae-hwan and Lee Si-woo and other key executives will also purchase about 500 million won worth of the company's shares.
Kakao Games said it held an extraordinary shareholders meeting on the 24th at the Kakao AI Campus in Yongin, Gyeonggi Province, and approved two agenda items: "approval of plans to hold and dispose of treasury shares" and "offsetting deficits and transferring capital surplus to retained earnings."
Accordingly, Kakao Games will reduce about 1.54 trillion won in capital surplus, transfer it to retained earnings, and use it as resources to push forward mid- to long-term shareholder return policies. The move is part of its shareholder return policy following the cancellation of 500,000 treasury shares in July.
Executives also moved to buy treasury shares. Co-CEOs Kim Tae-hwan and Lee Si-woo and Chief Financial Officer Shin Gwon-ho purchased Kakao Games shares totaling about 500 million won.
After the treasury share cancellation, about 350,000 shares held will be used as resources to operate a restricted stock unit (RSU) program for employees. RSUs are a compensation plan that grants shares to employees who meet performance conditions linked to mid- to long-term management performance, corporate value, and shareholder value. Kakao Games plans to finalize details, including specific vesting conditions, through its board of directors going forward.
Lee Si-woo, CEO of Kakao Games, said, "We will seek the joint growth of shareholder value and corporate value and continue to roll out shareholder return policies from a mid- to long-term perspective."