[Featured Stock] Kakao Rises Over 3% on Positive News of 300 Billion Won Treasury Stock Cancellation

[Asia Economy Reporter Lee Seon-ae] Kakao is showing a strong gain of over 3% in early trading on the 25th after deciding to cancel treasury shares worth 300 billion KRW of common stock.

At 9:27 a.m. on the day, Kakao was trading at 93,400 KRW, up 3.78% from the previous trading day.

Kakao announced after the market closed the previous day that it decided to reduce capital by canceling 3,239,741 shares of common stock as treasury shares. The reduction ratio is 0.73% of common stock, and the method of reduction is cancellation of treasury shares. The capital before reduction will decrease from 44.7 billion KRW to 44.3 billion KRW.

Kakao stated, "We decided to cancel treasury shares to enhance shareholder value." Earlier this year, when the stock price fell due to controversies involving executives, Kakao announced plans to cancel treasury shares worth 300 billion KRW within the year.

Meanwhile, in its Q4 earnings announcement, Kakao stated that it will allocate 15 to 30% of free cash flow based on separate financial statements over the next three years for shareholder returns.

This content was produced with the assistance of AI translation services.