Korea Package Cancels 502,468 Treasury Shares to "Enhance Shareholder Value"

[Asia Economy Reporter Park Jihwan] Korea Package, a company specializing in liquid packaging containers (carton packs), corrugated cardboard, and corrugated cardboard boxes, announced on the 4th that it has decided to cancel a total of 502,468 treasury shares.

The shares Korea Package plans to cancel are 502,468 common shares, which account for approximately 1.66% of the total issued shares. Based on the closing price of 3,860 KRW on the 3rd, the value amounts to about 1.94 billion KRW.

This treasury share cancellation is a capital reduction. It will proceed after a special resolution at the regular shareholders' meeting scheduled for the 31st. The capital, which was previously 15.2 billion KRW, is expected to decrease to 14.9 billion KRW after the reduction.

The company stated, "These shares were acquired during the merger process with Wonchang Packaging Industry last year, and this decision was made to enhance shareholder value and firmly establish a shareholder-friendly management policy," adding, "It reflects our confidence in Korea Package's future growth as well as meeting shareholders' expectations."

Treasury share cancellation generally reduces the potential number of circulating shares by the canceled amount, which can lead to an increase in stock value and enhance shareholder trust in management. Above all, treasury shares are interpreted as a complete shareholder return only when they are canceled after acquisition, so Korea Package's decision to cancel treasury shares is seen as a strong commitment to continuing a shareholder-friendly management policy.

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