Hanjin Kal to Acquire 20 Billion KRW Worth of Treasury Shares... "Enhancing Shareholder Value"

[Asia Economy Reporter Yoo Hyun-seok] Hanjin KAL, the holding company of Hanjin Group, will repurchase its own shares as part of a shareholder-friendly policy.

Hanjin KAL announced on the 21st that it has decided to acquire treasury stock. This treasury stock acquisition is valued at 20 billion KRW. The purchase will be conducted over the next six months through a securities firm trust contract.

The reason Hanjin KAL is repurchasing its own shares this time is to enhance corporate and shareholder value through stock price stabilization. Typically, when a company repurchases its own shares, the circulating stock volume decreases, which acts as a factor for stock price increase.

Recently, Hanjin KAL's stock price has been on a downward trend. Accordingly, Hanjin KAL judged that the current stock price is low considering the actual corporate value, leading to the decision to repurchase treasury stock.

A Hanjin KAL official said, "This treasury stock repurchase decision was made because the future growth value of Hanjin KAL as a company has not been sufficiently reflected in the stock price," adding, "We also have sufficient financial capacity secured through cash obtained from the sale of Jin Air shares held in June." He continued, "We will continue to make efforts to increase shareholder profits by establishing a foundation for Hanjin KAL's sustainable growth and maximizing future corporate value."

Meanwhile, Hanjin KAL plans to continuously expand policies aimed at enhancing shareholder value. Previously, in March 2020, Hanjin KAL announced a mid- to long-term dividend policy to return about 50% of net income based on separate financial statements (excluding one-time non-recurring gains) to shareholders to enhance shareholder value.

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