One Year After Government Value-Up Policy... Companies and Quantities of Treasury Stock Repurchases Decrease

Leaders Index Investigates Share Buyback Status of Top 500 Companies
Three Fewer Companies Repurchased Shares After Value-Up Policy
Total Volume of Repurchased Shares Also Decreased by 14.6%

It has been one year since the government’s value-up (corporate value enhancement) policy was implemented, but the share buybacks of the top 500 companies by market capitalization have rather decreased.

On the 22nd, the corporate analysis research institute 'Leaders Index' investigated the status of share buybacks and cancellations of the top 500 companies by market capitalization as of the end of last year. It was confirmed that the number of companies that repurchased their own shares decreased by 3, from 127 in 2023 to 124 in 2024, when the value-up policy was fully implemented. The total volume of shares repurchased by these companies also decreased by 14.6%, from 232,178,780 shares (2.21% of total issued shares) to 198,212,518 shares (1.93% of total issued shares) during the same period. The number of companies that repurchased more than 1% of their issued shares also dropped from 84 to 71.

On the other hand, the number of companies that canceled their repurchased shares increased by 19, from 45 in 2023 to 64 in 2024. The volume of canceled shares also rose by 75.2%, from 104,563,100 shares to 183,187,224 shares during this period. When companies cancel their repurchased shares, the number of shares in circulation decreases, thereby increasing the value of shares held by existing shareholders.

By industry, the financial sector was the most active in share buybacks and cancellations. Among 17 financial companies including the four major financial holding companies and securities firms, most canceled all of their repurchased shares. Major conglomerate holding companies were also proactive in share buybacks. Companies such as LG Corporation, SK Corporation, SK Square, SK Discovery, LS, HDC, HL Holdings, SeAH Holdings, and Poongsan Holdings repurchased their own shares for two consecutive years.

Last year, the holding companies that canceled their repurchased shares included SK Corporation, SK Square, SK Discovery, POSCO Holdings, HL Holdings, Poongsan Holdings, and Hanmi Science. The company with the largest proportion of share buybacks relative to issued shares was ShinYoung Securities, which repurchased 5,348,595 shares, equivalent to 32.5% of its issued shares. However, ShinYoung Securities did not cancel any of the repurchased shares. As a result, as of the end of the third quarter last year, it held 8,737,232 shares as treasury stock, accounting for 53.15% of its total issued shares.

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