SK Networks to Cancel Treasury Shares Worth Over 100 Billion Won to Enhance Shareholder Value

SK Networks has decided to enhance shareholder value by carrying out a large-scale cancellation of its treasury shares.

On March 10, SK Networks announced its plan to cancel approximately 20.71 million shares of its treasury stock. This represents 9.4% of its total issued shares (about 220 million shares) and exceeds 100 billion won based on the previous day's closing price. The company explained that, excluding about 3% of treasury shares reserved for core talent recruitment and employee compensation, all remaining treasury shares will be cancelled to enhance shareholder value.

SK Networks has been undertaking various activities to enhance shareholder returns, alongside efforts to strengthen corporate value through a shift to an AI-centric business model and financial structure stabilization. In both 2023 and 2024, the company cancelled 12.4 million and 14.5 million treasury shares, respectively. Since introducing interim dividends in 2024, SK Networks has paid out more than 250 won per share annually, depending on its business and investment performance. In addition, the company has worked to improve management transparency and credibility by communicating with investors using both online and offline platforms, such as the 'Dialogue with Shareholders' initiative.

SK Networks plans to finalize this treasury share cancellation at its board of directors meeting at the end of March. The company also intends to continue its shareholder return policies through regular and interim dividends, while practicing transparent and ethical governance centered on the board of directors. Furthermore, SK Networks aims to build a sustainable virtuous cycle in which the company, its members, and society grow together, based on communication with investors and other stakeholders.

A representative from SK Networks stated, "This cancellation of treasury shares is intended to address market concerns about shareholder value dilution and reflects the company's commitment to shareholder-friendly management. We will continue to pursue various shareholder value enhancement activities and ongoing shareholder return policies to establish a corporate culture that grows together with our shareholders."

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