Polaris Group to Cancel All Treasury Shares Worth 12 Billion Won Across Four Affiliates... "Strengthening Shareholder Returns"

Polaris Group is accelerating efforts to enhance corporate value by implementing a shareholder return policy that involves the collective cancellation of treasury shares held by its listed affiliates.

According to Polaris Group on March 20, four listed affiliates—Polaris Office, Polaris UNO, Polaris AI, and Polaris AI Pharma—have decided to cancel all treasury shares they currently hold, worth approximately 12 billion won (based on book value), by the first half of this year. This decision is seen as a strategic move not only to return value to shareholders but also to address the undervaluation that has been raised in the market.

What particularly stands out is that multiple listed affiliates are canceling treasury shares simultaneously at the group level, rather than as individual companies. Unlike the usual practice where a single company carries out treasury share cancellations, this case demonstrates the group’s clear commitment to shareholder returns, raising expectations for a revaluation of all affiliates’ corporate value.

As of the end of last year, the proportion of treasury shares held was highest at Polaris UNO with about 1.76 million shares (2.01%), followed by Polaris AI (1.14%), Polaris AI Pharma (1.62%), and Polaris Office (0.08%). Upon completion of the treasury share cancellation, the reduction in the number of shares in circulation is expected to improve both earnings per share (EPS) and book value per share (BPS).

Treasury share cancellation is a representative shareholder-friendly policy that increases per-share value by reducing the total number of outstanding shares. In particular, the decision to cancel all treasury shares, which have previously been used as a means of defense for management rights, is being evaluated as a clear demonstration of the company’s genuine commitment to returning value to shareholders in the eyes of both the market and investors.

The market is also paying attention to the possibility that this move could trigger a re-rating of the stock, going beyond a mere improvement in supply and demand. Especially for Polaris UNO, which has long been undervalued in the absence of comparable companies despite its stable performance and financial structure, expectations are rising that this cancellation could lead to the normalization of its corporate value.

A Polaris Group representative stated, “Although each affiliate has secured stable performance and business foundations, they have not been fully recognized in the capital market. We hope that the intrinsic value of each company will be more actively reflected in the stock price through this treasury share cancellation.” The representative added, “Going forward, we will continue to implement ongoing shareholder return policies and achieve performance growth to further strengthen market trust, rather than limiting ourselves to one-off initiatives.”

Meanwhile, Polaris Group is also working to expand synergies among affiliates through its ‘Vertical AI’ strategy centered on artificial intelligence. By expanding AI applications specialized for each business area—such as automotive parts, chemical materials, and active pharmaceutical ingredients—centered on Polaris Office, the group aims to secure future growth drivers based on a stable performance foundation.