Shin Young Securities plans to retire 32.01% of its outstanding shares and increase cash dividends to enhance shareholder returns.
According to a filing with the Financial Supervisory Service on June 4, the company will present its plan for the retirement and utilization of its treasury stock at the annual general meeting scheduled for June 19.
Shin Young Securities holds a total of 8,422,754 shares of treasury stock, which accounts for 51.23% of its issued shares. Of this, the company plans to retire 5,262,283 shares (32.01%) within the statutory deadline. Based on the closing price of 188,400 won on that day, this amounts to approximately 999 billion won.
The shares to be retired are from the existing preferred stock. Shin Young Securities acquired these shares during the process of converting preferred stock into common stock in April 2024 to protect the rights of preferred stock investors.
This decision follows a recently enacted amendment to the Commercial Act, which mandates that treasury stock acquired after the law's implementation must be retired within one year. Treasury stock acquired before the law's implementation must be retired or managed according to a plan approved by the shareholders' meeting by September 2027.
Shin Young Securities has proposed its treasury stock retirement plan to shareholders more than a year ahead of the legal deadline. The company stated that this move aims to address market concerns regarding the high proportion of treasury stock and to clarify uncertainties about future utilization plans.
After the retirement, the remaining treasury stock of 3,160,471 shares (19.22%) will be used for shareholder returns and employee performance compensation. The specific timing and method of disposal will be finalized with shareholder approval before September of next year.
The company is also increasing its dividends. Shin Young Securities has decided to raise the cash dividend for common stock by 2,500 won (50%) from the previous year, bringing it to 7,500 won per share. As a result, the total dividend amount will increase by approximately 20 billion won compared to the previous year.
A representative from Shin Young Securities stated, "We plan to retire a significant portion of our treasury stock within the legal deadline and actively utilize the remaining shares as a means of returning value to shareholders. We will proactively respond to the capital market's demand for enhancing corporate value and the intent of the Commercial Act amendment."
* This article has been translated by AI.
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