Kakao Games is enhancing its shareholder return policy through a stock buyback by its executives, following a recent share cancellation.
On August 24, Kakao Games announced that it held an extraordinary general meeting at the Kakao AI Campus, where it approved key agenda items including the 'Plan for Holding and Disposing of Treasury Shares' and the 'Transfer of Retained Earnings to Capital Reserves.'
This move is part of a medium- to long-term shareholder return strategy that follows the cancellation of 500,000 treasury shares in July.
After the share cancellation, Kakao Games plans to use approximately 350,000 of its remaining treasury shares to fund its employee stock-based compensation program (RSU). The RSU is designed to link employee compensation to long-term business performance, corporate value, and shareholder value.
Kakao Games intends to finalize the specific operational details of the RSU through its board of directors in the future.
Additionally, the company will reduce its capital reserves by about 1.54 trillion won and transfer this amount to retained earnings. This is aimed at securing resources for future medium- to long-term shareholder return initiatives.
Executives have also engaged in stock buybacks, with co-CEOs Kim Tae-hwan and Lee Si-woo, along with Chief Financial Officer Shin Kwon-ho, purchasing a total of approximately 500 million won worth of Kakao Games shares as of that day. The company plans to continue its shareholder-focused management approach through these executive stock purchases.
* This article has been translated by AI.
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