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Korean firms increase stock buyback by 70% in 2024

Published: 12 Feb. 2025, 09:41 Updated: 12 Feb. 2025, 15:19

A composite of stocks and apartment buildings [SCREEN CAPTURE]

The total value of treasury shares bought back by major listed companies in Korea jumped more than 70 percent in 2024 from a year earlier as the firms sought to enhance corporate value, a corporate tracker said Wednesday.

Korean companies repurchased 14.3 trillion won ($9.8 billion) worth of treasury shares last year, marking a 72.8 percent increase from 8.2 trillion won a year earlier, according to CEO Score.

Their cancellation of treasury shares was valued at 12.1 trillion won, up 156 percent from the previous year's 4.7 trillion won.

Stock buybacks and cancellations normally benefit investors as the practices reduce the number of shares being circulated in the market, thereby increasing earnings per share and potentially boosting stock prices.

Korean financial authorities have encouraged local companies to adopt value-up programs to strengthen their corporate value and market appeal.

Korea Zinc posted the largest retirement of treasury shares with 2.1 trillion won amid an ongoing management battle with its largest shareholder, Young Poong.

Samsung Electronics closely came in next with a 2 trillion-won buyback as part of a broader 10 trillion-won share repurchase plan announced in November to deal with declining stock prices.

In terms of stock disposal, Samsung C&T ranked first with 1 trillion won, followed by KT&G and SK Innovation.

Yonhap