SK Inc. said it decided at a board meeting on Monday to cancel all treasury shares it holds except those reserved for employee compensation. The cancellation covers about 14.69 million shares out of roughly 17.98 million treasury shares, the company said in a regulatory filing.
Based on the previous day’s closing prices — 329,000 won for common shares and 237,500 won for preferred shares — the canceled shares are valued at 4.8343 trillion won, it said.
The shares to be canceled include not only treasury shares bought to enhance shareholder value but also shares acquired for a “specific purpose” during past efforts to improve the holding company’s governance structure. SK Inc. merged with SK C&C (now SK AX) in 2015 to simplify its structure and increase transparency.
“After several rounds of in-depth discussion, the board concluded that canceling all treasury shares is the best option to serve the maximum interests of all shareholders and raise corporate value,” an SK Inc. official said. The official said the company “actively reflected” the intent of the Commercial Act revision, which allows the board to cancel treasury shares acquired for a specific purpose.
SK Inc. said the decision also reflects improved financial strength after two years of portfolio rebalancing. On a separate financial statement basis, net borrowings fell to 8.4 trillion won as of the third quarter of 2025 from 10.5 trillion won at the end of 2024, it said. Over the same period, the debt ratio improved to 77.4% from 86.3%.
Canceling nearly 5 trillion won worth of treasury shares shows the board’s firm commitment to continue transparent, shareholder-friendly management and set a model precedent for South Korea’s capital markets, the official said. The company will keep strengthening shareholder trust and maintain a management approach that puts shareholders first, the official added.
* This article has been translated by AI.
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