Shin Young Securities has seen its shares rise by over 9% in early trading following the announcement of a significant share buyback plan.
According to the Korea Exchange, as of 9:58 a.m., Shin Young Securities shares were trading at 206,500 won, up 18,100 won (9.61%) from the previous trading day.
Investor sentiment has been buoyed by expectations that the large-scale buyback will enhance earnings per share (EPS) and shareholder value.
The company announced on June 4 that it will hold its 72nd annual general meeting on June 19, where it will discuss plans for the buyback and utilization of 8.42 million shares currently held.
Of these, 5,262,283 shares will be retired within the timeframe stipulated by corporate law. This represents 32.01% of the total issued shares and 62.48% of the treasury shares. Based on the previous day's closing price, the buyback is valued at approximately 999 billion won.
The remaining 3.16 million shares will be retained for future shareholder returns and employee performance compensation.
Additionally, the company plans to increase its dividend. For the current fiscal year, Shin Young Securities has set the dividend for common stock at 7,500 won per share, an increase of 2,500 won from the previous year. The total dividend payout will exceed 20 billion won, meeting the criteria for high-dividend companies, allowing shareholders to benefit from separate taxation on dividend income.
* This article has been translated by AI.
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