SOOP will burn approximately 18.9 billion won worth of treasury shares, which represents about 2.7% of its total outstanding shares, as part of its shareholder return policy.
On September 7, SOOP announced that its board of directors decided on September 4 to burn 306,375 shares of common stock held by the company.
The planned amount for the burn is approximately 18.9 billion won based on book value, with the burn scheduled for September 10.
The shares to be burned are those that SOOP previously acquired and held. This action will reduce the total number of outstanding shares. However, since the treasury shares were acquired within the range of distributable profits, there will be no change to the company's capital.
This treasury share burn is a measure to enhance shareholder value and strengthen the return to shareholders. SOOP's key executives previously expressed their commitment to responsible management by purchasing treasury shares in the market in June and indicated plans to clarify the use of treasury shares by the end of the year during the second-quarter earnings announcement. This burn is part of the strategy presented at that time.
SOOP has also announced a policy to distribute more than 25% of its consolidated net profit as cash dividends over the next three years as part of its ongoing shareholder return strategy.
The company plans to balance shareholder returns with securing a foundation for future growth while enhancing its core business competitiveness through the activation of the streamer and user ecosystem and the advancement of its service and revenue structure.
* This article has been translated by AI.
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