Yuhan Corporation Decides to Cancel All 430 Billion Won Worth of Treasury Shares

Yuhan Corporation is drawing market attention as it has decided to cancel all of its treasury shares worth about 425.3 billion won. The company cited enhancement of shareholder value as the reason, but the industry sees it as a decision that also takes into account 대응 to the amended Commercial Act and management of future business uncertainty. At a board meeting on the 23rd, Yuhan Corporation decided to cancel 6,031,820 common shares and 32,600 preferred shares. These are all of the treasury shares held by the company, corresponding to 7.6% of outstanding common shares and 2.8% of preferred shares. This move is intended to reduce the number of shares in circulation, raise shareholder equity value, and lessen the burden associated with the possibility of future resale. It is also interpreted as an allatonce disposal of treasury shares in line with the third amendment to the Commercial Act, which passed the National Assembly in March. Yuhan Corporation has also been canceling treasury shares in stages over the past year and this year. Although the company holds 'Lazcluze', a lung cancer treatment that successfully commercialized in Korea, its stock price has been weak this year, so attention is focused on how this decision will affect the recovery of shareholder trust.