[E-Daily Reporter Park Jung-Soo ] YulChon co., Ltd(146060), a company specializing in precision cold-drawn steel pipes, announced on the 7th that it has signed a trust agreement to acquire 500 million won worth of its own shares.
The agreement was signed with Korea Investment & Securities, and the contract period is six months, from the 8th to January 8 of next year. The company plans to acquire its own shares through this trust agreement.
The company explained that it decided to enter into this agreement in response to shareholders’ concerns regarding recent stock price trends. It stated that, based on the assessment that the stock is undervalued relative to the company’s intrinsic value, this move is part of its responsible management strategy aimed at stabilizing the stock price and enhancing shareholder value.
YulChon co., Ltd emphasized that this share buyback is not a one-time measure to prop up the stock price, but rather the beginning of an ongoing shareholder-friendly policy aimed at restoring shareholder trust and enhancing corporate value.
Lee Heung-hae, CEO of YulChon co., Ltd, stated, “I feel a heavy sense of responsibility for causing concern among shareholders due to recent stock price trends,” adding, “This share buyback is a decision to implement shareholder-friendly policies; we will not stop at short-term stock price stabilization but will enhance our fundamental corporate competitiveness to raise corporate value.”
YulChon co., Ltd has established a competitive edge in the field of precision cold-drawn steel tubes used in automotive shock absorbers, suspension systems, and steering systems. The company recently acquired seamless tube manufacturing technology and is currently installing equipment at its Hwaseong plant in Gyeonggi Province. The company expects that once its production base in Poland begins full-scale operations in the second half of this year, its competitiveness in the global cold-drawn steel tube market will be further strengthened as it expands into the European market.