[Edaily Reporter An Yu-ri ] Kakao Games ( Kakao Games Corp.(293490)) announced on the 8th that it will implement an aggressive shareholder return policy, starting with the cancellation of treasury stock worth approximately 29.8 billion won. This marks the company’s first treasury stock cancellation since its IPO.

Kakao Games Corp. announced on the same day that it would cancel 500,000 shares of its own stock to enhance shareholder value. This represents approximately 60% of the 854,009 shares of treasury stock held by the company.

The value, based on book value, is approximately 29,856,960,000 won.

The scheduled date for the cancellation is July 15; once completed, the company’s holdings of treasury stock will be reduced to 354,009 shares.

This cancellation will be carried out by canceling treasury shares acquired within the scope of distributable earnings, thereby reducing the number of issued shares without decreasing the company’s capital. Consequently, this will prevent dilution of per-share value and increase the actual value of shareholders’ equity.

Starting with this treasury stock cancellation, Kakao Games Corp. plans to establish and sequentially implement policies for shareholder returns and corporate value enhancement from a medium- to long-term perspective.

Along with the treasury stock cancellation, the company also disclosed its plans for the treasury stock it will hold after the cancellation. Kakao Games Corp. announced that it will introduce a Restricted Stock Unit (RSU) program for employees using a portion of the shares held after the cancellation as funding for the program.

The RSU program is designed with performance conditions linked to corporate value and long-term performance as key eligibility requirements. The company plans to create a structure that aligns the interests of shareholders and employees through the employee compensation system, thereby further enhancing corporate value.

In addition, Kakao Games Corp. is considering a plan to reduce its capital reserve and transfer the funds to retained earnings. Based on this, the company plans to secure funds to pursue long-term shareholder return policies.

Shin Kwon-ho, CFO of Kakao Games Corp., stated, “We will review multifaceted and sustainable shareholder return measures and communicate with the market to ensure that tangible value is returned to shareholders who support the company’s growth and development.” He added, “We will strengthen our foundation for growth based on financial stability and strive to continuously enhance shareholder value and corporate value.”