[Edaily Reporter YU JIN-HEE ] KMPHARMACEUTICAL Co.,Ltd.(225430), which had declared its intention to exit the “under observation” list and restore corporate value, has immediately moved to directly repurchase its own shares following the success of a large-scale rights offering. Observers say that by implementing a series of shareholder return policies—including the CEO’s contribution of personal funds—the company has restored trust in the capital market and set sail on a full-scale “value-up” (corporate value enhancement) management strategy.

KMPHARMACEUTICAL Co.,Ltd., a company specializing in life care, announced on the 27th that it has decided to directly acquire 200,712 treasury shares—equivalent to 3.72% of its total issued shares—on the open market to stabilize its stock price and maximize shareholder value.

The planned acquisition cost for these treasury shares is approximately 300 million won. The acquisition period will run for one month, from August 10 to September 10. Since the shares will be purchased directly on the open market, the effect on improving supply and demand is expected to be immediate; however, the process may be terminated early depending on market conditions and the progress of the acquisition.

KMPHARMACEUTICAL Co.,Ltd. clearly stated that the primary objectives of this share buyback are “enhancing shareholder value and stabilizing the stock price.” This measure reflects management’s firm belief that the current stock price is significantly undervalued relative to the company’s future growth potential and solid intrinsic value. By choosing to purchase the shares directly rather than through indirect acquisition via a trust agreement, the company has demonstrated its strong commitment to shareholder returns through concrete action.

This decision is expected to create synergies in conjunction with KMPHARMACEUTICAL Co.,Ltd.’s recently completed large-scale fundraising efforts. On the 14th, KMPHARMACEUTICAL Co.,Ltd. carried out a third-party private placement in which top executives contributed their personal funds, and on the 24th, it fully completed the payment of approximately 1 billion won for the capital increase. The 908,265 new shares issued through this capital increase are scheduled to be listed on August 7. By immediately following the 1 billion won capital raise with a 300 million won share buyback, the company has translated its commitment to the capital market into tangible action.

This responsible management approach by the executive team aligns with the recently announced management reform measures. In a Seohan to shareholders on the 16th, Baek Seung-won, CEO of KMPHARMACEUTICAL Co.,Ltd., apologized for shareholders’ concerns arising from the company’s designation as a “monitored stock” and presented a rigorous blueprint for restoring corporate value. This plan centers on improving the financial structure through asset restructuring, upgrading production facilities, investing in research and development (R&D), and strengthening competitiveness in the original equipment manufacturing (OEM) and original design manufacturing (ODM) businesses.

From a business perspective, efforts to improve the company’s fundamentals are also proceeding smoothly. Led by its flagship product, “Pororo Toothpaste,” the company is rapidly increasing exports to Asian markets such as China and Vietnam. In the North American market as well, it is achieving steady sales growth by strengthening the competitiveness of its own brands. Having recently secured a license for the IP (intellectual property) of “Haech’i,” the mascot of Seoul, the company is poised to launch new products tied to K-Culture in the second half of the year, thereby securing momentum for a turnaround in its performance.

CEO Baek emphasized, “The decision to proceed with a share buyback immediately after completing a 1 billion won capital increase clearly demonstrates our confidence in the company’s potential for sustained growth and our commitment to shareholder returns.” He added, “Alongside improving our financial performance, we will implement multifaceted value-enhancement strategies to strengthen communication with the market and create a powerful turning point that redefines our corporate value.”