[Edaily Reporter Shin Ha-yeon ] STraffic Co., Ltd.(234300)The company is set to acquire 3 billion won worth of its own shares to enhance shareholder value. The cumulative value of treasury stock purchases since 2024 will now total 6 billion won.

STraffic Co., Ltd., a company specializing in transportation artificial intelligence (AI), announced on the 2nd that it has signed a trust agreement for the repurchase of 3 billion won worth of its own shares.

This share buyback is in line with the corporate value enhancement plan updated and announced last April. At that time, STraffic Co., Ltd. presented a plan to repurchase a total of 15 billion won worth of shares and announced additional purchases in the second half of this year. Including this agreement, the cumulative amount of treasury shares repurchased since September 2024 totals 6 billion won.

The company is also proceeding with the cancellation of the acquired treasury shares. As part of a plan to cancel shares totaling 5 billion won, the company has already canceled 4.1 billion won worth of shares—2.6 billion won in February of last year and 1.5 billion won in September. The remainder is scheduled to be canceled sometime in 2027. Typically, purchasing and canceling treasury shares is considered a prime method of shareholder return, as it reduces the number of outstanding shares and increases the value per share.

The company is also increasing its dividend payouts. The year-end dividend rose from 60 won per share in fiscal year 2024 to 140 won per share in fiscal year 2025, and the company plans to pay 160 won per share in fiscal year 2026. At last year’s annual general meeting of shareholders, the company transferred 20 billion won from its capital reserve to retained earnings and completed amendments to its articles of incorporation to introduce quarterly dividends.

On the business front, the company is expanding its operations in North America and the railway signaling sector. According to the company, the fare evasion rate has decreased by more than 80% since the Washington Metropolitan Area Transit Authority (WMATA) adopted the AI-powered fare gates supplied by LS Electric. Building on this success, the company is pursuing business expansion in major North American cities such as Los Angeles and New York.

In South Korea, the company acquired LS Electric’s railway signaling division, broadening its portfolio to include railway-related businesses such as the Korean Train Control System (KTCS-2) and electronic interlocking devices.

A STraffic Co., Ltd. official stated, “The share buyback and cancellation program, which has been ongoing since 2024, demonstrates our commitment to fulfilling the plan we promised the market on schedule,” adding, “Based on the performance of our North American business and the railway signaling division, we will consistently continue our shareholder return policy to ensure that the company’s intrinsic value is fairly evaluated by the market.”