According to a survey conducted on the 14th by CEO Score, a corporate data research institute, of 591 KOSPI and KOSDAQ-listed companies that disclosed treasury stock buybacks over the past three years, the total value of treasury stock buybacks from January through September of this year amounted to 61.7522 trillion won. This represents a 156.3% increase from last year’s annual total of 24.091 trillion won. Compared to the 12.6085 trillion won recorded in 2024, it marks a 389.8% increase.
When combined with the 59.0401 trillion won in shares scheduled for cancellation but not yet canceled, the total value of share cancellations this year is projected to reach up to 120.7923 trillion won. This represents a 401.4% increase over last year.
By company, SamsungElectronics took first place with 17.0722 trillion won. In line with the share buyback plan announced at the end of 2024, SamsungElectronics carried out a large-scale buyback this year, following last year’s 3.0353 trillion won. In the securities industry, the possibility of additional buybacks is being discussed, given the remaining funds available for shareholder returns.
SK hynix ranked second with 14.5503 trillion won. SK hynix is expanding shareholder returns based on strong earnings and improved cash flow. In February, the company canceled 15.3 million shares of its own stock. In August, it also announced a new share buyback and cancellation plan worth approximately 40 trillion won.
The combined value of shares retired by the two companies totaled 31.6225 trillion won, accounting for 51.2% of the total. This means that more than half of the value of treasury shares retired by domestic listed companies was concentrated in these two semiconductor firms.
KB Financial Group followed in third place with 4.0129 trillion won. Next were KT&G Corporation (2.4586 trillion won), SAMSUNG C&T CORPORATION (1.9798 trillion won), Celltrion (1.8646 trillion won), ShinhanFinancialGroup Co.,Ltd. (1.6070 trillion won), and MIRAE ASSET SECURITIES (1.4944 trillion won).
The number of companies participating in treasury stock buybacks is also growing rapidly. As of September this year, 391 companies had carried out buybacks, a 191.8% increase from the 134 companies in 2024. The number of companies with buyback amounts exceeding 1 trillion won also rose from one to ten during the same period.
The rise in treasury stock cancellations is attributed to listed companies actively expanding shareholder returns in line with corporate value-enhancement policies. Additionally, the amendment to the Commercial Act, which made the cancellation of treasury stock mandatory, appears to have played a role.
Treasury stock cancellation is a primary means of shareholder returns that increases the value of existing shareholders’ stakes by reducing the number of outstanding shares. However, whether the scale of cancellations will actually lead to an increase in shareholder value depends on the company’s performance and future capital allocation policies.
