SK Inc., the holding company of SK Group, announced on Tuesday a plan to retire approximately 4.8 trillion won ($3.27 billion) in treasury shares. This move represents the largest share retirement ever executed by a domestic holding company in South Korea.
The board of directors approved the retirement of 14.69 million treasury shares out of the 17.98 million shares currently held. A reserve of 3.29 million shares will be maintained for employee compensation.
This retirement encompasses roughly 20 percent of SK Inc.’s outstanding shares, with an estimated value of 4.83 trillion won based on current market prices.
The plan includes not only shares repurchased through shareholder return programs, but also treasury shares previously acquired for “specific purposes” during efforts to streamline the group’s holding company structure.
In 2015, SK merged with SK C&C — now known as SK AX — as part of a broader initiative to simplify its corporate structure and bolster governance transparency.
According to an SK Inc. official, retiring the entire treasury shareholding is considered the most effective approach to enhance shareholder returns and increase overall corporate value.
“With the recent amendment to the Commercial Act, enabling boards to approve the retirement of treasury shares acquired for specific purposes, the company has actively embraced the amendment’s objective of maximizing shareholder value,” the official stated.
This decision comes after two years of strategic portfolio rebalancing aimed at strengthening SK Inc.’s financial position.
Net borrowings on a standalone basis have decreased to 8.4 trillion won as of the third quarter of 2025, a reduction from 10.5 trillion won at the close of 2024. Concurrently, the company’s debt ratio improved from 86.3 percent to 77.4 percent during the same period.
Last month, SK announced a year-end dividend of 6,500 won per share for fiscal year 2025. When combined with the interim dividend of 1,500 won distributed in August, the total annual dividend amounts to 8,000 won per share, reflecting a 14 percent increase compared to the previous year.
An SK Inc. representative emphasized that the 4.8 trillion won share retirement demonstrates the board’s dedication to improving shareholder returns and fostering market confidence.
“We remain committed to strengthening shareholder trust and pursuing management practices that prioritize shareholders at the heart of corporate value enhancement,” the official added.
The share retirement is scheduled to take effect on January 4 of the following year.
yeeun
