Hyundai Motor Company announced on the 27th that it has decided to repurchase 4,665,868 shares of its own stock for 1 trillion KRW. The company explained that this is to enhance shareholder value.
On the same day, the company held a board meeting and announced that it will proceed with the stock repurchase by the end of February next year. The shares to be acquired represent 1.7% of the total issued shares, and the planned acquisition amount is approximately 1 trillion KRW.
The company explained that 700 billion KRW will be used for the purpose of enhancing shareholder value, and 300 billion KRW will be used for stock-based compensation and other purposes. Earlier, in August, the company held a CEO Investor Day and announced a corporate value enhancement plan (Value Up) that includes repurchasing shares worth 4 trillion KRW over the next three years.
Typically, companies raise funds by issuing shares and selling them to shareholders. The stock repurchase announced by Hyundai Motor Company on this day refers to the case where a company buys back the shares it had previously sold. When a company repurchases its own shares, the number of shares circulating in the market decreases, earnings per share increase, and the stock price rises. As a result, shareholders also benefit.
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