[Featured Stock] "Share Buyback Cancellation, Stock Split" Young Poong Soars

On the morning of the 10th, Yeongpung's stock price on the KOSPI market rose 13.14% from the previous closing price to 508,000 KRW. This appears to be due to the announcement that Yeongpung held a board meeting on the 7th and resolved to proceed with treasury stock cancellation and a stock split.

As a result of this decision, Yeongpung's treasury stock equivalent to 6.62% of the total shares will be canceled by March 2026. The company stated, "The specific timing and the scale of cancellation at each time will be flexibly decided at future board meetings." The stock split, which reduces the par value per share from 5,000 KRW to 500 KRW, a one-tenth split, will be executed by the first half of this year.

Earlier, on the 7th, the Seoul Central District Court's provisional injunction (suspending the effectiveness of the January extraordinary shareholders' meeting resolution except for the introduction of cumulative voting) gave Yeongpung-MBK an advantageous position in the Koryo Zinc management rights dispute. By implementing the shareholder-friendly policies demanded by activist funds, it appears to be a strategic move to gain support from other shareholders at the upcoming Koryo Zinc regular shareholders' meeting at the end of this month.

In October last year, Koryo Zinc announced that it would cancel all treasury shares acquired as it launched a counter-tender offer against MBK Partners' public tender offer. Since then, Yeongpung has repeatedly demanded the cancellation of treasury shares (9.85%) acquired by Koryo Zinc.

In November last year, Must Asset Management pointed out, "Yeongpung has held treasury shares for over 10 years without canceling them," adding, "This contradictory situation could not occur unless they forgot they held treasury shares or forgot that there are minority shareholders as a listed company." This led to criticism that Yeongpung's demand for Koryo Zinc to cancel treasury shares while not canceling its own treasury shares was a case of double standards.

However, with Yeongpung's recent announcement to cancel all treasury shares, it has taken a step ahead of Koryo Zinc Chairman Choi Yoon-beom in terms of 'shareholder returns.'