Gwangmu Begins 5 Billion KRW Share Buyback... "Full-Scale Shareholder Return Initiated"

Gwangmu is set to repurchase its own shares in an effort to enhance shareholder value.

According to the Financial Supervisory Service's electronic disclosure system on April 23, Gwangmu has entered into a trust agreement with Korea Investment & Securities to acquire treasury shares worth 5 billion KRW. From April 22 to October 22, over a period of approximately six months, the company plans to purchase 1,795,332 common shares on the open market. The reference price is 2,785 KRW per share, which is the closing price on the day before the board resolution. The actual number of shares to be repurchased may be adjusted depending on future share price movements.

This decision was unanimously approved at the board meeting held on April 22. Gwangmu already holds 37,781 treasury shares, and upon completion of the repurchase, the company will secure approximately 3.33% of its total listed shares as treasury common shares. The company aims to reduce the number of shares in circulation, thereby increasing corporate value and boosting market confidence.

Share buybacks are generally viewed positively by the market, as they are seen as a signal of a company's confidence in its performance and financial soundness. In particular, such actions play a positive role in building investor trust in sectors with high share price volatility, such as IT and materials. Gwangmu has emphasized this point with its latest decision, explaining that the strategy is not merely aimed at short-term share price support, but is focused on securing long-term trust and revaluing corporate value.

In fact, Gwangmu's financial indicators significantly exceed the industry average. As of the end of 2023, the debt ratio stood at 21.01%, the dependence on borrowings at 7.07%, and the current ratio at 487.92%, all indicating a very stable financial position. Cash and cash equivalents amounted to 176.4 billion KRW, more than double the previous year's figure. This demonstrates the company's strong ability to withstand external shocks and its ample capacity for share buybacks.

A Gwangmu representative stated, "This decision is not simply about defending the share price, but is the first step toward enhancing long-term shareholder value," adding, "We plan to expand the scale of shareholder returns every year based on sustainable growth."