[Market Focus] Infovine Surges Over 18% on Talks of Mandatory Treasury Stock Cancellation

Infovine surged on July 11 as the likelihood of mandatory treasury stock cancellation being legislated increased.

As of 10:20 a.m. on this day, Infovine was trading at 64,700 won, up 10,300 won (18.93%) from the previous trading day.

This is interpreted as being influenced by the recent introduction of a proposed amendment to the Commercial Act that would make the cancellation of treasury stocks mandatory.

On July 9, Democratic Party lawmaker Kim Namgeun proposed an amendment to the Commercial Act that would require companies to cancel treasury stocks within one year of acquisition as a general rule.

However, if there are legitimate reasons for not canceling treasury stocks, such as employee compensation, companies may be exempted from the mandatory cancellation requirement.

Infovine, a company specializing in mobile authentication and security solutions, has a treasury stock ratio of 51.45%, the highest among KOSDAQ-listed companies.