Confirmation of Cancellation of Treasury Shares To Be Made Into Law by End of 2025 and a Loophole?

• On 25 November, the Democratic Party of Korea confirmed that the cancellation of treasury shares will be made into law by the end of 2025.

• Companies that buyback their shares (as treasury shares) will be required to cancel them within one year of the buyback.

• There may be a LOOPHOLE if the company fails to cancel the treasury shares on time. Fine per director is only 50 million won and this may be too low.