KG Chemical and KG Inicis each buy back 100,000 shares on the open market

Buybacks aimed at stabilizing share prices and boosting per-share value

Group pledges broader shareholder returns

KG Group Chairman Kwak Jae-sun. [KG Group]
KG Group Chairman Kwak Jae-sun. [KG Group]

KG Group Chairman Kwak Jae-sun has moved to boost shareholder value through buybacks at key listed affiliates, aiming to stabilize share prices and prompt a revaluation of the group's companies on the strength of their earnings and cash flow.

KG Group announced Tuesday that KG Chemical and KG Inicis had each completed the purchase of 100,000 shares on the open market, bringing the combined buyback to 200,000 shares. The transactions were carried out over two days, June 24 and 25.

The group said the buybacks reflect a judgment that the current share prices of both companies do not adequately reflect their earnings and growth potential. It expects the purchases to stabilize share prices and increase per-share value.

Buybacks are widely regarded as a primary tool for returning value to shareholders, as reducing the number of shares in circulation raises the value of each remaining share. They are also read by the market as a signal of management's confidence in the company's future earnings and cash flow.

KG Group said its major listed affiliates have maintained stable earnings and cash flow even amid a recent slowdown in the global economy. Building on that foundation, the group said it plans to strengthen what it calls "performance-sharing management" — pursuing not only top-line growth but also broader shareholder returns.

"Shareholder value is the top priority in corporate management, and genuine value enhancement begins with deep trust between a company and its shareholders," a KG Group official said. "We will faithfully carry out a multifaceted shareholder-return roadmap — including this buyback, expanded dividends going forward and transparent disclosure — and emerge as a model company for value-up."

KG Group said it plans to disclose the progress of its shareholder-return policy through regular investor relations events and to broaden communication with the market. It also intends to strengthen disclosure practices and accountability so that investors can more clearly understand the group's corporate value and business direction.

The group said it will build on this buyback to accelerate efforts to address the undervaluation of its listed companies and restore confidence in the capital markets.


kwater@heraldcorp.com