Digital Daesung to Retire 627,000 Treasury Shares and Purchase Additional KRW 10 Billion, Strengthening Shareholder Return Policy

Digital Daesung (068930) is set to further strengthen its shareholder return policy by retiring treasury shares and purchasing additional treasury shares worth 10 billion won. Having already exceeded its first-year goals under its mid- to long-term shareholder return plan presented last year, the company plans to further expand the scale of returns.

On July 30, Digital Daesung announced its shareholder return plan for the fiscal year 2026. The plan includes the retirement of treasury shares and the purchase of new treasury shares, with a focus on enhancing the continuity and predictability of its shareholder return policy, according to the company.

First, the company intends to retire all 627,972 shares secured through a 5 billion won treasury stock acquisition trust contract signed in November last year. This represents 2.27% of the company’s total issued shares. Once the retirement is completed, the number of shares in circulation will decrease, thereby boosting value per share.

In addition, the new treasury stock acquisition trust contract is set at 10 billion won—twice the amount of last year’s 5 billion won—demonstrating the company’s plan to expand treasury share purchases and strengthen shareholder returns.

The company also revealed that its shareholder returns in 2025 far exceeded initial targets. In the fiscal year 2025, a cash dividend of 520 won per share was paid, returning a total of 13.3 billion won to shareholders. The payout ratio reached 63.8%, meeting the requirements for high-dividend companies under the Restriction of Special Taxation Act.

By adding the 2.4 billion won in treasury share repurchases attributed to 2025, the total shareholder return grew to 15.7 billion won, with a return rate of 75.3%—significantly surpassing the company's initially stated targets.

Brian Heeseong Kim, CEO of Digital Daesung, stated, “The current share price is significantly undervalued in the market compared to the company’s record-high performance and solid fundamentals. We will ensure the flawless execution of our shareholder return plan for 2026, including treasury share purchases and retirements, to further strengthen shareholder-friendly management and make sure the company’s value is properly recognized by the market.”

This latest shareholder return plan is viewed as an effort by Digital Daesung to enhance shareholder value and address market undervaluation by expanding both treasury share retirements and purchases—demonstrating its commitment to shareholder-friendly management.

This content was produced with the assistance of AI translation services.