JTC to Cancel All Treasury Shares Worth 10 Billion Won... "Enhancing Shareholder Returns"

JTC will cancel all of its second round of treasury shares acquisition, worth 10 billion won.

On August 20, JTC announced that its board of directors had decided the previous day to cancel all 2,051,675 treasury shares it currently holds. This cancellation applies to all of the second round of treasury shares acquired on the exchange between May 7 and July 29. The scheduled date for the cancellation is September 30, although this may change depending on discussions with relevant authorities. In addition, the change in the actual total number of outstanding shares following the cancellation will be reflected after the completion of administrative procedures in Japan.

With this decision, the total number of treasury shares acquired and canceled by JTC this year through two rounds amounts to 5,024,908 shares, representing 9.7% of the total number of outstanding shares. In terms of value, this is approximately 25 billion won. Notably, since JTC is a foreign corporation established under Japanese law, it is not subject to the Korean Commercial Act's requirement to cancel treasury shares within one year of acquisition. Nevertheless, the company is maintaining its voluntary shareholder return policy by canceling all treasury shares acquired in both rounds.

In FY2026 Q1 (March to May), JTC responded to a decline in Chinese group tourists by improving the operational efficiency of its stores and workforce, while expanding its customer base to include nationals from South Korea, Taiwan, Thailand, and others, thereby increasing sales from non-Chinese customers by 39.3% year-on-year. During the same period, on a consolidated basis, the company recorded sales of 4.59 billion won, an operating profit of 210 million won, and a net profit of 100 million won. Despite the unfavorable business environment caused by deteriorating relations between China and Japan—resulting in a decrease in Chinese tourists—the company continues to maintain a solid financial structure.

The company plans to continue its strategy of operational efficiency in its existing Japanese duty-free business and diversification of customer nationalities. Starting in the second half of the year with Jeju Island, it also intends to launch duty-free operations in South Korea to secure new sources of revenue.

Fumiya Yamamoto, CEO of JTC, stated, "We are steadily fulfilling our promise of shareholder return by successfully implementing the two rounds of treasury share acquisition and cancellation planned for this year," and added, "We will continue to enhance shareholder and corporate value by strengthening our business competitiveness and actively returning value to shareholders."

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