Estraffic Signs Trust Agreement for 3 Billion Won Treasury Share Acquisition

Estraffic has entered into a trust agreement to acquire treasury shares worth 3 billion won.

According to Estraffic on September 2, this decision serves as a follow-up measure to the company’s previously announced plan to enhance corporate value. In its renewed disclosure in April, Estraffic announced a plan to repurchase a total of 15 billion won in treasury shares and stated it would make additional purchases in the second half of this year. With the signing of this agreement, the company is executing the plan on schedule, bringing the cumulative total of treasury shares purchased—including the amount acquired as of September 2024—to 6 billion won.

The treasury shares acquired are being actually retired. Of the intended 5 billion won worth of share retirements, Estraffic has completed retiring 2.6 billion won in February last year and 1.5 billion won in September of the same year, for a total of 4.1 billion won. The remaining amount will be processed next year.

The company’s dividend policy is also being expanded in phases. The year-end dividend is set to increase from 60 won per share for fiscal year 2024 to 140 won for fiscal year 2025, with a further increase to 160 won planned for 2026. To secure stable funds for dividends, Estraffic passed an agenda at the 2025 regular general shareholders’ meeting to transfer 20 billion won from the capital reserve to retained earnings. The company is promoting dividends in the form of a non-taxable, reduced dividend, which is favorable for investors’ after-tax returns. The amendment to the articles of incorporation to introduce quarterly dividends has also been completed.

An Estraffic official commented, “The ongoing treasury share buybacks and retirements since 2024 reflect the company’s commitment to fulfilling its market promises as scheduled,” adding, “Based on the performance in the North American business and the railway signaling sector, we will consistently carry out shareholder return policies so that the intrinsic value of the company is fairly recognized in the market.”

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