SEOUL – SK Inc., the strategic investment arm of South Korea’s SK Group, announced on March 10, 2026, that its board of directors has approved the cancellation of approximately 14.69 million treasury shares. This massive move, valued at roughly 4.83 trillion KRW (approximately $3.6 billion), represents the entirety of the company’s treasury holdings, excluding only those reserved for employee compensation.
The valuation is based on the previous day’s closing prices, with common shares at 329,000 KRW and preferred shares at 237,500 KRW. Notably, the retirement includes not only shares purchased specifically for shareholder returns but also those acquired for "specific purposes" during past corporate restructuring—specifically the 2015 merger with SK C&C (now SK AX) aimed at simplifying the group’s governance.
Strengthening Financial Health and Governance
This decisive action follows a two-year "portfolio rebalancing" strategy that significantly fortified the company's balance sheet. According to separate financial statements:
Net Debt: Reduced from 10.5 trillion KRW at the end of 2024 to 8.4 trillion KRW by Q3 2025.
Debt-to-Equity Ratio: Improved from 86.3% to 77.4% over the same period.
"This cancellation is a testament to the board's firm commitment to transparent, shareholder-friendly management," an SK Inc. official stated. "We aim to set a leading precedent in the domestic capital market by prioritizing shareholder trust and corporate value enhancement."
Record-High Dividends
In addition to the share retirement, SK Inc. recently confirmed a year-end dividend of 6,500 KRW for the 2025 fiscal year. When combined with the interim dividend of 1,500 KRW paid last August, the total annual payout reaches 8,000 KRW—a 14% increase from the previous year.
The company is scheduled to hold its 35th General Shareholders' Meeting on March 26, where it will seek approval for its financial statements and the appointment of new directors. This series of moves is expected to solidify SK's position as a pioneer of the "Value-up" program in the Korean market.
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