KB Financial to Cancel All Treasury Shares Worth $1.6 Billion

Move aims to comply with the third revision to the Commercial Act

KB Financial Group will cancel all treasury shares it holds, valued at about $1.6 billion.

The board on April 23 approved the retirement of 14,262,733 treasury shares. The shares were already held by the company and are separate from shares it repurchased for shareholder returns and planned to retire. Based on the April 23 closing price of 158,000 won, the stake is worth about $1.63 billion.

KB Financial said it made the decision to comply with the third revision to the Commercial Act, which prohibits companies from holding treasury shares. Last month, the government held an extraordinary Cabinet meeting chaired by President Lee Jae-myung and approved the promulgation of the amendment. The revised law took effect immediately, requiring all South Korean stock corporations to dispose of treasury shares by September 2027. Treasury shares held for employee compensation, including stock options, and for employee stock ownership plans are exempt.

A KB Financial official said the company would actively support government policy, maximize shareholder value and contribute to advancing South Korea's capital market.

After the cancellation is completed, KB Financial's outstanding shares will decrease to 367,199,370 from 381,462,103 as of the end of last year. The company also announced a $435 million share buyback and retirement plan, along with a quarterly dividend of 1,143 won a share.

Kim Jin-sung, Hankyung reporter, jskim1028@hankyung.com