SK Inc., the holding company of SK Group, said Tuesday it will retire about 4.8 trillion won ($3.27 billion) of treasury shares, marking the largest share retirement ever undertaken by a domestic holding firm.
The board approved a plan to retire 14.69 million treasury shares out of the 17.98 million shares currently held by the company, excluding 3.29 million shares reserved for employee compensation.
The retirement represents roughly 20 percent of SK Inc.’s outstanding shares and, based on current market prices, is valued at about 4.83 trillion won.
The move will cover not only shares repurchased through shareholder return programs, but also treasury shares previously acquired for “specific purposes” during efforts to restructure the group’s holding company system.
In 2015, SK merged with SK C&C — now SK AX — as part of a broader push to simplify its corporate structure and improve governance transparency.
An SK Inc. official said retiring the entire treasury shareholding was the most effective way to strengthen shareholder returns and enhance corporate value.
“With the recent revision to the Commercial Act allowing boards to approve the retirement of treasury shares acquired for specific purposes, the company has actively reflected the spirit of the amendment aimed at enhancing shareholder value,” the official said.
The decision follows two years of portfolio rebalancing aimed at strengthening SK Inc.’s balance sheet.
Net borrowings on a standalone basis declined to 8.4 trillion won as of the third quarter of 2025, down from 10.5 trillion won at the end of 2024. Over the same period, the company’s debt ratio improved to 77.4 percent from 86.3 percent.
Last month, SK confirmed a year-end dividend of 6,500 won per share for fiscal 2025. Combined with the interim dividend of 1,500 won paid in August, the total annual dividend reaches 8,000 won per share, a 14 percent increase from the previous year.
An SK Inc. official said the 4.8 trillion won share retirement underscores the board’s commitment to strengthening shareholder returns and market confidence.
“We will continue to strengthen shareholder trust and pursue management that places shareholders at the center of corporate value enhancement,” the official added.
The retirement is scheduled to take effect Jan. 4 next year.
yeeun@heraldcorp.com
