South Korean corporations sharply accelerated share buybacks and cancellations last year, retiring nearly $16 billion worth of their own stock as companies moved to bolster shareholder returns and prepare for tighter corporate-governance rules.
A report released Tuesday by corporate data provider CEO Score found that 80 companies among the country’s 500 largest by market capitalization canceled about $15.9 billion in treasury shares in 2025, excluding newly listed firms. The findings point to a broad shift toward more shareholder-friendly capital policies as regulators push reforms aimed at improving the treatment of minority investors.
Samsung Electronics led the wave, canceling roughly $2.3 billion in shares—about 14.5% of the total retired amount. Shipping company HMM followed with about $1.6 billion in buybacks and cancellations, part of an effort to enhance shareholder value. Korea Zinc, currently embroiled in a management-control dispute, canceled around $1.4 billion in shares purchased in a prior year.
Other companies executing large-scale retirements included Meritz Financial Group, which canceled about $1.2 billion in shares, and KB Financial Group, which retired roughly $800 million. Samsung C&T, KT&G and Hyundai Motor each canceled close to $700 million in stock, underscoring how buybacks have spread beyond the financial sector into industrial and consumer-facing companies.
Not all treasury shares were retired. The report said 108 companies disposed of about $2.4 billion in treasury stock during the year, with nearly 65%—around $1.5 billion—used for employee compensation programs. Hyundai Motor led such disposals at roughly $400 million, followed by Samsung Electronics and SK Hynix.
Sales of treasury shares for fundraising purposes totaled about $560 million. Lotte Holdings, for example, sold approximately $110 million in shares to an affiliate as part of efforts to strengthen its balance sheet, according to the report.
Buyback activity also intensified. A total of 102 companies purchased about $16 billion in treasury shares over the year, with Samsung Electronics again ranking first at roughly $6.2 billion. HMM, KB Financial Group, Meritz Financial Group and Shinhan Financial Group followed.
Treasury-share holdings remain concentrated at some firms. Shinyoung Securities held the highest ratio, with treasury stock accounting for 51.23% of its outstanding shares, followed by Bookook Securities at 42.73%, Hanssem at 29.46% and SNT Dynamics at 28.94%.
CEO Score said the surge in buybacks and cancellations reflects companies positioning themselves ahead of a proposed revision to South Korea’s Commercial Act, which would require stricter treatment of treasury shares, including mandatory cancellations. The trend signals a shift toward capital-allocation practices more closely aligned with global standards, as Korean companies face growing pressure from regulators and investors alike to deliver clearer returns to shareholders.
