Daegyo’s Treasury Stock Disposal: What Happened?

On July 21, 2025, Daegyo disposed of 80,447 preferred stocks, worth approximately KRW 100 million. This represents a minor disposal, equivalent to only 0.09% of the total outstanding shares.

What Was the Purpose of the Disposal?

The purpose of this disposal was to reward long-serving employees through the Kyohaksangjang Award. This is a different scenario from the typical reasons for treasury stock disposal, such as improving financial structure or boosting stock prices.

How Will This Impact the Stock Price?

Due to the small scale of the disposal, the short-term impact on the stock price is expected to be minimal. Factors such as the company’s weak Q1 performance and macroeconomic factors like the rising USD/KRW exchange rate are likely to have a more significant impact. In the long term, this disposal is unlikely to have a major influence. Daegyo’s future hinges on the growth of its senior business division, R&D investments, and effective risk management strategies.

Investor Action Plan

  • Instead of reacting to short-term price fluctuations, focus on Daegyo’s fundamentals and long-term growth potential.
  • Carefully review the Q2 earnings announcement and the growth strategy of the senior business division to inform your investment decisions.
  • Continuously monitor changes in macroeconomic indicators and Daegyo’s corresponding strategies.