Baeksan Corp.’s Share Buyback – What Happened?

On August 22, 2025, Baeksan Corp. announced its decision to repurchase 500,000 shares (approximately KRW 6.6 billion) for the purpose of cancellation.

Why the Buyback? – Background and Implications

This share buyback is a proactive measure to enhance shareholder value. By reducing the number of outstanding shares through cancellation, the company aims to increase earnings per share (EPS) and book value per share (BPS), ultimately driving stock price appreciation. It can also be interpreted as a signal of improved financial efficiency and a strengthened commitment to shareholder returns.

Impact on Investment – Analyzing the Effects

Positive Aspects

  • Expected Stock Price Increase: Anticipated EPS and BPS growth could create upward momentum for the stock price.
  • Shareholder-Friendly Policy: Reinforces commitment to shareholder returns, potentially improving investor sentiment.
  • Strong Fundamentals: The company’s stable business foundation and high profit margins enhance the credibility of the buyback.

Neutral/Cautionary Aspects

  • Burden of New Business Investments: Potential for slowed earnings growth; monitor future performance closely.
  • Macroeconomic Variables: Consider the impact of external factors such as exchange rates and oil prices.

Investor Action Plan

Overall, Baeksan Corp.’s share buyback is viewed as a positive signal. We maintain a ‘Buy’ rating and recommend continuous monitoring of future earnings and the stabilization of new business ventures. However, remember that investment decisions should always be made based on your own judgment and responsibility.