1. What’s Happening with NAVER’s Share Buyback?
NAVER announced on August 12, 2025, that it will repurchase and retire approximately 1% of its outstanding shares, equivalent to 1,584,370 shares. The total value of the buyback is estimated at ₩368.4 billion.
2. Why the Buyback?
NAVER aims to enhance shareholder value through this buyback. Reducing the number of outstanding shares increases earnings per share (EPS) and book value per share (BPS), effectively boosting the value of existing shares. Furthermore, NAVER has consistently conducted share buybacks over the past five years, demonstrating its commitment to shareholder return.
3. How Will This Affect the Stock Price?
Share buybacks generally have a positive impact on stock prices. In the short term, a price increase can be expected immediately following the announcement. In the long term, it can contribute to higher corporate value through improved fundamentals and increased confidence in the company’s shareholder return policy. However, macroeconomic factors such as interest rate hikes and exchange rate fluctuations should also be considered.
4. What Should Investors Do?
While NAVER’s share buyback is a positive signal, investors should carefully analyze the company’s business fundamentals and performance before making investment decisions. It’s also crucial to consider the macroeconomic environment and market volatility when developing an investment strategy.