VT Cosmetics Announces KRW 30 Billion Share Buyback: What Happened?

On September 22, 2025, VT Cosmetics announced its plan to buy back and cancel 856,169 common shares, equivalent to approximately KRW 30 billion, through on-market purchases. The cancellation is scheduled for September 30th.

Why the Share Buyback?

VT Cosmetics recorded significant growth in its cosmetics business during the first half of 2025. The successful entry into the Japanese market and the popularity of the ‘Riddleshot’ product line have been the main growth drivers. However, the company also faces challenges such as sluggish performance in its laminating business and the withdrawal from the entertainment business. In this context, the share buyback is interpreted as a strategic move to enhance shareholder value and boost the stock price.

What’s the Impact of the Share Buyback?

  • Positive Impacts:
    • Expected increase in Earnings Per Share (EPS) and Book Value Per Share (BPS), leading to potential stock price appreciation.
    • The KRW 30 billion share buyback sends a positive signal to the market.
    • Contributes to increasing corporate value in the long term.
  • Negative Impacts and Considerations:
    • KRW 30 billion cash outflow may impact short-term liquidity.
    • Potential for increased stock price volatility.
    • The effectiveness depends on market expectations (approximately 2.78% of the current market capitalization).

What Should Investors Do?

Investors should closely monitor the following:

  • Progress of the share buyback and the average purchase price.
  • VT Cosmetics’ expansion strategy and performance in overseas markets, beyond Japan.
  • Progress of clinical trials and potential licensing opportunities for the bio business.
  • The company’s hedging strategy against foreign exchange fluctuations and raw material price volatility.