1. LS ELECTRIC’s Treasury Stock Disposal: What’s Happening?

On September 25, 2025, LS ELECTRIC announced its decision to dispose of 31,810 common shares, equivalent to about 9.1 billion won. This process will be handled through NH Investment & Securities, and the stated purpose is to foster a sense of ownership among employees and build an advanced labor-management culture based on trust and respect.

2. Why Dispose of Treasury Stock?

LS ELECTRIC aims to boost employee ownership and improve labor-management relations by distributing these shares. The ultimate goal is to enhance trust among shareholders and stakeholders by sharing the company’s growth and profits in the long run.

3. Impact on Stock Price?

  • Positive Effects:
    • Signals management’s commitment to enhancing shareholder value.
    • Potential for long-term corporate culture improvement and productivity enhancement.
    • Limited impact on supply and demand due to the small disposal size relative to the total market capitalization.
  • Neutral/Potential Negative Effects:
    • Limited direct impact on stock price in the short term.
    • Potential for positive or negative perception depending on whether the disposal objectives are achieved.

4. Investor Action Plan

LS ELECTRIC possesses stable business portfolios and robust financial soundness, securing growth momentum. While this treasury stock disposal can be a positive factor in the long term, investment decisions should be made while monitoring macroeconomic conditions such as exchange rates, interest rates, and raw material prices.

It is crucial to verify additional information like the actual disposal price, timing, and method, as well as to monitor whether the disposal objectives are achieved.