SK Inc., the holding company of SK Group, has decided to incinerate approximately 4.8 trillion won worth of its own shares, which represents about 20% of its total issued shares, highlighting the company's commitment to enhancing shareholder value. This move follows a board meeting where the company outlined plans to burn all repurchased shares except for those intended for employee compensation. The board's decision is based on the stock's market prices, indicating a significant financial impact.

The incineration of these shares comes as part of a broader strategy to increase shareholder value and reflects recent amendments to South Korean corporate law. The third revision of the Commercial Act mandates that listed companies must incinerate any newly acquired shares within one year of purchase, while existing shares must also be incinerated within a specified timeframe. However, the law provides exceptions for shares held for employee compensation and other operational purposes, allowing companies to retain or sell these shares based on annual shareholder approval.

This initiative reinforces SK Inc.'s proactive approach in responding to legislative changes and optimizing its capital structure while striving to meet the financial interests of its shareholders. Furthermore, SK Inc. is set to hold its regular shareholders' meeting on the 26th, where it will address various agenda items, including the approval of the previous year's financial statements and the appointment of directors, indicating ongoing corporate governance efforts.