자사주 소각 (jasaju sogak)

The company permanently cancels shares it has bought back, so each remaining share owns more of the company.

자사주 소각 (jasaju sogak) is the cancellation of treasury shares. Once cancelled, the shares are gone for good, so each remaining share represents a bigger slice of the company's earnings and dividends.

Investors in Korea watch for cancellations rather than just buybacks, because shares that are bought back but kept can come back to the market later. More cancellations are one of the goals of the Value-up programme.

Also called: share cancellation · buyback and cancel