Kakao Games (co-CEOs Kim Tae-hwan and Lee Si-woo) is launching an active shareholder return policy, beginning with its first-ever cancellation of treasury shares since going public.

Kakao Games announced on the 8th that it will cancel 500k of its treasury shares to boost shareholder value. This represents approximately 60% of the 854009 shares currently held by the company. The cancellation is scheduled for July 15, after which the company's treasury holdings will decrease to 354009 shares.

The cancellation will be carried out by retiring shares acquired within the scope of distributable profits, reducing the total number of outstanding shares without affecting capital stock. This move is intended to prevent the dilution of per-share value and increase the actual equity value for shareholders.

Starting with this cancellation, Kakao Games plans to establish and sequentially implement a mid-to-long-term policy focused on shareholder returns and strengthening corporate value.

Along with the cancellation, the company disclosed its plans for the remaining treasury shares. Kakao Games announced that it will introduce a Restricted Stock Unit (RSU) program for employees, utilizing a portion of the remaining shares as a funding source. The RSU program is designed with performance conditions linked to corporate value and long-term achievements, aiming to align the interests of shareholders and employees to further enhance corporate value.

Additionally, Kakao Games is considering reducing its capital reserves and transferring them to retained earnings. This will help secure the necessary resources to pursue long-term shareholder return policies.

Shin Kwon-ho, CFO of Kakao Games, stated, "We will review multifaceted and sustainable shareholder return measures to ensure that tangible value is returned to the shareholders who support our company's growth and development, and we will continue to communicate with the market." He added, "Based on our financial stability, we will strengthen our growth foundation and strive to continuously enhance shareholder and corporate value."