Daedong Metal to buy back 1 billion won in shares, cancel all acquired stock

Daedong Metal, a cast-parts manufacturer under Daedong Group, said Thursday its board approved a share buyback trust contract worth 1 billion won (about $657,000).

The company said the trust contract is aimed at enhancing corporate value and strengthening management accountability. The contract runs from Thursday through Dec. 10, during which Daedong Metal will acquire its own shares through open-market purchases via a trust institution.

Daedong Metal plans to cancel all shares acquired under the trust contract once the buyback is complete. The company expects the move to reduce the number of shares in circulation, raising per-share value and delivering a tangible return to shareholders. The 1 billion won contract represents approximately 5 percent of total shares outstanding, based on the closing price the day before the board resolution.

The buyback follows a series of shareholder return measures. In March, the company approved a 100 percent bonus share issue, allotting one new share for every common share held, resulting in 3,189,166 newly issued shares. The company said it has paid dividends for 31 consecutive years.

Last month, Daedong Metal unveiled a corporate value enhancement plan, setting targets for 2030 of 240 billion won ($157.7 million) in sales, a price-to-book ratio of 2, a return on equity of 10 percent and a price-to-earnings ratio of 10. Based on 2025 sales of 101.8 billion won, reaching the 2030 target would require average annual growth of 18.7 percent.

Founded in 1947, Daedong Metal specializes in casting and cast iron. The company has long supplied parts for agricultural machinery and automobiles, and has been expanding into higher-value precision casting for ship engines, industrial machinery and semiconductor equipment. It is also preparing to enter advanced materials businesses in future farming, robotics and mobility, in line with the broader group's future business strategy.

"The decision to enter into this 1 billion won share buyback trust contract and cancel all acquired shares reflects our confidence in the company's corporate value and its medium- to long-term growth potential," CEO Lee Pung-woo said. "Going forward, we will simultaneously expand shareholder returns, strengthen the competitiveness of our traditional casting business, and advance into high-value precision casting and advanced materials."