SK Gas to buy back and cancel W90b in shares over three years

SK Gas said Tuesday its board approved a mid-term shareholder return plan to buy back and cancel 30 billion won ($22.5 million) worth of its own shares each year from 2026 to 2028, with the first tranche of 30 billion won authorized for immediate execution.

The move comes on top of the company's existing shareholder return policy, with SK Gas saying it aims to share the results of its business performance with shareholders and enhance corporate value.

The first tranche of 30 billion won will be acquired through a trust agreement beginning Wednesday, the day after the board meeting, and all shares obtained will be fully cancelled upon completion of the buyback.

The remaining 60 billion won will be purchased in two additional tranches of 30 billion won each in 2027 and 2028, with the shares to be cancelled sequentially.

The shareholder return plan was decided on the back of SK Gas's progress in diversifying its business portfolio and its expanded financial capacity.

The company said it views this year as a turning point — one in which it confirms the strength of its differentiated growth strategy while also preparing its "Next Growth Strategy."

SK Gas said it chose a three-year share buyback and cancellation program over a one-time special dividend because the sustained approach would raise per-share value more effectively and allow the company to consistently share results with shareholders over time.

"We will continue a balanced capital allocation approach — actively investing in high-growth new businesses on the strength of stable cash flows from our existing operations, while expanding shareholder returns when sufficient investment opportunities are not available," a company official said.

SK Gas plans to present the full details of the plan, along with its growth strategy, capital allocation direction and medium- to long-term corporate value enhancement initiatives, at its Investor Day on Wednesday.