[DigitalToday reporter Oh Sang-yup (오상엽)] Mirae Asset Securities has decided to buy back 300 billion won worth of its own shares. The move is aimed at stabilising the share price, boosting shareholder value and easing the price gap between common and preferred shares.

Mirae Asset Securities said on June 17 it held a board meeting and approved a plan to buy back a total of 300 billion won of its own shares.

The buyback is the largest in the company’s history. It is about three times the previous record of 103 billion won.

The buyback will cover 200 billion won of common shares, 10 billion won of first preferred shares and 90 billion won of second preferred shares. It is the first time first preferred shares have been included in a buyback target.

Mirae Asset Securities explained that it included preferred shares to ease the market price gap between common and preferred shares and to raise shareholder value in a balanced way. The company has continued its shareholder return policy through share buybacks and cancellations, and it plans to cancel all shares bought this time after the purchases are completed.

Share cancellations are a shareholder return method that reduces the number of shares in circulation and raises per-share value. Recently, the securities industry has been expanding share buybacks and cancellations to address undervaluation and strengthen shareholder returns.

A Mirae Asset Securities official said, "This share buyback is intended to enhance shareholder value, stabilise the share price and ease the market price gap between common and preferred shares." The official added, "We plan to faithfully implement our shareholder return policy through cancellations after the purchases."