[Alpha Biz=(Chicago) Reporter Paul Lee] Kiwoom Securities said it will purchase 70 billion won worth of its own shares and strengthen risk management as part of raising shareholder value.

Kiwoom Securities announced on the 26th that it has signed a trust contract with Mirae Asset Securities and will purchase 70 billion won worth of treasury shares.

"The treasury shares acquired through this trust contract will be used to enhance shareholder value through incineration in the future," Kiwoom Securities said. "However, as they are acquired through the signing of a trust contract, we plan to resolve and disclose the details through a separate board of directors when proceeding with incineration."

The remarks appear to be due to criticism that they have been negligent in risk management due to large-scale unpaid bills caused by the recent "low limit on Youngpoong Paper."

Kiwoom Securities added, "To this end, we will improve the related work process and strengthen our capabilities by reorganizing the organization and expanding professionals."

Kiwoom Securities made a public announcement earlier on the 20th after closing the market that KRW 494.3 billion was collected from Youngpoong Paper stocks, which were suspended for alleged stock price manipulation.

 

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