South Korean automaker Hyundai Motor Company announced it plans to buy KRW1trn (US$717m) worth of its own shares over the next three months, as part of its broader plans to increase shareholder returns, the company said in a regulatory filing.

The buy-back of 4.66 million shares, equivalent to 1.7% of the company’s total outstanding shares, has been approved by the board of directors and will start this week. A total of 70% of the repurchased shares will be cancelled, while the remaining KRW300bn worth of shares will be awarded to employees as compensation.

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Hyundai said the share repurchase, which will reduce the number of shares in circulation, is aimed at “enhancing shareholder value”.  It is part of its company’s medium-term “value-up” plan announced in August, which includes the buy-back of some KRW4trn worth of its own shares over the next three years.

At the company’s 2024 CEO Investor Day in August, Hyundai’s CEO Chang Jae hoon said the company aims to achieve a total shareholder return (TSR) of 35% or more over the next three years.

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