Kakao Games announced on the 8th that it will cancel 500,000 treasury shares. This accounts for approximately 60% of the 854,009 treasury shares currently held by the company. The cancellation is scheduled for July 15, after which the company's remaining treasury stock will decrease to 354,009 shares.

This cancellation is being carried out by retiring treasury shares acquired within the scope of distributable profits, reducing the total number of issued shares without decreasing capital stock. This measure is intended to prevent the dilution of value per share and effectively increase the actual stake value for shareholders.

Starting with this treasury share cancellation, Kakao Games plans to establish and sequentially implement policies for shareholder returns and corporate value enhancement from a mid-to-long-term perspective. A portion of the remaining treasury shares after the cancellation will be used as a resource for the Restricted Stock Unit (RSU) program for employees. The RSU is designed with long-term performance and corporate value-linked conditions as key vesting requirements, aiming to align the interests of employees with those of shareholders to further enhance corporate value.

The company is also reviewing a plan to reduce capital reserves and transfer them to retained earnings. Based on this, it intends to secure resources for long-term shareholder return policies.

Shin Kwon-ho, CFO of Kakao Games, stated, "We will continue to review multifaceted and sustainable shareholder return measures so that real value can be returned to shareholders who support the company's growth and development, and we will communicate this to the market. Based on our financial stability, we will strengthen our growth foundation and strive to continuously enhance shareholder value and corporate value."