Samsung Electronics Co. and SK Inc. announced plans to cancel a combined 20.8 trillion won ($14.1 billion) of treasury shares, marking one of the largest such moves by South Korean conglomerates. The decision comes as companies respond to governance reforms aimed at boosting shareholder returns through improved capital efficiency.

Treasury share cancellations reduce the number of outstanding shares, which can increase earnings per share and potentially lift stock prices. This move by Samsung and SK represents a significant commitment to returning capital to shareholders. The scale of the cancellation - 20.8 trillion won - demonstrates how seriously these conglomerates are taking recent pressure to enhance shareholder value.

South Korean companies have faced increasing scrutiny over their capital allocation and governance practices. This cancellation signals a shift toward more shareholder-friendly policies in a market where conglomerates have traditionally been criticized for prioritizing expansion over returns. The timing suggests these companies are proactively addressing investor concerns before they escalate into more formal demands.