1. What’s Happening with the Treasury Stock?

On July 23, 2025, Sambo Paper decided to contribute 332,898 shares (2.06% of the total outstanding shares) to the Sambo Employee Welfare Fund.

2. Why is Sambo Paper Disposing of its Treasury Stock?

The purpose of this disposal is to enhance employee welfare by contributing to the fund. This can be interpreted as a strategy to fulfill corporate social responsibility and strengthen long-term competitiveness by improving employee satisfaction.

3. How Will This Affect the Stock Price?

Disposal of treasury stock typically leads to an increase in the supply of shares, which can put downward pressure on the stock price. However, in this case, the contribution to the employee welfare fund may be viewed positively. While there may be short-term downward pressure, the long-term effects could be positive due to improved corporate image and increased employee motivation and productivity. However, recent declines in performance due to rising raw material prices and decreased demand could negatively impact the stock price.

  • Positive Factors: Improved corporate image through contribution to the employee welfare fund, potential for long-term shareholder value enhancement.
  • Negative Factors: Potential short-term stock price decline due to the disposal, recent performance decline, external factors such as rising raw material prices and exchange rate fluctuations.

4. What Should Investors Do?

Investors should consider Sambo Paper’s long-term growth potential, fundamentals, and external environment changes, rather than focusing solely on short-term price fluctuations. It’s crucial to monitor raw material prices, exchange rate trends, and the performance of subsidiaries. Reviewing the disclosed financial statements (‘주요재무.md’) and analyst reports is also recommended.