Sempio announced that it has decided to cancel 860,332 common shares of previously acquired treasury stock. The cancellation is scheduled for the 11th.

◆ Cancellation of 29.92% of Issued Shares... No Reduction in Capital

The shares subject to cancellation account for approximately 29.92% of the total 2,875,800 issued shares. The cancellation amount stated in the regulatory filing is 36,951,259,400 won, with a par value of 1,000 won per share.

Sempio explained that this cancellation involves shares already acquired, canceled by board resolution under the proviso of Article 343, Paragraph 1 of the Commercial Act. Accordingly, the total number of issued shares will decrease, but the capital will not be reduced.

The board resolution date was September 9. The scheduled cancellation amount was calculated based on the closing price on September 8, the day before the board resolution date. As of the board resolution date, the book value of the treasury shares subject to cancellation is 26,328,272,027 won. However, the cancellation date may change depending on consultations with relevant institutions.

◆ Trading of Share Certificates Halted from 4:17 p.m. on the 9th

The Korea Exchange suspended trading of Sempio's share certificates from 4:17 p.m. on the 9th, citing a share cancellation of 10% or more as the reason. The trading suspension will be lifted at 9 a.m. on the 10th.

The Exchange stated that, pursuant to Article 54 of the Enforcement Regulations of the KOSPI Market Business Rules, after-hours market trading before the market opens on the day the suspension is lifted will not be executed. If futures or options based on the relevant share certificates are listed, trading of those futures and options will also be suspended simultaneously.