[Advisory] Review of the legality of acquiring own shares

Conventionally, the Commercial Code prohibited the acquisition of treasury stock based on the principle of capital adequacy, allowing it only in exceptional cases. However, there has been much criticism that, in order to maintain the principle of shareholder equality or without impairing capital adequacy, treasury stock acquisitions should be recognized. The newly revised Commercial Code now generally allows the acquisition of treasury stock and has abolished the profit cancellation system, which has the same economic effect as treasury stock acquisition.

Accordingly, Company A inquired with Law firm Veat regarding whether Company A's treasury stock acquisition, which was previously prohibited, is now possible, and whether acquisition with company-owned real estate instead of cash is possible in this case. Law firm Veat, through the articles and intent of the revised Commercial Code of 2011 and related case law, informed Company A that it can purchase its own shares and provided detailed guidance on the requirements and procedures that must be followed when purchasing such shares. Also, regarding whether Company A can purchase its own shares with company-owned real estate instead of cash, it provided a review opinion on the possibility of treasury stock acquisition through real estate, accurately specifying the laws and regulations that state the relevant content.

Thank you.

Law firm Veat