South Korea’s top wireless carrier SK Telecom Co. will cancel 2.6 trillion won ($2.3 billion) worth corporate shares or nearly all of its treasury holding on May 6, a move that will prop up share value by lessening 10.8 percent issues from the market.

The company will retire 8.69 million treasury shares, or 10.8 percent of outstanding shares, by May 6, according to its regulatory filing made on Tuesday. The stock cancellation is largest volume among country’s four largest business conglomerates, and the value of retirement biggest after Samsung Electronics’ scheme.

After cancellation, the total number of outstanding shares will be reduced to 72,060,143 shares from 80,745,711 shares. The retirement amount is estimated based on the treasury stock’s book value on Tuesday, when the board of directors approved the plan.

SK Telecom shares gained 1.15 percent to close Tuesday at 307,500 won in Seoul.

The company will be left with 900,000 treasury shares after cancellation. It plans to use the remainder for employee compensation, giving employees the choice to get bonus in stock instead of cash. The company has handed out 121,000 shares through this program so far this year.

By Lee Dong-in and Cho Jeehyun

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