Shinsegae Group Chairman Chung Yong-jin, center, responds to questions from reporters at Incheon International Airport, Dec. 22 , as he returned home from the United States. Yonhap

Shinsegae, the operator of South Korea's second-biggest department store chain, said Friday it will conduct a massive stock cancellation over the next three years as part of its value-up program.

Shinsegae will cancel more than 200,000 treasury stocks, or over 2 percent of its own shares, each year from 2025 through 2027 to enhance shareholder value, the company said in a press release.

The retail company said it has bought back 105 billion won ($71 million) worth of treasury stocks this year.

It also plans to raise the minimum dividend per share to 4,000 won from the current 3,500 won during the cited period.

To expand shareholder returns, the company will upgrade its core department store outlets and duty-free shops, with a focus on boosting luxury brand sales, the release said.

Shinsegae aims to achieve 10 trillion won in sales by 2030, up 57 percent from 6.36 trillion won in 2023.

In the January-September period, the company reported 4.75 trillion won in sales, up from 4.64 trillion won a year earlier.

Shares in Shinsegae have fallen 25 percent this year to end at 131,400 won on Friday, far underperforming the broader Korea Composite Stock Price Index's 9.4 percent loss. (Yonhap)