Note 2-25

(25) Enterprises can take advantage of share buybacks for 1) flexible financial strategies (including temporary capital reduction and capital amortization), 2) benefits to shareholders in the absence of opportunities for investing surplus funds, 3) defense against takeover bids, and 4) improvement of the share demand-supply relationship. Therefore, the purposes of share buybacks are not limited to defense against takeover bids. Full-blown share buybacks have been allowed since a June 2001 amendment to the Commercial Code took effect in October 2001, lifting the ban on treasury stock.