The National Pension Service (NPS) opposed Hyundai Mobis' proposed disposal method for treasury stock at the company’s annual shareholders’ meeting on Tuesday, arguing the move runs counter to the purpose originally stated when the shares were first bought back. The auto parts manufacturer said earlier that it would use up to 500,000 shares out of the 1.05 million it holds for employee compensation and an employee stock ownership plan. This amount represents roughly 0.5 percent of the company’s total outstanding shares. “At the time of the buyback, the publicly stated objective was to enhance shareholder value through stock price stabilization,” NPS said, adding that distributing the shares for employee compensation does not align with Mobis' stated objective when it first repurchased shares. Despite the pension fund’s objection, the plan was approved at the meeting. Cancelling treasury shares is widely viewed as key to shareholder returns, as reducing the number of outstanding shares increases the value of those remaining. When the shares are distributed internally, they can