This article reviews legal issues related to stock repurchase and cancellatio n of shares under 2008 revision draft to the Korean Commercial Code(KCC) which is currently referred to the Korean National Assembly. The revision draft of the KCC deregulates the stock repurchase mechanism by liberalizing the repurchase of its own stock by the corporation. The draft also eradicates the cancellation of shares through the profit and integrates it into stock repurchase system. However, the revision draft of the KCC does not stipulate specific method of stock repurchase. Since the KCC regulates listed and unlisted corporations simultaneously, the KCC needs to provide various methods of stock repurchas e including the stock purchase by shareholder agreement or the repurchase via private transactions. Regarding the sale of treasury stock the KCC does not prescribe the require ments and relevant procedures of the sale of treasury stock except the disposit ion period. With a view to enhancing the flexibility of equity financing and maintaining the equity ratios of existing shareholders, the sale of treasury stock must be conducted on equal basis per share.