Corporate Briefing and Investor Feedback for Institutional and Individual Investors
Governance Restructuring Focused on Stable Management
Enhancing Corporate Value, Strengthening Competitiveness, and Expanding Management Transparency
KMH held an investor relations (IR) presentation on the afternoon of the 10th at the 63 Building in Yeouido, Seoul.
[Asia Economy Reporter Jang Hyowon] KMH announced that it will actively implement measures to enhance shareholder value, including strengthening shareholder return policies, holding regular investor relations (IR) meetings, and expanding the number of outside directors.
On the afternoon of the 10th, KMH held an IR session at the 63 Building in Yeouido, Seoul, to explain its management status and listen to investors' opinions. At this event, attended by numerous institutional and individual investors, KMH shared its management plans for growth and its leap to a comprehensive group through business diversification with the investors.
KMH emphasized that it has grown steadily through a systematic mergers and acquisitions (M&A) growth strategy by the management. It acquired a 42% stake in Asia Economy, which was in capital erosion, for less than 2 billion KRW and listed it on the KOSDAQ market. It also acquired the golf courses Shilla CC and Teseve CC, which were undergoing rehabilitation procedures, achieving operating profits of 9.5 billion KRW and 8.5 billion KRW respectively last year. Going forward, to enhance corporate value and strengthen competitiveness, KMH plans to restructure its governance to clearly establish portfolios in broadcasting and media, leisure, and IT, manufacturing, and semiconductor businesses.
KMH will also increase activities centered on shareholder value management. Since 2018, KMH has continued shareholder return policies through dividends, bonus shares, and share buybacks. It plans to prepare more aggressive shareholder return policies in the future to attract institutional investors and boost its stock price.
Han Chansu, CEO of KMH, stated, "We are reviewing various methods, including expanding dividends, share buybacks, and cancellations, to increase shareholder value." He added, "Just as we were about to concretize the share buyback, a management rights dispute arose, which requires legal review."
KMH also plans to hold regular investor relations meetings and strengthen management transparency through communication with shareholders. It aims to operate an advanced board of directors by expanding the number of outside directors, proposing the first female director, and enhancing external institution recommendations and verifications for future directors.
CEO Han said, "We prepared this IR to communicate regularly and continuously with investors," adding, "We will strengthen management transparency through proactive IR activities for investors alongside the company's progressive growth."
Since its KOSDAQ listing in 2011 based on its broadcasting transmission and channel supply business, KMH has actively pursued business diversification into broadcasting media, semiconductors, and leisure. It is also conducting activities to enhance shareholder value, such as operating the 'IR Special Force Team' and expanding shareholder communication through social networking service (SNS) channels.
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