Interim Dividend of 1,500 Won Decided... Actively Practicing Shareholder Returns with Four Consecutive Years of Interim Dividends
[Asia Economy Reporter Hwang Yoon-joo] Investment specialist SK Inc. has enhanced shareholder value by conducting the largest interim dividend since its first interim dividend in 2018.
On the 21st, SK Inc. held a board meeting and approved a proposal to pay an interim dividend of 1,500 KRW per share to shareholders. The total payout amounts to approximately 79.3 billion KRW, an increase of about 50% (26.5 billion KRW) compared to the previous year's interim dividend total of 52.8 billion KRW.
Since conducting its first interim dividend of 1,000 KRW per share in 2018, SK Inc. has consistently continued interim dividends every year, continuously striving to enhance shareholder value. The total annual dividend has steadily increased from about 208.7 billion KRW in 2016 to 370.1 billion KRW in 2020, marking an approximate 77% increase over four years.
SK Inc. has determined dividend amounts based on the fundamental principle of stable and gradual dividend expansion, considering financial status and investment scale. Additionally, it implements an active dividend policy that reflects investment profits as dividend resources when realized, based on expertise befitting an investment specialist company.
Last year, SK Inc. led dividend expansion by reflecting investment profits from significant investments such as China Watson, the global leader in copper foil manufacturing; Chindata Group, a global mega data center operator; and Roivant, a bio-pharmaceutical innovation company, along with the listing of SK Biopharm and partial sale of shares in global logistics platform company ESR. This interim dividend utilized resources from investment profit realization, including the partial sale of SK Biopharm shares earlier this year, to continuously return value to shareholders. The annual dividend amount will be decided at the year-end dividend considering overall business conditions.
Along with dividend expansion, SK Inc. is focusing on future growth engines by investing intensively in four core portfolios centered on ESG: advanced materials, Bio, Green, and Digital, thereby establishing a foundation for sustainable growth. Earlier this year, SK Inc. became the largest shareholder of Plug Power, a leading U.S. hydrogen business company, and subsequently acquired EposKesi, a French gene and cell therapy production company, and Signet EV, an electric vehicle fast charger manufacturer. Additionally, it is accelerating the execution of its financial story by investing in battery and copper foil, key materials for electric vehicles, as well as power semiconductor companies.
In particular, as global mobility companies such as Grab, in which SK Inc. has invested, along with SolidEnergy Systems, which holds next-generation core battery technology, and innovative drug development company Roivant, are highly valued and preparing for IPOs, maximizing corporate value through the establishment of a virtuous investment cycle is anticipated.
An SK Inc. official stated, "SK Inc. is rapidly establishing itself as an investment specialist company through ESG-centered portfolio innovation and enhanced execution of its financial story. Going forward, we will continuously pursue both company growth and shareholder value expansion by establishing a virtuous investment cycle through investment profit realization."
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