Dongwon Industries Cancels 3.5 Million Treasury Shares to "Enhance Shareholder Value"

Approximately KRW 163.6 billion as of closing on the 11th
Represents 7% of total issued shares
Plans for gradual cancellation of all treasury shares within the next 5 years

Dongwon Industrial, the business holding company of Dongwon Group, is enhancing shareholder value through the cancellation of treasury shares.

On the 12th, Dongwon Industrial held a board meeting and resolved to cancel 3.5 million common treasury shares. The cancellation amount is approximately KRW 163.6 billion based on the previous day's closing price, representing about 7% of the total issued shares. The record date for the cancellation is August 1.

With the decision to cancel treasury shares, the total number of issued shares of Dongwon Industrial will decrease from 49,982,665 shares to 46,482,665 shares. Through a disclosure on the same day, Dongwon Industrial also announced plans to gradually cancel all 13,959,990 treasury shares, including the 3.5 million shares to be canceled this time, within five years.

Dongwon Industrial will hold an extraordinary general meeting of shareholders on the 28th of next month to vote on the agenda. After the creditor objection period until July 31, the changed new shares are scheduled to be listed on August 17.

A Dongwon Industrial official stated, "We decided to cancel treasury shares to fulfill the promise of enhancing shareholder value made during last year's merger process and to actively communicate with the capital market. We will also actively invest in new businesses in the future to continuously increase shareholder value."

Meanwhile, Dongwon Industrial paid dividends exceeding KRW 39.7 billion last month, at KRW 1,100 per common share (a dividend yield of 2.1%), marking the largest scale since its founding. In November of last year, the company increased investor accessibility by conducting a stock split, reducing the par value from KRW 5,000 to KRW 1,000.