Dongwon Industries to Cancel All Treasury Shares Worth 329 Billion KRW..."Enhancing Shareholder Value"

Resolution by the Board of Directors
10,460,770 Common Shares of Treasury Stock
Accounting for 22.5% of Total Issued Shares

Dongwon Industrial, the business holding company of Dongwon Group, announced on the 16th that it will cancel all treasury shares amounting to one-fifth (22.5%) of the total issued shares to enhance shareholder value.

Dongwon Industries CI

On the same day, Dongwon Industrial held a board meeting at the Dongwon Industrial Building in Seocho-gu, Seoul, and resolved to cancel 10,460,770 common treasury shares. The cancellation amount is approximately KRW 329 billion based on the closing price of the previous day, and the cancellation record date is set for May 2. As a result of the share cancellation, the total number of issued shares will decrease from 46,482,665 to 36,021,895.

Following the announcement last August to cancel 3.5 million treasury shares, which accounted for 7% of the total issued shares, and to gradually cancel the remaining treasury shares over the next five years, Dongwon Industrial has now decided to cancel all remaining shares at once to enhance shareholder value.

Earlier in April last year, Dongwon Industrial executed its largest dividend in the company’s history, approximately KRW 39.7 billion (KRW 1,100 per share, dividend yield of 2.1%), and recently introduced the advanced dividend policy system of "confirming the dividend amount first, then designating the dividend record date."

The top management also participated in shareholder-friendly policies by consecutively purchasing company shares. Min Eun-hong, CEO of Dongwon Industrial’s business division, purchased 2,000 common shares in July last year, and Kim Joo-won, chairman of the board, bought a total of 2,600 shares. During the same period, Park Moon-seo, CEO of Dongwon Industrial’s holding division, also purchased 2,500 company shares.

A Dongwon Industrial official stated, "We will continue to actively pursue various shareholder return policies and invest in new businesses to increase corporate value."