Hecto Financial "Targets Dividend Payout Ratio of Over 25%"

4-Year Shareholder Return Policy Announcement
At Least 21% of Net Income to Be Paid as Cash Dividends

Fintech company Hecto Financial announced on the 28th that it has established a four-year shareholder return plan to ensure consistency in its shareholder return policy and predictability for investors.

At a board meeting held on the same day, Hecto Financial resolved to return at least 21% of the net income based on separate financial statements as cash dividends to shareholders annually from the 2023 fiscal year through the 2026 fiscal year, and to increase the annual dividend payout ratio by more than 1% each year, targeting over 25%. The year-end dividend for the 2023 fiscal year will be finalized at the settlement board meeting and the regular shareholders' meeting scheduled for March.

Since its listing on KOSDAQ in 2019, Hecto Financial has achieved a compound annual growth rate (CAGR) of 18.5% in sales. While actively making new investments for sustainable growth, the company has implemented cash settlement dividends every year. Over the past four years, the total dividends paid by Hecto Financial amount to approximately 14.8 billion KRW.

Choi Jong-won, CEO of Hecto Financial, stated, “Hecto Financial is realizing steady external growth and profit increases through active new business investments and global market expansion, prioritizing the enhancement of corporate value. We plan to also focus on shareholder-friendly policies to increase corporate value in line with the government’s value-up program.”

Hecto Financial is the leading account-based payment service provider in South Korea. It offers a one-stop service covering major payment methods such as simple cash payments, virtual accounts, credit cards, and mobile payments, from PG (Payment Gateway) payment services to overseas settlement, and possesses the core technology for all payments.

Recently, the company has expanded its overseas business by being selected as a payment remittance solution provider for large clients such as overseas direct purchase e-commerce platforms, and has also gained attention by providing payment services for subscription funds of Yeolmae Company, the first domestic STO (Security Token Offering) investment.