Transfer of KRW 200 Billion Capital Reserve as Dividend Source
Review of Interim Dividends, Treasury Stock Acquisition, and Cancellation
Dongkuk Steel Group's steel business division, Dongkuk Steel, announced on the 20th that it will engage in shareholder-friendly management, including reviewing interim dividends and transferring capital reserves to retained earnings.
On the same day, Dongkuk Steel held the 1st regular general shareholders' meeting at its headquarters in Suha-dong, Jung-gu, Seoul, where it reported to shareholders on the audit report, business report, and the status of internal accounting control system operations, and then presented and approved five agenda items.
At the meeting, Choi Sam-young, Chairman of Dongkuk Steel, stated, "Since the split in June last year, Dongkuk Steel achieved sales of 2.6321 trillion KRW, operating profit of 235.5 billion KRW, and net profit of 142.2 billion KRW by December." He added, "Through profitability-focused strategies such as product portfolio improvement and production optimization, we achieved a 9% operating profit despite demand stagnation and reduced the debt ratio from 121% to 105%."
On the same day, Dongkuk Steel approved a total of five agenda items: ▲approval of the 1st financial statements ▲partial amendment of the articles of incorporation ▲appointment of directors ▲approval of the director remuneration limit ▲transfer of capital reserves to retained earnings, and approved a dividend of 700 KRW per share.
The transfer of capital reserves to retained earnings and the partial amendment of the articles of incorporation are decisions aimed at enhancing shareholder value.
By transferring 200 billion KRW of capital reserves to distributable resources and allowing the board of directors to set the dividend record date by resolution, it enables a 'prior dividend amount determination followed by investment,' thereby establishing a foundation for shareholders to earn predictable and stable returns.
Dongkuk Steel newly appointed Choi Woo-il, Executive Director and Head of Sales, as an inside director. Executive Director Choi is currently the head of sales and an expert in procurement. Having experience as the head of the Japan branch, he possesses global expertise and was newly appointed as an inside director as he is expected to contribute to growth amid the construction market downturn.
Dongkuk Steel also announced that it plans to continue its future growth strategy, "Steel for Green," while reviewing shareholder return measures such as interim dividends and treasury stock acquisitions to enhance shareholder value.
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