[Exclusive] Jang Se-wook, Vice Chairman of Dongkuk Holdings, "CVC to be Established Within the Year... 80% Investment in AI"

Dongkuk Holdings 70th Annual General Meeting
Chairman and Inside Director Jang Se-ju Also Attended

Jang Se-wook, Vice Chairman and CEO of Dongkuk Holdings, announced plans to complete the establishment of a corporate venture capital (CVC) this year and to make early-stage investments focusing on IT sectors such as artificial intelligence (AI). Dongkuk Holdings had previously been working on establishing a CVC tentatively named ‘Dongkuk Technology Investment,’ but this is the first time they have revealed a specific investment portfolio. Jang also mentioned that they are considering interim dividends.

On the 22nd, Jang told reporters, "We plan to complete the establishment of the CVC within this year," adding, "In the early stages, we will diversify investments about 80% in IT fields such as AI and 20% in steel-related materials, parts, and equipment (SoBuJang), focusing on profitability-oriented businesses." He continued, "In 2 to 3 years, we plan to concentrate on SoBuJang investments related to Dongkuk Steel and Dongkuk CM."

Earlier, Dongkuk Holdings appointed Bae Chang-ho, former head of Shinhan Capital’s Investment Banking Division 1, as CEO of Dongkuk Technology Investment during last month’s executive personnel reshuffle.

Jang Se-wook, Vice Chairman and CEO of Dongkuk Holdings Photo by Dongkuk Holdings

Regarding shareholder-friendly management, Jang said, "We are considering interim dividends and treasury stock acquisitions." He emphasized, "We will establish a policy of ‘deciding dividend amounts first, then investing’ so that shareholders can make predictable investments." Previously, affiliates Dongkuk Steel and Dongkuk CM announced at their general meetings that they would review shareholder return measures such as interim dividends and treasury stock acquisitions, and the holding company, Dongkuk Holdings, has expressed the same stance.

In May last year, at an extraordinary general meeting for a spin-off, Dongkuk Holdings announced a shareholder return dividend policy setting the maximum dividend amount at 30% of free cash flow to shareholders, provided there is no net loss for two consecutive years, allowing for deficit dividends.

Dongkuk Holdings held its 70th regular general shareholders’ meeting on the same day. Jang Se-ju, chairman of Dongkuk Holdings and elder brother of Vice Chairman Jang, who is also an inside director, attended the meeting.