Dongkuk Holdings 70th Annual General Meeting
Amendment of Articles for 'Post-Dividend Investment' Decision
"CVC Establishment to Complete Within the Year... 80% Investment in AI
Committed to Greater Growth and Shareholder Returns"
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 it has revealed a specific investment portfolio. Jang also mentioned that he is 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 approximately 80:20 between IT sectors such as AI and steel-related materials, parts, and equipment (SoBuJang), focusing on profitability-driven 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 Finance Division 1, as CEO of Dongkuk Technology Investment during last month’s executive personnel reshuffle.
Jang Se-wook, Vice Chairman of Dongkuk Holdings, is speaking at the 70th General Meeting of Shareholders of Dongkuk Holdings held at the headquarters in Jung-gu, Seoul on the 22nd. [Photo by Dongkuk Holdings]
Regarding shareholder-friendly management, Jang said, "We are considering interim dividends and share buybacks." 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 consider interim dividends and share buybacks as part of shareholder return plans, and the holding company Dongkuk Holdings 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 a maximum dividend payout at 30% of free cash flow to shareholders, implementing deficit dividends as long as there were no net losses for two consecutive years.
Dongkuk Holdings held its regular general meeting on the same day. Jang, chairman of the board, said at the meeting, "This year marks the 70th anniversary of our founding and the first year of the holding company system. We will lay the foundation for sustainable growth and move toward becoming a 100-year company," adding, "By establishing the CVC, we will secure future growth engines and strive to return greater value to shareholders through growth."
Dongkuk Holdings resolved five agenda items: approval of the 2023 financial statements, partial amendments to the articles of incorporation, appointment of directors, approval of director remuneration limits, and approval of auditor remuneration limits, and approved a cash dividend of 600 KRW per share.
At the general meeting, Dongkuk Holdings amended its articles of incorporation to allow the board of directors to set the dividend record date by resolution, and reappointed Jang Se-wook, Vice Chairman of Dongkuk Holdings, and Kwak Jin-su, Head of Strategy Office at Dongkuk Holdings, as inside directors, whose terms expire in March this year.
Also attending the meeting was Jang Se-ju, chairman of Dongkuk Holdings and elder brother of Vice Chairman Jang Se-wook, who is also an inside director.
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