Hyundai Department Store Group Drives Value Up... "Expanding Stakes in Strong Affiliates and Buying Back Shares"

"In Efforts to Enhance Corporate Value and Strengthen Responsible Management"
Hyundai GF Holdings to Acquire 1.8% Stake in Hyundai Department Store
Hyundai Home Shopping to Purchase Hansome Shares and 2% of Its Own Stock

Hyundai Department Store Group is driving efforts to enhance corporate value (value-up). Hyundai G.F. Holdings, the holding company of Hyundai Department Store Group, and Hyundai Home Shopping are purchasing shares of high-quality subsidiaries to strengthen responsible management as major shareholders. Hyundai Home Shopping will also buy back its own shares to increase shareholder value.

According to the Financial Supervisory Service's electronic disclosure system on the 24th, Hyundai G.F. Holdings plans to purchase 1.8% (about 400,000 shares) of Hyundai Department Store, a core affiliate, on the open market. As a result, Hyundai G.F. Holdings' stake in Hyundai Department Store will increase from the existing 31.5% to 33.3%.

Hyundai Home Shopping also announced on the same day that it plans to purchase 1.5% (about 330,000 shares) of Hansome on the open market. Accordingly, its holding will expand from the current 39% to 40.5%.

A Hyundai Department Store Group official explained, "This share purchase is being carried out to enhance corporate value by expanding stakes in undervalued high-quality affiliates and to strengthen responsible management as the largest shareholder. However, actual share transactions will comply with prior disclosure regulations and will take place from the 24th of the following month, one month after the disclosure."

Earlier, Hyundai G.F. Holdings had revealed a blueprint in its value-up plan announced last year to increase control over high-quality subsidiaries and expand dividend income.

On the same day, Hyundai Home Shopping stated that in addition to purchasing shares of Hansome, it plans to buy back about 2% (approximately 240,000 shares) of its own shares to enhance shareholder value.

Regarding this, a Hyundai Department Store Group official said, "The decision to expand stakes in high-quality affiliates and repurchase treasury shares is an additional measure separate from the value-up plan announced at the group level last November. It was made after in-depth internal discussions and reviews on the most necessary value-up measures for each company."

He added, "We judged that the department store, home shopping, and Hansome are excessively undervalued compared to their actual value in terms of market position, brand competitiveness, and future growth potential, which led us to pursue stake expansion and share buybacks. Going forward, if high-quality affiliates are judged to be undervalued, we plan to implement various additional value-up policies."