Kumho Petrochemical Announces Corporate Value Enhancement Plan Including '40% Net Profit Return to Shareholders'

Kumho Petrochemical announced on the 11th its plan to enhance corporate value, which includes a new shareholder return policy and future growth strategies. The company set targets for enhancing corporate value, such as a maximum shareholder return ratio of 40% over the next three years, a sales growth rate of 6% by 2040, and a return on equity (ROE) of 10% by 2030.

Kumho Petrochemical Headquarters

Regarding the shareholder return ratio, Kumho Petrochemical plans to raise the buyback and cancellation ratio of treasury shares based on separate net income from the 5-10% level announced in 2021 to 10-15% starting this year, while maintaining a dividend payout ratio of 20-25%. Up to 40% of separate net income will be used for the shareholder return policy.

Additionally, the shareholder value enhancement policy to gradually cancel 50% of the previously held treasury shares over three years, announced last year, is also underway. The first cancellation of 875,000 shares was conducted in March last year, with the second and third cancellations planned for this year and next year, respectively.

Furthermore, Kumho Petrochemical has set three major growth strategies: strengthening eco-friendly automotive solutions, expanding bio and sustainable materials, and accelerating the transition to high value-added specialty products. The company aims to achieve its sales growth target by 2030. Ultimately, it plans a blueprint that leads to the continuous expansion of the shareholder return policy.

Finally, Kumho Petrochemical intends to reorganize its business portfolio centered on the three major growth strategies to strengthen financial stability through optimal resource allocation. It will invest in high-efficiency production technologies, enhance research and development (R&D) competitiveness in next-generation growth industries, and expand its high value-added product lineup. The company also plans to restructure low-profit businesses to focus and select resources strategically. Through these efforts, it aims to achieve an ROE of 7% by 2026 and 10% by 2030.

Meanwhile, Kumho Petrochemical is preparing for the 48th regular shareholders' meeting this year. It stated that no shareholder proposals have been received from shareholders such as Park Cheol-wan, who had previously made shareholder proposals. A Kumho Petrochemical official explained, “We believe there will be no shareholder proposals at this year’s shareholders' meeting.”