Partial Amendment to Articles of Incorporation Approved at Shareholders' Meeting on the 24th
Focus on Response to Imports and Reorganization of Export Division
Minimum Dividend Standard Fixed at 400 KRW Per Share
Dongkuk Steel Group's Dongkuk Steel is placing emphasis on 'strengthening internal stability' this year by establishing a response system for low-priced imported steel products and focusing on new product development.
On the 24th, Choi Sam-young, Chairman of Dongkuk Steel and the Board of Directors, presented this direction for the main business this year at the 2nd regular shareholders' meeting held at the Ferrum Tower Ferrum Hall in Suha-dong, Seoul. The plan is to establish a response system regarding anti-dumping measures on Chinese H-beams and to focus on export organization restructuring and expansion strategies.
On the 24th, at the Ferrum Hall in Ferrum Tower, the headquarters in Suha-dong, Seoul, Chairman Choi Sam-young delivered a greeting at Dongkuk Steel's 2nd regular shareholders' meeting. Provided by Dongkuk Steel
Dongkuk Steel also intends to diversify its product lineup through new product development. To this end, at the shareholders' meeting, a partial amendment to the articles of incorporation was proposed and approved as originally planned, adding the manufacturing, processing, and wholesale and retail business of Glass Fiber Reinforced Plastic (GFRP) products to the business objectives.
GFRP, which combines glass fiber and polymer, is mainly used as a product to reinforce concrete buildings or structures. It has the advantage of low carbon emissions since it does not use scrap metal or limestone during production, and unlike rebar, it has strong corrosion resistance, meaning it does not rust. Dongkuk Steel plans to target niche markets to improve profitability, which has worsened due to the prolonged downturn in the steel industry.
In addition, Dongkuk Steel approved all proposed agenda items as originally planned, including ▲financial statements ▲appointment of inside directors, outside directors, and audit committee members ▲limits on directors' remuneration ▲and amendments to executive retirement benefit regulations.
Last year, Dongkuk Steel recorded sales of 3.5275 trillion KRW and an operating profit of 102.5 billion KRW. President and Chairman Choi stated on the day, "Although performance has declined due to demand stagnation and domestic and international variables, we are defending against the decline through inventory reduction, operation optimization, and cost improvement." He also mentioned that financial stability has been strengthened by lowering the debt ratio to around 88%.
Dongkuk Steel also resolved a cash dividend of 300 KRW per share on the day. Considering the interim dividend, the total dividend per share is 600 KRW. The minimum dividend standard was changed from the '1-year government bond yield' to a fixed value of '400 KRW per share.' The company explained, "This is to increase shareholder convenience in predicting dividend amounts due to increased volatility in government bond yields caused by domestic and international variables."
Furthermore, Dongkuk Steel reappointed President Choi Sam-young as an inside director and newly appointed Executive Director Kwan Jin-su. The company stated, "Executive Director Kwak has extensive experience in proposing strategies and continuously leading profitability even in uncertain market environments. He was newly appointed as an inside director as an expert with execution capabilities who can realize the mid- to long-term vision."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
