Hyundai Motor Securities Holds 71st Annual General Meeting... Dividend Confirmed at 180 Won

Hyundai Motor Securities held the 71st Annual General Meeting of Shareholders on the 27th at the Korea Fire Insurance Association Building located in Yeouido, Seoul, and approved the main agenda items presented. The company stated that it will use this year as an opportunity for a new leap forward to enhance shareholder value by securing game changer capabilities and improving business structure.

As a result of the 71st Annual General Meeting of Shareholders, the agenda items including ▲approval of financial statements and appropriation of retained earnings ▲partial amendment of the articles of incorporation ▲appointment of directors and audit committee members were approved as originally proposed by the company.

In particular, the agenda related to year-end dividends attracted market attention as it was divided between the company’s proposal and a minority shareholder’s suggestion, but the company’s proposal was passed in the vote. Initially, the company planned to pay 350 KRW per common share and 418 KRW per preferred share as year-end dividends for the previous year, but due to an increase in new shares from a paid-in capital increase conducted last month, the dividend amount was lowered to 180 KRW per common share. On the other hand, shareholders demanded that both common and preferred shares be paid 500 KRW each, arguing that the stock value declined due to the paid-in capital increase.

The partial amendment of the articles of incorporation was submitted as part of strengthening compliance management, in response to the partial revision and enforcement of the Act on the Governance of Financial Companies, mandating the establishment of an internal control committee within the board of directors.

In his greeting, Baehyung Geun, CEO of Hyundai Motor Securities, said, "Hyundai Motor Securities will become a game changer in the securities industry," adding, "We will maximize capital efficiency by enhancing financial soundness and improving profitability through the capital raised from the paid-in capital increase." He also stated, "We will strengthen organizational capabilities such as talent acquisition and advanced networks and build competitiveness that can flexibly respond to changing market environments." Furthermore, he said, "We will advance our digital infrastructure by building next-generation systems and actively introduce future new technologies such as retirement pension robo-advisors (RA) and generative artificial intelligence (AI)-based chatbots."

CEO Bae also declared plans to improve the business structure. The company aims to build a diversified revenue structure through strengthening the retail sector and strategically reorganizing the corporate finance (IB) business. Specifically, by launching a family office for VIP client management and enhancing private banker (PB) competitiveness, the company plans to maximize customer satisfaction while strengthening corporate finance through revitalizing mergers and acquisitions (M&A) advisory for small and medium-sized enterprises and expanding non-real estate investments such as infrastructure and renewable energy to solidify the IB revenue portfolio.

Additionally, the company expressed ambitions to enhance risk management and sustainability. To advance risk management, it plans to establish a proactive and effective response system by strengthening system-based risk management and improve operational efficiency and stability through the introduction of IB business systems and liquidity management systems. Alongside this, it will further solidify compliance management by introducing accountability structures to foster a culture of transparent management and steadily pursue the 2045 carbon neutrality roadmap.