Kolon Industries Introduces Semi-Annual Dividends... Expands Shareholder Return Policy

Annual Base Dividend Set at 1,300 KRW per Common Share
Total Dividend Pool Limited to 30% of Net Profit
"A Measure to Build Trust with Long-Term Investors"

Kolon Industries is expanding its shareholder return policy and changing its dividend system. The company will shift from paying dividends once a year to twice a year, aiming to create a long-term investment environment through a more predictable dividend policy.

On May 7, Kolon Industries announced that its board of directors had resolved to introduce a semi-annual dividend system. As a result, the annual base dividend has been set at 1,300 KRW per common share, with an interim dividend of 600 KRW and a year-end dividend of 700 KRW. Additional dividends may be paid at the year-end, depending on available return resources and the principles of the base dividend. The total dividend pool will be managed within a limit of 30% of the company's annual consolidated net profit.

The company believes that this change will enhance the predictability of its dividend policy and strengthen trust with shareholders. Since 2023, Kolon Industries has been operating a mid-term dividend policy, setting its payout ratio at 20% to 40% of actual net profit (excluding one-off gains and losses). The company is also disclosing management information through quarterly investor relations (IR) briefings, avoiding holding its general shareholders' meeting on peak dates, and operating a proxy voting solicitation system.

A Kolon Industries representative stated, "Introducing semi-annual dividends is a measure to build trust with long-term investors," adding, "We will continue our shareholder-friendly management through a responsible dividend policy and ongoing information disclosure."

Meanwhile, despite global economic uncertainties last year, Kolon Industries recorded sales of 4.843 trillion KRW and an operating profit of 158.7 billion KRW, driven by the performance of its tire cord and petroleum resin businesses. The company is strengthening its competitiveness through an 'operational efficiency' strategy that enhances efficiency across the entire value chain, from raw material procurement to product shipment.