Neowiz to Return 20% of Annual Operating Profit to Shareholders, Enhance Shareholder Value

Minimum Annual Return of 10 Billion Won Guaranteed for Three Years

Neowiz has announced that it will return 20% of its consolidated operating profit from the previous year to shareholders annually. For the next three years (fiscal years 2025 to 2027), the company will guarantee a minimum annual shareholder return of 10 billion won, regardless of fluctuations in performance.

Neowiz Headquarters in Pangyo, Seongnam-si, Gyeonggi Province. Photo by Neowiz

On January 23, Neowiz disclosed this new mid- to long-term shareholder return policy through a public announcement.

Specifically, of the minimum return amount of 10 billion won, 5 billion won will be used to repurchase and retire treasury shares, while the remaining 5 billion won will be distributed as cash dividends. If 20% of operating profit exceeds 10 billion won, the company will flexibly allocate the entire excess amount between share retirement and dividends in a way that maximizes shareholder benefit. The first dividend payment under this policy will take place after the upcoming general shareholders' meeting in March.

The company also detailed its approach to enhancing shareholder value through the use of treasury shares. Treasury shares will be used as resources for employee compensation, share retirement, and investment. In cases where performance-based stock compensation for employees is forfeited due to unmet targets, the company plans to retire 50% of the forfeited shares.

To ensure effective implementation of the policy, Neowiz decided to use the entire 50 billion won reduction in capital reserve, secured at last month's extraordinary shareholders' meeting, as a mid- to long-term dividend resource. The company explained that it aims to provide tangible benefits to shareholders by implementing "reduction dividends," which are exempt from dividend income tax.

Neowiz emphasized that this policy ensures the sustainability and predictability of its shareholder return program.

A Neowiz representative stated, "Rather than simply increasing the scale of returns, it is meaningful to establish clear mid- to long-term principles and build trust with the market," adding, "We will continue to pursue a balanced approach between growth strategies and shareholder return policies to enhance shareholder value."