SHINSEGAE INFORMATION & COMMUNICATION Revamps Shareholder Return Policy; to Cancel Treasury Shares and Increase Dividends

[Financial News] SHINSEGAE INFORMATION & COMMUNICATION (Shinsegae I&C) will fully cancel approximately 840,000 treasury shares by 2027 and change the cash dividend funding source to 20% of annual net income based on separate financial statements. The minimum dividend per share will also be raised from KRW 350 to KRW 400.
SHINSEGAE INFORMATION & COMMUNICATION announced on the 18th that its board of directors had approved a proposal to revise the shareholder return policy. The main changes include the cancellation of treasury shares, a revision of the basis for calculating dividend funding, and an increase in the minimum dividend.
First, SHINSEGAE INFORMATION & COMMUNICATION will cancel its 835,090 treasury shares in two installments of approximately 420,000 shares each in 2026 and 2027. The shares were acquired through a treasury-share trust and account for approximately 6% of the total shares issued. The value of the shares scheduled for cancellation is approximately KRW 6 billion based on their book value.
Because the treasury shares were acquired within the scope of distributable profits, their cancellation will not reduce capital. The reduction in total shares outstanding is expected to increase value per share.
The basis for calculating shareholder return funding will be changed from operating profit to 20% of annual net income based on separate financial statements. The company has clarified and reorganized the calculation criteria to make the scale of shareholder returns more predictable.
The minimum dividend per share will also be raised by approximately 14%, from KRW 350 to KRW 400. Even if the amount calculated based on the return funding is less than KRW 400 per share, the company will pay a minimum dividend of KRW 400.
The revised shareholder return policy will apply from 2026 through the 2027 fiscal year. After the policy period ends, it will be reviewed in consideration of the business environment.
A company official said, "This revision of the shareholder return policy was designed to provide investors with clearer and more predictable return criteria and to continuously enhance shareholder value," adding, "We will continue working to balance the company's growth with shareholder returns, based on a stable financial structure and business competitiveness."

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