“Payout ratio of up to 40%”... SOOP to meet high-dividend company requirements

[Financial News] SOOP is pursuing a plan to meet the requirements for high-dividend companies by raising its payout ratio to at least 40% for this year's year-end dividend, or by maintaining a payout ratio of at least 25% while increasing total cash dividends by at least 10% from the previous year. The company plans to conduct its shareholder return policy in line with the tax requirements for high-dividend companies.
SOOP disclosed on the 30th that it would draw up a dividend plan for its 2026 year-end dividend to meet the requirements for high-dividend companies under the Restriction of Special Taxation Act.
The company will maintain its existing principle of paying cash dividends amounting to at least 25% of consolidated net income. On that basis, it plans to meet one of two criteria, provided that total cash dividends do not decline from the 2024 fiscal year.
Specifically, it will either set its payout ratio at 40% or higher, or maintain a payout ratio of at least 25% while increasing total cash dividends by at least 10% from the previous year. The payout ratio is the share of consolidated net income represented by total cash dividends.
SOOP explained, however, that this payout ratio target does not guarantee an increase or maintenance in total cash dividends or dividends per share compared with the 2025 fiscal year. The payout ratio and total cash dividends for purposes of the high-dividend company requirements will also be calculated according to the standards set out in the relevant laws.
The specific dividend amount and payment schedule will be finalized after relevant procedures, including resolutions by the board of directors and the general meeting of shareholders. SOOP said its shareholder return policy may change depending on market conditions and changes in the business environment, and that it plans to make a further disclosure if any changes occur.
[email protected] Choi Hye-rim Reporter