[Edaily Reporter Shin Ha-yeon ] WORLDEX INDUSTRY & TRADING CO., LTD(101160)has refuted demands from VIP Asset Management, its second-largest shareholder, to increase dividends and reduce the cap on directors’ compensation, arguing that these measures are unavoidable due to an increase in the number of directors.

According to the financial investment industry on the 25th, VIP Asset Management recently changed the purpose of its stake in WORLDEX INDUSTRY & TRADING CO., LTD from “simple investment” to “general investment” and is demanding an increase in dividends and a reduction in the cap on director compensation.

In response, WORLDEX INDUSTRY & TRADING CO., LTD explained that the proposal to raise the director compensation cap (from 7 billion won to 8 billion won), which will be put to a vote at the extraordinary general meeting of shareholders on the 29th, is a measure necessitated by the increase in the number of registered and outside directors.

The company stated that since the compensation cap is difficult to change once approved by the shareholders’ meeting, it was set to reflect rising inflation and the increase in the number of directors, adding that the actual amount of compensation paid remains at about 30% of the cap.

WORLDEX INDUSTRY & TRADING CO., LTD explained that the total compensation paid to five executives last year was 2,416,310,000 won, and that the average compensation for the remaining executives—excluding CEO Bae Jong-sik’s compensation (1,532,500,000 won)—was comparable to industry standards.

The company also highlighted its management performance to date. It reported that over the past five years, revenue increased by approximately 53% from 190.1 billion won to 291.7 billion won, and cumulative net income for the same period reached approximately 235 billion won.

Some in the industry argue that, given the nature of the semiconductor materials industry—which requires continuous R&D and capital investment—a balance is needed between demands for increased short-term shareholder returns and long-term growth strategies.

A WORLDEX INDUSTRY & TRADING CO., LTD official stated, “We will strive to share our achievements with long-term shareholders, focusing on our dividend policy, in line with the rapidly changing capital market environment,” adding, “We will provide greater value to shareholders through technological investment and sound management rather than short-term results.”