[Edaily Reporter Park Sun-Yeop ] TaekwangIndustrial(003240) Trustone Asset Management, the second-largest shareholder, criticized TaekwangIndustrial’s corporate value enhancement plan as a “flawed report lacking quantitative targets to address extreme undervaluation and the will to implement them,” and demanded that the board of directors conduct a comprehensive review. Trustone plans to send an open Seohan next week outlining measures such as increased dividends, the cancellation of treasury shares, and the resetting of the return on equity (ROE) target.
In a press release on the 1st, Truston stated that TaekwangIndustrial’s recently disclosed “2026 Corporate Value Enhancement Plan” “failed to meet even the minimum requirements of the Korea Exchange’s guidelines.” Trustone pointed to TaekwangIndustrial’s closed capital allocation—where the company does not share its profits with general shareholders—as the reason why the stock is undervalued at a price-to-book ratio (PBR) of 0.22.

According to Trustone, TaekwangIndustrial’s total dividend payout for the 2025 fiscal year is 1.5 billion won. Of this amount, after excluding the shares held by the controlling shareholder’s family and related parties, the amount distributed to ordinary shareholders amounts to only about 500 million won. Trustone pointed out that TaekwangIndustrial has been reluctant to increase dividends, citing four consecutive years of operating losses and the need for investment funds for new businesses.
Trustone argued, “With a debt-to-equity ratio of 13.5% and retained earnings in the 4 trillion won range, the company has the funds for aggressive investment in new businesses; it is self-contradictory to cite the loss-making environment only when discussing the 500 million won dividend intended for general shareholders.” It also criticized the company—which has frozen dividends for 32 consecutive years—for merely stating that it would “consider reasonable adjustments” without specifying concrete quantitative targets, arguing that this could be interpreted as an intention to maintain its existing dividend policy.
The use of treasury stock was also highlighted as a key issue. TaekwangIndustrial is reportedly planning to use its 271,769 shares of treasury stock—representing a 24.4% stake—as funding for strategic mergers and acquisitions (M&A). In response, Trustone pointed out, “While the company itself acknowledges that it is undervalued at a PBR of 0.22x, its plan to dispose of treasury stock is tantamount to selling off shareholder assets at a bargain price based on market value.”
Trustone also assessed TaekwangIndustrial’s statement—that it would decide whether to utilize the treasury shares following approval at the 2027 Annual General Meeting of Shareholders—as a “stalling tactic to avoid canceling the treasury shares.” Trustone argued that, in a situation requiring immediate cancellation of treasury shares, citing their use as M&A funding amounts to little more than a retroactive justification to evade shareholder returns.
TaekwangIndustrial’s mid- to long-term goals also came under criticism. Trustone pointed out that the company’s stated goal of “achieving 5 trillion won in revenue and an 8% ROE by 2030” is similar to the “12 trillion won investment plan over 10 years” announced back in 2022. It explained that the large-scale investment plan announced at that time was not properly implemented, and the company’s core business has recorded operating losses for four consecutive years.
In particular, Trustone noted that the 2030 ROE target of 8% falls short of the average cost of equity (COE) for domestic chemical and industrial goods companies, which is generally cited as 8–10%. The firm argued that a plan to enhance corporate value should include an ROE target exceeding the cost of equity, along with clear dividend and share buyback policies.
Trustone demanded that TaekwangIndustrial’s board of directors immediately reexamine its corporate value enhancement plan. The firm emphasized that any future revised plan must include at least two quantitative targets—such as a dividend payout ratio or total shareholder return (TSR)—a clear stipulation of the principle for the phased cancellation of 24.4% of treasury stock, and a reset of the ROE target to exceed the cost of equity.
A Truston official stated, “Even if laws and regulations are improved, the advancement of the capital market will be impossible if companies continue to resort to circumventing measures,” adding, “We will send a Seohan to TaekwangIndustrial’s board of directors next week, outlining the issues in the decision-making process that led to the corporate value enhancement plan and setting forth quantitative requirements to ensure board independence.”