[Edaily Reporter Shin Yeong-bin ] SHINSEGAE INFORMATION & COMMUNICATION Co., Ltd. (#SHINSEGAE INFORMATION & COMMUNICATION Co., Ltd.) will cancel all of its approximately 840,000 treasury shares by next year and expand its cash dividends. The company will change the dividend funding standard to 20% of net income based on separate financial statements and raise the minimum dividend per share to 400 won.

Shinsegae Co.,Ltd. announced on the 18th that it held a board of directors meeting and approved a proposal to amend its shareholder return policy with these changes.

First, the company will retire 835,090 of its treasury shares—approximately 420,000 shares each this year and next year. These shares, acquired through a treasury stock trust, account for about 6% of the total issued shares. The estimated retirement cost, based on book value, is approximately 6 billion won.

Since the treasury stock being canceled was acquired within the scope of distributable earnings, the company’s capital will not decrease. The company expects this to result in an increase in per-share value due to the reduction in the number of outstanding shares.

The company is also changing its method for calculating dividend funds. Previously, the scale of shareholder returns was determined based on operating profit, but going forward, 20% of annual net income based on separate financial statements will be allocated as funds for shareholder returns. The company explains that this will make it easier for investors to predict the scale of future returns.

The minimum dividend per share will be raised by approximately 14%, from 350 won to 400 won. Even if the dividend calculated based on 20% of net income falls short of 400 won per share, the company will pay at least 400 won.

This shareholder return policy will apply from this year through the next fiscal year. After the policy ends, the company plans to review it again, taking into account the business environment and other factors.

A Shinsegae Co.,Ltd. I&C Technology Co., Ltd. official stated, “This revision to 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 strive to strike a balance between the company’s growth and shareholder returns, building on our stable financial structure and business competitiveness.”