Youngpoong Calls for Increased Shareholder Value, Shareholders' Complaints About Rat-tailed Dividend

*This content was translated by AI.

As Youngpoong decided to pay 5 won per share as a dividend for the settlement of accounts in 2025, criticism such as "shareholder play" and "a company that treats shareholders as beggars" has continued, centering on stock discussion rooms. In particular, some in the industry point out that Youngpoong has consistently demanded the expansion of dividends against Korea Zinc.

According to Youngpoong on the 12th, the company recently held a board meeting and decided to pay 5 won per share as dividends for its 2025 settlement. If the related agenda is approved at the regular shareholders' meeting on the 25th, the dividend of 5 won per share will become a reality. Youngpoong will invest less than 100 million won to this end.

There are many voices of criticism, including stock discussion rooms, over the decision to "5 won per share dividend." In a stock discussion room where shareholders participate, "Shareholder Farming..."Is it true that the dividend is 5 won?" he said. "What is the government doing without removing such companies from listing?a message came up saying, " In addition, there are also a series of embarrassing reactions, saying, "It is a company that treats shareholders like beggars," and "5 won is a blatant joke."

In particular, there are voices pointing to Youngpoong's dual attitude in that Youngpoong has continuously demanded Korea Zinc to expand dividends to enhance shareholder value. Before the regular shareholders' meeting scheduled for the 24th, Youngpoong demanded that 392.5 billion won in voluntary reserves be converted into undisposed retained earnings for quarterly dividends, but withdrew after seeing twice as much conversion agenda as that of Korea Zinc.

In early 2024, before the dispute over Korea Zinc's management rights intensified, Youngpoong Kang Sung-doo (then vice president) demanded 10,000 won, twice as much as the settlement dividend proposed by Korea Zinc, in an interview with the media. He also said that it "represents the interests of all shareholders." However, it is pointed out that Youngpoong is showing a very stingy attitude toward his shareholders.

The dividend that Youngpoong will receive from its 100% subsidiary YPC, which moved Korea Zinc shares, and Youngpoong will receive from Korea Zinc is more than 100 billion won if it passes the Korea Zinc shareholders' meeting. Even though YPC and Youngpoong receive more than 100 billion won in dividends from Korea Zinc together, the cash dividend per share received by Youngpoong shareholders is only 5 won and the total amount of funds is only 90 million won.

Youngpoong shareholder KZ Precision, which has pointed out that there are serious problems in enhancing shareholder value, including Youngpoong's dividend policy, previously proposed a revision of the articles of incorporation that would allow Youngpoong to pay dividends not only with money and stocks but also with "other property" as an agenda for the regular shareholders' meeting on the 25th. Youngpoong currently has stakes in major listed companies and unlisted companies worth trillions of won, including Korea Zinc, Korea Circuits, and Signetics.

Amid criticism over insufficient shareholder returns, Youngpoong recently released a press release and announced plans such as △ stock dividend △ retirement of treasury stocks △ about 30% of net income based on separate financial statements in the future. At the end of last year, Youngpoong announced that it would pay shareholders 0.03 shares per share as a dividend on its 2025 settlement, and announced that it would retire 1,030,500 of its own shares.

Eventually, after the upcoming regular shareholders' meeting, Youngpoong shareholders will receive 0.03 shares and 5 won per share. On the other hand, the dividend that YPC and Youngpoong will receive from Korea Zinc will exceed 100 billion won if Korea Zinc passes the shareholders' meeting as scheduled. Including dividends received by Jang Hyung-jin's family, it is expected to exceed 130 billion won.

"With the Lee Jae-myung government recently emphasizing expanding shareholder returns and enhancing corporate value, dividends of 5 won per share can be seen as contrary to the market's perspective or the government's stance," an industry official said. "It is not showing responsibility in its return policy to its shareholders, and demanding that other companies expand their dividends could be criticized as 'innerly."

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*This content was translated by AI.