Youngpoong "Distribution of KRW 5 per Share Distorted...1685 won including stocks and cash" refutation

*This content was translated by AI.

Regarding the 2025 settlement dividend, Youngpoong said on the 13th, "Some media are denigrating Youngpoong's shareholder return policy as if they are only doing '5 won dividend'," adding, "This is a biased claim that distorted the entire dividend structure while intentionally excluding the already disclosed stock dividend."

Youngpoong said that 0.03 shares per share and 5 won in cash per share will be distributed together at this year's regular shareholders' meeting. Youngpoong said, "Avoiding this fact, we are misleading it as if Youngpoong had decided to only pay 5 won in cash," adding, "According to the previous day's closing price of 56,000 won when the stock dividend was decided, 0.03 shares per share is worth about 1,680 won."

According to Youngpoong, if you add 5 won in cash per share, which is the agenda for this year's shareholders' meeting, the total dividend value received by shareholders is about 1,685 won.

An official from Youngpoong said, "This means that the total amount of dividends for stocks and cash based on stock prices at the time was about 3%. The total amount of dividends is about 30.1 billion won," he countered.

In other words, Youngpoong argues that the substance of this settlement dividend is not "5 won per share," but a comprehensive shareholder return policy, including stock dividends and cash dividends. It also explained that the cash dividend has the nature of a complementary measure taking into account the tax burden on shareholders due to stock dividends.

Stock dividends are also considered dividend income under the tax law, so a dividend income tax of about 15.4% is levied on shareholders.

Youngpoong explained, "However, unlike cash dividends, stock dividends are not a structure in which the company can deduct taxes through withholding, so shareholders may face a burden in the process of paying taxes," adding, "Youngpoong decided to combine a certain level of cash dividends with stock dividends to ease shareholders' tax burden and provide convenience."

Youngpoong explained that such a dividend method was not first introduced this year. Youngpoong said that the company also held a cash dividend of 50 won per share along with stock dividends at its regular shareholders' meeting in 2025.

Youngpoong said, "Considering that the 10-to-1 face division was made afterwards, 50 won in cash dividends at that time are the same as this year's cash dividends when converted to current standards," adding, "In other words, the cash dividend of 5 won per share scheduled to be implemented this year maintained the same level of cash dividends as last year."

Nevertheless, he pointed out, "Criticism by removing only 5 won in cash can only be seen as an intention to attack Youngpoong with a stimulating frame rather than a report to faithfully convey the facts."

Youngpoong said, "We came up with a plan to combine stock dividends and cash dividends to continue shareholder returns despite the difficult business environment such as long-term suspension of operations and continuing environmental improvement projects last year," adding, "In particular, this dividend is by no means low in terms of shareholder value compared to the time when only cash dividends were conducted in the past."

Youngpoong distributed 10,000 won per share (equivalent to 1,000 won based on a 10 to 1 face split in 2025) as a settlement dividend in March 2024. The dividend yield was about 1.94% based on the closing price of 516,000 won on the trading date (December 28, 2023) just before the dividend base date.

On the other hand, he said, "This settlement dividend is about 3% if stocks and cash are combined, and it is not appropriate to evaluate the substance of the dividend only with simple cash figures."

Youngpoong explained that it is not only promoting dividends, but also promoting policies to increase shareholder value through retirement of treasury stocks. Youngpoong incinerated 1,030,500 shares (worth about 15.2 billion won) of its own shares in December last year, and will incinerate all of its remaining 203,500 shares in the first half of this year.

An official from Youngpoong said, "We will respond firmly to reports of distortions and facts based on unofficial data or unilateral claims from specific companies, including all necessary legal measures."

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*This content was translated by AI.