Hyundai Motor decides to retire all 2.51 million treasury shares, boosting shareholder equity value

*This content was translated by AI.

On the 26th, Hyundai Motor held its '2026 CEO Investor Day' at Conrad Seoul Hotel in Yeouido, Seoul, unveiling a mid-to-long-term financial strategy and a robust shareholder return policy focused on enhancing shareholder value. The company decided to retire all 2.51 million treasury shares (valued at approximately 790 billion won based on the closing price on the 25th), excluding those reserved for employee compensation.

This event, attended by key executives including Jose Munoz, President and CEO, and Lee Seung-jo, Head of Finance, demonstrated a firm commitment to significantly strengthen shareholder returns despite domestic and external uncertainties such as geopolitical risks, intensifying competition in the global automotive market, and concerns over U.S. tariff imposition, all while relying on solid foundational strength.

The core of Hyundai Motor's shareholder return policy announced today is establishing a framework to maintain a total shareholder return rate (TPR) of 35% or higher. To ensure clear communication with the market, the company changed the existing English name from TSR to TPR and decided to continue its dividend policy of a minimum annual dividend of 10,000 won and quarterly dividends of 2,500 won to solidify dividend investment stability.

Most notably, the decision that drew significant attention from both domestic and international markets is the plan to fully retire all treasury shares. Hyundai Motor announced that, prioritizing compliance with revised Commercial Act provisions and protecting shareholder rights, it will promptly retire in principle all previously held treasury shares except for those approved by shareholders for employee compensation purposes. This amounts to 2.51 million shares, valued at approximately 800 billion won based on the previous day's closing price, expected to deliver tangible and direct effects on corporate valuation for shareholders.

This proactive shareholder return drive is firmly supported by solid fundamentals and revised profitability targets. Hyundai Motor will maintain its goal of achieving global sales of 5.55 million units and a 60% share of eco-friendly vehicles (xEV) by 2030, while also raising its consolidated operating profit margin target for 2030 to over 9%. Furthermore, through company-wide cost innovation, the company aims to reduce the cost of goods sold ratio by 3 percentage points and launch more than 100 new models by 2030 to maximize profitability. By sharing profits generated robustly with shareholders and fostering growth, Hyundai Motor plans to establish a virtuous cycle of symbiotic management.

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*This content was translated by AI.