Dong-A Socio Holdings, "We Will Strengthen Shareholder-Friendly Management"

Donga Socio Holdings CI (Provided by Donga Socio Holdings)

[Asia Economy Reporter Chunhee Lee] Dong-A Socio Holdings is strengthening shareholder-friendly management through active shareholder return policies such as dividend expansion, treasury stock repurchase, and cancellation.

Dong-A Socio Holdings announced on the 19th that it plans to use more than 30% of the consolidated net profit excluding non-recurring gains and losses from the 2021 fiscal year to the 2023 fiscal year as funds for shareholder returns.

According to this shareholder return policy, Dong-A Socio Holdings plans to expand the total amount to over 30 billion KRW over the next three years, compared to approximately 6.057 billion KRW in dividends for the 2020 fiscal year to be paid by resolution at this year's general meeting of shareholders. In particular, it will actively provide interim dividends as well as year-end dividends to offer shareholders a stable cash flow, and the remaining funds after dividends within the shareholder return scale will be used for treasury stock repurchase and cancellation.

Dong-A Socio Holdings has also carried out various shareholder-friendly management activities. To improve the convenience of exercising voting rights, it introduced electronic voting and electronic proxy systems from the 2018 regular general meeting of shareholders to actively support shareholders' exercise of voting rights.

Additionally, to enhance transparency in corporate governance, the majority of the board of directors is composed of outside directors, and the CEO and the chairman of the board are separated, with an outside director serving as chairman. In particular, the board committees, such as the Evaluation and Compensation Committee and the Audit Committee, are composed entirely of outside directors, and the Outside Director Candidate Recommendation Committee is operated with more than two-thirds of its members being outside directors.

Thanks to these efforts, Dong-A Socio Holdings received an A grade in the ESG governance sector evaluation by the Korea Corporate Governance Service in 2020, following the same rating in 2019.

Jaehoon Jung, Vice President of Dong-A Socio Holdings, said, “We have improved corporate governance by collecting opinions from internal and external stakeholders related to corporate governance and having our performance reviewed by credible institutions for shareholders who trust and invest in the company. Going forward, we will further expand communication with shareholders and the market and strengthen shareholder-friendly management along with efforts to enhance business competitiveness.”

This content was produced with the assistance of AI translation services.