NHN Proposes Articles of Incorporation Amendment for Subsidiary Listing... Commitment to Enhancing Shareholder Value and Strengthening Communication

Jung Woo-jin, CEO of NHN

[Asia Economy Reporter Seungjin Lee] NHN is pushing for an amendment to its articles of incorporation to allow special resolutions at shareholders' meetings when listing subsidiaries and to enable in-kind dividends of subsidiary shares.

On the 4th, NHN held a board meeting and announced that when promoting the listing of a physically spun-off subsidiary, it will submit the matter as a special resolution agenda at the shareholders' meeting for approval. Additionally, it added a proposal to amend the articles of incorporation to the agenda of the shareholders' meeting scheduled for the 29th, allowing the company to distribute the shares of the spun-off corporation it owns as in-kind dividends to NHN shareholders.

This amendment reflects NHN's intention to actively listen to shareholders' opinions when promoting the listing of subsidiaries and to share the growth and benefits of subsidiaries with shareholders.

Along with this, NHN CEO Woojin Jung conveyed to shareholders through the company's first-ever shareholder letter its commitment to strengthening shareholder return policies and active communication, and shared the core business directions for this year as well as plans to fully implement ESG (Environmental, Social, and Governance) management.

CEO Woojin Jung stated, “From this year, for the next three years, at least 30% of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) based on separate financial statements of the previous fiscal year will be used as resources for shareholder returns in the form of share buybacks or dividends.” He added, “We will communicate more concretely with shareholders by sharing NHN’s ongoing shareholder return policies.” He also pledged to faithfully carry out institutional improvements related to the corporate split currently under discussion.

Since 2018, NHN has steadily pursued share buybacks every year to stabilize its stock price, acquiring treasury shares worth a total of 86.9 billion KRW by 2021. In December, it decided on a 100% stock dividend issuing one new share per one common share, effectively achieving a 4.3% treasury stock cancellation effect.

Regarding the establishment of NHN Cloud Corporation scheduled for April 1, NHN emphasized, “This is NHN’s intention to secure funding strategies through strategic partners in the cloud business, which requires proactive investment, and to establish specialized professional management and responsible management tailored to the business division. Ultimately, this will enhance the competitiveness of the cloud business and increase the corporate value of the parent company, NHN.”

Meanwhile, NHN plans to strengthen its market competitiveness this year focusing on four core businesses: ▲securing the P&E (Play & Earn) market in the gaming business ▲national lifestyle platform strategy in the payment business ▲global expansion in the commerce business ▲public market preemption strategy in the technology business. It also intends to fully implement ESG management to enhance global competitiveness. To this end, NHN will establish an ESG committee within the year and prepare to publish a sustainability management report.

CEO Woojin Jung said, “This year will be a year to actively target the global market to become a ‘Global Top Tech Company’ in 10 years amid the rapidly changing IT ecosystem.” He added, “Starting with this shareholder letter, please watch NHN grow as we communicate and share our vision with shareholders.”

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