Hansol Holdings to Return 30-40% of Free Cash Flow to Shareholders

Hansol Holdings, Board Approves Medium-Term Shareholder Return Policy

[Asia Economy Reporter Kim Jong-hwa] Hansol Holdings, the holding company of Hansol Group, held a board meeting on the 13th and announced the approval of the '2022-2024 Medium-Term Shareholder Return Policy,' which involves returning 30% to 40% of the annual free cash flow (FCF) based on separate financial statements to shareholders.

Through this, Hansol Holdings plans to enhance predictability for investors and increase shareholder value.

Free cash flow refers to the cash remaining after deducting taxes and funds for investment from the profit generated purely through operating activities.

In the domestic stock market, there is an increasing trend among leading companies to announce medium-term shareholder return policies through board resolutions to strengthen investor predictability and enhance shareholder value.

In this regard, recently, SK Corporation, the holding company of SK Group, announced at its regular shareholders' meeting a medium-term shareholder return policy that uses more than 30% of recurring dividend income for dividends and plans to repurchase more than 1% of its market capitalization in treasury shares annually until 2025.

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