Taekwang Industrial "Trust Shareholder Proposal to Be Submitted as Agenda Item at General Meeting"

Stock Splits, Cash Dividends, and Treasury Stock Acquisitions

Taekwang Industrial announced on the 15th that it will put shareholder proposals such as stock splits, cash dividends, and treasury stock acquisitions proposed by Truston Asset Management on the agenda of the regular shareholders' meeting at the end of this month.

Taekwang Industrial explained regarding the stock split, "There may be a possibility of a short-term stock price increase, but ultimately the stock price is likely to be linked to the overall stock market trend," adding, "It is a short-term event unrelated to the company's intrinsic value and fundamentals, and rather it may distort the stock price, causing harm to shareholders."

It further stated, "Since fractional trading is already possible in the stock market, the practical benefits of a split may not be significant," and added, "It is also necessary to consider the positive effect of a high stock price creating an image of a strong company."

Regarding the scale of cash dividends, it said, "Cash funds for securing investment capital are more important than anything else as we face large-scale investments over the next 10 years to enhance future value," and "There is no issue in terms of predictability as dividends have been continuously paid even during deficits."

It continued, "Acquisition of treasury stock alone does not necessarily lead to shareholder value enhancement or stock price stabilization," but explained, "However, internal review may be possible depending on future circumstances."

Taekwang Industrial emphasized that ahead of the regular shareholders' meeting, it will actively respond with legal measures against baseless malicious claims that damage corporate value and the reputation of major shareholders.

A Taekwang Industrial official said, "We plan to do our best to enhance shareholder value through large-scale new investments and management innovation," adding, "Claims such as indirect support for major shareholders raised by some are neither true nor well-founded, and we will make every effort to prevent damage to corporate value."

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