Woo Oh-hyun, Chairman of SM Group, "Focusing on Proactive Securing of Financial Soundness in the New Year"

"Uncertain Business Conditions... Strict Cost and Debt Management"

Woo Oh-hyun, Chairman of SM Group, urged the proactive securing of financial soundness this year to prepare for uncertain management conditions.

On the 2nd, SM Group announced that Chairman Woo set this year's management policy as "a company that creates a sustainable future with strong competitiveness through bold changes" in his New Year's address.

The first emphasized action plan was "proactively securing financial soundness in preparation for prolonged low growth." He also requested ▲bold business structure innovation for sustainable growth ▲contribution to profit creation through cost and selling, general, and administrative expense reduction ▲cultivation of high morality and a sense of ownership.

Chairman Woo stated, "The reason why once-successful companies suddenly go bankrupt is excessive debt," and emphasized, "We must learn from companies that went bankrupt due to excessive debt during recessions and strengthen our financial structure." Accordingly, he ordered that when making new investments in the future, the equity ratio should be secured at a minimum of 35% up to 50%.

He also called for thorough cost management in the construction sector. Chairman Woo urged, "We must strive for continuous growth and profitability through meticulous cost management," and added, "We should improve operational processes to meet the heightened social standards for safety and quality and become a trusted company that fulfills social responsibility."

He continued, "Considering the shipping market conditions where freight rates have returned to pre-COVID-19 levels, we must transform into a business structure that can maintain solid profitability," and requested, "I hope you lay the foundation to leap forward as a competitive global shipping company based on close cooperation with shippers."

Finally, Chairman Woo said, "On the new morning of 2024, I hope you approach your assigned tasks as if inheriting a family business from your parents and start the first workday of the new year with this mindset," and promised, "The company will reward employees who contribute to the group's growth and profit creation through passionate challenges and creative innovation with exceptional compensation."

Woo Oh-hyun, Chairman of SM Group

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