Ringnet Contributes 2% of Treasury Shares to Employee Welfare Fund

Ringnet announced on October 1 that it will invest in human capital by contributing 2% of its treasury shares to the company’s employee welfare fund.

This measure is not simply an expenditure, but rather a proactive investment aimed at enhancing long-term corporate value. The goal is to strengthen sustainable growth through a retention program for securing and maintaining engineering professionals, who are core to the IT infrastructure business.

The welfare fund is based on a dividend income model, allowing for continuous operation without additional cash outflows. It also offers financial efficiency, such as corporate tax savings. In addition, by replacing some welfare costs previously borne directly by the company, it is expected to reduce selling and administrative expenses and improve operating profit.

Through this initiative, the company plans to focus on providing practical, life-oriented welfare benefits with high tangible impact, such as housing stability loan support, subsidies for medical, educational, and caregiving expenses, core talent retention programs, and global competency enhancement training.

The contributed shares will be subject to long-term holding principles and disposal restriction agreements, preventing any dilution of shareholder value due to an increase in the number of circulating shares. They will be used solely as stable assets to promote employee welfare and support the company’s long-term growth.

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