Inbio to Convert 20 Billion Won in Capital Reserve for Share Buybacks and Dividends

Inbio will propose an agenda item titled "Transfer of Capital Reserve to Retained Earnings for Loss Compensation" at the extraordinary general meeting of shareholders scheduled for June 17.

According to Inbio on June 10, the purpose of this proposal is to convert a large capital reserve into retained earnings, thereby securing financial resources for future share buybacks and dividend payments. Under the Commercial Act, if the total amount of capital reserve and legal reserve exceeds 1.5 times the paid-in capital, the excess can be reduced within that range by a resolution of the general meeting of shareholders. This approach is considered a representative method recently utilized by listed companies to strengthen shareholder return policies.

Inbio plans to transfer approximately 20 billion won in capital reserve to retained earnings at this extraordinary general meeting. Through this, the company aims to reinforce its financial base and pursue a variety of shareholder return policies, such as share buybacks and dividend payments, starting next year. In addition, the company intends to focus on enhancing shareholder value by supporting the share price, which is currently undervalued compared to its net asset value. In particular, dividends paid using the capital reserve are tax-exempt and not subject to the 15.4% dividend income tax, which is expected to further contribute to increasing shareholder value.

A company representative stated, "The transfer of this large capital reserve to retained earnings is intended to establish a financial foundation for implementing shareholder return policies," adding, "Based on stable business performance and the securing of new growth engines, we will actively review various shareholder return policies, including dividend payments and share buybacks, starting next year to enhance shareholder value."

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