Waletek Unveils Value-Up Plan with 260 Billion Won Investment and Increased Dividends: "Balancing Growth Investments and Shareholder Returns"

Waletek has unveiled a plan to enhance corporate value by simultaneously pursuing mid- to long-term growth investments and improving shareholder value, embarking in earnest on its value-up strategy.

The semiconductor materials specialist Waletek announced its “2026 Corporate Value Enhancement Plan” through a voluntary disclosure on the Financial Supervisory Service’s DART system on June 17, focusing on investments totaling 260 billion won and an expanded dividend payout ratio.

This plan is centered on making proactive facility investments in line with the global semiconductor market’s growth phase, while also increasing the predictability of its shareholder return policy. The company has set a quantitative goal of achieving an average dividend payout ratio of 10% over the next three years, along with mid- to long-term investments to strengthen business competitiveness through 2030.

Waletek plans to utilize a total investment fund of 260 billion won to reinforce competitiveness in semiconductor materials and expand into future growth areas.

Specifically, Waletek will invest 190 billion won in expanding production facilities and enhancing technological capabilities in its semiconductor materials business, including silicon, quartz, and ceramic components. Additionally, 20 billion won will be allocated to research and development (R&D) for next-generation materials used in semiconductor processes, while 50 billion won is earmarked for mergers and acquisitions (M&A) and equity investments in future growth fields such as robotics, batteries, defense, and thermal management.

Waletek has a track record of achieving external growth through proactive facility investments in the past. A prime example is the new facility investment made in 2022 at the Gumi Complex 5.

At that time, the company implemented proactive CAPEX to prepare for market expansion, significantly boosting its production capacity, which in turn served as a foundation for revenue growth. In fact, Waletek has recorded an average annual growth rate of approximately 9% over the past five years, steadily expanding its business scale.

The company expects that the ongoing expansion of Gumi Complex 5 and the increase in production capacity (CAPA) will generate even greater investment efficiency than previous investments.

In particular, as the global wafer fab equipment (WFE) market enters a recovery phase, with expected annual growth rates exceeding 10%, Waletek sees securing a proactive production base as a critical factor for expanding future market share.

The global silicon components market is also expected to continue its growth trajectory. According to a report by Daishin Securities, the relevant market is projected to post a growth rate exceeding 10%.

Accordingly, the company believes that securing production capacity in the early stages of semiconductor industry growth and strengthening next-generation product competitiveness can translate into long-term increases in corporate value.

Industry experts point out that, for manufacturing-based companies, continuous reinvestment is key to securing competitiveness. Thus, laying a foundation for future growth is more important for long-term shareholder value than short-term cash distribution.

An industry representative stated, “For manufacturing companies, continuous facility investment and technological development are essential. If decisions are based solely on short-term cash holdings, corporate competitiveness can weaken. Solid investments and securing global competitiveness are the ways to enhance shareholder value in the long run.”

Waletek will also strengthen its shareholder return policy alongside investment expansion. The company has set a goal of increasing its dividend payout ratio from the previous year’s 4.03% level to an average of 10% over the next three years.

The company plans to secure resources for shareholder returns based on stable profitability from its core business, and to pursue balanced growth investments and dividend increases.

A Waletek representative said, “Our current cash assets are an important resource for responding to market changes and expanding investments in next-generation technologies. Based on a predictable mid- to long-term shareholder return policy and a transparent management system, we will deliver even greater future value to our shareholders.”

Waletek plans to simultaneously pursue large-scale investments and enhanced shareholder returns, in line with the growth phase of the semiconductor materials market, aiming to expand its global competitiveness and drive a revaluation of its corporate value.

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