Kolon Industries Sets Minimum Annual Dividend at 1,600 Won Backed by Strong First-Half Results

Shareholder-Friendly Management Enhanced with High-Dividend Company Benefits

Kolon Industries is actively implementing its shareholder return policy this year, building on solid performance in the first half.

According to the industry on September 3, Kolon Industries posted consolidated sales of 1.2374 trillion won and operating profit of 61.9 billion won in the first quarter of this year. This represents an increase of 0.5% and 130.1%, respectively, compared to the same period last year. The growth accelerated in the second quarter, with Kolon Industries reporting sales of 1.3565 trillion won and operating profit of 98.7 billion won. These figures represent a 7.8% and 118% year-on-year increase, respectively.

Sung Hur, CEO of Kolon Industries. Kolon Industries

This strong performance has led to enhanced shareholder return policies. On August 6, Kolon Industries’ board of directors resolved to increase the interim dividend by 50%, raising it from the current 600 won to 900 won. The intent is to share the financial results of the expanded integrated entity after Kolon ENP’s merger in April, based on first-half performance.

Last year, Kolon Industries established and released a three-year (2025–2027) medium-term dividend policy aimed at ensuring stable shareholder return. The company expanded its once-a-year dividend policy to twice a year, setting the basic annual dividend for common shares at 1,300 won per share. This consists of an interim dividend (600 won) and a year-end dividend (700 won) as the base. Additional dividends may be decided at the time of the year-end dividend, depending on the returnable resources and the basic dividend principle. The returnable resources are capped at 30% of the annual consolidated net income. With this latest increase, the interim dividend rises from 600 won to 900 won, bringing the minimum annual dividend per share to 1,600 won.

Shareholders can also benefit from related tax advantages. Kolon Industries qualifies as a high-dividend company and applies the separated taxation on dividend income according to relevant laws. Shareholders can receive a preferential tax rate ranging from 14% to 30% on dividend income, separate from other income, even if their annual financial income exceeds 20 million won. The high-dividend company classification applies to firms where total dividends exceed 40% of the controlling owner’s equity net income on a consolidated basis.

Kolon Industries is also committed to shareholder communication and protecting shareholder rights. The company holds quarterly IR briefings to transparently share business outlooks and major management issues. It also schedules its regular general shareholders’ meetings outside of dates when most companies hold such events, to avoid overlap.

Since 2022, Kolon Industries has worked to strengthen communications with global investors by publishing English disclosures through the Korea Exchange (KRX) for foreign shareholders. Additionally, the company operates a proxy solicitation system to support active exercise of shareholder rights, and introduced an electronic voting system at its regular general shareholders’ meeting in March last year to enhance voting convenience.

A Kolon Industries representative stated, “We are strengthening the institutional framework to ensure shareholders can more actively participate in the company’s growth while sharing our robust management outcomes. We will continue to expand our shareholder-friendly policies, putting shareholder value first.”

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