Bowon Chemical Seeks to Transfer KRW 10 Billion in Capital Surplus to Retained Earnings

Bowon Chemical, a total solutions provider for chemical materials, has taken steps to enhance shareholder value.

On November 5, Bowon Chemical announced that its board had resolved to convene an extraordinary general meeting of shareholders to consider a proposal to reduce KRW 10 billion in capital surplus and transfer the amount to retained earnings. The meeting is scheduled for December 15.

The move is significant in that it will establish a financial foundation for shareholder returns while building a basis for future growth through business expansion. Transferring capital surplus to retained earnings is an accounting measure that reclassifies capital accounts without changing total equity. It can secure funds for shareholder return policies, including dividends.

Bowon Chemical is developing new growth drivers by securing new clients and expanding orders. In October, it supplied an initial shipment of high-performance film for tablet PC covers to Logitech, a global computer hardware company. It also secured a new annual order for 1.3 million square meters from a domestic building materials company.

The company is also continuing to invest in production infrastructure to diversify its business portfolio around high-performance materials and meet market demand. It recently completed construction of production facilities at its third and fifth plants in Chungju, investing a total of KRW 6.8 billion, and has begun operations.

A company representative said, "While continuing to invest in strengthening our business competitiveness, we will review specific measures to return value to shareholders, such as share buybacks and dividends, taking into comprehensive consideration our financial condition and business circumstances."

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