Expanded the shareholder return rate to 50% to become Korea’s leading shareholder-friendly company
Promotes sustainable growth by expanding its energy and agro businesses and advancing its business portfolio
On the 23rd, POSCO INTERNATIONAL (CEO Lee Kye-In) announced a mid- to long-term plan called the ‘Corporate and Shareholder Value Enhancement Plan’ to maximize both corporate and shareholder value.
This plan aims to double the shareholder return rate to 50% starting in 2025 and significantly strengthen the shareholder return policy by introducing interim dividends. With this plan, the company seeks sustainable growth while taking a leap toward becoming Korea’s leading shareholder-friendly enterprise.
Earlier this year, POSCO INTERNATIONAL set a shareholder return rate of 25% as the first step in enhancing shareholder value under its mid-term shareholder-friendly policy. Now, this new plan sets forth more ambitious goals in that context, demonstrating its intent to further strengthen trust with shareholders.
Additionally, the company has established a target of achieving an annual average growth rate of at least 8% in pre-tax profit and generating returns exceeding at least 8% on invested capital. This strategy aims to continuously enhance corporate value by achieving a return on invested capital (ROIC) that surpasses the weighted average cost of capital (WACC, 8.0%), ensuring that profits from invested capital exceed the costs of obtaining that capital.
Particularly in the energy and agro businesses, the company will actively expand to secure its market share, while creating synergies through collaboration with POSCO Group in the steel and mobility businesses to maximize profitability. Furthermore, it plans to develop a complementary portfolio among its major businesses to diversify risks and promote stable growth in profit.
Since joining POSCO Group in 2010, POSCO INTERNATIONAL has restructured its core business portfolio and achieved a record operating profit of KRW 1 trillion for the first time last year, driven by large-scale M&A and active investments. Based on this, the company will focus on further enhancing sustainable growth and profitability.
The ‘Corporate and Shareholder Value Enhancement Plan’ also includes measures to improve communication in line with the government’s value-up program. The executive management intends to transparently share the company’s mid- to long-term strategic direction through active investor relations (IR) activities, fostering management based on trust.
“Through this plan, we will enhance both shareholder value and corporate value, aiming to become Korea’s leading shareholder-friendly company,” A POSCO INTERNATIONAL official stated. “We will do our best to foster the continuous growth of our core businesses and strengthen trust with our stakeholders.”
