December 22, 2024

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SK Group's headquarters building in Seoul (SK Inc.)

SK Inc., the holding company of South Korea's SK Group, has unveiled a three-year corporate value-up plan that includes enhanced shareholder benefits.

In a plan unveiled Tuesday, the company vowed an annual dividend of about 280 billion won ($202 million), maintaining a minimum payout of 5,000 won per common share annually until 2026.

Additionally, the company plans to buy back and retire 1 to 2 percent of its market capitalization in treasury shares each year. These efforts will be financed through proceeds from asset sales and special dividend income generated by the ongoing business restructuring process.

This value-up initiative expands upon SK Inc.’s 2022 shareholder return plan, which included cash dividends exceeding 30 percent of regular dividend income and treasury stock repurchases and cancellations amounting to more than 1 percent of market capitalization.

SK Inc. also aims to enhance its fundamental competitiveness and has announced a long-term goal of raising its return on equity to around 10 percent. ROE, which indicates profit relative to invested capital, currently stands at 3.2 percent for SK Inc.

The company also aims to increase its price-to-book ratio to 0.7 by 2026 and to 1.0 after 2027, which would exceed the average PBR for holding companies in Korea, standing at around 0.5 over the past five years.

To enhance corporate value, SK Inc. plans to focus on business restructuring, strengthening financial soundness, and improving operational efficiency.

By Jie Ye-eun (yeeun@heraldcorp.com)