Dividend funding floor raised from 15% to 20%

Minimum dividend per share lifted to 800 won

An exterior view of Handsome's headquarters [Handsome]
An exterior view of Handsome's headquarters [Handsome]

Handsome, a fashion company under the Hyundai Department Store Group, is moving to boost shareholder value through a share buyback and cancellation program, while also raising its dividend floor.

The company disclosed Friday that it will purchase 653,168 of its own shares on the open market and cancel all of them within the year. The buyback is valued at 10 billion won ($7.24 million), representing about 3.0 percent of its total issued shares. The purchase period runs through Oct. 22.

Handsome plans to repeat the 10 billion won buyback and cancellation annually through 2028, making this year's move the first in a three-year shareholder return program.

The company is also expanding its dividend policy. It will raise the minimum funding floor for dividends — calculated on a separate-basis operating profit — from 15 percent to 20 percent, and lift the minimum dividend per share from 750 won to 800 won.

"We plan to enhance shareholder value through an active three-year shareholder return policy that includes raising the minimum dividend, increasing the dividend funding ratio, and carrying out share buybacks and cancellations," a company official said.


siuu@heraldcorp.com