Cancellation of 5.7% of total issued shares set for Oct. 15
Dividend raised from 350 won to 450 won per share
HDC is moving to enhance shareholder value by canceling some of its treasury shares, following an earlier expansion of its dividend.
HDC held a board meeting Thursday and disclosed a decision to cancel treasury shares worth 77.1 billion won ($57.6 million) — based on Wednesday's closing price — out of the 10,240,020 treasury shares it currently holds. The cancellation covers 3,413,340 shares, equivalent to 5.7 percent of total issued shares and one-third of its treasury stock holdings. The cancellation is scheduled for Oct. 15.
The shares will be retired within the scope of distributable earnings, using treasury shares already held by the company. The total number of issued shares will decrease from 59,741,721 to 56,328,381 with no reduction in paid-in capital. After the cancellation, HDC's remaining treasury share holdings will stand at 6,826,680 shares, or 12.1 percent of total issued shares.
HDC said the cancellation reflects its commitment to translating shareholder return pledges into concrete action.
The canceled shares will be permanently retired, eliminating any future risk of share value dilution from their disposal. The move is expected to protect shareholder value and strengthen the confidence of shareholders and investors.
HDC has also been expanding shareholder returns through dividends. The company raised its per-share dividend for fiscal year 2025 by about 28.6 percent, from 350 won to 450 won, and in December 2025 established and announced a three-year medium- to long-term dividend policy to build a stable and sustainable foundation for shareholder returns. Alongside this, the cancellation of some of its existing treasury shares further strengthens that commitment.
"This treasury share cancellation is a decision to put into practice our commitment to enhancing shareholder value by retiring a portion of the treasury shares we have held," an HDC official said. "We will continue to explore various measures to strike a balance between strategic investment for group growth and stable shareholder returns."
Meanwhile, HDC is examining multiple avenues to boost corporate value, including developing data centers on sites held by its subsidiaries and constructing an LNG terminal.
lucky@heraldcorp.com
