Corporate Governance Report – 15/16 Core Indicators Met, Resumption of Dividend at 250 KRW per Share, and Enhanced Shareholder-Friendly Policies such as Electronic Voting and Staggered AGM
POSCO FUTURE M submitted its corporate governance report for the 55th fiscal year (Jan 1 – Dec 31, 2025), achieving compliance with 15 out of 16 core governance indicators (93.75%), the only deficiency being the lack of a formal CEO succession policy.
Consolidated revenue for the period was KRW 2.9387 trillion, operating profit KRW 32.8 billion (a turnaround from the previous year), operating margin 1.1%, and net profit KRW 36.5 billion (vs. -KRW 231.3 billion in FY2024).
A year-end cash dividend of KRW 250 per share (total KRW 22.2 billion) was declared for FY2025, resuming dividends after zero payout in FY2024. The dividend record date was set after the AGM (March 31, 2026) to enhance predictability.
At the 55th AGM held on March 26, 2026, all 6 proposed articles of amendment (including introduction of electronic AGM, deletion of cumulative voting exclusion clause, change of independent director title, and increase in audit committee members) were approved with over 99% votes in favor, strengthening shareholder-friendly governance.
The board comprises 7 directors: 2 inside, 1 other non-executive, and 4 independent directors (including 1 female). The independent director ratio is 57%. Four committees operate: Audit Committee, Outside Director Nomination Committee, ESG Committee, and Compensation Committee.
The ESG Committee (established in Nov 2025) pre-reviews related-party transactions, double materiality assessment results, and other matters that may harm shareholder interests or create conflicts of interest.
Beyond dividends, the company conducted over 30 NDRs and conferences with domestic and foreign institutions in 2025 to communicate its value-up plan, with a detailed plan expected to be disclosed in H2 2026.
Total consolidated assets grew 15.3% YoY to KRW 9.14 trillion. A rights issue (11.483 million shares) was completed during the period, increasing outstanding shares to 88.95 million, while the largest shareholder's stake remained at 60.63%. Proceeds are earmarked for facility investment in secondary battery materials. Short-term borrowings also increased by KRW 100 billion in December 2025.
The internal accounting control system is effectively designed and operated. The external auditor changed from EY Han Young to Deloitte Anjin (mandated for 2026-2028). The audit committee meets with the external auditor at least quarterly without management presence to ensure independence.
[AI Overall Assessment]This routine governance report carries a mildly positive tone due to the resumption of dividends and governance improvements, but the dividend amount is small and the lack of a CEO succession policy remains a concern. The actual impact on stock price will depend on the detailed value-up plan and future dividend policy direction.