Samsung Heavy Industries Publishes 2025 Corporate Governance Report; No Shareholder Returns but Governance Improvements Continue
No dividends or shareholder returns: Due to accumulated losses since 2014, Samsung Heavy Industries has no distributable profits and has not paid cash dividends for the past 3 years. Although 2025 net income was 535.7B KRW, dividend capacity remains insufficient.
No share buyback or cancellation: No treasury share purchases or cancellations during the period; 25,964,429 treasury shares remain non-voting.
Governance improvements: Board majority (4/7) are outside directors; audit committee composed entirely of outside directors. The March 2026 AGM removed the clause excluding cumulative voting and appointed a female outside director (Lee Yeon-seung).
Internal control policies: Risk management team, compliance program (ISO 37001/37301 certified), internal accounting management system, SDMS disclosure system, etc.
CEO succession plan: 'Core Post Succession Plan' manages candidate pipeline with training programs (2025: 6 next-gen leaders, 2 senior management, 1 CEO candidate).
No value-up plan disclosed: No separate corporate value enhancement plan has been announced; will consider in conjunction with shareholder return policy when financial health recovers.
[AI Summary]The corporate governance report highlights the key risk of no shareholder returns (no dividends), but positive governance improvements include enhanced board independence and internal controls. Short-term stock momentum is limited as dividend resumption is unlikely, but sustained earnings improvement could lead to a future shareholder return policy.