SOOSAN INDUSTRIES Files Corporate Governance Report; Multiple Key Indicators Non-Compliant Highlighting Need for Governance Improvement
Governance report filed: SOOSAN INDUSTRIES disclosed non-compliance in multiple key indicators such as failing to announce shareholder meeting 4 weeks in advance, lack of formal dividend policy, absence of CEO succession plan, insufficient internal control policies, and no gender diversity on board.
Dividends & shareholder returns: Declared cash dividend of KRW 900 per share for FY2025 (yield 3.61%), payout ratio 26.22% (individual). Medium- to long-term shareholder return policy not established; bought back 211,825 shares (approx. KRW 5 billion) in 2024 and holds them.
Board composition: 6 directors all male (3 inside, 2 outside, 1 other non-executive). Audit committee consists of 2 outside directors and 1 other non-executive, includes one financial expert. Chairman of the board is CEO.
Internal control & risk management: Internal accounting control system operates effectively, but enterprise-wide risk management policy, compliance policy, CEO succession plan are not codified.
External audit: Reappointed Samil PwC as external auditor (2025-2027). Audit committee held face-to-face meetings with external auditor twice (Q1, Q3), not quarterly.
[AI Summary]The corporate governance report reveals low compliance with key indicators, highlighting deficiencies in dividend policy, succession planning, and internal controls. While shareholder returns remain active through dividends and share buybacks, slow governance improvement may lead to disadvantages in institutional investment and ESG ratings, negatively impacting long-term shareholder value.