Bohae Brewery Discloses Corporate Governance Report - Weak Shareholder Returns and Governance Deficiencies, but Some Positive Steps like Share Cancellation
No cash dividends for the past 3 years, lack of dividend policy and shareholder return plan, posing shareholder return risk.
On Dec 1, 2025, cancelled 1 million shares (worth approx. 480M KRW) to enhance shareholder value.
Many core governance indicators not met: no 4-week prior notice for shareholder meeting, no electronic voting (partially introduced), no dividend predictability, no CEO succession plan, only one outside director.
Revenue increased to 89.9B KRW, operating profit improved to 3.8B KRW, but net profit decreased.
Largest shareholder Changhae Ethanol holds 24.78%, significant room for governance improvement.
[AI Summary]Bohae Brewery has not paid dividends for the past three years and fails to comply with many corporate governance best practices. However, it took some positive steps in 2025 by canceling 1 million treasury shares and amending its articles to improve dividend predictability. Despite these efforts, fundamental governance risks such as the absence of a CEO succession plan, limited outside director independence, and weak internal controls remain, posing potential long-term investment risks.