BYUKSAN Corporate Governance Report: Shareholder return strengthened via 1.5M share cancellation, but governance gaps persist
Share cancellation: On March 20, 2026, the board resolved to cancel 1.5 million treasury shares (approx. 2.3% of total issued shares), cumulatively 3.2 million over three years. Expected to enhance per-share value and price stability.
Dividend policy: Target to return at least 15% of standalone net income (excluding non-recurring). FY2025 cash dividend of KRW 30 per share (yield 1.5%), payout ratio 30.8% standalone. Improved predictability by setting record date after declaration.
Governance gaps: Non-compliance with 12 core indicators: shareholder meeting notice less than 4 weeks, no CEO succession policy, all-male board, no cumulative voting, internal audit support not independent, etc.
Related party transactions: Normal business transactions with largest shareholder (BYUKSAN LTC Enterprise) for raw material purchases (approx. KRW 32.4B) and with Inju Logistics for transportation (approx. KRW 17.5B), approved by board.
[AI Summary]BYUKSAN is actively enhancing shareholder returns through share buybacks and dividends, but significant governance weaknesses remain including lack of CEO succession plan, all-male board, and failure to provide 4-week shareholder meeting notice. Overall neutral with positive share cancellation signal.