Shinsegae International's Strong Governance and Share Buyback/Dividend Policy Enhance Shareholder Value, but Operating Loss Remains a Risk
Shinsegae International reported 2025 consolidated revenue of 1.11 trillion won and an operating loss of 11.5 billion won (vs. operating profit of 7.2 billion won in the prior year), showing a sharp decline in profitability.
To focus on core businesses and create growth opportunities, the company transferred its JAJU business division to affiliate Shinsegae Casa for 91.7 billion won, completed on January 1, 2026.
Under its shareholder return policy, the company plans to cancel 3% of its treasury shares (1.07 million shares) over FY2025-2027. It has already canceled 714,000 shares (357,000 each in Feb 2025 and Feb 2026), maintains a minimum dividend of 400 won per share, and targets a shareholder return ratio of at least 30%.
The company complies with all 15 core corporate governance indicators (100% compliance), demonstrating exemplary governance including transparent board operations, electronic voting, and an audit committee composed entirely of outside directors.
The board consists of 7 members (4 inside, 3 outside), all three outside directors also serve as audit committee members, ensuring independence. An ESG committee oversees sustainable management initiatives.
Through its value-up plan, the company has set targets of 2 trillion won in consolidated revenue by 2030 and a 7% ROE by 2027, with regular monitoring and communication on progress.
[AI Summary]Shinsegae International is enhancing shareholder value through strong governance and share buyback/dividend policies, but the operating loss in 2025 and the divestiture of the JAJU business pose short-term earnings pressure. Long-term, focusing on core businesses and governance improvements may drive valuation growth, but profitability recovery timing is a key variable.