Yuhan Corporation Publishes Corporate Governance Report: Strengthened Shareholder Return Policy with Share Buyback/Cancellation and Dividend Increase Under Public Foundation Majority Ownership
Yuhan Corporation has a unique governance structure with a public foundation (Yuhan Foundation, 16.03% stake) as the largest shareholder, maintaining a professional management system with separation of board chair and CEO, and a majority of outside directors (4 out of 7) to enhance transparency.
Consolidated revenue reached 2.1866 trillion KRW in 2025, operating profit surged 90% YoY to 104.3 billion KRW, net income soared 236% to 185.3 billion KRW, nearing the targeted ROE of 8%.
Under the Value-up Program announced in October 2024, the company formalized targets of a 30%+ average shareholder return rate (2025-2027), 30% DPS increase, and 1% share cancellation by 2027.
Implemented buyback/cancellation: 240,627 shares cancelled in May 2025, 20 billion KRW treasury share acquisition in Jul-Aug 2025, and 320,836 shares cancelled in Jan 2026.
Dividend for FY2025: ordinary share 600 KRW (yield 0.6%), preferred share 610 KRW, up 20% YoY. Introduced pre-record date dividend announcement to improve predictability.
Operates 4 board committees: Audit Committee (all outside directors), ESG Committee, Remuneration Committee (new in 2026). Cumulative voting to be adopted after September 2026.
Selected as an excellent disclosure company in 2025, no history of poor disclosure. Appointed Samil PwC as external auditor (2025-2027). Strong internal control and compliance systems.
[AI Summary]Yuhan's corporate governance report confirms the stability of its public foundation governance and the checks-and-balances of professional management. The concrete execution of the Value-up Program, including share cancellation and dividend hikes, is positive for shareholder value. Combined with strong earnings growth, it provides a momentum for corporate value appreciation.