SK Inc. accelerates shareholder-friendly approach

SK Group headquarters in Seoul / Korea Times file

SK Inc. is stepping up its shareholder-friendly management by buying back and canceling its shares for two consecutive years, in a move to protect the value of its stock and shareholders, the company said Tuesday.

The firm decided recently to shift its dividend record date to one determined during an upcoming board meeting slated for early next year. Earlier, it set the date at the end of each year.

This came in response to the financial authorities’ recommendation that listed firms fix their dividends to shareholders and set the record date later. SK Inc. accepted it during its regular shareholders’ meeting in March, and modified relevant articles, allowing shareholders to be aware of how much dividends they will be able to receive before making investments.

This also enabled investors to evade potential risks of the firm’s stock volatility seen around the end of each year, the company said.

SK Inc. plans to make a public announcement on its estimated dividends and the record date shortly before the upcoming shareholders’ meeting in March.

The company is also attempting to enhance shareholder value. In October, SK Inc. signed a contract to buy back shares worth 120 billion won ($91.82 million), which accounts for 1 percent of the firm’s market capitalization. It also plans to cancel all the shares after receiving approval from the board in May.

This is part of efforts to fulfill its earlier pledge to enhance shareholder value and boost its stock price. In a regular shareholders’ meeting in 2022, SK Inc. shared the vision to buy back and cancel its shares valued at equivalent to 1 percent of its market capitalization each year until 2025. Last year, the firm bought back 951,000 shares and canceled them in April.

“We are going to enhance market trust by continuously fulfilling our shareholder return policy,” a spokesman at SK Inc. said.

Meanwhile, the company received a top environmental, social and corporate governance (ESG) rating of A+ from the Korea Institute of Corporate Governance and Sustainability (KCGS) in August due to its corporate drive to elevate shareholder value.