- SK Inc. confirms annualized payout of KRW 8,000 (interim dividend of KRW 1,500/ year-end dividend of KRW 6,500), recording highest dividend return yet again
- The company records a total dividend amount of KRW 447.6 billion, a 114% increase from KRW 208.7 billion in 2016
- The investment company partially sold shares of SK Biopharmaceuticals in 2021, reflecting the profit into the dividend
- SK Inc. to continue fostering its four core businesses (advanced materials/bio/green/ digital) and shareholders-friendly management efforts
SK Inc., the strategic investment holding company of SK Group, , will be paying out the largest ever dividends to its shareholders.
SK Inc. passed the agenda to pay a year-end dividend of KRW 6,500 per share at the board meeting on February 9. SK Inc. shareholders will receive a dividend of KRW 8,000 per share (as of FY2021), which includes the interim dividend (KRW 1,500 per share) paid in August 2021.
The interim and year-end combined total payout amount of KRW 8,000 is the largest dividend per share yet to be paid by SK Inc. since the launch of integrated holding unit with the merger of SK Holdings and C&C in 2015. The company had paid its record high dividend per share of KRW 7,000 (interim KRW 1,000/year-end KRW 6,000) last year (FY2020), only to break the record again this year.
The total amount of dividend is mounted at KRW 447.6 billion, up 21% (approximately KRW 80 billion) from the previous year (KRW 370.1 billion). The total annual dividend has increased by approximately 114% in five years from KRW 208.7 billion in 2016.
SK Inc. has been determining its dividend payout amounts based on its financial status and investment scale, with stable and gradual dividend growth set as its core principle. It also adheres to an active payout policy that reflects investment profits resulting from its investment expertise, into dividends. The analysis is that the profit SK Inc. secured from the partial disposal of SK Biopharmaceuticals shares last year was reflected in the finances, leading to the growth of dividends this year.
Since its first interim payout of KRW 1,000 per share in 2018, SK Inc. has been striving to reinforce its shareholder value with steady interim dividends payouts every year. SK Inc. is a local leader in the shareholder-friendly management sectors; it was the first Korean major holding company to adopt the electronic voting system in addition to separating shareholder meeting schedules for each affiliate and announcing the corporate governance charter.
Based on such efforts, SK Inc. has been listed in the Dow Jones Sustainability World Index, a sustainability evaluation index for global companies, for 10 consecutive years. It has also been recognized by the local and international institutions for transparency in management and protection of shareholder interests, receiving the grades of A+ and AA respectively in the ESG evaluations by the Korea Corporate Governance Service and Morgan Stanley Capital International.
SK Inc. is laying the foundation for continuous growth by investing in the future growth engines. The investment company is focusing on four key portfolios of advanced materials, bio, green, and digital. It is also accelerating the implementation of its financial stories, led by last year’s investments in advanced materials that will advance the era of electric vehicles such as the next generation lithium metal battery manufacturer SES AI (formerly Solid Energy System), SiC power semiconductor manufacturer Yes Power Technics, and high-speed electric vehicle charger manufacturer Signet EV. In the bio sector, it has expanded its high-value and high-level bio portfolio through bold investments, including the acquisition of French cell and gene therapy CDMO Yposkesi.
“As an investment company, we are strengthening our financial stories centered around the four core businesses, while establishing a sustainable cycle of investment through proactive profit realization,” says Sung-Hyung Lee, the Chief Financial Officer at SK Inc. “SK Inc. will continue a predictable and sustainable shareholder return program, consociating it to our investment performance.”