Strategy

Shareholder Return Policy

Kumho Tire is planning a Shareholder Return Policy as part of our efforts to enhance substantive shareholder value. Due to the decline in plant operating rates caused by COVID-19 and the increase in transportation costs due to logistical disruptions, our profits have deteriorated, resulting in negative operating cash flow, which has made it difficult to secure financial resources for shareholder returns. Kumho Tire aims to pursue sustainable growth through plant relocation, and if operational cash flow is generated as a result, Kumho Tire plans to actively implement shareholder returns through dividends. Specifically, within the range of distributable profits, Kumho Tire will determine our mid-to-long-term dividend policy by comprehensively considering the company’s profit scale, investment plans for future growth, and financial structure. Although Kumho Tire plans to maintain a mid-to-long-term dividend payout ratio of over 20%, this may change depending on the internal and external business environment, financial structure, cash flow, and dividend stability. Kumho Tire will strive to enhance shareholder value by continuously expanding the dividend payout ratio through efficient management and profitability-focused business operations.


Protection of Shareholder Rights

Kumho Tire has implemented an electronic voting system starting in 2024 to ensure that the voting rights and shareholder rights of all shareholders are respected. As a result, shareholders can exercise their voting rights without attending the general meeting in person. Additionally, shareholders are guaranteed the right to exercise their voting rights by proxy if necessary. All regular general meetings of shareholders are held within three months after the end of each fiscal year, and extraordinary general meetings of shareholders are convened as needed. A notice of the meeting is disclosed approximately two weeks prior to the meeting and all matters are made easily accessible to shareholders through the company website and the electronic disclosure system. Important agenda items, such as amendments to the articles of incorporation, are presented separately to ensure that shareholders can exercise their rights according to the importance of the agenda. During the general  meeting of shareholders, shareholders are informed about their right to speak freely and to vote. The results of all general meetings of shareholders are disclosed on the same day as the meeting.

Performance

Shareholder Composition

Kumho Tire ensures one vote per share for all shareholders, excluding treasury stocks in accordance with the Commercial Act and the company’s articles of association. As of the end of 2023, the total number of issued shares is 287,260,287, with the largest shareholder, Xingwei Korea Co., Ltd., holding a 45.0% stake(129,267,129 shares).


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Communication with Shareholders

Kumho Tire actively engages in IR (Investor Relations) and disclosure activities to enhance understanding and trust from shareholders and stakeholders. Throughout 2023, a total of 47 IR meetings were held with domestic and international investors, including security analysts and fund managers from asset management firms. Additionally, 19 reports were issued through seven security firms. We strive to provide timely and fair information to shareholders and stakeholders through regular disclosures, ad-hoc disclosures, and voluntary disclosures.

 🔗IR disclosure

IR Meeting Status

Dates of Meetings

IR Meeting Status
Number of Meetings

Institutional Investor 

Security firms

2023 Q1
Face-to-Face Meetings
21
Conference Calls
10
2023 Q2
Face-to-Face Meetings
45
Conference Calls
51
2023 Q3
Face-to-Face Meetings
192
Conference Calls
20
2023 Q4
Face-to-Face Meetings
02
Conference Calls
30