Hyundai Heavy Industries Holdings Co. will pay 290 billion won in dividends to stockholders. It held an extraordinary shareholders' meeting at the Daegu National Science Museum on Dec. 28 to make the decision.
The com[any will convert the 2 trillion won in capital reserve into retained earnings in accordance with the decision of the shareholders' meeting. The biggest difference between capital reserve and retained earnings is whether or not dividends are paid to shareholders. Capital reserve is not available for dividends to shareholders, but retained earnings may be allocated to shareholders.
As of the end of the third quarter, the total capital reserve of the company was 5.9 trillion won and the capital was 814 billion won. Of the retained earnings converted, it will allocate 290 billion won to shareholders, while the rest will be used for investment in new businesses and stabilization of stock price.
The holdings company has not paid dividends to shareholders for the past three years. According to the decision, accordingly, the majority shareholder's family is expected to receive tens of billions of won in dividends if dividend is implemented.
Chung Mong-joon, chairman of the Asan Foundation, who owns 25.8 percent of the company, will receive 74.8 billion won in dividends. Hyundai Heavy Industries Group Vice President Chung Ki-sun, the son of Chairman Chung, will receive 14.7 billion won in dividends because he owns 5.1 percent of the shares in the holdings company.
"We expect the dividend amount to be around 290 billion won. Excluding the dividend amount, the converted retained earnings will be used for the development of the company, including investment in new businesses and stock price stabilization," said Yoon Joong-geun, chairman of the board of directors of Hyundai Heavy Industries Holdings, at the shareholders' meeting on the day.
