Through the comprehensive share exchange, shareholders of Hyundai Home Shopping will receive newly issued shares of Hyundai G.F. Holdings, the holding company. As a result, they will transition from a structure in which returns are solely dependent on the performance of Hyundai Home Shopping to a structure that allows them to share in the growth and performance of the group as a whole under the holding company framework.
In particular, in addition to the business performance of Hyundai Home Shopping as a wholly owned subsidiary, the performance and dividend contributions of Hyundai G.F. Holdings’ major subsidiaries—including Hyundai Department Store, Hyundai Green Food, Hyundai Livart, and Hyundai Ezwel—will be reflected at the holding company level. This will enable shareholders to indirectly benefit from a more diversified business portfolio.
Meanwhile, prior to the comprehensive share exchange, Hyundai Home Shopping has decided to cancel all of its treasury shares amounting to 6.6%(792,250 shares).
Furthermore, at the request of the special committee of Hyundai Home Shopping, Hyundai G.F. Holdings plans to implement an enhanced shareholder return program in connection with the comprehensive share exchange, including treasury share buyback and cancellation, as well as dividend expansion. In particular, the treasury share buyback and cancellation amount, originally requested at KRW 30 billion by the special committee, is planned to be increased to approximately KRW 100 billion in order to further enhance shareholder value.
Specifically, Hyundai G.F. Holdings plans to conduct a KRW 50 billion treasury share buyback at the time the comprehensive share exchange is resolved, and to conduct an additional KRW 50 billion buyback following approval of the transaction at the extraordinary general meeting of shareholders, with the intention of cancelling treasury shares totaling KRW 100 billion within the year.
In addition, following the comprehensive share exchange, Hyundai G.F. Holdings plans to operate its dividend policy in a manner that expands dividends based on the dividend level previously received by shareholders of Hyundai Home Shopping(equivalent to KRW 2,800 per share of Hyundai Home Shopping divided by the exchange ratio). As a result, the total annual dividend amount is expected to increase from approximately KRW 47 billion(based on the 2025 interim dividend and the 2025 year-end dividend) to a level exceeding approximately KRW 75 billion per year(including both year-end and interim dividends) following the comprehensive share exchange.
※ The total dividend amount may vary depending on factors such as the number of treasury share buyback in the future.
Specific details regarding dividends of Hyundai G.F. Holdings will be finalized and announced following the completion of the comprehensive share exchange, in accordance with the relevant procedures.
The enhanced shareholder return measures and the corporate value enhancement effects resulting from improvements in the governance structure are expected to be shared over the mid- to long-term by both existing shareholders of Hyundai G.F. Holdings and the shareholders of Hyundai Home Shopping who will receive newly issued shares through the comprehensive share exchange.
Through the comprehensive share exchange, shareholders of Hyundai Home Shopping will receive newly issued shares of Hyundai G.F. Holdings, the holding company. As a result, they will transition from a structure in which returns are solely dependent on the performance of Hyundai Home Shopping to a structure that allows them to share in the growth and performance of the group as a whole under the holding company framework.
In particular, in addition to the business performance of Hyundai Home Shopping as a wholly owned subsidiary, the performance and dividend contributions of Hyundai G.F. Holdings’ major subsidiaries—including Hyundai Department Store, Hyundai Green Food, Hyundai Livart, and Hyundai Ezwel—will be reflected at the holding company level. This will enable shareholders to indirectly benefit from a more diversified business portfolio.
Meanwhile, prior to the comprehensive share exchange, Hyundai Home Shopping has decided to cancel all of its treasury shares amounting to 6.6%(792,250 shares).
Furthermore, at the request of the special committee of Hyundai Home Shopping, Hyundai G.F. Holdings plans to implement an enhanced shareholder return program in connection with the comprehensive share exchange, including treasury share buyback and cancellation, as well as dividend expansion. In particular, the treasury share buyback and cancellation amount, originally requested at KRW 30 billion by the special committee, is planned to be increased to approximately KRW 100 billion in order to further enhance shareholder value.
Specifically, Hyundai G.F. Holdings plans to conduct a KRW 50 billion treasury share buyback at the time the comprehensive share exchange is resolved, and to conduct an additional KRW 50 billion buyback following approval of the transaction at the extraordinary general meeting of shareholders, with the intention of cancelling treasury shares totaling KRW 100 billion within the year.
In addition, following the comprehensive share exchange, Hyundai G.F. Holdings plans to operate its dividend policy in a manner that expands dividends based on the dividend level previously received by shareholders of Hyundai Home Shopping(equivalent to KRW 2,800 per share of Hyundai Home Shopping divided by the exchange ratio). As a result, the total annual dividend amount is expected to increase from approximately KRW 47 billion(based on the 2025 interim dividend and the 2025 year-end dividend) to a level exceeding approximately KRW 75 billion per year(including both year-end and interim dividends) following the comprehensive share exchange.
※ The total dividend amount may vary depending on factors such as the number of treasury share buyback in the future.
Specific details regarding dividends of Hyundai G.F. Holdings will be finalized and announced following the completion of the comprehensive share exchange, in accordance with the relevant procedures.
The enhanced shareholder return measures and the corporate value enhancement effects resulting from improvements in the governance structure are expected to be shared over the mid- to long-term by both existing shareholders of Hyundai G.F. Holdings and the shareholders of Hyundai Home Shopping who will receive newly issued shares through the comprehensive share exchange.