Capital reserve cut of W7.4tr approved to boost shareholder returns
Hana Financial Group shareholders on Tuesday approved the relocation of the company’s headquarters to Cheongna, Incheon, clearing a key procedural step in a long-planned move that will shift the group’s base from central Seoul later this year.
The group said the decision was made at its annual general meeting earlier in the day, where shareholders passed an amendment to the articles of incorporation to change the headquarters address from Myeong-dong, Seoul, to Cheongna.
The revised articles will take effect on Sept. 30, when the relocation is scheduled to be completed.
Hana has been laying the groundwork for the move to Cheongna International City since 2014. Its new headquarters complex, Hana Dream Town, is set for completion this year.
Key subsidiaries, including Hana Bank, Hana Life Insurance and Hana Card, are also expected to relocate, bringing about 2,800 employees to the new site.
Shareholders also approved a plan to reduce the group’s capital reserve and transfer 7.4 trillion won ($4.95 billion), the full amount available as of the end of last year, to retained earnings.
The additional retained earnings are expected to provide financial resources for broader shareholder returns, including tax-free dividends. Dividends paid through a capital reserve reduction are exempt from the 15.4 percent dividend income tax.
Board changes were limited. Choe Hyun-cha, a consumer economics professor at Seoul National University, was newly appointed as an outside director, while five current outside directors and two internal directors were reappointed at Tuesday’s meeting.
Shareholders also approved an amendment to strengthen consumer protection oversight by upgrading the consumer risk management committee to a consumer protection committee.
jwc@heraldcorp.com
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