Hyundai Motor to implement total shareholder return concept

Hyundai Motor plans to bolster its corporate value by implementing a total shareholder return concept. This system includes dividends, as well as the cancellation and buyback of treasury stocks. Starting from this year, Hyundai Motor has committed to paying a minimum annual dividend of KRW 10,000 to its shareholders. The company also plans to transparently communicate its rationale for share buyback, by either enhancing Hyundai Motor’s corporate value or distributing the stocks to its employees. From 2025 to 2027, Hyundai Motor will employ a proactive and sustainable TSR of more than 35 percent. This will involve a flexible approach between the sum of dividends, buybacks and cancellations of treasury stocks. During this period, the company aims to achieve an average ROE of 11 to 12 percent. Over the next three years, Hyundai Motor will initiate a stock buyback program worth up to a total of KRW 4 trillion, in accordance with the TSR. The annual amount will be flexibly determined based on the company’s return on equity targets. Additionally, Hyundai Motor will offer a minimum quarterly dividend of KRW 2,500, representing an increase of 25 percent compared to the current year. In instances of retiring or repurchasing treasury shares, the company will also consider the value of its preferred stocks.