What: Hyundai Department Store Group announces comprehensive three-year value-up plan across four major affiliates, including expanded dividend policies, treasury stock retirement, and significant investments in new store developments.

Why it is important: The plan represents a significant shift in Korean retail corporate strategy, combining aggressive business expansion with enhanced shareholder returns to boost market valuation and maintain competitiveness.

Hyundai Department Store Group has unveiled a three-year corporate value enhancement strategy across its four listed affiliates: Hyundai GF Holdings, Hyundai Department Store, Hyundai Green Food, and Handsome. The plan includes implementing semi-annual dividends and retiring treasury stocks to boost shareholder returns. Hyundai Department Store plans to invest KRW 1.2 trillion in The Hyundai Gwangju and KRW 700 billion in Busan Premium Outlet, aiming to raise return on equity to 6% above industry average within three years. The holding company targets investment returns exceeding market rates by 4%, with plans to increase annual dividend payments to KRW 50 billion by 2027. Additionally, Hyundai Green Food will double its annual dividend to KRW 20 billion and gradually retire 10.6% of shares by 2028, while Handsome increases its dividend resources from 10% to 15% of operating profit. This comprehensive approach demonstrates the group's commitment to sustainable growth and enhanced shareholder value.

IADS Notes: Hyundai Department Store Group's value-up strategy announcement comes amid significant transformations throughout 2024. After posting a loss in 2023 , the company has shown strong recovery signs, with a 3.6% sales increase in Q1 2024 , driven by luxury goods and young fashion segments. This financial turnaround has been supported by strategic initiatives including their February 2024 partnership with Thailand's Siam Piwat Group and their innovative "The Hyundai Global" platform launched in April 2024 . The company's international expansion continued with the September 2024 partnership with Japan's Hankyu Department Store , while domestically, they launched the new "Connect Hyundai" concept in Busan , demonstrating their commitment to both international growth and local market innovation. These initiatives, combined with the newly announced shareholder value measures, reflect Hyundai's comprehensive approach to sustainable growth and market leadership.

Hyundai Department Store Group is starting to raise corporate value to increase shareholder value