Tag: 035150

1. What Happened? Baeksan Corp.’s Interim Dividend Announcement

On September 15, 2025, Baeksan Corp. announced an interim cash dividend of KRW 150 per share. This translates to a dividend yield of approximately 1.0% based on the current share price of KRW 9,836. The record date for the dividend is September 15, 2025.

2. Why the Dividend? Analyzing the Fundamentals and Market Conditions

Baeksan Corp. is pursuing business diversification through its core business, synthetic leather, and its new venture into the art business. Details are as follows:

• 2.1 Corporate Fundamentals
• – Core Business (Synthetic Leather): Growth in the synthetic leather market is expected due to the spread of the animal rights movement and rising prices of natural leather. Strong partnerships with global sports brands and cost competitiveness through overseas production bases are also strengths.
• – New Business (Art Business): The company has invested KRW 7 billion in the art business, including art gallery operations and art sales/rentals, for business diversification. However, profitability remains uncertain.
• – Financial Soundness: While consolidated revenue has declined for three consecutive quarters, the company’s financial soundness has been strengthened by improved performance in its core business on a separate basis.
• – Investment Activities: Increases in investment assets and treasury stock repurchases are interpreted as efforts to enhance shareholder value.
• 2.2 Market Conditions
• – Market conditions such as rising exchange rates, stabilizing interest rates, and increased volatility in raw material and logistics costs could affect Baeksan Corp.

3. Impact on Stock Price: What to Expect

• 3.1 Positive Impacts: Enhanced shareholder return and improved investor sentiment are expected. The high dividend payout ratio demonstrates a shareholder-friendly management approach.
• 3.2 Potential Considerations: While the company has sufficient capacity to pay dividends, investors should consider the potential for future earnings volatility and the possibility of a stock price decline after the ex-dividend date.

4. Investor Action Plan: What to Do Next

While Baeksan Corp.’s interim dividend decision is a positive sign, investors should continuously monitor the company’s mid- to long-term growth strategies and its ability to respond to changes in the market environment. It’s crucial to make investment decisions with caution, paying attention to the slowdown in consolidated earnings and the uncertainty surrounding the new business.