Hana Financial Group Approves Landmark Headquarters Relocation to Cheongna, Boosting Shareholder Returns with W7.4 Trillion Capital Reserve Cut
Hana Financial Group shareholders greenlit the relocation of its headquarters to Cheongna, Incheon, on Tuesday, marking a significant step in the company’s strategic shift from central Seoul. The move is slated for completion later this year.
The decision was ratified at the annual general meeting, where shareholders approved an amendment to the company’s articles of incorporation, officially changing the headquarters address from Myeong-dong, Seoul, to Cheongna, according to a company statement.
The revised articles are set to take effect on September 30th, coinciding with the anticipated completion of the headquarters relocation.
Hana Financial Group has been diligently preparing for this move to Cheongna International City since 2014. The new headquarters complex, known as Hana Dream Town, is on track for completion this year, representing a substantial investment in the region.
Several key subsidiaries, including Hana Bank, Hana Life Insurance, and Hana Card, are also slated to relocate to Cheongna. This move is expected to bring approximately 2,800 employees to the new site, contributing to the growth of the local economy.
In a move to enhance shareholder value, shareholders also sanctioned a plan to reduce the group’s capital reserve by 7.4 trillion won ($4.95 billion), transferring the entire available amount as of the end of the previous year to retained earnings.
This injection of retained earnings is projected to facilitate increased shareholder returns, including tax-advantaged dividends. Dividends distributed through a capital reserve reduction are exempt from the standard 15.4 percent dividend income tax, offering a significant benefit to investors.
Board composition saw minimal changes. Choe Hyun-cha, a distinguished consumer economics professor from Seoul National University, was appointed as a new outside director. Additionally, five incumbent outside directors and two internal directors were reappointed during the meeting.
Furthermore, shareholders endorsed an amendment aimed at bolstering consumer protection oversight. This involves elevating the existing consumer risk management committee to a dedicated consumer protection committee, underscoring Hana Financial Group’s commitment to its customers.
jwc
