Youngone Holdings announced on Friday a significant increase in shareholder dividends, buoyed by robust earnings despite ongoing challenges in the global fashion market. The dividend boost signals strong financial performance and commitment to shareholder value.
The holding company for leading outdoor apparel manufacturer Youngone Corp. approved a year-end dividend of 4,176 won ($3.09) per share at a recent board meeting. When combined with interim dividend payments, the total dividend for 2025 reaches an impressive 6,576 won per share, marking a substantial 23 percent increase from the 5,350 won paid out the previous year.
This results in a total dividend payout of 76.3 billion won, representing approximately 65 percent of the company’s standalone net profit. This exceeds Youngone’s previously stated target payout ratio of 50 percent, demonstrating a strong commitment to returning value to its investors.
The year-end dividend was strategically issued through a capital reduction dividend, a method that involves converting capital reserves into retained earnings. Crucially, this form of dividend is not classified as taxable income, offering shareholders an opportunity to enhance their net returns effectively.
Youngone Corp., a key subsidiary, also increased its shareholder distributions, approving a year-end dividend of 1,400 won per share. With the inclusion of interim dividends, the annual dividend per share rises to 2,100 won, representing a remarkable 50 percent increase compared to the previous year. The company estimates its total dividend payout to be 89.4 billion won.
This expansion in dividend payouts is firmly rooted in the company’s consistent earnings growth. Youngone Holdings reported consolidated revenue of 4.89 trillion won and an operating profit of 735.2 billion won, reflecting increases of 13.7 percent and 42.2 percent, respectively, compared to the prior year.
The company highlighted that these results are particularly noteworthy given the continued volatility within the global fashion original equipment manufacturing (OEM) industry. The sector has faced headwinds due to factors such as slowing consumer demand and ongoing supply chain disruptions.
Youngone attributed its resilience to a combination of factors: a stable backlog of orders, a strategic focus on developing high-value products, and a well-diversified global production network. These strategies have allowed the company to navigate market uncertainties effectively.
Industry analysts have also acknowledged the pivotal role of Vice Chair Sung Rae-eun in strengthening corporate value, enhancing shareholder returns, and reinforcing the group’s overall operational stability. In addition to her role at Youngone, Sung also serves as chair of the Korea Fashion Association, where she spearheads initiatives aimed at boosting the global competitiveness of the Korean fashion industry.
