Hankook & Tire Technology will significantly expand its dividend payout ratio to strengthen shareholder returns.
Hankook Tire said Friday that it plans to gradually raise its dividend payout ratio to a level of 35% over the next three years (fiscal years 2025–2027).
Hankook Tire’s dividend payout ratio rose from 14.1% in 2022 to 22.0% in 2023, 21.9% in 2024, and 25.8% in 2025. The dividend per share also increased over the same period from 800 won to 1,300 won, 2,000 won, and 2,300 won, respectively.
The company will also implement an interim dividend this year. At its 13th regular shareholders’ meeting, Hankook Tire received approval for a charter amendment that allows it to pay an interim dividend solely by board resolution. This year’s interim dividend is set at 900 won per share.
Hankook Tire plans to continue paying interim dividends going forward to provide shareholders with stable cash flows. However, considering the concentration of funding needs due to expansion investments in its production subsidiaries in Tennessee, United States, and Hungary, it plans to raise the dividend payout ratio in stages.
The company expects that once related investments are completed, it will secure additional growth drivers and be able to strengthen its dividend policy.
One-time non-recurring gains and losses from the tire division are excluded from the calculation basis for the dividend payout ratio.
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