Shinsegae will retire more than 200,000 shares of its own stock over the next three years. It will also increase the minimum dividends per share from 3,500 won to 4,000 won.
On the 27th, Shinsegae Co., Ltd., Gwangju Shinsegae, and Shinsegae International held board meetings and announced future development plans along with medium and short-term return on equity (ROE) targets, establishing plans to enhance corporate value through share buybacks and other measures.
First, it is strengthening shareholder returns. The main goal is to enhance shareholder value through share buybacks and increase the minimum dividends per share and predictability of dividend payments. To achieve this, Shinsegae Co., Ltd. set a target to reach a consolidated revenue of 10 trillion won by 2030 and strengthen profitability.
This year, after purchasing 105 billion won worth of its own shares, it plans to retire more than 2% (200,000 shares) of its own stock annually over the next three years to enhance shareholder value and increase the minimum dividends per share from the current 3,500 won to 4,000 won. Furthermore, it aims to gradually expand the dividends per share by more than 30% from the current level by 2027.
◇Major store renovations and global business expansion... Establishing growth engines
Department stores and duty-free shops will expand their market dominance through key store renovations. Next year, the headquarters Heritage (former First Bank headquarters) building will be renovated into a department store and newly opened, while the Gangnam food court will be completed with a new design, reborn as the largest in the country. Furthermore, it plans to continuously reorganize key stores such as Gangnam, the main store, Centum City, and Daegu to solidify its position as a leader in the luxury market. Starting with the Gwangju expansion in 2028, it will also develop the Suseo (2029) and Songdo (2030) stores as landmark-type department stores.
The duty-free shop will complete construction of the new Incheon International Airport Terminal 2 store next year. In the first half of 2026, the Myeongdong city duty-free shop will reopen with a stronger focus on luxury brands.
Shinsegae International plans to create a foundation for continuous growth through overseas expansion of cosmetics brands "Amuse," "Swiss Perfection," "Yeonjak," and the contemporary fashion brand "Harley Davidson Collections."
◇Investing based on efficiency… Securing profitability through improving profit and loss
Shinsegae Co., Ltd. has set a goal to raise its consolidated ROE, which stood at 5.4% in 2023, to 7% by 2027 through efficient investment execution and cost reduction. The entire group plans to efficiently execute costs such as promotional expenses and labor costs to improve profit margins, and new investments will prioritize efficiency and profitability.
The department store aims to expand sales through renovations of existing stores and stabilize the revenue of its own businesses such as the beauty editing shop 'Sikore' and off-price store 'Factory Store.' It will also expand new revenue sources, including advertising revenue. As part of this, it plans to maximize new revenue in advertising and digital sectors through the newly opened 'Shinsegae Square' in November of this year.
The duty-free shop expects significant profit improvements after luxury brand entries are completed in 2025. The city store plans to gradually focus on securing profitability through customer-friendly renovations aimed at individual tourists.
Subsidiaries such as Shinsegae International will restructure their brand portfolios and expand sales of their products to increase profit margins while pursuing cost reductions through outsourcing of unnecessary elements.
Shinsegae Co., Ltd. plans to actively engage in communication with shareholders. It will disclose investor relations materials in both Korean and English on its website to enhance information accessibility for overseas investors. Additionally, it plans to expand the domestic institutional investor non-deal roadshow (NDR) to quarterly and hold overseas institutional investor NDRs 1 to 2 times a year.
A Shinsegae Co., Ltd. official noted, "We have established a plan to review and improve the company’s overall operations to respond to the government's value-up policies and enhance the corporate value of undervalued companies. We will consistently strengthen our core competitiveness and leap to become a top-tier corporation with long-term competitive strength through active shareholder return policies such as share buybacks and increased dividends."