0
An overview of Orion's new headquarters. / Courtesy of Orion

The Orion Group is accelerating its corporate value-up policy by implementing a quarterly dividend for the first time since its founding. Following the full cancellation of treasury shares worth tens of billions of won last month, the group expanded its cash dividend just a month later, drawing evaluations that it has elevated its shareholder return policy to a concrete execution phase.

According to the Financial Supervisory Service's electronic disclosure system on July 6, Orion and Orion Holdings each held a board of directors meeting and voted to implement their first-ever quarterly dividend. Moving forward, both companies plan to operate a bi-annual regular dividend system (interim and year-end) to structurally establish their shareholder return policy.

The total volume of this quarterly dividend stands at 102.3 billion won. Orion will distribute 69.2 billion won, with the dividend record date set for July 21 and the payment scheduled for August 6. Orion Holdings will pay out 33.1 billion won with the same record date, and its payment is scheduled for August 10.

Industry insiders note that Orion Group is translating its shareholder value enhancement roadmap into actual implementation rather than leaving it as a mere declaration. Previously, Orion announced a value-up plan last June, which included maintaining a dividend payout ratio of over 20% and gradually increasing it, while Orion Holdings promised a dividend of over 800 won per share along with the cancellation of treasury shares this past March. The policy implementation is gaining momentum, following up on last month's full cancellation of treasury shares with this cash dividend.

The synergy with the government's capital market revitalization policy is also notable. Both companies significantly expanded their year-end dividends last year, pre-emptively meeting the criteria for high-dividend corporations eligible for the "separate taxation on dividend income" introduced this January. Consequently, Orion's consolidated dividend payout ratio climbed from 26% to 36%, and Orion Holdings' ratio jumped from 30% to 55%. This allows major shareholders, institutional investors, and retail shareholders alike to see tangible benefits in tax incentives and enhanced dividend yields.

"We plan to gradually increase our dividend payout ratio moving forward in accordance with our three-year dividend policy," an Orion official stated. "Alongside sustainable growth, we will continue to enhance shareholder value and further strengthen a virtuous cycle where growth and shareholder returns reinforce one another."

                                                                                                        Lee Chang-yeon