[News Space=Reporter seungwon lee] It was confirmed that SK Broadband paid out 334.2 billion won in dividends, including final dividends and interim dividends, at the shareholders' meeting in March 2024, far exceeding its net profit (255.7 billion won). This is an 'excess dividend' exceeding 130% of net profit, and SK Group's duality in dividend policy has once again come under fire.

SK Broadband revised its articles of incorporation in 2023 to introduce an interim dividend system and paid out KRW 133.4 billion to minority shareholders such as Taekwang Industrial (16.75%) and Mirae Asset affiliated funds (8.01%). SK Telecom (74.38%) did not receive an interim dividend. An additional KRW 200.8 billion was paid out as a dividend for the year-end settlement in March 2024.

Even the retained earnings were used up as the dividend source could not be covered with net income alone. SK Broadband’s retained earnings decreased by KRW 85.9 billion from KRW 443.7 billion at the end of 2023 to KRW 357.8 billion at the end of 2024.

By forcing dividends by using retained earnings like this, the biggest beneficiaries are minority shareholders such as Taekwang Industrial and Mirae Asset. The dominant interpretation is that they exclusively receive dividends, which are essentially 'exit compensation'.

In other words, SK Telecom is evaluated to have used cash dividends as an alternative to recovering the investment funds of Taekwang Industrial and Mirae Asset, whose IPOs fell through, in the process of incorporating SK Broadband as a wholly owned subsidiary. In the process, SK Broadband's own financial resources were largely depleted, and concerns are also being raised about the company's financial soundness.

The company's finances paid the price for giving out more than it earned. In the midst of a recession in the wired telecommunications and media industries, where investment capacity has decreased due to slow growth, the company has also brought in future investment funds to fill the pockets of a small number of investors.

SK Group officially emphasizes 'increasing shareholder value' and ESG management more than any other group, and not only in this case, but also in actual dividend and capital policies, the 'CEO-friendly' structure centered on the CEO's family and strategic investors is being repeated. The market's distrust and the sense of betrayal among minority shareholders are growing due to SK Group's double standard for dividends.

Listed companies are maintaining dividends at a level that makes up for the loss, while unlisted companies are continuing to practice dual behavior by distributing large amounts of cash to minority shareholders when necessary.

Key listed companies such as SK Telecom, SK Hynix, and SK Innovation externally promote “shareholder-friendly management,” but in reality, they maintain a low dividend payout ratio. While SK Broadband ate up retained earnings by paying out dividends exceeding net income, SK Telecom is paying out about half of its retained earnings as dividends, and SK Hynix is ​​paying out only 10-30%.

SK Corporation relies heavily on dividend income from these subsidiaries to secure its dividend source, and Chairman Choi secures his personal share of cash with dividends received through SK Corporation. Recently, when Chairman Choi Tae-won was under pressure to divide up his enormous assets due to a divorce suit, the securities industry analyzed that “subsidiaries, led by SK Telecom, will increase dividends” in the same context.

A corporate finance and accounting expert pointed out that, “If SK Group is to truly practice ‘shareholder value management,’ it must raise the dividend payout ratio of its listed affiliates to the global level and establish a consistent shareholder return policy,” and “It is urgent to improve transparency and fairness in the structure in which funds of unlisted affiliates are concentrated in the hands of the controlling family or strategic investors.”

Another industry insider emphasized, “Trust with shareholders comes from actual actions, not just words, such as boldly breaking away from the practice of using unlisted affiliates as a safe for the owner’s family,” adding, “If the current dual dividend policy continues, the slogan of ‘shareholder-friendly management’ will end up being nothing more than empty rhetoric.”