APR is pushing for "reduction dividends" that are exempt from taxes, which has led to a rise in stock prices.
APR shares traded at 124,100 won on the KOSPI market at 1:57 p.m. on the 9th. The stock price rose by 2.73% (3,300 won) compared to the previous trading day. During the session, the stock price even reached as high as 126,500 won.
On this day, APR held a board meeting and resolved to hold an extraordinary general meeting of shareholders to transfer capital reserves to retained earnings. The shareholders' meeting will be held on July 28.
Transferring capital reserves to retained earnings is a procedure for reduction dividends. Generally, regular dividends that share retained earnings are subject to a 15.4% withholding tax. However, reduction dividends are a form of returning funds contributed by shareholders, so taxes are not imposed. Individual shareholders can receive 100% of the dividends and also avoid comprehensive taxation on financial income (up to 49.5%).
APR's capital reserve reduction is approximately 134.3 billion won. If APR were to distribute this amount entirely, shareholders would receive 3,645 won per share based on the number of outstanding shares excluding treasury shares (36,843,155 shares).