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General Shareholders' Assembly and Dividends

HMC held the 40th General Shareholders' Assembly on March 14, 2008, where it reported and got approval on the 2007 performance results. The assembly also approved the appointment of internal and external directors as well as the upper limits on the director remuneration. The assembly approved the re-appointment of Mr. Chung Mong Koo as the representative director in a series of efforts to ensure transparent and socially responsible management.

Main Items and Results at the 2008 Assembly

The auto industry requires constant attention and investment. HMC determines the amounts of dividends with efforts to ensure a sufficient pool of financial resources as well as high returns to its shareholders required for continuing growth. The 2007 dividend rate was maintained at 20%. While the dividend inclination decreased a little compared to 2006, the market price dividend rate for ordinary shares saw little change, while the rate for the preferred shares is higher than the market average.

The Board of Directors meeting in September, 2007, resolved to provide bonus stock for employees. In October, each and every employee from the department heads and down were given 30 shares of the bonus stock. The decision in part was made to celebrate the 40th anniversary of the company' s founding by awarding employees for bringing the labor agreements to a successful conclusion without disputes. It also reflected the investors' advices. Now that employees are also owners of the company, they will work more alongside with the investors to pursue the common interest.

In order to provide accurate investment information for shareholders and investors, HMC publishes and distributes a wide range of reports, including those on sales performances, accounting and audits, and sustainability. The IR website in operation since 2004 provides general, financial, stock-related, and sales-related information of the company on a real-time basis. The website also provides official releases as well as information related to the investors' conferences.

Accurate information is the key to long-lasting mutual trust. HMC's IR efforts thus include providing accurate information on the company's business performance, strategy, and new products. Early in each year the company reports the previous year's business outcomes and explains the year's business plan. The company also holds regular by-visit discussion sessions to answer individual investors' questions and increase their trust in the information the company provides.
The company also provides various discussion sessions on an on-need basis for institutional investors in Korea whose influence on the Korean stock market has increased along with the increase in fund investment. By providing sessions on main issues affecting the company, HMC responds to the market demand for more information. By expanding the management's involvement in the IR activities, the company also communicates its vision more actively. New product discussion sessions are held to explain and display the competence and high quality of new cars. Comparative test=drives are also provided so that investors can see the innovative efforts and technological competitiveness of HMC in producing environment-friendly cars.