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QUAD Investment Management is an independent, private, discretionary investment management firm. Since 2010, our firm has been investing in Korea equity market on behalf of institutions and individual investors and integrates Korea Stewardship Code (please see in our investment process. We believe engagement is a dialogue amongst investors, the management and the Board pursuing long-term growth approach for companies and sustainable returns for clients.

[Press Release] QUAD Investment Management Announces Hy-Lok Korea Campaign

9 Feb 2023

QUAD Investment Management Announces Hy-Lok Korea Campaign(Stock Code: KS 013030)



February 9, 2023

Calls to Restore Governance Transparency and Enhanced Shareholders Return for All Shareholders

Full Presentation Available at: Paradigm Shift: New Era and New Hy-Lok Korea

SEOUL, SOUTH KOREA / -- QUAD Investment Management(“QUAD”) manages funds that holds an investment representing a 5.0% economic interest in Hy-Lok Korea(KS 013030)(the “Company” or “Hy-Lok Korea”).  In the interest of all shareholders, QUAD announces “Paradigm Shift: New Era and New Hy-Lok Korea” campaign to protect and restore shareholders value as a result of suboptimal governance and mismanagement.

QUAD adopted Korea Stewardship Code and in line with the principles, dialogues and engages with its investee companies.  In October 2022, QUAD presented to the Board the critical steps to restore shareholders value, including:

  • Transparent Corporate Structure: Merge the Moon family(“the controlling family”) companies and cancel related-party transactions between Hy-Lok Korea and the controlling family companies to refresh governance structure and business culture 
  • Enhanced Capital Return: Cancel outstanding treasury shares(5.6% of shares outstanding) and complete current phase of capital return
  • Predictable Policies and Communications: Adopt discretionary 50% dividend payout ratio policy; The current dividend payout policy of a flat KRW 500 per share annually regardless of net income for the relevant fiscal year is not predictable or forward-looking.

On February 7, 2023, as a part of QUAD’s ongoing engagement since its investment, the Company disclosed its cancellation of the outstanding treasury shares[1].  Although QUAD welcomes the Company’s decision, we look forward to continuing and leading the next chapter of restoring shareholders value on behalf of all shareholders.  In specific, QUAD believes improving corporate governance independent of the controlling family is critical and is seeking to appoint independent internal auditors at the upcoming AGM.

[1] Under Korea Commercial Act, buybacks cancellation is not required

The Presentation can be downloaded at Paradigm Shift: New Era and New Hy-Lok Korea

About QUAD Investment Management

QUAD is a Seoul, South Korea based independent, discretionary investment firm founded in 2009.  QUAD adopted and integrates Korea Stewardship Code in its investment process.  More information about QUAD is available at:

This press release does not constitute a solicitation of a proxy within the meaning of applicable laws, and accordingly, Hy-Lok Korea shareholders are not being asked to give, withhold or revoke a proxy.