Neowiz has announced a mid-to-long-term shareholder returns policy.

Neowiz said in a regulatory filing on Friday that its basic principle is to return 20 percent of the previous year’s consolidated operating profit to shareholders each year. It also decided to guarantee at least 10 billion won in annual shareholder returns over the next three years, for the 2025 to 2027 fiscal years, regardless of performance fluctuations, to ensure stable implementation of the policy.

The key to the policy is that it secures continuity and predictability in shareholder returns by moving away from short-term responses and setting clear standards along with a safety net for shareholder returns.

Under the plan, of the 10 billion won minimum return amount, 5 billion won will be used to buy back and cancel treasury shares, and the remaining 5 billion won will be paid as cash dividends. If 20 percent of operating profit exceeds 10 billion won, it plans to flexibly use all excess funds in a way that increases shareholder benefit, either through cancellations or dividends. The first dividend payment under the policy will be made after the March 2026 shareholders meeting.

It also detailed ways to increase shareholder value using treasury shares it holds. Treasury shares will be used as resources for employee compensation, cancellations and investments. It also plans to run in parallel a policy of canceling 50 percent of any amount that becomes void in performance-linked stock compensation to employees due to targets not being met.

Separately, Neowiz decided to allocate all 50 billion won in capital reserve reductions secured at an extraordinary shareholders meeting in December as resources for mid-to-long-term dividends to strengthen the execution of the policy. The aim is to provide tangible benefits to shareholders by paying "reduction dividends" that are exempt from dividend income tax.

A Neowiz official said the policy is not simply about increasing the size of returns, but is meaningful in setting clear mid-to-long-term principles to build trust with the market. The official added that the company will continue to pursue a balanced approach between its growth strategy and shareholder returns policy to work to enhance shareholder value.