1. What is the dividend payment procedure of STX Pan Ocean?
- At the end of February of every year, audit committee decides whether the dividend will be paid and the amount if it is. In General Shareholders’ Meeting the dividend payment will be finally confirmed.
2. Share consolidation
(1)What’s share consolidation?
- Share consolidation is a reduction in the number of shares and a corresponding increase in a par value of share. In the case of our company, we consolidate every ten (10) existing shares with a par value of one hundred Korean won (KRW 100) each in the capital of the company into one (1) share with a par value of one thousand Korean won (KRW 1,000), which was effective as of December 12,2008.
(2) What are the purposes of share consolidation?
- We can decrease the excessive number of trading volume in KRX.
- We can obtain stability in stock price through reducing excessive volatility.
- We can change perception of STXPO stocks by increasing absolute value of stock price.
(3) When it comes to share consolidation, is there any possibility for stock value to be changed?
- Each consolidated share will rank equally in all respects with the existing shares. Share consolidation will have no impact on the issued and paid-up share capital of the Company so that shareholders will still have an equal value in total.
3. The Procedure for the Migration between SGX and KRX
Instruction of the New Procedure of Direct Migration
(Migration between transfer agents in both markets)
There have been changes in the procedure of migration between transfer agents from KRX to SGX-ST or vice versa (“Both Markets” hereinafter.) You can refer to the new instruction below. It is noticeable that the instruction is not certainly to give encouragement in migration, but to provide convenience to investors.
This new procedure becomes effective on August 1, 2008.
Relevant Organizations
1. Changes in Procedure of Migration
2. Caveats
· The company is unable to predict exact length of time of migration procedure due to different characteristics of each organization.
· Investors take all the responsibilities for the risks during migration procedure. · Investors have to defray the entire costs related to migration.
3. Migration from KRX to SGX
Procedure
Detail
Remark
① Opening an account
· Open a securities trading account in Singapore.
② Withdrawal & receipt of share certificate(s)
· Apply for withdrawal of share certificate(s) for migration and receive it/them.
* The share certificate(s) to be migrated must show the shareholder’s own name on it(them).
· Shareholder should apply to Trading securities company or local custodian for withdrawal of share certificate(s).
③ Applying for migration
· Fill in the application form for share migration and submit it to KSD
· Submission of share certificate(s) is required.
* In case the shareholder is a foreign investor, the report of carrying in & out that was submitted to FFS(Financial Supervisory Service) is required.
(Appendix 1-1)
④ Notification of migration
· Notify Boardroom after reviewing the details of the application form
· KSD notifies Boardroom
⑤ Migration Date
· Cancellation of old share certificate(s) by KSD & Registration of new share certificate(s) by Boardroom
· Complete by KSD & Boardroom
⑥ Issuing new SGX share certificate(s)
· Visit Boardroom to receive new SGX share certificate(s) that are tradable.
· Applicant or agent
(bring applicant’s identification and a letter of attorney)
⑦ Deposit of share certificate(s)
· Deposit SGX share certificate(s) to Securities Company at which to open trading account or CDP.
⑧ Trading
· Start trading after the share certificate(s) are deposited into the account.
· Relevant trading securities company
※ It takes about 6 markets days for migration upon submission of valid application.
4. Migration from SGX to KRX
Procedure
Detail
Remark
① Appointment of standing transfer agent
· Appoint and register a standing transfer agent in Korea
(Investment registration, Opening an account, Reporting and declaration service)
· mandatory
② Application for withdrawal of share certificate
· Apply for withdrawal of share certificate(s) to relevant trading securities company or CDP.
· Trading securities company in Singapore
③ Receipt of share certificate(s)
· Visit Boardroom to receive share certificate(s).
④ Apply for migration (T)
· Fill in the form of migration and submit it to Boardroom along with share certificate(s).
· Submission of share certificate(s) is required.
(Appendix 1-2)
⑤ Notification of migration(T + 1 market day)
· Notify KSD after reviewing the details of?
the application form
· Boardroom notifies Boardroom.
⑥ Migration date
(T + 6 market days)
· Cancellation of old share certificate(s) by KSD & Registration of new share certificate(s) by Boardroom
· Complete by KSD & Boardroom
⑦ Issuing new KRX share certificate(s)
· Visit KSD to apply and receive new KRX share certificate(s) that are tradable.
· Applicant / agent
(bring applicant’s identification and a letter of attorney)
⑧ Deposit of share certificate(s)
· Deposit KRX share certificate(s) to Stock Broking Firm at which to open trading account or local custodian.
· Relevant trading securities company or local custodian.
⑨ Trading
· Start trading after the share certificate(s) are deposited into the account.
· Relevant trading securities company
※ It takes about 6 markets days for migration upon submission of valid application.
* Appointment of a standing agent (Obligatory under the law)
- A standing agent: Open an account and conduct other reporting services on
behalf of the investor
- Securities trading account: One-time account and exclusively for
STX Pan Ocean’s shares
5. References and Contacts
: Please use e-mail for the questions for more efficient work process
50 Raffles Place, Singapore Land Tower #32-01, Singapore 048623
Appendix(Korea_to_Singapore).doc
Appendix(Singapore_to_Korea).doc
4. Where and when are STX Pan Ocean's stocks listed?
-STX Pan Ocean is listed on the Mainboard of the Singapore Exchange Securities Training Limited (SGX-ST), on 14th July 2005, and on the Korea Exchange (KOSPI), on 21st September 2007.
6. What is the number of shares issued and the par value of the stock?
(1) As of 21st September 2007, 2,058,578,460 common shares were issued and
outstanding with par value of Korean won 100.
(2) Total number of issued shares decreased to 205,857,846 by share
consolidation as of December 12, 2008, and the par value is KRW 1,000.
7. How can I invest in STX Pan Ocean's stocks?
- The stocks on SGX are deposited with the Central Depository (Pte) Limited (CDP), which can be traded through any local securities firm in Singapore using the Singapore dollar, while the stocks on KRX are deposited with the Korea Securities Depository (KSD), which can be traded through any local securities firm in Korea using Korean won.
8. When is the date of record and the dividend payment?
- Dividends shall be paid to registered STX Pan Ocean shareholders or pledgees in the Register of Shareholders as at the end of each fiscal year. The payment of dividends will be made, according to the Commercial Code of Republic of Korea, within a month after the general meeting of shareholders.
9. What is the method of the dividend payment? How is the tax rate going to be applied?
- The payment of cash dividends will be made to the non-Korean shareholders in US dollars while for Korean shareholders, the payment will be made in Korean won. The applicable tax rate for Korean and non-Korean residents are as follows:
(The following summary is based on the tax laws of Korea and Singapore as currently in effect and is subject to any change in the tax laws of Korea, Singapore or the other countries that may come into effect in the future. Investors in shares of our common stock are advised to consult their own tax advisors as to the tax consequences under the tax laws of Korea, Singapore or any national, state or local tax laws.)
1. Where the dividend beneficiary is a shareholder who is registered in the Register of Shareholders and doesn't have an account with CDP (The Central Depository (Pte) Limited)
- We will seek for the nationality of a shareholder from the Register of Shareholder that the Company manages. According to the nationality of a shareholder, we will deduct the proper withholding tax from dividends paid to you by applying the relevant laws and a tax treaty.
2. Where the dividend beneficiary has an account with CDP (The Central
Depository (Pte) Limited)
< General Taxation >
: So long as you are not
1) a resident of Korea ;
2) a corporation organized under Korean law ; or
3) engaged in a trade or business in Korea through a permanent establishment or a fixed base to which the relevant income is attributable or with which the relevant income is effectively connected Under the Korean Tax law.
We will deduct Korean withholding tax from dividends paid to you at a rate of 22.0%(including 2.0% of residents’ tax), which rate is currently in effect.
<Exceptions>
If you are a qualified resident in a country that has entered into a tax treaty(the “Treaty”) with Korea and want to obtain a reduced rate of withholding tax pursuant to an applicable Treaty, you should submit the evidence of your tax residence to us prior to dividend payment date. Please remind that submitting the relevant proofs of tax residency is the responsibility of the shareholder claiming the benefits of a “Treaty” in respect of dividend payment.
<The dividend payment policy of Company>
The Central Depository (Pte) Limited (CDP) doesn't give any information to the Company about the tax residencies of STX Pan Ocean shareholders who will be entitled to dividends. So if you don't submit the evidence of your tax residency, you will be regarded as a Singaporean. In that case, under the Korea-Singapore income tax treaty, we will apply the reduced rates of Korea's withholding tax on dividends of 15% or 10%, respectively (including resident surtax), depending on your shareholding ratio.
If you are not Singaporean but non-Korean and want to establish your entitlement to the benefits of the tax treaty which is different from the Korea - Singapore tax treaty, you must turn in the sufficient proof of your tax residency prior to the dividend payment date. After reviewing the certificate of your tax residency, we will apply the relevant tax treaty between Korea and your country on the tax rate.
