Activist fund Quad Asset Management has urged Daeyang Electric to buy back and cancel 30 billion won ($22.1 million) of shares over three years and raise its dividend payout ratio above 30%. The fund said the company held 122.7 billion won in cash and financial assets at the end of the second quarter, equivalent to about 44% of equity and roughly 70% of its market value as of the previous day. It argued that excess non-operating assets were weighing on return on equity and valuation, with Daeyang Electric’s price-to-book ratio (share price relative to book value) at 0.6. The proposal follows Quad’s earlier concerns over related-party transactions involving affiliate Daeyang Jeonjang and escalates its campaign from earnings normalization to capital-allocation reform. Quad also asked for a 1.5 price-to-book ratio target, annual buybacks and cancellations of 10 billion won for three years, a payout ratio of 40% over the longer term and a minimum dividend of 500 won per share. The fund again challenged the effectiveness of the company’s audit function and requested a response by Oct. 16.