It has been revealed that the dividend payouts of major domestic companies increased by nearly 10 percent last year. Particularly noteworthy is the recent announcement by the government regarding the introduction of the “Corporate Value-Up Program” aimed at addressing the “Korea Discount,” which refers to the undervaluation of the Korean stock market. In response, companies are strengthening their policies related to shareholder returns.
According to an analysis by Leaders Index, a corporate analysis research institute, on the top 500 companies in terms of sales, which surveyed 76 companies that announced cash and property dividends until Feb. 8, the total dividends of these companies amount to 28.45 trillion won (US$21.36 billion), marking an increase of 9.3 percent or 2.43 trillion won compared to the previous year. This total includes both year-end dividends and quarterly and interim dividends. Out of the 76 companies surveyed, 45 see an increase in dividends compared to the previous year, while 12 maintain the same amount and 19 plan to pay lower dividends than the previous year. The final dividends will be determined at the shareholders’ meetings in March and paid out in April.
Samsung Electronics has the largest dividend size, remaining the same as the previous year at 9.81 trillion won. Following Samsung Electronics in dividend amount were Hyundai Motor with 3 trillion won, Kia Motors with 2.22 trillion won, KB Financial Group with 1.17 trillion won, Hana Financial Group with 979.8 billion won, SK hynix with 825.7 billion won, and SK Telecom with 765.6 billion won.
Particularly, the total dividends of Hyundai Motor and Kia Motors, which achieved their highest-ever performances last year, have increased by 63.8 percent and 58.1 percent, respectively, including year-end, semi-annual, and third-quarter dividends.
On the other hand, LG Chem’s year-end dividend amounts to 274.3 billion won, which is less than half of the previous year’s figure of 783.1 billion won. Similarly, POSCO Holdings’ dividend has also decreased by 151.4 billion won compared to the previous year, amounting to 758.7 billion won.
In terms of individual dividend payouts, Lee Jae-yong, the chairman of Samsung Electronics, sees an increase of 19.5 billion won compared to the previous year, totaling 323.7 billion won. Chung Mong-koo, the honorary chairman of Hyundai Motor Group, will receive 176.2 billion won, up by 53.5 billion won from the previous year, while Chung Eui-sun, the chairman of Hyundai Motor Group, sees an increase of 43.6 billion won, reaching 154.9 trillion won. Meanwhile, Chey Tae-won, the chairman of SK Group, will receive 33.1 billion won, a decrease of 31.8 billion won compared to the previous year.