The Korea Securities Depository (KSD) announced on Jan. 15 that the annual fund profit dividends increased by 16.1 percent to 21,177.3 billion won last year.
Specifically, public fund dividends increased 4.51 percent to 3,519.6 billion won and private fund dividends increased 18.7 percent to 17,657.7 billion won. Of 15,666 funds in total, 7,752 provided profit dividends last year.
Forty-one percent of the annual dividends have been reinvested so far. The ratio is 69.1 percent and 35.3 percent in public and private funds, respectively. “The reinvestment ratio of private funds is lower because private fund investors prefer cash dividends,” the KSD explained.
Last year, a total of 7,067 funds were liquidated with a liquidating dividend of 59,811.7 billion won. The figures are 6,036 and 55,114.9 billion won in the case of private funds.
The number of new funds, 10,174, fell 1.8 percent from a year earlier. Public and private funds worth 19,690.4 billion won and 128,683.8 billion won were newly sold in 2019, respectively.
“For the past four years, the dividend payment from public funds remained at an annual average of 3,492.5 billion won whereas the payment from private funds continued to increase based on the growth of special asset and real estate funds,” the KSD said.