Major South Korean retail conglomerates are expanding dividend payments in line with the government's "Value-Up" initiative, significantly boosting payouts to their controlling shareholders.
Shin Dong-bin, chairman of Lotte Group, is set to receive approximately 29.7 billion won ($20.6 million) in dividends from four listed affiliates—Lotte Holdings, Lotte Shopping, Lotte Wellfood, and Lotte Chilsung Beverage—according to industry sources on May 1. The figure represents an increase of about 1.2 billion won from the previous year's 28.48 billion won.
The breakdown includes approximately 17.1 billion won from Lotte Holdings (including about 100 million won in preferred shares), 11.57 billion won from Lotte Shopping, 600 million won from Lotte Wellfood, and 147 million won from Lotte Chilsung Beverage (plus 217 million won in preferred shares). Lotte Holdings' decision to raise its common stock dividend from 1,200 won to 1,250 won per share was the primary driver of the overall increase.
Shinsegae Group has also joined the aggressive dividend expansion trend. Chung Yong-jin, chairman of Shinsegae Group, is expected to receive approximately 19.9 billion won through his roughly 7.96 million shares (about 28.85%) in E-Mart. The increase follows E-Mart's decision to raise its minimum dividend by 25% as part of enhanced shareholder return policies. With E-Mart's dividend per share rising from 2,000 won to 2,500 won, Chung's payout has grown substantially from the previous year's approximately 15.9 billion won.
Chung Yoo-kyung, chairman of Shinsegae Inc., is also projected to receive about 16.78 billion won—an increase of more than 6 billion won from the prior year's approximately 10.38 billion won.
Hyundai Department Store Group has maintained its dividend expansion policy as well. Chung Ji-sun, chairman of Hyundai Department Store Group, is expected to receive approximately 19.44 billion won in combined dividends from Hyundai Department Store and Hyundai GF Holdings. The holding company Hyundai GF Holdings significantly raised its annual dividend from 210 won to 300 won per share, substantially increasing payouts to Chung, who holds nearly 40% of the company.
Industry observers expect listed retailers to continue raising dividend payout ratios and strengthening shareholder returns through measures such as share buybacks, in response to the government's Value-Up policy. Stable dividends serve as a crucial tool for maintaining investor confidence in a sector characterized by high consumer spending volatility.
Lotte Shopping announced in its Value-Up disclosure last October that it aims for a shareholder return ratio of 35% or higher and a minimum dividend of 3,500 won per share. Shinsegae Group plans to raise minimum dividends while gradually expanding overall payouts. Hyundai Department Store is also pursuing policies to increase minimum dividend levels and cancel treasury shares.
"Earnings momentum has strengthened with the expected improvement in the premium consumer goods market environment in 2026," said Park Jong-ryeol, an analyst at Heungkuk Securities. "Revaluation through strong earnings performance and expanded shareholder returns is expected to continue, including higher dividends per share."