Korea Development Bank (KDB), IBK Industrial Bank of Korea, and Export-Import Bank of Korea (Korea Eximbank) will pay a combined 1.854 trillion won ($1.3 billion) in dividends to the government this year. The state-run banks are contributing to the government's efforts to shore up public finances.
The three state-run banks decided to pay 1.854 trillion won in dividends to the government this year, up 19.9% from the previous year and the largest amount on record, according to financial industry sources on Tuesday.
The government holds 100% of KDB and 76.8% of Korea Eximbank, with dividend amounts determined annually by the Ministry of Economy and Finance's dividend consultation body. IBK Industrial Bank of Korea (024110.KS), a public institution in which the government holds a 59.5% stake, follows the same procedure.
Korea Eximbank and KDB led the dividend increase. Korea Eximbank's dividend to the government surged 68.4% from a year earlier to 476.2 billion won. Its dividend payout ratio fell by 1 percentage point to 36.8%, but the dividend amount grew as net profit on a separate-account basis soared 72.0% year-on-year to 1.685 trillion won in 2025. "Loan-loss provisions set aside during past shipbuilding industry restructuring were reversed in large amounts last year, generating one-time gains," a Korea Eximbank official said.
KDB's dividend payout ratio stands at 51.3%, meaning more than half of last year's net profit goes to the government. The amount expanded significantly as 249 billion won in recovered funds from government-invested policy funds was paid as a form of special dividend. The government had previously deferred collection of policy fund recoveries, leaving them as idle funds within the state-run banks, but decided to return them to the national treasury this year.
Market analysts say the government's expansionary fiscal stance is driving the increase in state-run bank dividends. Dividends from the three banks totaled 713.4 billion won in 2023 on a payment-year basis, then rose to 1.5296 trillion won in 2024 and 1.5468 trillion won in 2025.
However, industry observers warn that continued dividend increases could erode the banks' capacity to supply policy funds. "The government injects capital into state-run banks during every crisis, but in the short term, their lending capacity could shrink," a financial industry official said.