Dividends paid by companies listed on Korea's main stock exchange surpassed 35 trillion won ($25.7 billion) last year, reaching a record high. The dividend payout ratio approached 40%, underscoring a clear trend toward expanded shareholder returns.
According to the Korea Exchange (KRX) on Tuesday, total dividends from 566 December-closing companies listed on the KOSPI reached 35.1 trillion won, up 15.5% from a year earlier. The increase represents nearly 5 trillion won in additional payouts over a single year.
The average dividend yield was 2.63% for common shares and 3.06% for preferred shares. While dividend yields edged down from the previous year due to rising stock prices, they still exceeded the government bond yield of 2.43%. The average share price of dividend-paying companies rose 32.9%, a sharp improvement from a 5.09% decline the previous year.
By sector, based on the five-year average, financials posted the highest dividend yield at 3.70%, followed by electricity and gas at 3.67% and construction at 3.36%.
The dividend payout ratio also rose. The average payout ratio among dividend-paying listed companies reached 39.83% last year, up 5.09 percentage points from the previous year.
Dividend expansion was particularly pronounced among companies that participated in Value-Up disclosures, a program designed to enhance corporate value. Of the 304 firms in this group, 96.8% paid dividends, with total payouts reaching 30.8 trillion won, or 87.7% of the overall total. These companies posted dividend yields of 3.0% for common shares and 3.39% for preferred shares, with a payout ratio of 48.24%, well above the average.
The 255 companies that joined high-dividend disclosures paid out 22.7 trillion won, accounting for 64.9% of the total. Their average dividend yield stood at 3.24% for common shares and 3.96% for preferred shares, with a payout ratio of 51.6%.
The dividend expansion trend extended to the KOSDAQ market. The 666 December-closing companies listed on the junior bourse paid a combined 3.1 trillion won in dividends, up 34.8% from a year earlier. The average dividend yield rose to 2.637% and the payout ratio climbed to 37.4%, the highest in five years.
A record 432 companies paid dividends for five consecutive years. Shares of these firms rose 18.5% over the past five years, significantly outperforming the KOSDAQ index, which fell 4.4% over the same period.
"The data confirm that listed companies are maintaining stable dividend policies and expanding shareholder returns," the Korea Exchange said.
