Kospi-listed firms paid record 52.8 trillion won in dividends last year

Total cash dividends of 52.8 trillion won ($38.2 billion) last year mark an all-time high, up 15.9% from the prior year; more than seven in 10 Kospi-listed companies paid dividends; interim payouts rising; payout ratio fell to 31.1% as semiconductor profits surged

Cash dividends paid by Kospi-listed companies hit a record 52.8 trillion won ($38.2 billion) last year, buoyed by a strong domestic stock market and improved corporate earnings. The overall dividend payout ratio fell, however, as net profit surged — largely driven by a semiconductor boom centered on Samsung Electronics and SK Hynix.

Of the 797 companies listed on the Kospi with December fiscal year-ends, 71.4 percent, or 569 firms, paid cash dividends last year, the Korea Listed Companies Association said Thursday. Total interim and year-end cash dividends came to 52.8 trillion won, up 15.9 percent from the prior year and the highest on record. The figure is 2.4 times the 21.8 trillion won recorded a decade ago in 2016.

The association noted that both the number of companies paying interim dividends and the amounts involved have grown, pointing to a trend away from year-end concentration toward payouts spread throughout the year.

The number of listed companies paying interim dividends rose from 72 in 2023 to 84 in 2024 and 107 last year. The total amount paid out at interim stages climbed from 13.7 trillion won in 2023 to 15.5 trillion won in 2024 and 17.7 trillion won last year.

By sector, the electrical and electronics industry led in average cash dividends per company at 365.3 billion won, followed by telecommunications at 308.1 billion won and financials at 213.3 billion won.

In terms of payout ratio, the food, beverage and tobacco sector ranked first at 119.6 percent, followed by paper and wood products at 100.7 percent, non-metallic minerals at 92.8 percent and metals at 90.1 percent. The utilities sector posted a relatively low payout ratio of 14.4 percent, while electrical and electronics came in at 18.0 percent.

Overall, the dividend payout ratio for Kospi-listed companies fell 3.6 percentage points last year to 31.1 percent, down from 34.7 percent the year before.

The decline reflected a sharp rise in net profit driven by the semiconductor industry's strong performance. Excluding Samsung Electronics and SK Hynix, the payout ratio actually rose 4.3 percentage points to 42.3 percent, compared with 38.1 percent the prior year.

The association said 288 companies — for the first time a majority, at 50.6 percent, of all dividend-paying listed firms — have moved their dividend record dates away from the fiscal year-end. It added that an environment in which shareholders can confirm dividend amounts before investing is spreading across listed companies.

Listed companies' net profit improved sharply, led by chipmakers. According to the Korea Exchange, the Korea Listed Companies Association and the Kosdaq Association, the combined operating profit of 639 Kospi-listed companies with December fiscal year-ends reached 156.32 trillion won on a consolidated basis in the first quarter of 2026, up 175.83 percent from the same period a year earlier. Net profit rose 177.82 percent to 141.44 trillion won. Samsung Electronics and SK Hynix together accounted for 87.57 trillion won in net profit, representing 60.7 percent and 61.9 percent of the respective totals.

th5@heraldcorp.com