'Would Samsung Electronics and SK hynix exist today if they had paid out big dividends?'

Mirae Asset Group Chairman Park Hyun-joo [Mirae Asset Group]
Mirae Asset Group Chairman Park Hyun-joo [Mirae Asset Group]

Mirae Asset Group Chairman and Global Strategy Officer Park Hyun-joo pushed back Wednesday against calls for expanded shareholder returns at Samsung Electronics and SK hynix, arguing that generous dividend payouts would have prevented the two chipmakers from ever becoming what they are today.

"Would Samsung Electronics and SK hynix even exist if they had paid out big dividends? It's by not paying dividends that companies grow," Park said at a meeting with executives and employees of DigitalX, the operator of virtual asset exchange Korbit, held at the Four Seasons Hotel in Jongno-gu, Seoul, on Wednesday. "Samsung Electronics' share price is falling because of insufficient shareholder returns? What kind of nonsense is that?"

He added that shareholder returns of 5 to 7 percent were hardly compelling, saying investors would be better off buying US government bonds. "Companies need to be built up boldly through capital accumulation," he said.

On US tariff policy toward South Korea, Park was optimistic that heavy levies would not materialize. "It will be hard for the US to impose steep tariffs on Korea," he said. "Without semiconductors, neither Nvidia nor America's big tech companies can function. The idea of the US slapping 50 percent tariffs on Korea is out of the question."

Turning to the real estate market, Park said he believed the current housing situation could be resolved, describing the real estate tax regime as no small matter. "The era of making money through real estate must end — for everyone's sake," he said. "Only then can the younger generation live with a real sense of welfare."

Earlier, Mirae Asset Consulting, a non-financial affiliate of Mirae Asset Group, acquired a controlling stake in DigitalX last month for 130 billion won ($94 million) and currently holds a 97.15 percent stake in the company.

The event was organized for Park to meet DigitalX Chief Executive Oh Se-jin and the company's staff to share "Mirae Asset 3.0," the group's medium- to long-term vision.


jshan@heraldcorp.com