Listed Korean firms’ dividend payments in Q3 up 22% on year

[Provided by Maekyung Media Group]

Listed firms in South Korea paid out 22 percent greater dividends to their shareholders in the third quarter compared to the same period of last year to prevent shareholders from abandoning them during a bear market.

According to the country’s sole stock market operator Korea Exchange, a total of 24 companies made regulatory filings on dividend payments for the third quarter ended September, seven more than a year ago. Their combined amount of dividend payments grew 22 percent on year to 3.96 trillion won ($2.9 billion).

Naver, SK hynix, and a number of large-cap companies began paying out interim dividends.

Internet giant Naver made a special dividend payout of 137.0 billion won in the third quarter. Chip giant SK hynix doled out 206.3 billion won to its shareholders in third-quarter dividend. Financial groups with fat profits from rising interest rates also made interim dividend payouts. KB Financial Group paid 194.8 billion won and Shinhan Financial Group 212.1 billion won in the third quarter.

Investors, especially institutions, see a stable dividend policy as one of important investment factors, according to financial market experts.

Dividend-paying mutual funds are also attracting investors with a promise of lucrative returns.

Mirae Asset TIGER MKF Dividend Aristocrats ETF, which went public on Oct. 18 with a starting price of 10,205 won, has jumped to close at 10,730 won on Wednesday.

By Kang In-seon and Cho Jeehyun