Number of Dividend-Paying Companies Rises 50% After Commercial Act Revision... Top Dividend Earner: Chairman Jae-yong Lee

Leaders Index Analysis of Listed Companies' Dividends

127 Companies Distribute First-Half Dividends This Year

Dividends up 18%, Dividend Yield Rises 0.5%p to 1.8%

Following last year's revision to the Commercial Act, the number of companies that conducted dividends for the first half of this year increased by nearly 50% compared to the same period last year. The individual who received the largest dividend was Samsung Electronics chairman Jae-yong Lee, who received 72.8 billion won.

According to an analysis by Leaders Index released on the 4th, among 2,873 domestic listed companies, 127 companies that had completed disclosure of quarterly or semi-annual cash or stock dividends by the 3rd published dividend information for the first half of this year. This is a 47.7% increase compared to 86 companies in the same period of the previous year.

The total dividends paid out by these companies rose 18.4%, from 1.1416 trillion won to 1.352 trillion won.

The average market dividend yield for companies paying first-half dividends was 1.8%, up 0.5 percentage points from 1.3% in the same period last year. Of the 127 companies, 105 increased their dividends year-on-year, 12 reduced their dividend size, and 10 maintained the same level as the previous year.

Samsung Electronics Chairman Jay Y. Lee is arriving and moving at Seoul Gimpo Business Aviation Center (SGBAC) to depart for Seattle, USA, on the 7th of last month. Photo by Yonhap News.

The company that paid out the largest dividends was Samsung Electronics, which decided to pay 2.4533 trillion won for the first quarter and 2.4559 trillion won for the second quarter, totaling 4.9092 trillion won for the first half of the year. However, due to an increase in the stock price, the market dividend yield for common stock stood at just 0.2% in the first quarter and 0.1% in the second quarter. Hyundai Motor came next, distributing a combined 1.3092 trillion won for the first and second quarters.

The four major financial holding companies also saw a significant increase in first-half dividends compared to the previous year. KB Financial Group paid 810.9 billion won, Shinhan Financial Group paid 696.3 billion won, Hana Financial Group paid 615.1 billion won, and Woori Financial Group paid 321 billion won, with dividend growth rates of 21.1%, 25.4%, 23.0%, and 9.1%, respectively.

HD Hyundai Group also recorded high dividend growth rates, with HD Hyundai Heavy Industries paying 639 billion won, HD Korea Shipbuilding & Offshore Engineering 459.6 billion won, HD Hyundai 183.7 billion won, HD Hyundai Electric 93.6 billion won, and HD Hyundai Marine Solution 80.7 billion won. The respective dividend growth rates were 331%, 103.1%, 44.4%, 36.8%, and 28.6%.

The top recipient of individual dividends for the first half of the year was chairman Jae-yong Lee (72.8 billion won), followed by honorary chairman Mong-Koo Chung of Hyundai Motor Group (67.1 billion won) and Mong-Joon Chung, chairman of the Asan Foundation (54.6 billion won).

Hong Ra-hee, honorary director of the Leeum Museum of Art, who ranked first last year, sold shares to fund inheritance tax, dropping to fourth place with 54.4 billion won in dividends this year. Other top individual recipients included Lee Seo-hyun, president in charge of strategy at Samsung C&T (34.1 billion won); Lee Boo-jin, president of Hotel Shilla (31.2 billion won); Euisun Chung, executive chair of Hyundai Motor Group (28.4 billion won); Chey Tae-won, chairman of SK Group (19.5 billion won); Lee Hwa-kyung, vice chair of Orion Group (14.1 billion won); and Jeong Gi-seon, chairman of HD Hyundai (12.6 billion won).

Meanwhile, of the 127 companies that announced first-half dividends, 22 companies (17.3%) such as Woori Financial Group, SK Square, and Doosan Bobcat implemented a capital reduction dividend. This method involves a company with retained earnings reducing paid-in capital such as capital reserves to pay dividends in cash to shareholders. Since there is no dividend income tax, it is classified as a tax-free dividend.

This content was produced with the assistance of AI translation services.