KODEX Korea Real Estate REITs Infrastructure ETF to Adjust Distributions to Reflect 'Special Dividend'

Adjusted Distributions for Purchases Made by September 11

Special Dividend from Koramco The One REITs Reflected

Four Rounds of Adjusted Distributions from September to December

Samsung Asset Management announced on September 10 that it will adjust the distributions paid by the 'KODEX Korea Real Estate REITs Infrastructure' ETF to reflect the special dividend from Koramco The One REITs, which the fund currently holds. These adjustments will continue through the end of the year.

This distribution adjustment will take place over a total of four rounds from September to December. Thanks to the special dividend from Koramco The One REITs, the combined distribution rate, including the existing monthly dividend, is expected to reach 1.4% per month. This represents a significant increase in monthly cash flow for investors compared to the previous payout, which was around 0.6–0.7% per month. However, the actual distribution amounts and rates may vary depending on market conditions and the price of the ETF on each distribution date.

The funds for this distribution adjustment originate from the proceeds of the sale of the Hana Securities Building, a property held by Koramco The One REITs within KODEX Korea Real Estate REITs Infrastructure. In June, Koramco The One REITs completed the sale of the Hana Securities Building and announced a special dividend of 8,900 won per share, funded by the capital gains and other profits from the transaction. This corresponds to a dividend yield of 81.4% based on the market price.

Typically, REITs' dividends are derived from rental income, but with the inclusion of profits from asset disposals, the ETF's distribution now reflects these additional gains, allowing investors to receive them as part of their monthly distribution payments.

KODEX Korea Real Estate REITs Infrastructure currently records the largest net assets among domestic REITs ETFs eligible for separate taxation benefits. As of now, net assets amount to 488.8 billion won.

Additionally, KODEX Korea Real Estate REITs Infrastructure allows for the utilization of separate taxation benefits even in regular securities accounts. According to the current Special Tax Treatment Control Law, investors who apply for separate taxation and meet the necessary requirements may apply a 9% separate tax rate on dividend income generated over three years for investment amounts up to 50 million won. Including local income tax, the effective tax rate is 9.9%.

Especially, this particular dividend income is not included in the comprehensive taxable income base for aggregate financial income taxation. Therefore, for investors with substantial financial income, this product can serve as a differentiated investment tool compared to typical REIT ETFs or high-dividend products in terms of after-tax cash flow.

An official at Samsung Asset Management stated, "Thanks to the special dividend from Koramco The One REITs, investors in KODEX Korea Real Estate REITs Infrastructure are expected to receive higher monthly distributions through the end of the year. KODEX Korea Real Estate REITs Infrastructure is the largest product among domestic REITs ETFs eligible for separate taxation benefits, and the exemption from aggregate financial income taxation (9.9%) can also be utilized with regular accounts."

The official added, "Not only are dividends from REITs included, but special capital gains from asset sales can also be delivered to ETF investors as distributions. This case illustrates the additional appeal of REIT investing and underscores the importance of separate taxation."

Meanwhile, KODEX Korea Real Estate REITs Infrastructure ETF is a monthly distribution product, and investors seeking to receive this adjusted distribution must purchase shares by September 11, the day before the ex-dividend date. The separate taxation benefit is applicable only to investors who apply at their securities firm and invest in a collective investment scheme (fund) that meets requirements specified by law. Investors should note that actual tax treatment may vary depending on individual circumstances, and for further details, they should contact the securities firm through which they trade.

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