'PLUS K-REITs' ETF to Increase Dividend Payouts with Special Dividend Reflected Until December

Dividend to Increase Four Times from September to December
Monthly Dividend Rate Expected to Reach 2% for Four Months

Hanwha Asset Management announced on October 1 that the 'PLUS K-REITs' Exchange Traded Fund (ETF) plans to increase its dividend payouts for a period of four months.

According to Hanwha Asset Management, dividends for the PLUS K-REITs ETF will be adjusted to a monthly rate of around 2% from last month through December, paid out over a total of four installments. As of September 30, investors holding the PLUS K-REITs ETF are expected to receive a dividend payment of KRW 131 per share on October 2. Based on the closing price on the ex-dividend date (September 28), this represents approximately 2.13%.

The funding source for this dividend adjustment is the proceeds from the sale of the Hana Securities Building owned by Koramco The One REITs, which is included in the holdings of the PLUS K-REITs ETF. Koramco The One REITs completed the sale of the Hana Securities Building in June and announced a special dividend of KRW 8,900 per share, funded by the capital gain from the sale and other sources. The market dividend yield amounts to approximately 81.4%.

The 'PLUS K-REITs' ETF is a product that allows investors to benefit from separate taxation even in general accounts. In accordance with the current Restriction of Special Taxation Act, investors who meet the requirements and apply for separate taxation may receive a preferential tax rate of 9.9% (including local income tax) on dividend income generated over three years from the investment date, within a total investment limit of KRW 50 million. Such dividend income subject to separate taxation is not included in the base for the aggregate income calculation for comprehensive financial income taxation.

Thanks to this special dividend, investors can expect a significant increase in monthly cash flow, compared to the previous level of 0.4~0.5% monthly dividend payouts. However, since the dividend amount is temporarily higher, the ex-dividend adjustment may also be larger than usual, and the actual dividend amount and rate may vary depending on market circumstances and the ETF's price on the payment reference date.

Jungseop Keum, Head of ETF Division at Hanwha Asset Management, commented, "The PLUS K-REITs ETF is a tax-efficient product that allows investors to gain the benefits of separate taxation even in general accounts. As dividends for investors who apply for separate taxation will not be aggregated into comprehensive income and are taxed at just 9.9%, it can be an effective means of asset allocation for investors with significant financial income."

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