Top chaebol chiefs watch dividends dwindle

Dividend payments owed to the owners of Korea’s top 10 conglomerates have plunged by almost 23 percent this year from one year earlier due largely to firms’ sluggish earnings, data showed yesterday.

The combined amount of dividends to be paid out to the business tycoons stands at 171.5 billion won ($153 million) this year, down 23.1 percent from 223.8 billion won in 2011, according to data by Chaebol.com, a corporate information provider on large businesses.

It marks the first time since the financial crisis in 2008 that dividend payouts to the owners of the conglomerates, known as chaehol here, have dropped on-year.

Chung Mong-koo, chairman of Hyundai Motor Group, topped the dividend list with 45.6 billion won, up 14.2 percent from a year earlier, thanks to strong performances by the group’s flagships, Hyundai Motor and Hyundai Mobis.

Samsung Electronics Chairman Lee Kun-hee will likely see his dividends sink 44 percent on-year to 28.5 billion won.

Chung Mong-joon, the chairman of Hyundai Heavy Industries, is expected to lose 46.3 percent of his dividends to 30.8 billion won. Chung received the highest dividend of 57.4 billion won last year.

LG Group Chairman Koo Bon-moo will likely see a 2 percent gain in dividend receipts.

Yonhap