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Gov't dividend income climbs 72% on better corporate performances

Published: 30 May. 2024, 19:43

The headquarters building of the Ministry of Economy and Finance in Sejong [MINISTRY OF ECONOMY AND FINANCE]

The government's dividend income from its stakes in public companies jumped more than 70 percent on year on rising earnings by major state-run banks and corporate value-up programs, the finance ministry said Thursday.

Dividend payments to the government from 17 state-run companies amounted to 2.13 trillion won ($1.54 billion) for the 2023 fiscal year, up 72.1 percent from a year earlier, according to the Ministry of Economy and Finance.

The growth came as dividends from three major state-run banks reached an all-time high amid improvement in their bottom lines.

The Korea Development Bank paid 878.1 billion won in dividends, the largest amount among the public firms, as it reported 2.5 trillion won in net profit last year.

The increase was also driven by the government's corporate value-up program, which offers incentives to companies that prioritize shareholder returns and implement other measures for investors so as to encourage listed firms to strive to further improve their valuations.

The average dividend payout ratio, or the percentage of earnings paid to shareholders in dividends, came to 39.87 percent this year, down slightly from 39.93 percent a year earlier.