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South Korean firms boost dividend payouts to record highs in 2025

A record 35.1 trillion won flowed back to shareholders as profits soared. Why are more firms now prioritizing dividends over reinvestment?

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South Korean firms boost dividend payouts to record highs in 2025

The combined dividend payments of 566 of the 799 companies listed on the Kospi with fiscal years ending in December totaled 35.1 trillion won ($23.8 billion) in 2025, an increase of 15.5 percent from a year earlier, according to data from the Korea Exchange (KRX).

The numbers represent four straight years of gains, the bourse operator said.

The average dividend yields, or the annual cash dividends paid by a company relative to its stock price, were 2.3 percent for common stocks and 3.06 percent for preferred stocks.

Dividend yields are used to measure the annual income generated by a stock relative to its share price.

"We are seeing many listed companies make efforts to enhance shareholder returns by expanding cash payouts and maintaining dividend policies," the KRX said.

Among companies listed on the secondary Kosdaq whose fiscal year ended in December, 666 companies paid out a combined 3.1 trillion won in dividends last year, up 34.8 percent on year.

The number of dividend-paying firms rose 8.8 percent from the previous year, a new record, the stock exchange said.

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