Analysis Report on Record Cash Dividends on KOSPI and KOSDAQ and the Effects of the Value-Up Policy

Market situation summary and analysis 

Backed by improved earnings and the value-up policy, Korean listed companies paid out a record total of around 38 trillion won in cash dividends to shareholders 

 

On both the KOSPI and KOSDAQ, dividend amounts and dividend yields increased significantly, showing a dramatic improvement in shareholder return ratios

 

Key points on dividend trends 

KOSPI dividends rose 15.5% to 35.1 trillion won, and KOSDAQ dividends surged 34.8% to 3.1 trillion won 

 

Both markets recorded an average market-price dividend yield of around 2.6%, easily surpassing government bond yields of around 2.4% 

 

In particular, the dividend payout ratio of companies that participated in value-up disclosures is approaching 50% on average, strongly leading the overall dividend market

 

Implications from an investor's perspective 

Stingy dividends, long cited as a cause of the Korea discount, are improving dramatically in tandem with the value-up drive 

 

Investors now have a golden opportunity to reshape their mid- to long-term investment portfolios around dividend growth stocks that generate strong cash flow and companies actively participating in value-up, going beyond simple capital gains