Government Dividend Income in 2020 Reaches 1.404 Trillion Won... Down 34.2 Billion Won from Previous Year

Average Dividend Payout Ratio 32.58%... Up 0.1%P YoY
22 of 39 Companies Hit by COVID-19... 3 Extended Payment Deadlines to October

[Asia Economy Reporter Kwangho Lee] Dividends received from investee institutions in which the government holds shares decreased by 34.2 billion KRW compared to the previous year. However, the average dividend payout ratio slightly increased.

On the 20th, the Ministry of Economy and Finance announced the dividend results of government investee institutions for 2020. Among 39 government investee institutions, 22 paid dividends to the government. Among them, Korean Broadcasting System (KBS) and Korea Rural Community Corporation were added this year as dividend-paying institutions after being non-dividend institutions last year, while 88 Tourism Development Co., Ltd., which turned to a deficit this year, was excluded from the dividend target.

The total government dividends amounted to 1.404 trillion KRW, a decrease of 34.2 billion KRW from the previous year due to a decline in net income of investee institutions. However, the average dividend payout ratio rose by 0.1 percentage points to 32.58% compared to the previous year.

By jurisdiction and accounting, the Ministry of Economy and Finance's general account was 606.9 billion KRW, and the special accounts and funds under the relevant ministries were 797.1 billion KRW.

So far, 18 institutions have paid 930.7 billion KRW in dividends into the national treasury.

Incheon International Airport Corporation, Korea Airports Corporation, and Korea Expressway Corporation (totaling 473.2 billion KRW) extended the payment deadline to October due to cash flow deterioration caused by the spread of the novel coronavirus infection (COVID-19). KBS (100 million KRW) plans to pay after the National Assembly's settlement approval in the second half of the year in accordance with the Broadcasting Act and other regulations.

The government decided to commend excellent dividend-paying institutions for the first time this year to encourage sincere dividend payments by investee institutions. Considering dividend payout ratios and performance, three institutions were selected: Incheon International Airport Corporation, Export-Import Bank of Korea, and Korea Airports Corporation.

A Ministry of Economy and Finance official said, "We plan to continue strengthening incentives so that investee institutions can actively pay dividends."

This content was produced with the assistance of AI translation services.