Samsung Electronics and 6 Others Distribute Dividends Exceeding 1 Trillion Won... Lee Jae-yong to Receive 257.7 Billion Won

Leaders Index Analysis... Total Dividends of 53 Companies Reach 28 Trillion Won
Samsung 9 Trillion Won · SK Hynix and Others with Trillion-Won Dividends
Samsung Family Members Rank 1st to 3rd Individually

[Image source=Yonhap News]

[Asia Economy Reporter Lee Hye-young] It has been found that seven companies, including Samsung Electronics, allocated more than 1 trillion KRW for dividends in 2021. The highest individual dividend was received by Samsung Electronics Vice Chairman Lee Jae-yong, amounting to 257.7 billion KRW, with the three siblings of the Samsung family, including Vice Chairman Lee, ranking first to third consecutively.

On the 15th, Leaders Index, a corporate analysis research institute, surveyed 53 companies among the top 100 listed companies by market capitalization that announced dividend plans (quarterly, semi-annual, year-end) by the 11th. The total dividends for the 2021 fiscal year were calculated at 28.545 trillion KRW.

The total dividends of these companies decreased by 14.4% compared to the previous year (33.332 trillion KRW). Leaders Index explained that this was due to Samsung Electronics' dividend in the previous year having increased by more than 10 trillion KRW compared to 2019. In fact, excluding Samsung Electronics, the total dividends amounted to 18.7356 trillion KRW, a 44.2% increase from the previous year (12.9994 trillion KRW).

Last year, seven companies exceeded 1 trillion KRW in total dividends: Samsung Electronics, Hyundai Motor, POSCO, Kia, KB Financial Group, SK Hynix, and Shinhan Financial Group. In 2020, Samsung Electronics was the only company with dividends exceeding 1 trillion KRW, but six more companies joined this group within a year.

The company with the highest total dividends in 2021 was Samsung Electronics, deciding on 9.0894 trillion KRW in dividends. Although this dividend amount decreased by 51.8% compared to the record high in 2020 (20.338 trillion KRW), it is similar to the average of previous years.

Hyundai Motor, ranked second, will distribute 1.3006 trillion KRW in dividends, a 65.6% increase from the previous year. POSCO, ranked third, announced dividends of 1.2856 trillion KRW, a 107.3% increase from the previous year.

Kia ranked fourth, deciding to distribute 1.2027 trillion KRW in dividends, about three times the previous year. Combined dividends of Hyundai Motor and Kia amount to approximately 2.5 trillion KRW.

Financial holding companies such as KB Financial Group (5th with 1.1145 trillion KRW), Shinhan Financial Group (7th with 1.0467 trillion KRW), and Hana Financial Group (9th with 903.8 billion KRW) also significantly increased their dividends amid strong performance. Among the four financial holding companies, except for Woori Financial Group (12th), the other three were included in the top 10.

Since the financial authorities lifted the recommendation to limit the dividend payout ratio to within 20% for bank holding companies from July last year, the dividend payout ratio has significantly increased.

SK Hynix ranked sixth, allocating 1.0058 trillion KRW for dividends. LG Chem ranked eighth with 935.2 billion KRW, a 20.2% increase from the previous year, and SK Telecom ranked tenth with 701.7 billion KRW, similar to the previous year.

Leaders Index explained, "Despite the COVID-19 pandemic continuing for more than two years and recent stock prices declining, large corporations that have achieved results are actively implementing shareholder-friendly policies."

Samsung Electronics Vice Chairman Lee Jae-yong is returning to Korea on the 24th through the Seoul Gimpo Business Aviation Center at Gimpo Airport in Gangseo-gu, Seoul. Vice Chairman Lee, who departed on the 14th, is reported to have held various discussions with key executives of major local companies during his visit to the United States, his first in five years. Photo by Kim Hyun-min kimhyun81@

The top individual dividend recipient was Vice Chairman Lee Jae-yong, receiving a total of 257.7 billion KRW in dividends from five companies. This is an increase of 83.6 billion KRW compared to the previous year.

Second place was Lee Boo-jin, President of Hotel Shilla, receiving 117.7 billion KRW, and third place was Lee Seo-hyun, Director of Samsung Welfare Foundation, receiving 86.6 billion KRW. Hong Ra-hee, former director of Leeum, recorded 49.5 billion KRW, ranking ninth among individuals, with a decrease in dividends compared to the previous year due to the sale of shares to pay inheritance tax for the late Chairman Lee Kun-hee.

SK Chairman Chey Tae-won ranked fourth with 84.3 billion KRW, an increase of 6.3 billion KRW, and Hyundai Motor Chairman Chung Eui-sun ranked fifth with 78.7 billion KRW, an increase of 20.4 billion KRW.

Others in the top 10 individual dividend recipients included Chung Mong-joon, Chairman of Asan Foundation (77.7 billion KRW), Chung Mong-koo, Honorary Chairman of Hyundai Motor (70.9 billion KRW), Koo Kwang-mo, Chairman of LG (70.2 billion KRW), and Koo Bon-joon, Chairman of LX Group (33.9 billion KRW).

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