Last Year's Fund Dividend Income Approximately 27 Trillion Won... 36% Reinvested

Profit Dividends Up 6.7% Year-on-Year
Fund Initial Setup Amount, 52 Trillion... Down 9%

Last year, the dividend payments from funds amounted to approximately 27 trillion KRW, showing a 6.7% increase compared to the previous year. While dividends from public offering funds surged significantly, those from private equity funds decreased.

According to the Korea Securities Depository on the 6th, the total dividend payments from funds last year reached 26.9169 trillion KRW, up 6.7% from 25.2382 trillion KRW the previous year. Among these, public offering funds paid 4.3511 trillion KRW in dividends, a 65.3% increase, whereas private equity funds paid 22.5658 trillion KRW, a 0.2% decrease.

For public offering funds, dividend payments increased in money market funds (MMF) and bond/bond-mixed funds. Conversely, private equity funds saw dividend payments decline across all categories except bond/bond-mixed funds, including MMF, equity/equity-mixed, real estate/special assets, and others.

Of the total dividend payments last year, 9.7884 trillion KRW was reinvested into the respective funds, accounting for 36.4% of the dividends. Among the reinvested amounts, public offering funds reinvested 3.7527 trillion KRW, and private equity funds reinvested 6.0357 trillion KRW. The reinvestment rate, defined as the ratio of reinvested amount to dividend payments, was 86.2% for public offering funds and 26.7% for private equity funds.

The low reinvestment rate for private equity funds is attributed to the high proportion of dividends from real estate and special asset types, which are difficult to reinvest.

New fund subscriptions last year totaled 51.8671 trillion KRW, a 9% decrease from the previous year. Meanwhile, liquidation distributions increased by 2.6% to 30.8278 trillion KRW.

New subscriptions for public offering funds amounted to 4.7504 trillion KRW, and liquidation distributions were 3.3172 trillion KRW, marking increases of 26.7% and 67.7%, respectively, compared to the previous year. For private equity funds, new subscriptions were 47.1167 trillion KRW, and liquidation distributions were 27.5106 trillion KRW, representing decreases of 11.5% and 2%, respectively.

The increase in new subscriptions for public offering funds was driven by MMFs, while the surge in liquidation distributions was mainly from derivative product types. For private equity funds, new subscriptions sharply declined in the real estate and special asset categories. Although liquidation distributions increased in bond/mixed types, decreases in real estate/special assets and other categories led to an overall decline.

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