Kakao Pay Securities Launches Industry-First 'Holiday Dividend Payout' Service

Overseas Stock Dividends Paid on Holidays Starting from Liberation Day
Reinvestment with Dividends Possible Even During Chuseok Holiday

Kakao Pay Securities announced on August 11 that, starting from Liberation Day on August 15, it will become the first in the industry to provide a service that pays out dividends from overseas stocks even on public holidays.

Until now, it had been standard practice across the industry that if dividends from overseas stocks were distributed on a domestic public holiday, the funds would only be credited to customer accounts on the next business day or later.

Kakao Pay Securities has built an internal system to address the inconvenience caused by dividend payout delays, allowing for dividend payments on public holidays. This enables users to reinvest dividends and manage cash flow more flexibly.

This was made possible through a proprietary dividend data extraction and upload process, developed in-house, since the Korea Securities Depository does not support the automatic rights allocation transmission system (CCF) on public holidays. Furthermore, the company unified the entire process, from payment to closing, by coordinating multiple departments, ensuring smooth dividend distribution even on holidays.

This new service goes beyond a simple system upgrade and provides substantial benefits from the user's perspective. In particular, since the US stock market operates as usual even on Korean public holidays, users will be able to reinvest their dividends and avoid missing market timing during the upcoming extended Chuseok holiday.

Dividends paid on public holidays will continue to be distributed in US dollars, just as before, and this service will be provided on an ongoing basis starting from Liberation Day.

Kakao Pay Securities stated, "As demand for dividend reinvestment continues to grow, we have proactively established a holiday payout system to enhance customer investment convenience. We will continue to seek improvements and solutions to reduce inconvenience and ensure customers never miss an investment opportunity."

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