SK Corp. Sets 8,000-Won Dividend for Last Year...May Qualify as a 'High-Dividend Company' Under Separate Taxation

14% Increase from Previous Year...Clear Commitment to Shareholder Returns

SK Corp. has finalized last year's annual dividend at 8,000 won per share, up 14% from the previous year.

On the 10th, SK Corp. announced that its board of directors had resolved to pay a year-end dividend of 6,500 won per share for the 2025 fiscal year. Including the interim dividend of 1,500 won paid in August last year, the total annual dividend amounts to 8,000 won. This is 14% higher than the previous year's 7,000 won and 60% above the company’s minimum annual dividend level of 5,000 won.

In its corporate value enhancement plan disclosed in October 2024, SK Corp. stated that it would implement a stable dividend policy guaranteeing a minimum dividend of 5,000 won per share, regardless of management performance or fluctuations in recurring dividend income.

SK Corp. explained, "This year-end dividend was determined by the board after comprehensively considering the special tax treatment for dividend income from high-dividend company shares under the Special Tax Treatment Control Law, as well as our shareholder return policy."

SK Seorin Building, Jongno-gu, Seoul. Kang Jinhyung, Reporter

Accordingly, there are expectations in the market that SK Corp. may be classified as a high-dividend company through this dividend. To be recognized as a high-dividend company, a domestically listed company must not reduce its cash dividend compared with the previous year. In addition, either its payout ratio must be at least 40%, or its payout ratio must be at least 25% while increasing its dividend by 10% or more year-on-year.

Shareholders of high-dividend companies can receive the benefit of separate taxation at lower rates on their dividend income instead of comprehensive taxation. Previously, when annual dividend income exceeded 20 million won, it was aggregated with wage and business income and subject to comprehensive taxation at rates of up to 45%. Under separate taxation, a 14% tax rate applies to dividend income up to 20 million won, 20% to income over 20 million won up to 300 million won, 25% to income over 300 million won up to 5 billion won, and 30% to income exceeding 5 billion won. From this year, the government introduced this separate taxation scheme to encourage investors to participate in the domestic stock market.

The record date for the dividend is April 1, and the dividend is scheduled to be paid within one month from the date of resolution at the regular general shareholders’ meeting next month. As part of efforts to improve its dividend procedures in 2023, SK Corp. amended its articles of incorporation so that investors can confirm the dividend amount before investing.

An SK Corp. official said, "We decided to increase the dividend size as part of strengthening shareholder returns," adding, "This decision reflects our comprehensive review of ways to align with the government’s capital market vitalization policy direction and to ensure that the tax reform on dividend income can provide tangible benefits to shareholders."

Meanwhile, SK Corp. has been actively divesting investment assets while strengthening its strategy of selection and concentration in future growth areas such as artificial intelligence (AI) and semiconductors. Last year, it sold assets including semiconductor specialty gas manufacturer SK Specialty, Chinese logistics company ESR, and Vietnamese conglomerate Masan Group. As a result, SK Corp.’s net debt on a separate basis decreased from 10.5 trillion won at the end of 2024 to 8.4 trillion won at the end of the third quarter last year.

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