Korean corporations' dividend payout system to follow global standards 

 來源: 開云體育手機app下載 時間: 2023-02-02 11:40:40

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By Anna J. Park

Investors will be able to decide next year whether to buy the stocks of Korean companies based on the exact size of their dividend payouts, just like in major financial markets' dividend payout systems such as in the U.S. and France.

The Financial Services Commission (FSC) announced Tuesday that it will take steps to overhaul the local dividend payout system to make it compatible with global standards. The FSC, in conjunction with other related entities such as the Ministry of Justice and the Korea Exchange (KRX), plans to propose revisions to the country's capital market law in the second quarter of this year, so that the dividend payout system can be changed as early as next year.

"When the country's dividend payout system is improved so that investors can make investment decisions based on dividend amounts ― as is the global standard ― it is expected to contribute to attracting further investments from global investors," the FSC explained. "The changed system will also make investors more conscious of dividends, which will result in corporations raising their dividend payouts."