The South Korean government is expecting an 11 percent on-year increase in dividends next year from state-controlled companies that have improved their earnings, a parliamentary report showed Sunday.
A budget plan submitted to the National Assembly showed the government has included 361.6 billion won ($330.6 million) as income from dividends from state-controlled companies next year, an 11.2 percent rise from this year’s 325.6 billion won.
South Korea’s fiscal year ends on Dec. 31, and companies usually announce their dividend policy early the following year.
Despite the expected increase, the 2015 estimate is still below the amount during the good years.
The government’s income from dividends slipped to 199.4 billion won in 2010 and rebounded in the next two years, rising to 433.9 billion in 2011 and 604.8 billion won in 2012. The figure sank again to 493 billion won in 2013 and 325.6 billion won this year.
The recent declines were mostly attributed to poor earnings and snowballing debt by state-owned companies, with only 17 out of 29 rewarding shareholders with dividends last year. (Yonhap)
