More than $10 bln in dividends given to foreign shareholders

South Korean companies paid out a record high of more than $10 billion in dividends to their foreign shareholders last year, according to central bank and financial data Monday.
  

A total of $10.28 billion in dividend payments was sent to overseas investors in 2014, breaking the previous high of $8.18 billion in 2007, according to the data.
  

It marks the highest figure since related record keeping began in 1980.
  

Previous numbers include $490 million in 1998 and $7 billion in 2006.
  

"Dividends paid out to foreigners have been on the rise as South Korean companies' dividend payout ratios are increasing," a Bank of Korea official said.
  

Yet, the ratio for local firms stands at 22.4 percent, far below the average of 47.7 percent in other countries, according to separate data from bourse operator KRX. Dividend payout ratio refers to the proportion of earnings paid out as dividends to shareholders.
  

The South Korean government has been demanding local firms pay back investors to boost the sluggish economy by putting more money in people's pockets in the form of higher wages and dividends while increasing investment.  Better dividend is also hoped to attract more overseas investors.
  

With such pressure growing, the amount of dividend payments by local firms has been picking up, although foreign stock ownership in South Korea fell slightly to 31.7 percent as of end-2014 from 32.9 percent a year ago.
  

The top four conglomerates -- Samsung, Hyundai Motor, SK and LG -- paid 2.8 trillion won to their foreign stakeholders last year and decided to deliver 3.8 trillion won this year, up 34.7 percent on-year.
  

Financial companies, in which foreigners hold around 70 percent of the shares, have given higher compensations to their non-Korean shareholders.
  

Six leading financial holding companies, including Shinhan Financial Group Co. and KB Financial Group Inc., had paid out 3 trillion won in dividends between 2010 and 2013.
  

Another separate industry data showed that South Korean listed companies' entire dividend payouts for fiscal 2014 are estimated at 17 trillion won, up 32 percent from 13 trillion won the previous year. (Yonhap)