The overall value of midterm dividends paid out by South Korea's listed companies is unlikely to meet last year's level despite improved earnings performances, the main stock exchange said Sunday.
Twenty-three out of 34 listed firms that plan to deliver midterm dividends for their earnings results in the January-June period have paid out a combined 663.6 billion won ($595 million) to their shareholders. Given this, even if the remaining 11 firms complete their dividend payouts, the total midterm dividends are unlikely to reach last year's level of more than 1 trillion won, according to data from the Korea Exchange.
Out of the 34 firms, 17 are listed on the main KOSPI market and six are listed on the tech-heavy KOSDAQ market. Last year, 25 KOSPI companies and nine KOSDAQ firms delivered 1.057 trillion won in midterm dividends, the data showed.
Although the government has urged listed firms to pay more dividends to enhance shareholders' value, many companies still appear to be reluctant to be aggressive in dividend payouts due to a prolonged economic slowdown.
Instead, they have postponed making major investments in facilities due to weak demand and put aside a sizable amount of money in their coffers in preparations for any further downturns in the economy.
The Bank of Korea has recently lowered its growth outlook for Asia's fourth-biggest economy to 2.7 percent this year, little changed from last year's growth of 2.6 percent and sharply down from 3.3 percent growth in 2014.
For example, S-Oil Corp. has decided to halve the size of midterm dividends to 58.2 billion won this year from 128 billion won a year earlier despite solid earnings in the January-June period, the KRX said.
The country's third-biggest oil refiner posted a 37 percent on-year jump in its first-half net profit to 878.5 billion won from 640.05 billion won a year earlier, according to a regulatory filing.
Woori Bank has decided not to pay midterm dividends this year despite a 43 percent on-year gain in its first-half net profit. Its net income climbed to 757.79 billion won in the first six months, the main bourse said. (Yonhap)
