South Korean companies are increasingly rewarding shareholders, with mid-year dividend payouts surging in the first half of 2025—a move that may catch the attention of U.S. and global investors looking for high-quality, income-generating equities in Asia.
According to a South Korean corporate research firm, 135 of the country’s 2,688 listed companies issued mid-year dividends this year, up 26% from 107 companies last year. Total payouts rose 17% to $9.03 billion, while the average dividend yield on common shares edged up to 1.44%.
Leading the pack is Samsung Electronics, which distributed $3.53 billion in dividends, nearly unchanged from last year. Hyundai Motor followed with $937 million, marking the largest increase among major corporations. Financial institutions including KB Financial Group and Shinhan Financial Group also boosted payouts, while semiconductor giant SK Hynix raised dividends by 25%.
Notably, several companies—including HD Hyundai subsidiaries, LG, POSCO International, Hankook Tire & Technology, and Lotte Shopping—initiated mid-year dividends for the first time, signaling a broader shift toward interim shareholder returns.
Individual shareholders have seen substantial gains. Hong Ra-hee, honorary director of Seoul’s Leeum Museum, received $51.2 million, while Samsung Chairman Lee Jae-yong collected $50.8 million. Hyundai Motor Group honorary chairman Chung Mong-koo earned $51 million, up $10.5 million from last year thanks to increased dividends from Hyundai Motor.
Analysts note that South Korea’s growing commitment to dividend payouts, combined with recent legal reforms, reflects a strategic effort to enhance corporate value. While only about 5% of listed companies currently offer mid-year dividends, the trend suggests room for growth, presenting potential opportunities for international investors seeking stable returns in a dynamic Asian market.
