While the company’s financial performance has been robust, its contributions to Korean society have remained modest. (Image courtesy of Yonhap)
SEOUL, Nov. 20 (Korea Bizwire) – Costco Korea, the South Korean arm of the American wholesale giant, plans to distribute more than half of its annual net profits as dividends to its parent company, according to regulatory filings released on November 19.
The company reported operating profits of 218.6 billion won for the fiscal year ending August 2024, marking a 15.8% increase from 188.7 billion won in the previous year. Total revenue rose 7.6% to 6.53 trillion won, while net profits surged 58.1% to 224 billion won.
The strong performance is attributed to the warehouse retailer’s bulk-selling business model, which has particularly resonated with consumers seeking value amid persistent inflation.
Building on these record-breaking results, Costco Korea will maintain its high dividend payout policy to its U.S. parent company. The planned dividend payment of 150 billion won represents 67% of the company’s net profit for the fiscal year.
This follows last year’s notable dividend payment of 200 billion won, which exceeded the company’s net profit with a payout ratio of 141.2%.
While the company’s financial performance has been robust, its contributions to Korean society have remained modest. Charitable donations for the fiscal year amounted to 1.22 billion won, a mere 3.5% increase from the previous year’s 1.18 billion won.
This figure represents less than 1% of the planned dividend payment to its parent company, Costco Wholesale International, which owns 100% of the Korean subsidiary.
Costco Korea currently operates 19 stores across the country, including locations in the Seoul metropolitan area, and employs 7,351 people.
Ashley Song (ashley@koreabizwire.com)
