Investors will now be able to confirm dividend amounts before investing in quarterly dividends. (Image courtesy of Korea Bizwire)
SEOUL, Feb. 17 (Korea Bizwire) — The South Korean Financial Supervisory Service (FSS) announced on February 16 that investors will now be able to confirm dividend amounts before investing in quarterly dividends, following recent regulatory changes.
The amendment to the Capital Markets Act, which took effect this year, removed provisions that had fixed quarterly dividend record dates to the end of March, June, and September. This change allows companies to set dividend record dates after board approval of dividend amounts, giving investors more transparency.
This reform follows the government’s 2023 initiative to improve dividend procedures by separating shareholders’ meeting voting rights record dates from dividend record dates, and requiring dividend record dates to be set after shareholders’ meetings.
By the end of 2024, 43.2% of listed companies (1,008 firms) had amended their articles of incorporation to accommodate these changes, with 109 companies already implementing the new procedures for year-end dividends.
The FSS has urged listed companies to revise their articles of incorporation at upcoming regular shareholders’ meetings to allow board-level decisions on quarterly dividend record dates. Companies that modified their articles last year for year-end dividends must still make additional amendments at regular shareholders’ meetings to implement quarterly dividend changes.
Companies that have already amended their articles must disclose in periodic reports their dividend decision-making process, compliance with improved dividend procedures, future plans, and details about year-end dividend implementation during the reporting period, including dividend confirmation dates and record dates.
The FSS advised investors to verify dividend record dates and amounts on the websites of the Korea Exchange, Korea Listed Companies Association, and KOSDAQ Association before making investment decisions related to dividends.
M. H. Lee (mhlee@koreabizwire.com)
