Hyundai Genesis (Image courtesy of Yonhap)
SEOUL, May 30 (Korea Bizwire) – South Korea’s automakers led all industries in cash dividends paid to shareholders last year, reflecting a boom in exports and demand for eco-friendly vehicles even as a global chip slump weighed on technology giants.
Listed companies distributed a total of 29.5 trillion won in cash dividends for 2023, up 3.3% from a year earlier, according to data released on May 29 by the Korea Securities Depository.
The automotive sector, anchored by Hyundai Motor and Kia, paid out a record 4.4 trillion won in dividends. That exceeded payouts by holding companies (3.7 trillion won), semiconductor manufacturers (3 trillion won) and insurers (1.2 trillion won).
A year earlier, holding companies had topped the dividend rankings, followed by chipmakers, automakers and insurers.
The reversal highlights how a protracted slump in semiconductor prices has weighed on major Korean tech companies even as carmakers have benefited from robust overseas sales and soaring appetite for electric vehicles.
Among individual listed firms, Samsung Electronics paid the largest cash dividend of 2.5 trillion won. But Hyundai and Kia combined distributed 4.4 trillion won – nearly double Samsung’s payout and accounting for the overwhelming majority within the auto sector.
While the benchmark KOSPI index rose 18.7% in 2022, cash dividends by KOSPI-listed companies increased just 4.2%, reflecting headwinds from the semiconductor downturn.
Other major dividend payers included Samsung Fire & Marine Insurance and Samsung Life Insurance, part of the Samsung conglomerate, which each paid over 600 billion won to shareholders.
Kevin Lee (kevinlee@koreabizwire.com)
