Gov't dividend income soars 70.5 pct this year

SEOUL, May 31 (Yonhap) -- The South Korean government's dividend income from its stakes in public companies jumped 70.5 percent this year from the previous year as their earnings improved amid the economic recovery, the finance ministry said Tuesday.

Dividend payments by 19 state-run companies to the government amounted to 2.45 trillion won (US$1.98 billion) this year, up 1.01 trillion won from a year earlier, according to the Ministry of Economy and Finance.

The increased dividend income came as state-run firms' bottom lines improved amid the economic recovery. The 19 companies, including state housing developer Korea Land & Housing Corp. and policy lender Korea Development Bank, saw their combined 2021 earnings rise 34 percent from a year ago.

The average dividend payout ratio, or the percentage of earnings paid to shareholders in dividends, came to 40.38 percent this year, up 3.46 percentage points from a year earlier.

Of the 39 state companies in which the government holds stakes, 20 public firms, including the power monopoly Korea Electric Power Corp. (KEPCO), did not pay out dividends due to net losses.

KEPCO swung to the red with a net loss of 5.6 trillion won last year due to soaring fuel costs.

sooyeon@yna.co.kr
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