April 26, 2024

• 

The government said on Feb. 27 that it will lower the dividend payouts of 21 state-run companies to help spur their investments.

The dividend payout ratio, referring to a percentage of earnings paid to shareholders in dividends, will be slashed to about 31 percent for this year, compared with 35 percent last year, according to the Ministry of Economy and Finance.

The ministry estimated the combined net profits of the 21 companies could reach 9.46 trillion won (US$8.46 billion) in fiscal year 2018, up 558.4 billion won from a year earlier.

But the ministry said dividend payouts of the 21 companies will fall to about 1.42 trillion won this year, compared with 1.8 trillion won in 2018.

The move is intended to help public companies secure money for investments, including the creation of a fund for innovation-led growth.

By Ram Garikipati and newswires (ram@heraldcorp.com)