Govt. to encourage public firms to increase dividend payouts

By KH디지털2

Published : Feb. 21, 2017 - 09:37

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The South Korean government said Tuesday that it will revise its performance evaluation criteria for state-run companies in a way to encourage them to increase dividend payouts.

Their dividend payout ratio, referring to a percentage of earnings paid to shareholders in dividends, will be reflected in the government's annual business performance evaluation for state-run companies, according to the Ministry of Strategy and Finance.

(Yonhap)

All 321 public agencies, including the Korea Electric Power Corp. and the Korea Development Bank, are subject to the finance ministry's evaluation of their balance sheet and other managerial performances every year.

The ministry said it will revise the assessment criteria to give more emphasis on dividend payouts, and raise the payout ratio to 40 percent by 2020, up from 30.3 percent tallied in 2015.

"The public firms need to play a bigger role in meeting growing fiscal demand," Vice Finance Minister Song Eon-seog said.

The move is in line with the government's push to prod private firms to jack up dividend payouts, which are in part aimed at spurring fresh investment and reviving weak domestic demand. (Yonhap)

Govt. to encourage public firms to increase dividend payouts

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