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| From left, NH Securities & Investment CEO Chung Young-chae, KTB Investment & Securities CEO Lee Chang-keun, Eugene Investment & Securities Yoo Chang-soo, and IBK Securities CEO Suh Byung-ki / Courtesy of each company |
By Anna J. Park
Most local securities firms have announced increased dividend payouts for shareholders based on record-high profits from last year's stock market boom. The investor-friendly measures are being unveiled during the annual shareholders' meeting season that lasts until the end of this month.
Meritz Securities kicked off this year's shareholders' meeting season last Thursday. The brokerage boosted its cash dividends this year by 64 percent compared to 2020 to 222.7 billion won ($196.4 million).
NH Investment & Securities also decided at its shareholders' meeting on Thursday to allocate 210.7 billion won in dividends, which translates into a dividend of 700 won per common share and 750 won per preferred stock. This is a 40 percent increase from last year's dividend per share. The firm's dividend payout ratio has increased to 36.51 percent from 31.7 percent in 2020.
KTB Investment & Securities also held its shareholders' meeting on Thursday, along with other subsidiaries of KTB Financial Group.
Choi Seok-jong, the previous CEO of the brokerage arm of the financial group, was promoted to vice chairman of the group, while Lee Chang-keun, who used to lead the brokerage firm's investment banking division, was appointed as CEO. Lee has more than three decades of experience in the brokerage business, ranging from bonds to investment banking. He is expected to lead KTB Investment & Securities' into a new period of growth.
KTB Investment & Securities has decided to pay 150 won per common share, totaling 8.9 billion won. It is the second consecutive time that the brokerage firm has paid dividends, since the firm's launch back in 2008. The company distributed dividends for the first time last year.
eBest Investment & Securities also decided to pay an increased amount of dividends based on last year's sound performance. The brokerage will pay a total of 32.1 billion won in dividends, which is a whopping 84.8 percent hike from last year. Shareholders will receive 550 won per share, and eBest Investment topped the list of local securities companies whose dividends have increased the most from last year.
Eugene Investment & Securities, which also held its shareholders' meeting on Thursday, decided to give out 120 won per common share to total 11.2 billion won. This is a 71.4 percent increase from last year's 70 won in dividends per share.
Yuanta Securities also plans to offer dividends for the first time, since it was acquired by Yuanta Group in 2013. A total of 26.3 billion won out of the firm's annual net profit of 105 billion won will be distributed to shareholders. Each shareholder will receive 125 won per common share, and 175 won per preferred share.
IBK Securities, meanwhile, is scheduled to hold its shareholders' meeting on March 26.
The brokerage subsidiary of state-run Industrial Bank of Korea (IBK) plans to seek final approval for its plan to pay a total dividend of 16.2 billion won ― or 170 won per common share ― at Friday's shareholders' meeting. That's up 13.3 percent from last year's dividend, while the dividend payout ratio stands at 20.21 percent.
IBK, the largest shareholder of its brokerage arm, is also expected to garner a profit from the dividends. The state-run lender owns more than 87.8 percent of the securities subsidiary's stakes as of the end of last year.
Launched in 2008, IBK Securities started to see net profits from 2012. Since 2018, the brokerage has been continuously paying dividends to shareholders, and this year's total amount of dividends represents a more than 70 percent increase from 2018.
Kiwoom Securities will also hold its shareholders' meeting next Monday. The online-only securities firm is one of the biggest beneficiaries of the recent stock market boom, as it saw a huge influx of new customers. Last year alone, more than 3.3 million new accounts were created, while another 1.74 million new accounts were made during the first three months of this year.
The company's dividends will also rise to 3,000 won per share, a 50 percent jump from last year.
Current CEO Lee Hyun, whose three-year term ends this month, is expected to be re-appointed to the top position at the shareholders' meeting, as he led the firm's solid growth during the past three years. Last year, in particular, saw a 94.7 percent year-on-year increase with an annual net profit of 557 billion won.
