Investors allowed to purchase stocks after knowing dividend payout from 2024
Financial Supervisory Service Vice Governor Lee Bok-hyun speaks during a meeting in Seoul, Nov. 28. Yonhap
Some investors in Korea will be allowed to purchase stocks after knowing information about their dividend payout, including the amount of dividends paid out to shareholders, from next year, officials said Tuesday.
According to the Financial Supervisory Service (FSS), 636 companies out of the total 2,267 listed firms have finished preparations for such a change in the dividend payment system.
Currently, the last day of each year serves as the ex-dividend date for most listed firms while the firms declare the amount of their dividends much later in the following year, paying dividends to those who held their shares before the ex-dividend date.
Under the new payment system, at least the 636 firms will decide on the size of their dividends first, and then set their ex-dividend dates later, enabling new investors to purchase their shares while being aware how much they can expect in dividends.
The FSS said, "(We) ask those who have already revised their regulations to begin declaring their dividends and then decide who will receive dividends, and for many other companies to join the move by revising their own regulations," while calling the move an "important task" to enhance investor rights and benefits, and also meet global standards. (Yonhap)