Korea’s four major financial groups have been paying high dividends to shareholders compared to those paid by other listed companies, financial industry data showed Thursday.
As foreigners account for a great portion of their shareholding structure, there has been anxiety over a capital flight in the banking industry and possible harming of soundness of the financial groups.
KB Financial posted 46.6 percent in the ratio of dividend payout to the group’s net profit, according to the data compiled by FNGuide Inc., a financial information provider.
Shinhan Financial saw the ratio come to 24.6 percent, followed by Woori Financial with 16.8 percent and Hana Financial with 14.5 percent.
Their ratios far surpassed the average dividend payout ratio of 16.25 percent for local companies listed on the main bourse. The ratio for Hana Financial stood at 14.5 percent.
By amount, the four financial companies offered a combined 975.4 billion won ($909 million) in dividends last year.
Shinhan Financial paid out the largest dividend of 586.2 billion won, followed by Woori Financial with 201.5 billion won, and Hana Financial with 146.5 billion won. KB Financial doled out 41.1 billion won in cash to shareholders.
Regulatory officials, including Financial Supervisory Service Gov. Kwon Hyouk-se, have continued to express skepticism toward major financial groups’ plan to offer its shareholders generous dividends.
“Though it is important to maximize shareholder rights, it is also important for financial companies to protect customer rights,” a senior FSS official said.
They said it would be desirable for major financial groups to discuss the issue of dividends after carrying out social activities and financing for the low-income bracket.
Many analysts fear that the situation is spurring concerns about massive capital outflow in the local banking industry increasingly tapped by foreign investors.
Apart from state-run Woori Financial Holdings, where foreign ownership is about 20 percent, the majority stake at three other major financial institutions belongs to foreign investors.
Foreign investors currently have more than 60 percent stake in KB, Shinhan and Hana.
