Last Year's Fund Dividend Payments Near 48 Trillion Won... Up 78% Compared to Previous Year

Last year, the profit dividends paid from domestic funds amounted to 47.9278 trillion KRW, representing a 78.06% increase compared to 2023.

The Korea Securities Depository disclosed this fact on the 6th through the 2024 fund aggregation status. Most of the dividends came from private equity funds, which increased by about 80% to 40.7251 trillion KRW. During the same period, dividends from public offering funds rose by 65.54% to 7.2027 trillion KRW.

By type, dividends from equity and equity-mixed funds as well as bond and bond-mixed funds all showed growth in dividend size. However, real estate and special asset types saw their dividend scale shrink by nearly 70%. Among private equity funds, equity and equity-mixed types (2.3653 trillion KRW, 249.43%) recorded the highest dividend growth rate.

In terms of dividend reinvestment, public offering funds led the way. Of the profit dividends last year, 26.2043 trillion KRW were reinvested, with the reinvestment rate for public offering funds at 90.66%, while private equity funds had a reinvestment rate of 48.48%.

The Korea Securities Depository explained that private equity funds had a relatively low reinvestment rate because the proportion of profit dividends from real estate and special asset types, which are difficult to reinvest, was high at 37.16%.

Last year, new fund subscriptions amounted to 70.7677 trillion KRW, growing 36.44% compared to 2023. However, during the same period, new subscriptions for public offering funds decreased by 8.63% to 4.3403 trillion KRW, while new subscriptions for private equity funds jumped 40.98% to 66.4273 trillion KRW.

Regarding fund liquidation distributions, approximately 37.8308 trillion KRW were paid out. Liquidation distributions refer to the distribution of remaining assets when a fund is terminated due to reasons such as the expiration of the trust contract period.