"From This Year, Know the Dividend Amount and Invest in Quarterly Dividends Too"

Starting this year, investors will be able to know the quarterly dividend amount before the shareholder register is finalized and invest accordingly. The Financial Supervisory Service (FSS) urged listed companies to voluntarily amend their articles of incorporation to implement dividend procedures that comply with global standards.

According to the FSS on the 16th, the amendment to the Capital Markets Act this year removed the provision that set the dividend record dates at the end of March, June, and September. As a result, quarterly dividends can now have a dividend record date set after the dividend amount is confirmed to determine the shareholders eligible for dividends.

To enable investment after the dividend amount is confirmed, listed companies must amend their articles of incorporation to allow the board of directors to set the quarterly dividend record date by resolution to finalize the shareholders entitled to dividends.

Listed companies that have already amended their articles of incorporation regarding year-end dividends must also reflect amendments related to quarterly dividends in the articles at the regular shareholders' meeting to pay quarterly dividends this year.

Additionally, when the articles of incorporation are amended, companies must specify their dividend policy in regular reports so that investors can understand the related facts. This includes information on the current dividend decision-making body, whether the dividend procedure improvement measures have been implemented, future plans, and whether year-end dividends were paid during the reporting period covered by the business report.

The FSS requested companies to implement dividend procedures that meet global standards through voluntary amendments to the articles of incorporation to advance the capital market.

The FSS explained, "Investors can check the dividend record dates and dividend amounts of listed companies posted on the websites of the Korea Exchange, Korea Listed Companies Association, and KOSDAQ Association even for quarterly dividends," adding, "We plan to continue education and publicity through guidance materials and briefings to ensure smooth progress of articles of incorporation amendments and dividend decisions."