As the KOSPI extends its record-high rally, individual investors who feel fear in a volatile market are turning to dividend stocks. Moving away from the old practice of confirming dividend rights uniformly at the end of December, a structure is spreading in which the dividend amount is fixed first and then the record date is set, creating "last-minute dividend" demand even at the start of the year.
According to the Korea Exchange (KRX) market data system on the 20th, the "KOSPI200 volatility index (VKOSPI)," known as Korea's fear gauge, closed at 43.87, up 1.31 points (3.08%) from the previous trading day. The KOSPI index has risen for four straight sessions since the 12th, when it jumped more than 3% and broke through the 5,500 level. While the KOSPI index keeps hitting a record high day after day, it means investor anxiety has increased.
In this environment, individuals are buying shares centered on stocks with upcoming dividend record dates. Because holding at least one share on the record date entitles investors to dividends, a short-term holding strategy is also possible. The domestic stock market uses a T+2 settlement structure, in which settlement occurs two business days after the transaction execution date, so investors must buy by two days before the record date to receive dividends.
Recently, the dispersion of dividend record dates into February and March has also spurred capital inflows. In the past, most settlement of account dividend rights were confirmed based on Dec. 31, but as the financial authorities since 2023 have encouraged improvements to the dividend process under a "confirm dividend amount first, designate record date later" method, record dates are trending toward being spread throughout the year.
According to the Korea Listed Companies Association, the number of corporations with dividend record dates this month is 69. That is a 28% increase from 54 in February 2025. The number of corporations with dividend record dates in March is 95.
In particular, interest in financial stocks is high this year in line with the implementation of the separate taxation system for dividend income. For corporations whose payout ratio exceeds 40%, or whose payout ratio is at least 25% and whose dividend amount increased by 10% or more from the previous year, a separate tax rate of 14% to 30% applies to dividend income.
Among financials, Hana Financial Group and Woori Financial Group are seeing buying interest ahead of the Feb. 27 dividend record date. The two stocks climbed 31.17% and 34.9%, respectively, in February alone. Hana Financial Group's 2025 payout ratio is 28% and 31.8%. KB Financial, JB Financial Group and BNK Financial Group also have a Feb. 27 dividend record date.
Attention is spreading not only to traditional high-dividend stocks but also to tech names. SK hynix will pay a dividend of 1,875 won per share to shareholders who hold the stock through Feb. 28. Hyundai Motor will also pay a dividend of 2,500 won to shareholders who hold the stock through the 28th.
Funds are also flowing into exchange-traded funds (ETFs). Over the past week, PLUS High Dividend Stocks attracted 43.9 billion won, ranking seventh among all ETFs. PLUS High Dividend Bond Mix and KODEX Shareholder Return High Dividend Stocks ranked 13th and 16th, respectively, drawing 24.6 billion won and 22.6 billion won.
Yeom Dong-chan, an analyst at Korea Investment & Securities Co., said, "As the dividend income tax cut will apply starting in 2026, selective approaches are needed this February to March for corporations with dividend record dates," and added, "Among corporations with a high fourth-quarter dividend proportion, investors should focus on stocks that, even if bought now, will still pay a year-end dividend."