In Sejong, where central government ministries are clustered, word on the 8th was that "the government will become a 'dividend rich' this year." When public institutions in which the government has invested turn a profit, the government receives dividends from them. This money flows into the treasury every April. If the invested institutions perform well, dividends increase, becoming a tidy revenue source for the government.
Dividends are also set to arrive one after another this month. First, Korea Electric Power Corporation will deposit 179.9 billion won in dividends to the government. That is more than seven times last year's dividends (24.9 billion won). KEPCO's dividends increased thanks to last year's electricity rate hikes and a downward trend in international oil prices. KEPCO's net profit last year (873.72 billion won) rose 141.2% from the year before. This round of KEPCO dividends is also the second largest on record after 2016 (362.2 billion won). In 2016, KEPCO conducted a large dividend payout with one-off revenue from selling its headquarters site in Samseong-dong.
Major policy banks are also signaling record-high dividends. Korea Development Bank (KDB), the Export-Import Bank of Korea, and IBK Industrial Bank will pay a total of 1.854 trillion won in dividends to the government this month. That is a 19.9% increase from last year. Banks overall booked substantial interest income and other gains last year. In addition, the government's high equity stakes in these three policy banks mean a significant share of profits goes straight into the treasury. The government's equity in KDB, the Export-Import Bank, and IBK is 100%, 76.8%, and 59.5%, respectively.
Meanwhile, the government expects the aggregates of dividends from 40 invested institutions this year to be the largest ever. The year with the most dividends from invested institutions previously was 2022 (2.4541 trillion won). This time, the dividends from KEPCO, KDB, the Export-Import Bank, and IBK alone top 2 trillion won. A government official said, "On top of excess tax revenue, government dividends are also expected to help expand non-tax income and add somewhat to fiscal capacity."
Some also view the Lee Jae-myung administration's expansionary fiscal stance as having connected to the increase in dividends. Before deciding on dividends, invested institutions hold prior consultations with the government. In this process, not only performance but also government fiscal needs can influence the dividend payout ratio.
The government plans to announce the "2026 government-invested institutions' dividend results" in May.