Top 5 High-Dividend Stocks in Korea (As of March 2025)
Investing in high-dividend stocks is a sound strategy for generating stable passive income. As of March 2025, here are five of the most reliable and rewarding high-dividend stocks listed on the Korean stock market, including their business characteristics, investment strategies, and expected dividend returns.
1. Korea Electric Power Corporation (KEPCO)
KEPCO is Korea’s state-run electric utility company, responsible for the generation and distribution of electricity nationwide. It maintains a stable revenue stream, relatively unaffected by economic cycles. In 2024, its dividend yield was approximately 6.5%, with a dividend of KRW 3,250 per share.
Due to the nature of the electricity industry, KEPCO offers steady cash flow, but investors should monitor energy policies and electricity rate adjustments. Long-term holding is recommended to maximize dividend income, although attention should be paid to stock price volatility.
2. POSCO Holdings
POSCO Holdings is a global steelmaker with a consistent dividend policy. Its 2024 dividend yield was about 5.8%, with a dividend payout of KRW 10,500 per share. While the steel industry is cyclical and affected by global economic conditions and raw material prices, POSCO is expanding into eco-friendly steel production and new businesses. Investors should track global steel demand and input cost trends. Alongside steady dividends, POSCO also offers growth potential in capital gains for long-term investors.
3. KT&G (Korea Tobacco & Ginseng Corporation)
KT&G is Korea’s leading tobacco and health product company. With a stable and highly profitable business model, it pays consistently high dividends. In 2024, the dividend yield was around 5.5%, and the dividend payout was KRW 4,800 per share. The company faces regulatory and tax challenges but offsets this with expansion into overseas markets and diversified product development. Investors should pay attention to changes in regulation and consumer trends. KT&G offers a strong combination of high dividends and capital appreciation potential.
4. Hana Financial Group
Hana is one of Korea’s largest financial holding companies, offering a wide range of services including banking, securities, and insurance. In 2024, the dividend yield stood at approximately 5.2%, with a dividend of KRW 2,200 per share. The financial industry is sensitive to interest rates and macroeconomic conditions. Hana is also focusing on digital transformation and overseas expansion. Investors should watch interest rate trends and economic indicators. Its stock offers both solid dividend income and long-term growth potential.
5. SK Telecom
SK Telecom is Korea’s largest telecommunications provider and has a reliable cash flow thanks to its wide subscriber base. In 2024, the dividend yield was about 5.0%, with a dividend of KRW 5,000 per share. With stable revenues and expansion into 5G and new tech-driven business areas, SK Telecom presents a solid dividend investment. However, investors should be aware of competitive dynamics, tech innovation, and regulatory changes in the telecom industry.
Recommendation: KT&G as the Most Balanced High-Dividend Stock
Among these, KT&G is the most recommended for foreign investors seeking a combination of income stability and long-term capital growth. Here's why:
- Sustainable Dividend Policy: KT&G has maintained a payout ratio of around 60–70% in recent years. Unless its earnings fall sharply, dividends are likely to remain stable or grow.
- High Cash Reserves: The company is effectively debt-free and generates strong cash flow, ensuring reliable dividend payouts regardless of economic fluctuations.
- Global Expansion: KT&G is rapidly increasing exports to the Middle East, Southeast Asia, and India, with strategic alliances enhancing its global footprint.
- Resilience: The tobacco industry’s low cost structure and high cash generation make it relatively recession-proof.
- Dividend & Growth Combo: Investors can enjoy a consistent 5%+ annual dividend yield while benefiting from long-term share price appreciation.
This makes KT&G a highly attractive core holding in any dividend-focused portfolio, especially for those looking to invest in Korea’s stable and mature companies.
Conclusion
These high-dividend Korean stocks are appealing for investors seeking steady income with the possibility of capital appreciation. However, dividend yields alone should not be the sole criterion for investment. Investors must carefully analyze each company's financial health, industry outlook, and macroeconomic factors.
Dividend policies are subject to change based on corporate performance, so it's essential to stay updated with the latest data from financial statements and investor relations reports.
If you’re building a Korea-focused dividend portfolio, KT&G can serve as an anchor stock, with other selections like POSCO or SK Telecom adding diversification and industry balance.
Let me know if you'd like a portfolio guide or comparison with Korean dividend ETFs as well.
댓글