What it is
Payout ratio = total cash dividends ÷ net profit. A company earning KRW 100bn that pays KRW 30bn in dividends has a 30% payout ratio. Korean annual reports disclose it, usually on a consolidated basis.
How to read it
A higher ratio means more of the profit goes back to shareholders; a lower ratio means more is reinvested or used to pay down debt. Banks, telecoms and utilities tend to be higher; growth industries lower.
What to keep in mind
Above 100% the company paid out more than it earned, which is hard to sustain. A one-off profit drop can spike the ratio, so check whether dividends per share have held or grown over several years.
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This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.