What it is
The company pays its dividend in shares rather than cash. Holders receive new shares in proportion to what they own, the company keeps its cash, and the share count rises. Korean company law caps how much of a dividend may be paid this way.
How it differs from a bonus issue
Both hand shareholders free shares, but the source differs. A stock dividend distributes the year’s earnings in share form instead of cash, while a bonus issue moves capital surplus into paid-in capital as an accounting step. A stock dividend is taxed as dividend income; a bonus issue is not a dividend and is not taxed as one.
Share count and price
Because the share count rises, per-share value is divided accordingly and the reference price is adjusted much as it is on an ex-dividend date. As with a bonus issue, nothing about the company’s value has changed.
Where to check it
The dividend decision filing states whether the payout is cash or shares, how many shares per share held, and when the new shares list. This site groups dividend filings by company.
This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.