South Korea’s Financial Services Commission announced that the government has approved amendments to the Enforcement Decree under the Act on Restriction on Special Cases Concerning Taxation, requiring “high dividend companies” to disclose information demonstrating that they meet the requirements for special tax treatment related to stock dividend income. The disclosure must be made through corporate value-up plans. High dividend companies must file corporate value-up plans with the Korea Exchange at the end of each fiscal year-end closing and no later than one day after dividends are declared at the annual general meeting of shareholders. Beyond required dividend-related fields, firms retain discretion over the additional content and how to reflect relevant criteria, and an abridged first-year filing format will be permitted covering key items including tax-qualification status, return on equity, a dividend payout ratio target, and a capital expenditure target. The Korea Exchange will update disclosure forms and provide abridged filing examples in its guidelines, and will run online information sessions on March 4 and March 9 alongside further outreach and one-on-one consultations to support firms ahead of end-of-March AGM timelines.
South Korea Financial Services Commission 2026-02-24
South Korea Financial Services Commission mandates corporate value-up plan disclosures for high dividend companies seeking stock dividend tax benefits
South Korea's Financial Services Commission approved amendments to the Enforcement Decree under the Act on Restriction on Special Cases Concerning Taxation, requiring "high dividend companies" to disclose compliance with special tax treatment for stock dividend income. These disclosures, filed as corporate value-up plans with the Korea Exchange, must be submitted by fiscal year-end and within a day after dividend declarations. The Korea Exchange will update disclosure forms and provide guidance, including abridged filing examples.