Samsung Electronics said on Jan. 29 it will pay a special dividend of 1.3 trillion won for its 2025 fourth-quarter results. The special dividend comes 5 years after the company paid 10.7 trillion won in addition to its regular dividend for the fourth quarter of 2020. The special dividend lifts the fourth-quarter dividend to about 3.75 trillion won. Total annual dividends amount to 11.1 trillion won.

The dividend per share for the fourth quarter rose to 566 won in 2025 from 363 won in 2024. The annual total increased to 1,668 won from 1,446 won. Samsung Electronics is paying cash dividends of about 2.45 trillion won per quarter, or 9.8 trillion won a year, under its 2024 to 2026 shareholder return policy.

The dividend reflects a decision intended to meet the introduction of a separate taxation system for dividend income. Under the system, shareholders of listed companies that meet the legal requirements for a "high-dividend listed company" are taxed on dividend income at a lower rate than the general comprehensive income tax rate. The top rate is 30 percent, below the 45 percent top rate for comprehensive income tax.

From this year, separate taxation can apply at 14 percent on dividend income up to 20 million won, 20 percent on 20 million won to 300 million won, 25 percent on 300 million won to 5 billion won, and 30 percent on amounts exceeding 5 billion won. To qualify as a high-dividend listed company, cash dividends must not decline from the previous year, and either the dividend payout ratio must be at least 40 percent or the payout ratio must be at least 25 percent with the dividend amount up at least 10 percent from the previous year.

Samsung Electronics met the requirements for a high-dividend listed company through the special dividend. Reflecting the special dividend, its dividend payout ratio is 25.1 percent. Samsung Electronics has about 5,049,000 minority shareholders. Shareholders will enjoy both higher dividend income and tax benefits at the same time, the company explained.

Samsung Electro-Mechanics, Samsung SDS and Samsung E&A will also join the one-off special dividend for the fourth quarter. Their annual dividends including the special dividend are 177.7 billion won for Samsung Electro-Mechanics, 246.7 billion won for Samsung SDS and 154.8 billion won for Samsung E&A. Their dividend payout ratios are 25.2 percent, 32.5 percent and 25.1 percent, respectively, meeting the requirements for a high-dividend listed company. Other listed affiliates including Samsung Life Insurance, Samsung Fire & Marine Insurance, Samsung Securities, Samsung Card, Cheil Worldwide and S-1 already meet the requirements for a high-dividend company.

Samsung Electronics has paid cumulative cash dividends of more than 100 trillion won from 2014 through the third quarter of 2025. Since listing on the domestic securities market in 1975, it has paid cash dividends every year except 1980, when it recorded a net loss due to the oil shock. It later announced a policy in 2016 to use 50 percent of free cash flow as resources for shareholder returns. It began quarterly dividends in 2017, increasing the number of annual dividend payments to 4 from 2.