As securities firms enter what is described as a record boom, competition to return capital to shareholders is intensifying, with mid-sized brokerages also moving to expand dividends.

The financial investment industry said on March 17 that brokerages are announcing higher dividends one after another ahead of regular shareholders' meetings later this month.

A notable trend is that mid-sized firms, in particular, are increasing dividends more than in previous years, a key tool for shareholder returns.

LS Securities will pay a cash dividend of 500 won per common share. The total dividend will be 34.1 billion won. Its payout ratio on a consolidated basis is 148%, and the dividend increase rate from a year earlier is 131.7%, among the highest in the industry. The payout ratio is the share of net profit returned to shareholders as dividends.

Hanyang Securities, which has taken KCGI as its new controlling shareholder, will pay a dividend of 1,600 won per share. It will return 37% of net profit to shareholders as dividends. The dividend rose 67.9% from last year. Hanyang Securities is known to place importance on shareholder-friendly policies under new management following the change in controlling shareholder.

Daol Investment & Securities will pay a dividend of 240 won per share. Its payout ratio is 41%, and the dividend increase rate from a year earlier reaches 60%.

DB Securities decided on its largest-ever cash dividend of 550 won per share.

Yuhwa Securities, a traditional high-dividend brokerage, set a dividend of 220 won per share. Its payout ratio is 96%, and the dividend increase rate reaches 37.1%.

In addition, Hyundai Motor Securities will pay a dividend of 370 won per share, with a payout ratio of 40% and a dividend increase rate of 62.6%. Eugene Investment & Securities will pay 180 won per share, with a payout ratio of 26% and a dividend increase rate of 80%. Bookook Securities will pay 2,400 won per share, with a payout ratio of 47% and a dividend increase rate of 59.2%.

Despite having smaller equity capital than larger firms and differences in profit distribution from increased stock market trading, they are actively responding with shareholder return policies.

This appears to reflect the government's corporate value-up policy and its push to strengthen shareholder returns. Tax benefits from separate taxation of dividend income, which took effect this year, also had an impact.

The requirements for high-dividend companies eligible for separate taxation are divided into categories: cash dividends do not decrease from the previous year and the payout ratio is at least 40%; or the payout ratio is at least 25% and the dividend amount increases at least 10% from the previous year.

With most expanding dividends compared with previous years, they are expected to meet the government's requirements for high-dividend companies.