795 million won vs 12,000 won... Dividend Income, Top 0.1% Takes Half

[Financial News]
During the year 2023, it was revealed that the top 0.1% of dividend income earners received an average of 795 million won per person. They accounted for nearly half of the total dividend income, amounting to 13 trillion 884.2 billion won, or 46% in proportion. On the other hand, approximately 8.73 million people, representing half of the total, recorded an average dividend income of only 12,177 won per person.  According to data submitted by Cha Kyugun, a member of the National Innovation Party (Planning and Finance Committee), from the National Tax Service on the 17th, the total dividend income for 2023 was 30 trillion 218.4 billion won, which is 2.4 times more than 12 trillion 389.5 billion won in 2014, ten years ago. However, the structure where dividend income is concentrated among the top few has not changed.
 As of 2023, the top 0.1% accounted for 46% of the total dividend income, receiving 795 million won per person. In contrast, the bottom 50% received only 12,000 won. Considering that the overall average dividend income is 3.46 million won per person, the average for the top 0.1% is 23 times higher. Even ten years ago, in 2014, the top 0.1% accounted for 47.5% of the total dividend income, maintaining the income concentration structure.
 In this situation, there is growing concern about the dividend income separate taxation system being promoted in some quarters of the National Assembly recently. Separate taxation significantly reduces the tax burden on high-income earners, and it is pointed out that the substantial benefits will be concentrated on the major shareholders or families with high equity ratios.
 The report by the Korea Institute of Public Finance, which analyzed the effects of the 'Dividend Income Increase Tax System' implemented during the Park Geun-hye administration, also evaluated that "the policy effect was minimal, and only tax revenue losses occurred," and "the substantial beneficiaries were likely high-income earners or major corporate shareholders."
 Representative Cha emphasized, "Even if separate taxation is pursued under the pretext of increasing dividends, the actual effect of dividend expansion is unclear, while the tax benefits for the top-tier classes, such as the major shareholders, are likely to increase," and "the introduction of the system should be approached very cautiously."

imne@fnnews.com Hong Yeji Reporter