'KODEX Korea Real Estate REITs Infrastructure' to Adjust Distributions Through Year-End, Reaching About 1.4% per Month

[Financial News] Samsung Asset Management will adjust distributions through the end of the year for its 'KODEX Korea Real Estate REITs Infrastructure' exchange-traded fund (ETF), reflecting the special dividend from KORAMCO THE ONE REIT, which is included in the ETF's portfolio.
According to Samsung Asset Management on the 10th, the distribution adjustment will take place four times in total, from this month through December. Including the regular monthly distribution and KORAMCO THE ONE REIT's special dividend, the distribution rate is expected to reach approximately 1.4% per month.
This is a significant increase from the recent monthly distribution rate of 0.6–0.7%. However, the actual distribution amount and rate may vary depending on market conditions and the ETF price on the payment reference date.
The funds for the distribution adjustment come from the proceeds of KORAMCO THE ONE REIT's sale of Hana Securities Building. KORAMCO THE ONE REIT completed the sale of Hana Securities Building in June and announced a special dividend of 8,900 won per share, funded by the capital gain from the sale and other sources. This represents a dividend yield based on market price of 81.4%.
The net assets of 'KODEX Korea Real Estate REITs Infrastructure' stood at 488.8 billion won as of the previous day. It is the largest among domestic REIT ETFs eligible for separate-taxation benefits.
This ETF also offers separate-taxation benefits through regular brokerage accounts. Under the current Restriction of Special Taxation Act, investors who apply for separate taxation after meeting the requirements are subject to a 9% separate-taxation rate on dividend income generated over three years from the investment date, up to a total investment limit of 50 million won. The effective tax rate, including local income tax, is 9.9%. In addition, the dividend income is not included in the comprehensive income tax base for comprehensive taxation of financial income.
An official from Samsung Asset Management explained, "This is an example that highlights another attraction of REIT investment and the importance of separate taxation: not only dividends but also special gains generated through asset sales can be passed on to ETF investors as distributions."

[email protected] Minji Seo Reporter