PLUS K REITs Raises Monthly Distributions for Four Months to Reflect Special Dividend—Around 2% per Month

[Financial News] Hanwha Asset Management's PLUS K REITs exchange-traded fund (ETF) will temporarily increase its monthly distributions through December to reflect a special dividend from one of the REITs in its portfolio.
Hanwha Asset Management said on the 1st that it plans to raise the PLUS K REITs ETF's monthly distribution to around 2% for four months from September through December.
Investors who held the product as of Sept. 30 will receive a distribution of 131 won per share on the 2nd. Based on the closing price on Sept. 28, the day before the ex-distribution date, the distribution rate was approximately 2.13%.
The funds for the increased distribution come from the sale proceeds of the Hana Securities Building by KORAMCO THE ONE REIT, one of the ETF's holdings. After completing the sale in June, KORAMCO THE ONE REIT announced a special dividend of 8,900 won per share, funded by the capital gain and other proceeds from the transaction. The dividend yield based on the market price was approximately 81.4%.
As a result, the PLUS K REITs ETF's monthly distribution rate, which had been around 0.4% to 0.5%, is expected to rise substantially for four months. However, because the distribution will increase temporarily, the ex-distribution price adjustment may also be larger than usual. The actual distribution and distribution rate may vary depending on market conditions and the ETF price on the distribution record date.
Investors in the PLUS K REITs ETF can also receive tax benefits in regular accounts if they apply for separate taxation after meeting certain requirements. A separate taxation rate of 9.9%, including local income tax, applies to dividend income generated over three years from the investment date, up to a total investment limit of 50 million won.
Dividend income subject to separate taxation is also excluded from the comprehensive income tax base used to calculate comprehensive taxation on financial income.
Geum Jeong-seop, head of Hanwha Asset Management's ETF Business Division, said, "The PLUS K REITs ETF is a tax-saving product that offers separate-taxation benefits even in regular accounts," adding, "Investors with substantial financial income may use it as an asset-allocation tool."  

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