Democratic Party leader Lee Jae-myung: ”Korea's dividend payout ratio is lower than China's...We need to change the structure” = Korea

On the 24th, Lee Jae-myung, leader of the Democratic Party of Korea, said, "Dividends should be increased a little, but South Korea's dividend payout ratio is lower than China's. Isn't this just too bad?"
On the same day, CEO Lee appeared on YouTube's "Sampro TV" and commented on the issue of companies feeling the heavy burden of inheritance tax when inheriting family businesses, saying, "When inheriting a family business, the asset value of the company is not that high.
"The tax burden is huge, and it's a big one because Korea doesn't pay dividends. They don't pay dividends, they just let it all pile up, so the amount you inherit is quite large."
Lee said, "Because the dividend payout ratio is so low, it is impossible to buy stocks, receive dividends, and use them for living expenses. In the United States, for example, people buy stocks and receive dividends, but
"But Koreans don't invest because they don't get dividends. So the price goes down.
"This will lead to a vicious cycle where the company will no longer pay dividends. So people will stop investing in stocks and go to companies that will pay dividends, which will cause the stock market to stagnate," he explained.
"I think that the situation needs to be structurally changed," he added. Lee stressed the need for change and pointed to the passage of a bill to amend the Commercial Code, which includes greater obligations for shareholders, in the National Assembly.
In response to a question about whether the Commercial Code amendment has not been working well since the end of last year, Lee said, "It may not seem like there is anything moving forward, but we are working hard behind the scenes. The Commercial Code amendment bill is a National Assembly bill."
"Once the bill has passed the subcommittee of the Constitutional and Judiciary Committee and is approved by the general assembly, the plenary session will be held immediately, within a few days," he said.