How long you must hold a share to get a dividend depends on the record date the company sets. Korean Commercial Act Article 354 lets a company treat shareholders on the register on a set day as entitled to dividends; that day must fall within 3 months before the rights are exercised and, unless set by the articles, be announced 2 weeks ahead. Dividends must be paid within 1 month of the resolution (Art. 464-2), and the claim lapses after 5 years. Quarterly dividends of listed companies follow Capital Markets Act Article 165-12.
1. Be on the register on the record date — a day within 3 months before the rights are exercised.
2. Record date announced 2 weeks ahead (unless set in the articles).
3. Paid within 1 month of the resolution; claims last 5 years. Quarterly: board resolution within 45 days of March, June, September month-end.
The record date — Commercial Act Art. 354
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| (1) | To fix who votes or receives dividends, the company may close the register for a period or treat shareholders registered on a set day as entitled | That day is the record date |
| (2) | A closure can’t exceed 3 months | — |
| (3) | The day must be within 3 months before the rights are exercised | — |
| (4) | Announce the period or day 2 weeks ahead; not needed if fixed by the articles | — |
Deciding and paying — Arts. 462, 464-2
Dividends are set by shareholders’ resolution, or by board resolution where the board approves the financial statements. The cap is net assets less capital, accumulated capital and earned reserves, reserves to be set aside that year, and unrealised gains. Payment is due within 1 month of the resolution unless the meeting or board sets another date. The right to claim dividends lapses after 5 years.
Quarterly dividends — Capital Markets Act Art. 165-12
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| (1) | A listed company with one annual closing may, under its articles, pay cash quarterly dividends by board resolution within 45 days of the end of March, June and September | Amended 21 Jan 2025 |
| (2) | Deleted (21 Jan 2025) | We didn’t read what it said |
| (3) | Paid within 1 month of the board resolution unless set otherwise | — |
| (4) | Cap: prior-year net assets less capital, reserves, the AGM dividend and reserves to be set aside | — |
| (7) | Quarterly dividends count as dividends for Commercial Act Art. 354(1) etc. | Record-date rules apply |
A year’s timeline — our example
If a December-year-end listed company without a record date in its articles sets 28 February by board decision, it must announce it 2 weeks beforehand (Art. 354(4)). Shareholders on the register on 28 February get the dividend, and that day must be within 3 months of the March AGM (para. 3). If the AGM resolves the dividend in March, payment is due within 1 month. The dates are our example; check the company’s notice. Counting periods is in legal period calculator.
The gap between trade date and registration (settlement) is set by exchange rules, outside these articles. Tax on high-dividend company dividends is in high-dividend separate tax calculator.
Checklist
- ☐ The company’s record-date notice
- ☐ Allow for settlement to be on the register
- ☐ Resolution date and payment date
- ☐ Quarterly: board resolution within 45 days
- ☐ Unclaimed dividends: claim within 5 years
Questions that remain
Can I see the dividend before buying?
Article 354 only requires the record date to fall within 3 months before the rights are exercised. Where a company resolves the dividend before the record date, you can see it and still buy in time (our reading). Articles and notices differ.
Is the quarterly record date the quarter end?
Article 165-12(2) was deleted on 21 January 2025 and para. 7 applies Commercial Act Art. 354(1) to quarterly dividends, so the company sets it (our reading).
Sources
- Korean law database (law.go.kr) — Commercial Act Arts. 354, 462, 464-2 — source (effective 10 September 2026, Act No. 21044; checked 20 October 2026). Record date and register closure, 3 months, 2-week notice and articles exception, resolution by meeting or board, dividend cap, payment within 1 month, 5-year limitation.
- Korean law database — Capital Markets Act Art. 165-12 — source (effective 2 October 2026, Act No. 21857; checked 20 October 2026). 45-day quarterly dividends, para. 2 deleted, 1-month payment, cap, Commercial Act deeming.
- Not read. Exchange settlement rules; case law.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- Company notices and DART filings — record date and resolution.
- Your broker — settlement and registration.
Written on 20 October 2026. The content is from the source; the glosses are ours.
