South Korea’s large-cap firms are likely to raise their dividend payouts to investors by up to 28 percent under a new tax scheme that aims to make local companies increase their returns to shareholders, capital spending and salaries for their workers, data showed Thursday.

Under the new tax plan to be effective for three years starting next year, local firms will be levied a 10 percent tax on their net profit after payments for investments, salaries and dividends if they do not meet government-set targets against excessive cash reserves.

The new tax code, aimed at boosting economic growth, also calls for tax breaks for companies increasing wages and dividends.

According to the data compiled by Daishin Securities, firms with a market capitalization of 1 trillion won or more may pay an additional 3.4 trillion won ($3.29 billion) in dividends if they raise their cash dividend payout ratio to more than 20 percent.

The estimate is up 28.2 percent from 12.13 trillion won in dividends paid to investors last year, when the country’s listed firms paid some 16.4 percent of their net profit to shareholders.

By company, Hyundai Motor Co., the country’s top automaker, is expected to increase its dividend payouts by 97.6 billion won, followed by Hyundai Mobis Co. with 45.6 billion won, Naver Corp. with 35.8 billion won and Kia Motors Corp. with 27.8 billion won, the data showed. (Yonhap)