This study analyzed whether the relationship between a company's cash holdings and firm value differs depending on dividends using KOSPI and KOSDAQ listed firms from 2010 to 2020. I found dividends showed a negative correlation with firm value, and cash holdings showed a positive correlation with firm value. However, in dividend-paying companies, the level of cash holdings has a negative relationship with firm value, and the presence of dividends appears to weaken the relationship between cash holdings and firm value. While demand for dividends has recently been increasing in the Korean capital market, there are implications for capital market investors in that the relationship between a company's cash holdings and corporate value is changing depending on dividends.