We investigate the effect of the 2008 global financial crisis on the dividend policy and corporate value of domestic firms in Korea. We devise our hypothesis based on the dividend signaling theory, dividend clientele effect, and catering theory of dividends. To test our hypothesis, we conduct an empirical analysis of listed domestic firms from 2001 to 2016. First, we find a reduction in dividends of domestic firms during the financial crisis. Second, we provide evidence that during the crisis, the positive relationship between dividend and firm value is lessened. Third, the relationship is intensified after the crisis. Overall, these results are consistent with the dividend signaling theory and catering theory of dividends, and partially consistent with the dividend clientele effects.