K-IFRS has not indicated clearly how to classify certain items like as interests and dividends within the statement of cash flows. K-IFRS allows firms to disclose interests and dividends within OCF or classify them as investing or financing in cash flow statements. This study tests 347 randomly chosen non-financial KOSPI firms listed in the Korean Stock Exchange in 2011 and documents firms' cash-flow classification choices. The study predicts that the main determinants of OCF-increasing classification choices are (1) higher probability of financial distress; (2) lower credit rating; (3) higher debt ratio; (4) lower ROE; (5) lower EPS; (6) negative net income; (7) higher ratio of interest and dividends; (8) negative CFO; and (9) larger size of the firm. The analysis reveals that firms with financial distress, lower credit rate, lower EPS and negative CFO are more likely to classify interest paid (interest received and dividends received) as financing activities (operating activities) rather than operating activities (investing activities). According to the results there seems to be no relation between classification choices and ROE, size, debt ratio, loss or the ratio of interests or dividends.