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AbstractAn extension of polar codes is proposed, which allows some of the frozen symbols, called dynamic frozen symbols, to be data-dependent. A construction of polar codes with dynamic frozen symbols, being subcodes of extended BCH codes, is proposed. The proposed codes have higher minimum distance than classical polar codes, but still can be efficiently decoded using the successive cancellation algorithm and its extensions. The codes with Arikan, extended BCH and Reed-Solomon kernel are considered. The proposed codes are shown to outperform LDPC and turbo codes, as well as polar codes with CRC.