Stock Prices Urgently Need Boost... Financial Holding CEOs' Overseas IR Tied Up Due to COVID-19

Financial Firms Struggling Amid COVID-19
Overseas Business Trips to Attract Major Investors Delayed Due to Unexpected Variables
CEOs Unable to Schedule, Postponing Until Situation Calms Down

[Asia Economy Reporter Haeyoung Kwon] Due to the spread of COVID-19, the feet of domestic financial holding company CEOs, who used to travel overseas for investor relations (IR) meetings right after annual general meetings, have been firmly tied up. Although boosting stock prices is urgent, overseas business trips for courting major investors are expected to be postponed due to the unexpected variable of COVID-19.

According to the financial sector on the 13th, major domestic financial holding company CEOs have been unable to schedule meetings with overseas institutional investors as concerns about COVID-19 infection have spread worldwide.

A Shinhan Financial Group official said, "The CEO used to travel overseas right after the general meeting every year to meet institutional investors, but due to COVID-19, we have not even been able to set a schedule yet," adding, "We expect to arrange meetings with overseas institutional investors after the COVID-19 situation calms down."

Shinhan Financial Chairman Cho Yong-byeong conducted three IR meetings in the first half of last year alone. In April, he visited Toronto, Canada, meeting with major asset management firms operating Canadian pension funds such as AGF Investment, Mackenzie Financial Group, and CI Investment, and also met with large global asset managers like Capital World Investors in San Francisco, USA. In May, he met with the Japanese public pension fund (GRIF) asset managers in Tokyo, Japan, and in June, he visited Melbourne and Sydney, Australia, to introduce Shinhan Financial’s strategic direction and hold meetings with financial company CEOs.

Notably, this year marks the start of Chairman Cho’s second term, having effectively secured reappointment. He has a strong will for IR activities more than ever, as he can present a more concrete blueprint for Shinhan’s future management to investors. Chairman Cho is known for squeezing time to carry out a 'forced march' schedule during overseas IR, but this year, plans have been blocked due to COVID-19.

KB Financial Group Chairman Yoon Jong-kyu’s overseas IR schedule is also being postponed this year. Last year, he visited Hong Kong and Australia in March and April, and from September to November, he visited the UK, Sweden, Norway, France, Canada, and the USA, but due to the spread of COVID-19, he must also fully reconsider his institutional investor meeting schedule.

Hana Financial Group Chairman Kim Jung-tae is also reportedly refraining from overseas business trips after the general meeting. Woori Financial Group Chairman Sohn Tae-seung is also finding it difficult to schedule investor meetings due to the COVID-19 impact but plans to set schedules as soon as the situation calms down.

Financial holding company CEOs plan to immediately arrange meetings with overseas institutional investors once COVID-19 subsides, explaining management performance and future strategies to actively manage sluggish stock prices. Recently, domestic financial companies’ stock prices have been sluggish due to the triple hardships of interest rate declines, government loan regulations, and economic slowdown. Shinhan Financial’s stock price closed at 38,450 won on the 12th, down 9.4% from 42,450 won a year ago. KB Financial fell 4.3%, Hana Financial 10.6%, and Woori Financial 32.3% during the same period. The price-to-book ratio (PBR) is at 0.5 times, indicating a serious undervaluation where stock prices are only half of the liquidation value. For domestic financial holding companies, whose foreign ownership approaches 70%, expanding foreign investor shares or attracting new investments is urgent.

A financial sector official said, "Overseas pension funds or sovereign wealth funds are stable investors who manage funds long-term," adding, "Financial holding company CEOs are expected to soon embark on business trips to meet overseas institutional investors with stock price boosting plans as COVID-19 subsides."

This content was produced with the assistance of AI translation services.