Successful Share Buyback... Hana's Kim Jung-tae and Woori's Son Tae-seung Stock Returns '↑'

KOSPI Surpasses '3200' for the First Time, Reaching All-Time High... Financial Stocks Also Rise
Chairman Kim Jung-tae Bought 7,668 Shares Last Year with 55% Return
Chairman Sohn Tae-seung, Who Purchased 5,000 Shares Five Times, Says "Strengthening Responsible Management"

[Asia Economy Reporter Tae-min Ryu] The bets placed by Kim Jung-tae, Chairman of Hana Financial Group, and Sohn Tae-seung, Chairman of Woori Financial Group, who purchased treasury shares multiple times last year to strengthen 'responsible management,' have paid off. The stocks they bought at relatively low prices have recorded high returns thanks to the rise in financial stocks. On the other hand, the valuation of shares held by KB Financial Group Chairman Yoon Jong-kyu and Shinhan Financial Group Chairman Cho Yong-byoung, who did not buy treasury shares last year, has decreased.

According to the financial sector on the 14th, the valuation of treasury shares held by Chairman Kim was recorded at 2.58075 billion KRW as of 10 a.m. that day, an increase of more than 500 million KRW compared to 2.0155 billion KRW a year ago. The increase in the valuation of shares held by Chairman Kim is largely due to the treasury shares purchased last year. On February 5 last year, Kim purchased 2,000 treasury shares at 33,000 KRW per share. Then, when the stock price dropped further on April 6, he additionally purchased 5,668 shares at 22,550 KRW per share. The average price of the two purchases was 25,275 KRW, and the return as of 10 a.m. that day was 55.6%. The Hana Financial stock price fell to a low of 18,450 KRW on March 23 last year due to the impact of the novel coronavirus (COVID-19), but it has now more than doubled.

A Hana Financial official explained, "The purchase of treasury shares reflects Chairman Kim's determination to strengthen responsible management, especially during difficult times," adding, "The rise in the KOSPI acted as a positive factor, resulting in high returns."

Chairman Sohn, who purchased treasury shares five times last year, also earned a decent profit. The valuation of Woori Financial shares held by Chairman Sohn was 885.67 million KRW, about 160 million KRW higher than 722.14 million KRW a year ago. From January to December last year, Sohn purchased a total of 25,000 treasury shares in five installments of 5,000 shares each at an average price of 9,397 KRW per share. The stock price of Woori Financial Holdings was 10,000 KRW as of 10 a.m. that day, up 58.2% from the low of 6,320 KRW recorded in March last year.

Valuation of Shares Held by KB Chairman Yoon Jong-kyu and Shinhan Chairman Cho Yong-byoung, Who Did Not Purchase Treasury Shares, Declines

The rise in stock price is particularly important for Woori Financial. An increase in stock price accelerates the 'complete privatization' policy of Woori Financial. According to the 'Woori Financial Holdings Sale Roadmap' announced by financial authorities in June 2019, the Korea Deposit Insurance Corporation (KDIC), which holds 17.25% of Woori Financial shares, was supposed to start selling its shares in the first half of last year. However, due to the spread of COVID-19, Woori Financial's stock price temporarily fell to the 6,000 KRW range, delaying the sale process.

A financial sector official predicted, "Since KDIC also has a responsibility to recover public funds, the sale of its holdings will begin in earnest only after the stock price rises to a certain level." The management of Woori Financial purchased about 75,000 additional treasury shares on the 8th to boost the stock price, reflecting this background.

On the other hand, the valuations of shares held by financial group chairmen who did not purchase treasury shares last year have decreased. The valuation of shares held by KB Financial Chairman Yoon Jong-kyu was 992.25 million KRW as of 10 a.m. that day, about 10 million KRW less than 980.7 million KRW during the same period last year. The valuation of treasury shares held by Shinhan Financial Chairman Cho Yong-byoung also decreased by about 100 million KRW from 510 million KRW in the previous year to 498 million KRW.

Industry insiders expect that even if the KOSPI rises, the increase in financial stocks will be limited due to financial authorities' recommendations to refrain from dividends, so financial group chairmen are likely to continue purchasing treasury shares this year to practice shareholder-friendly management. Despite the difficult situation caused by the spread of COVID-19, financial companies have achieved good performance, boosting their confidence in management.

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