Financial Holding Company Chairmen Who Bought Treasury Stocks Beaming... Impressive Returns (Comprehensive)

KOSPI Surpasses '3200' for All-Time High... Financial Stocks Rise Along
Chairman Kim Jung-tae Bought 7,668 Treasury Shares Last Year... 55% Return
Chairman Sohn Tae-seung Bought 5,000 Shares Five Times, "Strengthening Responsible Management"
Chairmen Who Did Not Buy Treasury Shares See Decline in Unrealized Gains

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

According to the financial sector on the 14th, the evaluation value of the treasury stocks 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 evaluation value of Chairman Kim's holdings is largely due to the treasury stocks purchased last year. On February 5 last year, Chairman Kim bought 2,000 treasury shares at 33,000 KRW per share. Then, when the stock price dropped further on April 6, he purchased an additional 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%. Hana Financial's 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 stocks 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 stocks five times last year, also earned a decent profit. The evaluation value of Woori Financial stocks 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, Chairman 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.

Evaluation Values of Stocks Held by Chairmen Yoon Jong-kyu and Cho Yong-byoung, Who Did Not Purchase Treasury Stocks, Decrease
Financial Holding Chairmen Expected to Continue Treasury Stock Purchases This Year

The rise in stock prices is particularly important for Woori Financial. As the stock price rises, the policy of 'complete privatization' of Woori Financial accelerates. 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 once 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 when 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 evaluation values of stocks held by financial holding chairmen who did not purchase treasury stocks last year have decreased. The evaluation value of stocks 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 evaluation value of treasury stocks 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 rise in financial stocks will be limited due to financial authorities' recommendation to refrain from dividends, so financial holding chairmen are likely to continue purchasing treasury stocks 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.