[Special Stock] 'Value-Up' Effect... Shinhan Financial Group Surges on Shareholder Return Expectations

Shareholder Returns Far Exceed Market Expectations
Value-Up Expectations Expand Alongside
KB Financial, Woori Financial, Meritz, BNK Also Rise Together ↑

Shinhan Financial Group surged on the 26th as expectations for value-up increased following the 'Enhancement of Corporate Value' disclosure.

At 9:22 AM, Shinhan Financial Group was trading at 63,700 KRW, up 10.00% (5,799 KRW) compared to the previous trading day. KB Financial +4.89%, Hana Financial Group +2.99%, Woori Financial Group +2.84%, and BNK Financial Group +6.06% were also rising.

Through the value-up disclosure, Shinhan Financial Group set targets including a target Return on Equity (ROE) of 10% and a total shareholder return ratio of 50% by 2027, as well as a goal to reduce the number of shares by 50 million through share buybacks and cancellations. This means they plan to pursue share buybacks and cancellations exceeding 3 trillion KRW (over 1 trillion KRW annually) over the next three years.

The shareholder return policy, which greatly exceeded market expectations, is interpreted as expanding investor sentiment. Consequently, market expectations for the value-up program are also growing.

So-yeon Park, a researcher at Shin Young Securities, commented, "With Shinhan Financial Group announcing large-scale share cancellations and a 50% shareholder return ratio, the banking sector as a whole showed strength," adding, "Despite volatility in the financial market, the relative strength of high-dividend and value stocks continues to expand, and we maintain a positive view on the second rally of the value-up program."

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