Kim Jung-tae, Chairman of Hana Financial Group, Purchases 2,000 Treasury Shares on the Market on the 5th
Earlier on the 4th, Hana Financial Group Announces Dividend of 1,600 KRW per Common Share
[Asia Economy Reporter Kim Min-young] Kim Jung-tae, chairman of Hana Financial Group, has once again purchased treasury shares. Since his inauguration, Chairman Kim has used almost all the dividends he received each year to buy back treasury shares. This has led to the saying, "Holding company dividends = treasury share purchases."
According to the financial sector on the 8th, Hana Financial Group disclosed that Chairman Kim purchased 2,000 treasury shares on the 5th.
The day after the holding company declared a year-end dividend of 1,600 KRW per common share on the 4th, Chairman Kim proceeded with the treasury share purchase.
Chairman Kim currently holds 60,000 treasury shares. With this dividend, he is set to receive 92.8 million KRW (before taxes). He purchased shares worth approximately 66 million KRW, nearly two-thirds of the dividend amount, the day after the dividend announcement.
Since his inauguration in 2012, Chairman Kim has purchased treasury shares worth 506.5 million KRW from 2013 to the present. He initially held 45,375 shares and has acquired an additional 14,635 shares since taking office.
Calculating the dividends Chairman Kim has received or is expected to receive from March 2013 to this year amounts to 430.08 million KRW (before taxes). This means he has spent more on treasury share purchases than the dividends he received.
Notably, there have been multiple instances where Chairman Kim purchased treasury shares shortly after dividend announcements, as seen this year. On March 25, 2013, he bought 2,000 shares worth 73.6 million KRW, following Hana Financial’s dividend declaration of 250 KRW per common share on March 6 of the same year. In 2015, he also purchased treasury shares about a month after the dividend announcement, and last year, around the dividend announcement date (July 26), he bought approximately 5,400 treasury shares worth nearly 200 million KRW.
During this period, Hana Financial’s stock price fluctuated between 20,000 KRW and 49,000 KRW, yet Chairman Kim consistently bought shares without a single sale.
These treasury share purchases are seen as a demonstration of Chairman Kim’s loyalty and pride in the company. They can also be viewed as part of efforts to enhance shareholder value. In the market, treasury share purchases by CEOs and executives are generally interpreted as positive signals.
A Hana Financial Group official stated, “This reflects confidence in future performance and a commitment to responsible management aimed at boosting the stock price.”
However, some view this as a measure to defend the stock price. On the 5th, KB Securities forecasted that Hana Financial’s net profit for this year would be sluggish and lowered the target stock price from 47,000 KRW to 44,000 KRW. As of the closing price on the 7th, Hana Financial’s stock price stood at 34,500 KRW.
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