CEO of Securities Firm Buying Own Shares Enjoys 'Double Benefits' Effect

Yang Hongseok and Choi Seokjong CEOs Secure Both Shareholder Trust and Investment Returns Through Consecutive Acquisitions

Yeouido Stock Exchange District Scene

[Asia Economy Reporter Park Jihwan] CEOs of securities firms are increasingly buying back their own company shares. This move is interpreted as an effort to further boost stock prices and strengthen responsible management.

According to the Financial Supervisory Service's electronic disclosure on the 26th, Yang Hongseok, CEO of Daishin Securities, started by purchasing 21,062 shares on the 1st and bought an additional 14,474 shares on the same day, totaling 101,087 shares over 11 transactions this month. Earlier in January, Yang also bought 125,000 shares over 14 transactions.

Choi Seokjong, CEO of KTB Investment & Securities, also purchased 20,000 shares on the 23rd through on-market transactions. With this buyback, Choi's holdings increased to 115,000 shares, representing 0.19% ownership. Won Jongsuk, CEO of Shinyoung Securities, bought 7,000 shares on two occasions: 5,000 shares on the 3rd and 2,000 shares on the 4th, also through on-market purchases.

The market views these CEOs' share buybacks as a demonstration of their commitment to enhancing shareholder value and practicing responsible management. It signals that the current corporate value is undervalued and reduces the number of shares in circulation, thereby supporting stock price appreciation.

These CEOs’ share repurchases have produced a “two birds with one stone” effect by gaining shareholders’ trust and generating valuation gains. This is thanks to the significant rebound of shares bought during the market crash caused by the COVID-19 pandemic in March last year. For example, Yang Hongseok purchased 454,853 shares at an average price of 8,734 KRW per share between March and April last year. With Daishin Securities’ stock closing at 13,950 KRW the previous day, Yang’s return on investment reached 59.72%. Similarly, CEO Choi Seokjong invested 106.7 million KRW in March last year to buy 55,000 shares of KTB Investment & Securities at an average price of 1,940 KRW per share. As KTB Investment & Securities’ stock price rose to 4,255 KRW, Choi’s unrealized gain amounted to 127.33 million KRW.