[Special Stock] Hanwha Life Insurance Surges Over 9%... Beneficiary of Strengthened Shareholder Return Policies

On July 10, Hanwha Life Insurance shares showed a double-digit increase. This upward trend is attributed to expectations of benefits from the legislative strengthening of shareholder returns, such as the separate taxation of dividend income and the cancellation of treasury shares.

As of 10:06 a.m. on this day, Hanwha Life Insurance shares were trading at 4,105 won per share, up 9.32% from the previous session. Hanwha Life Insurance has recorded gains for four consecutive trading days, from July 7 to July 10.

This is analyzed as the result of expectations that the securities, finance, and insurance sectors will benefit from the legislative push by the ruling party to strengthen shareholder returns. On the previous day, the KOSPI index reached a new closing high, led by strength in securities, insurance, and holding company sectors, following the proposal of a bill mandating the cancellation of treasury shares.

In particular, Hanwha Life Insurance is considered a beneficiary among related stocks, as it is a low PBR (price-to-book ratio) stock, has a high proportion of treasury shares, and has a high potential for an increase in dividend payout ratio. The company is drawing attention as a beneficiary of the proposed inheritance and gift tax amendment and the amendment to the Commercial Act mandating the cancellation of treasury shares, both of which are being promoted by the ruling party.

In a report released on this day, IBK Investment & Securities stated that policies such as the cancellation of treasury shares and the separate taxation of dividend income commonly provide strong justification for the strength of financial stocks, diagnosing that banks, insurance, and securities companies are likely to be policy beneficiaries.