The "Money Printing Machine" Rumor Was True... Fireworks for Stocks That Doubled in a Year

"Responsible Management" Drives Treasury Share Purchases... Gains of 300 Million to 1.2 Billion Won
Valuation Profits for Financial Holding Company Chairmen Reach Hundreds of Millions
Concerns Remain Over Limited Impact on Consumption Growth

Thanks to record-breaking earnings and proactive shareholder return policies, major financial indices have nearly doubled over the past year, and the valuation gains of financial holding company chairmen who have been purchasing treasury shares have also soared.

On the 25th, when the KOSPI closed above 6000 points for the first time in history, employees held a celebration ceremony at the dealing room of Hana Bank Headquarters in Jung-gu, Seoul. Photo by Jo Yongjun

According to the Korea Exchange on March 1, as of the closing price on February 26, KB Financial Group recorded 165,300 won, Shinhan Financial Group 99,900 won, Hana Financial Group 124,900 won, and Woori Financial Group 38,950 won per share. Compared to the end of last year, these prices are up 30-40% since the beginning of this year, and the year-on-year increase reaches 100-125%.

As stock prices surged, the valuation gains for financial holding company chairmen, who have emphasized responsible management by purchasing treasury shares, have also increased by hundreds of millions to several billion won. Ham Youngjoo, Chairman of Hana Financial Group, has acquired a total of 15,132 shares through four purchases since 2017. Based on the current share price, his valuation gain is estimated to be around 1.2 billion won. Jin Okdong, Chairman of Shinhan Financial Group, holds 18,937 shares and is expected to have gained more than 1 billion won in profit.

Yang Jonghee, Chairman of KB Financial Group, purchased 451 shares in 2019 and 5,000 shares in 2024. His unrealized profit is estimated at about 495.33 million won. Lim Jongryong, Chairman of Woori Financial Group, purchased 10,000 shares at 11,880 won per share in September 2023. Based on the current valuation, his gain is estimated to have increased by 259.7 million won.

The driving forces behind the strong performance of financial indices are record-high net profits and expectations for increased dividends. Last year, KB Financial Group posted a net profit of 5.843 trillion won, Shinhan Financial Group 4.9716 trillion won, and Hana Financial Group 4.0029 trillion won. Woori Financial Group also effectively achieved record-level profits, even after accounting for a 51.5 billion won penalty related to the loan-to-value (LTV) ratio, which was reflected as a provision.

Dividend payouts were also increased. Woori Financial Group had the highest payout ratio at 31.8%, followed by Hana Financial Group at 27.9%, KB Financial Group at 27%, and Shinhan Financial Group at 25.1%. In addition, continued shareholder return initiatives, such as treasury share buybacks and cancellations, have heightened expectations for increased corporate value.

The perception of undervaluation, such as the price-to-book ratio (PBR) remaining below 1x, also boosted investor sentiment. On February 11, KB Financial Group became the first among financial holding companies to reach a PBR of 1x, while the other financial holding companies still remain at the 0.6-0.8x level.

While the management of each financial holding company, who have demonstrated their commitment to responsible management through treasury share purchases, are able to enjoy gains alongside regular shareholders, concerns remain that high-income individuals tend to spend a smaller proportion of their investment profits, which could limit the impact of a booming stock market on overall consumption growth.

This content was produced with the assistance of AI translation services.