Leaders of major financial groups in South Korea are set to meet with overseas investors this month as part of their global sales initiatives. This effort aligns with the government's policies aimed at enhancing corporate value, expanding shareholder returns, and improving capital management, all intended to boost the perceived value of undervalued financial stocks.
According to the financial sector on June 1, Yoon Jong-hee, Chairman of KB Financial Group, plans to visit Singapore this month to meet with institutional investors in Asia. KB Financial has been recognized as a leading company in shareholder returns among domestic financial groups, thanks to its aggressive stock buyback and dividend expansion policies in recent years.
Typically, the heads of the four major financial groups conduct overseas investor relations (IR) once each in the first and second halves of the year. Chairman Yoon recently held meetings with overseas investors in New York last month and is now demonstrating his commitment to responsible management by participating in another IR this month.
Ham Young-joo, Chairman of Hana Financial Group, is reportedly planning IR activities in North America, including the United States, Canada, and Mexico. He is expected to communicate with investors about Hana Financial's shareholder return policies, profitability improvements, and long-term growth strategies.
Im Jong-ryong, Chairman of Woori Financial Group, is also considering an overseas IR targeting institutional investors in Asia later this month. Woori Financial is continuing its strategy to strengthen its non-banking sectors, including re-entering the securities industry and pursuing insurance acquisitions, and is expected to expand its engagement with overseas investors regarding its business portfolio and capital policy direction.
Earlier in May, Jin Ok-dong, Chairman of Shinhan Financial Group, visited North America on a 12-day schedule to explain the group's management strategy and value enhancement efforts to key institutional investors. Shinhan Financial is consistently working to improve its return on equity (ROE) and expand shareholder returns based on its corporate value enhancement plan announced last year.
Industry insiders point to the undervaluation of domestic financial stocks as a key reason for the active participation of major financial group leaders in overseas IR. Despite their stable profit generation capabilities and high dividend yields, domestic financial groups still have price-to-book ratios (PBR) below 1. As a result, management's direct engagement with overseas investors to explain plans for enhancing corporate value and capital policies is emerging as a crucial means for stock price reevaluation.
A financial industry official stated, "Recently, overseas institutional investors are evaluating not only the scale of dividends but also stock buybacks, capital ratio management, and long-term profitability strategies comprehensively. The participation of chairmen in overseas IR reflects the commitment of Korean financial groups to enhance their value while also aiming to secure long-term investors."
* This article has been translated by AI.
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