Hana Financial to Move Headquarters to Incheon’s Cheongna in September; Hanwha Life Extends Outside Director Terms

Hana Financial Group said it will relocate its group headquarters to Cheongna, Incheon, in September and secured funding for tax-free dividends, a move expected to strengthen shareholder returns. Hanwha Life Insurance, meanwhile, extended the term of outside directors from two years to three to bolster board expertise. 

Hana Financial on Monday approved at its annual shareholders meeting a proposal to reduce its capital reserve by 7.4 trillion won to enable tax-free dividends.

The decision allows the company to transfer 7.4 trillion won from the capital reserve to retained earnings and use it as dividend funding. If dividends are paid from this source, individual shareholders can receive payouts without paying dividend income tax. Hana Financial said it plans to begin tax-free dividends starting with its dividend for this year’s fourth-quarter results.

Shareholders also approved an amendment to the articles of incorporation to move the group headquarters to the Cheongna International City area of Incheon. The plan advances the long-discussed “Hana Financial Town” concept, envisioned after Kim Seung-yu, a former chairman of Hana Financial, visited Banco Santander’s Santander City near Madrid in 2007. The Cheongna Hana Financial Town is planned to cover 128,474 square meters and is expected to serve as a future financial hub. Hana Financial said it plans to begin the headquarters relocation on Sept. 30. 

The board lineup was partly reshaped. Shareholders considered proposals to appoint Vice Chairmen Lee Seung-yeol and Kang Seong-muk as inside directors. Choi Hyun-ja, a consumer rights specialist and professor in Seoul National University’s Department of Consumer Science, joined as a new outside director. Hana Financial also approved a charter change to reorganize its board-level Consumer Risk Management Committee into a Consumer Protection Committee, underscoring a groupwide push for consumer-focused management. The meeting also established a basis to introduce electronic shareholders meetings in line with the Commercial Act revision set to take effect in January next year. 

Park Dong-moon, chairman of Hana Financial’s board, said in a letter to shareholders, “We will closely check the faithful implementation of the corporate value enhancement plan and strengthen overall governance, including internal controls and consumer protection.” He added, “Even in a rapidly changing financial environment, we will pursue long-term shareholder value through responsible decision-making and sustainable management.” 

Hanwha Life Insurance expanded the term of outside directors from two years to three years. Shareholders also approved the reappointment of outside directors Park Soon-cheol and Jung Soon-seop and the new appointment of Yoo Chang-min, head of the investment division, as an inside director. 

Hanwha Life CEO Kwon Hyuk-woong said, “We aim to secure the industry’s top AI competitiveness by fully applying artificial intelligence technology across our business.” He added, “Based on the results and foundation we have built, we will continue stable growth and responsible management and do our best to meet expectations.”