Leaders of major financial groups in South Korea are set to meet with international investors this month as part of their global sales initiatives. This effort aligns with the government's policies aimed at enhancing corporate value, focusing on expanding shareholder returns and capital management achievements while seeking to elevate the undervalued financial sector's corporate value.
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 due to its active stock buyback and dividend expansion policies in recent years.
Typically, the heads of the four major financial groups conduct overseas investor relations (IR) once in the first half and once in the second half of the year. Following a meeting with international investors in New York last month, Yoon is demonstrating a commitment to responsible management by participating in IR activities again 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.
Lim Jong-ryong, Chairman of Woori Financial Group, is also considering an overseas IR targeting institutional investors in Asia later this month. Woori Financial is expected to expand its engagement with international investors by focusing on its strategies to strengthen non-banking sectors, including re-entering the securities industry and pursuing insurance acquisitions, as well as its business portfolio expansion 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 strategies and value enhancement initiatives to key institutional investors. Shinhan Financial continues to pursue improvements in return on equity (ROE) and expanded 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 stable profit generation capabilities and high dividend yields, domestic financial groups' price-to-book ratios (PBR) remain below 1. As a result, executives meeting directly with international investors to explain their corporate value enhancement plans and capital policies is seen as a crucial means for stock revaluation.
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 demonstrates the commitment of Korean financial groups to value enhancement while also aiming to secure long-term investors."
* This article has been translated by AI.
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