Responsible buybacks deliver windfall for executives amid banking rally
As Korean financial stocks rally on the back of value enhancement drives, top executives are emerging as key beneficiaries, with CEOs at the four major groups seeing their shareholdings rise by an average of 340 million won ($246,000).
As of Monday, shares of Korea’s four major banking groups — KB, Shinhan, Hana and Woori — have risen an average 58 percent this year. Shinhan, Hana and Woori each notched all-time highs, closing at 71,800 won, 95,600 won and 26,700 won, respectively. Hana and Woori extended gains on Tuesday, testing fresh records.
KB, the sector’s heavyweight, led last year’s banking rally with a 53 percent stock surge. Starting 2025 as one of the Kospi’s top 10 by market capitalization, it hit an all-time high of 122,000 won per share on July 8, cementing its position at No. 5 with a market cap of 45.2 trillion won and overtaking Hyundai Motor and Hanwha Aerospace.
The rally has bolstered shareholder returns, especially for top executives who championed buybacks in the name of responsible management.
Hana Financial Group CEO Ham Young-joo emerged as the biggest gainer. His roughly 15,130 treasury shares have increased in value by more than 600 million won this year to about 1.46 billion won, as Hana’s stock surged 68 percent.
In percentage terms, Woori Financial Group CEO Yim Jong-yong saw the sharpest gain. The value of his holdings rose by 74 percent, or 153.7 million won, in line with Woori’s 73 percent jump — the biggest among the four banking groups.
Shinhan Financial Group CEO Jin Ok-dong, who holds the largest number of treasury shares among his peers at about 18,900, saw his stake appreciate by 460 million won to 1.36 billion won, tracking Shinhan’s 50 percent rise.
KB Financial Group CEO Yang Jong-hee also benefited, with the value of his roughly 5,450 shares climbing from about 452 million won to 646.5 million won — a gain of nearly 200 million won this year.
Gains are even more pronounced when measured against executives’ purchase prices.
Of the shares held by Hana CEO Ham, 100,000 purchased at an average of 41,631 won have more than doubled in value, rising 130 percent. Woori CEO Yim’s 10,000 shares, acquired at 11,800 won in September 2023, have jumped 127 percent. Shinhan’s Jin, who acquired 5,000 shares at 34,350 won in June 2023, has seen them more than double to Monday’s close of 71,800 won.
KB Yang’s 5,000 shares, purchased at around 77,000 won in March 2024, have gained a more modest 54 percent.
Some lower-ranking executives have also demonstrated a strong commitment to stewardship through their shareholdings.
At Woori, Chief Financial Officer Lee Sung-wook owns 13,000 treasury shares — more than CEO Yim’s roughly 10,000. Lee reportedly executed eight separate buybacks from early 2020, when he joined the executive team, through September 2023.
Shinhan Bank CEO Jung Sang-hyuk, who serves as a registered non-executive director on the group’s board, holds 10,700 treasury shares, which have delivered a 77 percent return.
jwc@heraldcorp.com
