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By Jhoo Dong-chan
Financial firm heads are rushing to buy back their firms' shares to prevent their stock prices from further declining. The move also aims to demonstrate their confidence in their firms' future stock prices.
According to KEB Hana Bank, CEO Ji Sung-kyoo bought back 4,000 Hana Financial Group shares shortly after he was inaugurated as the bank's CEO on March. 22. The share price was 37,000 won ($32.58) per share, and he bought a total of 148 million won worth of shares.
Woori Financial Group Chairman Sohn Tae-seung also bought back 5,000 group shares on March 15, and another 5,000 shares March 25. Sohn now owns 48,127 shares in Woori Financial Group.
KB Financial Group Chairman Yoon Jong-kyoo paid 43,050 won per share to add 1,000 group shares earlier this month. He currently holds 21,000 shares in the group.
Following Yoon's lead, KB Kookmin Bank CEO Hur Yin also bought a further 3,062 of the bank's shares. He paid 42,401 won per share to obtain a total of 129.83 million won worth of shares. He now has 5,062 shares in KB Kookmin Bank.
A series of financial company heads' moves to buy their company shares indicate their company stock prices are hitting the bottom.
According to the Korea Exchange, the share price of KB Financial Group was nearly 70,000 won per share in January last year, but has since declined to reach the 41,000 won per share level this month.
The share price of Hana Financial Group, likewise, stood at around 56,000 won per share earlier last year, but closed at 36,100 won per share on March 27.
BNK Financial Group also suffered a nearly 50 percent decline in its share price from 11,000 won to 6,700 won per share over the year.
"The share price of Woori Financial Group recently suffered an excessive decline due to mounting uncertainties in the global economy," said a Woori Financial Group official.
"Chairman Sohn bought the group shares once again to display his confidence in Woori's future businesses and share prices. This also demonstrates he will do his utmost to secure the group shareholders' best interest."
Market analysts agree with the financial groups' optimism.
"I believe major banks will continue their earning trend this year as well. They are also expanding their payout ratio," said Kyobo Securities analyst Kim Ji-young.
"There is no reason for them to suffer further decline in their share prices. We have recently raised their target stock prices."
Kyobo Securities set Hana Financial Group's target price at 52,000 won, Shinhan at 59,000 won and KB at 57,000 won per share.
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