Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Financial groups’ record profits raise prospects for higher shareholder dividends
A person walks past a row of automated teller machines in Seoul belonging to major commerical banks, Feb. 1. Yonhap
By Yi Whan-woo
A retail investor using the moniker “Jingle all the way” wrote on an online forum that he is thrilled about the expected returns from financial holding companies after taking a calculated risk that their profits would grow despite the government’s tighter lending regulations.
He also expected that these gains would be shared generously with shareholders in line with the government’s stronger emphasis on investor rights.
“And I could not be happier about the record earnings from the financial holding companies last week,” the investor wrote.
He was referring to the record cumulative net income of 17.95 trillion won ($12.26 billion) posted by the four major KOSPI-listed financial holding companies — KB, Shinhan, Hana and Woori — in 2025.
The amount rose 9.4 percent from a year earlier, despite the financial authorities’ curbs on housing loans and other lending restrictions.
Such regulations had raised speculation that loan interest income, a major revenue source for the holding companies’ banking affiliates, would decline.
Interest income still increased 2.6 percent year on year, though the pace was far slower than the 16.5 percent growth recorded for noninterest income.
“These gains are likely to drive financial holding companies to act more responsibly for shareholders, especially considering the government has been urging them to increase shareholder value,” Shin Il-soon, an economics professor at Inha University, said.
KB Financial Group said it will return 1.62 trillion won in dividends and 1.2 trillion won in share buybacks in the first phase of its 2026 shareholder returns, with both figures reaching record highs.
Shinhan Financial Group seeks to increase its payout ratio to more than 60 percent after the ratio surpassed 50 percent in 2025.
Hana Financial Group said it will “take corresponding measures from the previous year” when it carried out record-high shareholder returns of 1.81 trillion won.
Woori Financial Group plans to increase its share buybacks and cancellations to 200 billion won, up about 33 percent from a year earlier.