KB, Shinhan, Hana promote overseas investor relations amid dismal stock performance

From left, Shinan Financial Group Chairman Jin Ok-dong, KB Financial Group Chairman Yoon Jong-kyoo and Hana Financial Group Chairman Ham Young-joo. Courtesy of each firm

By Lee Min-hyung

Leaders from Korea's major financial holding firms are ramping up their overseas investor relations (IR) activities, in a bid to improve stock performance by attracting more foreign investment.

Starting from Thursday, Shinhan Financial Group Chairman Jin Ok-dong embarked on an eight-day business trip to three European countries ― such as the Netherlands, France and the United Kingdom. Jin will meet with its investors and shareholders there.

He will also discuss future partnerships with BNP Paribas from France during his trip to Paris. Both companies have maintained close business ties for more than two decades. BNP Paribas is the fourth-largest shareholder of Shinhan Financial Group with a stake of 3.55 percent as of the end of 2022.

This is the second time that Jin has engaged in overseas IR after his trip to Japan in April. He sought digital partnerships with the country's Mizuho Financial Group and Nomura Securities.

The efforts can be seen as part of Shinhan's bid to support its stock price. Major financial stocks ― including Shinhan, KB, Hana and Woori ― have displayed a sharp downward trajectory after hitting a one-year high in January. Shinhan's stock price was traded at as high as 44,900 won per share earlier this year but has been on the decline to around 35,500 won as of June 9.

Financial Supervisory Service (FSS) Governor Lee Bok-hyun, center, speaks during a panel discussion with overseas investors on the sidelines of the Invest K-Finance: Singapore IR 2023 event in Singapore, May 9. From left are KB Financial Group Chairman Yoon Jong-kyoo, Lee and Hana Financial Group Chairman Ham Young-joo. Courtesy of FSS

Other leaders of Shinhan's rival companies are also stepping up their overseas IR for a similar reason. In May, KB Financial Group Chairman Yoon Jong-kyoo and Hana Financial Group Chairman Ham Young-joo took a five-day trip to three Southeast Asian countries ― Thailand, Singapore and Indonesia ― to promote the growth potential of Korea's financial industry and attract more foreign investment.

The two financial firms are also facing sluggish stock performance with a double-digit decline in their stock price from a high in January this year. Shares of KB Financial Group, the largest financial holding firm by market capitalization, fell by more than 15 percent. Hana Financial Group also suffered a bigger decline of 20 percent during the same period.

Despite the sluggish recovery in their stock value, leaders from the groups expressed optimism to overcome lingering financial volatility.

“Driven by robust earnings performance, Hana will continue engaging in an aggressive set of investment attraction activities by enhancing direct communication with foreign investors,” Ham said during its Singapore IR event in May.

Woori Financial Group, another top-tier financial holding firm, has yet to confirm its official plans for overseas IR activities due to its drastic organizational reshuffle after Woori Chairman Yim Jong-yong took office in March. But the company is also widely forecast to follow the similar footstep of its counterparts as early as the latter half of 2023.