Why foreign investors increase stakes in BNK Financial
BNK Financial Group Chairman Bin Dae-in / Courtesy of BNK Financial Group
Foreign investors are increasing stakes in BNK Financial Group, impressed by robust shareholder return policies and group Chairman Bin Dae-in’s investor relations efforts, market watchers said Wednesday.
Included is a stock buyback of over 100 billion won ($68.9 million) this year, highly likely to bolster shareholder returns to over 30 percent.
This has insulated the financial group from offshore investors' offloading in the week following the Dec. 3 martial law declaration. The shares of its four larger peers — KB Kookmin, Shinhan, Woori and Hana — fell by about 10 percent, whereas BNK gained over 5 percent.
According to reports submitted to the Financial Services Commission and Financial Supervisory Service, the Capital Group Companies, a Los Angeles-headquartered investment management firm, held 16.16 million shares, accounting for 5.08 percent of BNK’s share total as of March 4.
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Foreign stakes in BNK stands at around 40 percent as of March, up from around 35.85 percent in March 2023 when Bin began his chairmanship.
The largest shareholder is Lotte Shopping combined with individuals and organizations that have close business or family ties, which collectively hold over a 10 percent stake in the group.
The second-largest shareholder is the National Pension Service, with an 8.58 percent stake.
A sustained inflow of foreign investor funds is expected, buoyed by investor relations activities in Hong Kong, Singapore and the U.S.
Bin also visited Paris, Edinburgh and London from Feb. 25 to 28, meeting with institutional investors to discuss the group’s growth strategies.
In 2024, he held meetings with investors in Hong Kong, Singapore, Chicago and New York, where he brought up the group's robust earnings.
The group’s net income registered a record-high 802.7 billion won last year, up 25.5 percent from the previous year.
The group’s share price hit an intraday high of 12,300 won Jan. 31, more than double the 6,000 won in mid-March 2023.