Korean Bank Stocks Outperform, Turning Executive Buy-Ins into Bonanzas (Image supported by ChatGPT)
SEOUL, July 15 (Korea Bizwire) — Executives at South Korea’s major financial holding companies are reaping substantial gains from their personal stock purchases, as share prices of leading banks surge to record highs.
According to financial industry data on Tuesday, three of the nation’s top four financial groups — Shinhan, Hana, and Woori — all hit all-time highs in trading on Friday, with KB Financial also hovering near its peak set earlier this month.
Average stock returns for the four firms have approached 60% since the start of 2025, with individual stocks up between 43% and 74%.
This rally has translated into windfall paper profits for top executives who previously purchased shares to signal “responsible management.” Hana Financial Chairman Ham Young-joo saw his 15,132 shares surge in value by nearly ₩600 million ($430,000) this year, with his return exceeding 130% based on his acquisition cost.
Woori Financial Chairman Lim Jong-ryong posted the highest return, with his 10,000 shares gaining 74% in value year-to-date — and over 126% based on his purchase price in September 2023.
Shinhan Financial Chairman Jin Ok-dong, who owns the most shares among the chairmen (18,937), saw his holdings grow by over ₩460 million this year, while KB Financial Chairman Yang Jong-hee recorded a ₩200 million gain on 5,451 shares.
In some cases, vice presidents and CFOs have outpaced even the group heads in investment returns. Woori CFO Lee Sung-wook accumulated 13,000 shares through eight separate purchases, realizing an estimated 160% return. Shinhan Bank President Jeong Sang-hyuk has also notched a 76.6% gain on his holdings.
While such share purchases are typically intended to bolster confidence in company governance, critics note the sizeable gains raise questions about timing and potential conflicts. Still, insiders say executives are unlikely to sell during their tenures and may consider additional purchases to reinforce their commitment.
“Executives usually refrain from selling their shares while in office,” said one senior official from a financial holding group. “The buying is meant to symbolize long-term responsibility, and further acquisitions remain on the table regardless of share price.”
Ashley Song (ashley@koreabizwire.com)
