Business · Companies · 17 hrs ago
South Korea’s Four Major Financial Groups Forecast Returns Above 50%
South Korea’s four major financial groups expect shareholder returns above 50% this year, through dividends and share buybacks.
The groups are KB, Shinhan, Hana and Woori, and their projected rates range from 45% at Woori to 55% at KB.
Their average return rate has risen from about 25% in 2021 to 46% last year, as the groups expanded payouts and bought back and cancelled shares.
The shift has been supported by government policy and the groups’ efforts to raise shareholder value and address the low valuation of South Korean stocks.
The higher payouts bring the groups closer to major banks in Japan and Europe, though leading US banks have reported higher rates.
The main concern is whether they can keep enough capital to absorb losses if the economy weakens or business failures increase.
The groups aim to maintain common equity tier 1 ratios of at least 13% while increasing dividends, and competition over shareholder returns is expected to continue.
South Korea’s four major financial groups are forecast to return more than half of their earnings to shareholders this year.
KB Financial Group is projected to lead with a 55% shareholder-return ratio, followed by Shinhan at 52%.
Hana Financial Group is expected to reach 50%, while Woori Financial Group is targeting 45%.
The groups have expanded dividends and share buybacks and cancellations, lifting their average return ratio from about 25% in 2021 to 46% last year.
The higher payouts have raised concerns about maintaining capital strength if economic conditions worsen or profits slow.
- Who
- South Korea’s four major financial groups: KB, Shinhan, Hana and Woori.
- What
- They are forecast to increase shareholder returns, with three groups expected to exceed or reach 50%.
- When
- This year; the article was published on November 9, 2026.
- Where
- South Korea.
- Why
- The groups are expanding dividends and share buybacks and cancellations as part of efforts to improve shareholder value.
This story does not have two clearly opposing sides.
The average shareholder-return ratio of the four groups was about 25%.
The average ratio exceeded 35%.
The average ratio rose to 46%.
The groups’ projected ratios range from 45% at Woori to 55% at KB.
- KB Financial
- Forecast shareholder-return ratio: 55%
- Shinhan Financial
- Forecast shareholder-return ratio: 52%
- Hana Financial
- Forecast shareholder-return ratio: 50%
- Woori Financial
- Forecast shareholder-return ratio: 45%
- KB Financial
- 1.9 trillion won allocated to share buybacks and cancellations this year