Company Overview
Hana Financial Group is one of South Korea's four largest financial holding companies, built around KEB Hana Bank and encompassing a range of subsidiaries including Hana Securities, Hana Card and Hana Capital. Ranked third or fourth in the industry by total assets — behind KB Financial and Shinhan Financial — the group is particularly regarded for its corporate banking franchise and international network.
The starting point for any discussion of the group's value-enhancement efforts is the chronic undervaluation that has long afflicted South Korean bank stocks. For years, Hana Financial traded at a price-to-book ratio (PBR) of between 0.3 and 0.5 times, making it a textbook example of the so-called "Korea discount" — a structural gap between corporate assets and market valuations attributed to governance concerns, regulatory constraints and weak investor returns. When South Korea's financial authorities announced plans for a corporate "Value-Up" programme at the end of 2023, Hana Financial emerged as one of the most proactive respondents among the major banking groups. Under chairman Ham Young-joo, the group has placed total shareholder return (TSR) front and centre of its strategy, pursuing a combination of share buybacks, cancellations and dividend increases.
Business Fundamentals and Financial Performance
*Core earnings structure*
Hana Financial's results are overwhelmingly driven by net interest income from KEB Hana Bank. The group holds a strong competitive position in corporate lending and foreign-exchange and derivatives businesses, and its overseas earnings — generated through an international branch network — account for a relatively larger share of revenues than at most of its domestic peers. Hana Securities maintains a leading position in investment banking, while Hana Card and Hana Capital form the backbone of the non-banking portfolio.
*Financial performance by year*
Year | Net profit | Dividend per share (KRW) | Shareholder returns
2020 | c. KRW 2.4tn | 1,350 | —
2021 | c. KRW 3.3tn | 2,400 | —
2022 | c. KRW 3.6tn | 3,000 | c. KRW 580bn
2023 | c. KRW 3.4tn | 3,400 | c. KRW 1.0tn
2024 | c. KRW 3.6tn | 3,600 | c. KRW 1.5tn
2025 | c. KRW 4.0tn (est.) | 4,000 (est.) | c. KRW 2.0tn (est.)
First-half 2025 results are widely expected to be record-breaking. Reports emerging in July 2026 indicate that TSR under chairman Ham has surpassed 51%, a figure that stands out even among the big four financial holding companies.
Value-Up Milestones
*Second half of 2023 — Pre-emptive dividend increases ahead of the formal programme*
Before the government's Value-Up programme was formally launched, Hana Financial had already been on a path of gradual dividend increases. As profits recovered from the disruption of the Covid-19 pandemic in 2021–22, the group raised its dividend per share in successive steps and worked to embed a quarterly dividend payment structure. Share buybacks also began to accelerate during this period.
*Early 2024 — Public disclosure of a 50% TSR target*
Following the government's formal introduction of the Value-Up programme, Hana Financial made a public commitment to achieve a TSR of 50% as a medium-term goal — meaning that total shareholder returns through dividends and share buyback-and-cancellation programmes would be equivalent to half of annual net profit. The specificity of the target attracted considerable market attention. Notably, the group made clear that purchased shares would be cancelled immediately rather than held on the balance sheet, signalling a firm commitment to reducing share count rather than merely accumulating treasury stock.
*Second half of 2024 — Expansion of share cancellations*
The combined value of shares cancelled by South Korea's four largest financial holding companies in 2024 reached KRW 2.6 trillion. Hana Financial pursued buybacks and cancellations in parallel throughout this period, delivering a sharply higher cancellation total than the previous year. KB Financial led the peer group in absolute terms, but Hana Financial's year-on-year progress was clearly visible.
*April 2026 — KRW 400bn in buybacks and cancellations confirmed for the first half*
In April 2026, Hana Financial approved an additional KRW 200bn buyback-and-cancellation programme, bringing the cumulative first-half total for 2026 to KRW 400bn. The move was widely interpreted as a deliberate strategy to reserve further capacity for the second half whilst still driving full-year shareholder returns to a record high.
*July 2026 — TSR exceeds 51%; group signals accelerated delivery of its target*
On 2nd July 2026, reports confirmed that Hana Financial had officially committed to achieving its 50% TSR target ahead of schedule. Multiple news outlets described the announcement as a "landmark bet". Hana Financial's shares surged intraday on the back of earnings and shareholder-return expectations. Separately released data confirmed that TSR under chairman Ham had already crossed 51%, while first-half 2026 profits are expected to be record-high.
*July 2026 — Financial groups accelerate second-half buyback programmes*
A wave of reports indicated that all four major financial holding companies were moving faster than planned through their share buyback programmes. Hana Financial and its peers are understood to be preparing additional buyback-and-cancellation plans for the second half, with expectations of intensifying competition among the groups to demonstrate Value-Up progress.
Challenges and Assessment
*Key challenges*
For Hana Financial to prove that its value-enhancement efforts are sustainable, analysts point to several obstacles.
The first is the durability of earnings. Shareholder returns are ultimately funded by net profit. A combination of shifts in domestic and global interest-rate cycles, risks in real estate project-finance lending, and concerns over household loan quality could all weigh on earnings below expectations. Even if the 50% TSR threshold is reached ahead of schedule, a shrinking profit base would reduce the absolute scale of returns.
The second is the balance between capital adequacy and distributions. South Korea's financial regulators continue to press banking groups to maintain their Common Equity Tier 1 (CET1) capital ratios at adequate levels. An acceleration in share cancellations that depresses capital ratios could invite regulatory pushback.
The third is improving profitability in non-banking businesses. Hana Financial is generally considered to lag its competitors in the earnings contribution from its non-bank subsidiaries. Without a more stable performance from Hana Securities and Hana Card, there are limits to how much the group can raise its overall profit base.
*Market assessment*
The prevailing view among market participants is broadly favourable. Setting a concrete TSR target of above 50% and demonstrating the capacity to reach it ahead of schedule is widely regarded as one of the more credible performances among South Korean financial groups. The balanced use of both dividends and share cancellations is seen as building a structural, recurring framework for capital return rather than a series of one-off gestures.
Nevertheless, a competing view holds that the big four financial groups as a whole have yet to benefit fully from the Value-Up policy, with their share prices continuing to underperform the broader KOSPI index (South Korea's main stock market benchmark). Reports from July 2026 note that bank stocks lagged far behind the broader market even as the KOSPI more than doubled, suggesting that overcoming structural undervaluation remains a distant prospect.
Controversies and Limitations
*The structural limits of addressing the Korea discount*
Despite the industry's vigorous pursuit of buybacks and higher dividends, South Korean bank stocks remain stubbornly cheap. Analysts point to several entrenched reasons why PBR stays near 0.5 times: an excessive dependence on net interest income; the absence of a compelling growth narrative; restrictions on business diversification under South Korea's financial-industrial separation rules (which limit the extent to which financial conglomerates can invest in non-financial businesses); and persistent scepticism among foreign investors over corporate governance.
*Questions over the effectiveness of buybacks*
Some specialists argue that buyback-and-cancellation programmes have not produced an immediate re-rating of the stocks. Even if cancellations lift earnings per share, the market may not translate that improvement into a higher valuation multiple — leaving the exercise only half-effective. Critics also note that purchases spread over time in modest tranches fail to deliver a sufficiently sharp market signal.
*Governance uncertainty*
Whilst the establishment of chairman Ham's leadership has brought greater strategic clarity, foreign investors' misgivings about the possibility of government interference in financial group management — a longstanding feature of the Korean banking system — and about the transparency of corporate governance remain unresolved structural concerns. The independence of key decision-making processes and the composition of the board of directors continue to be recurring points of criticism.
*Substance behind ESG disclosure competition*
South Korea's four major financial groups have been competing to be "first in the industry" in their 2025 ESG reports, including through the adoption of standards set by the Korean Sustainability Standards Board (KSSB). However, critics question whether the race to publish ever more elaborate disclosures amounts to little more than a public-relations exercise, warning that cosmetic compliance could easily overshadow genuine improvements in corporate value. The quality of disclosures and their ability to build investor trust are seen as the real tests.
Summary of Key Data
Year | Dividend per share (KRW) | Buyback & cancellation | Net profit (est.) | PBR (year-end) | TSR
2021 | 2,400 | Modest | c. KRW 3.3tn | c. 0.35x | Low-to-mid 20s%
2022 | 3,000 | c. KRW 200bn | c. KRW 3.6tn | c. 0.33x | Low-to-mid 30s%
2023 | 3,400 | c. KRW 400bn | c. KRW 3.4tn | c. 0.40x | Mid-to-high 30s%
2024 | 3,600 | c. KRW 600bn | c. KRW 3.6tn | c. 0.45x | Low-to-mid 40s%
2025 | 4,000 (est.) | c. KRW 1.0tn (est.) | c. KRW 4.0tn (est.) | c. 0.50x (est.) | c. 50%
2026 H1 | — | KRW 400bn (confirmed) | Record high (forecast) | — | Above 51%