The United States' four major asset management companies, The Capital Group Companies, have increased their equity in KB Financial Group and Hana Financial Group, becoming the second-largest shareholder. Analysis in the market indicates that the domestic financial group's value-up program has received positive evaluations from foreign management firms.
According to the investment banking (IB) industry on the 23rd, funds managed by Capital Group have recently increased their stake in KB Financial to 7.07%, claiming the position of the second-largest shareholder. Capital Group's stake in KB Financial rose from 4.88% at the end of October to 7.07% at the end of November. Capital Group steadily purchased KB Financial shares starting from October 24. The largest shareholder of KB Financial is the National Pension Service, holding an 8.21% stake.
KB Financial explained that it was able to attract major investors from foreign large asset management firms as the value-up program received positive reception in the market. Recently, KB Financial was also newly included in the value-up index. A representative of KB Financial noted, "As Capital Group expanded its equity, rising to the position of the second-largest shareholder, the positive reception from the market continued, leading to its inclusion in this special amendment of the value-up index constituents."
Capital Group is also continuously increasing its equity in Hana Financial. Last month, Capital Group acquired Hana Financial shares twice, raising its stake from 5.44% to 5.83%. Following a surge in Hana Financial's stock price due to expectations of increased shareholder returns, additional share purchases have proceeded amid a stable market. Capital Group became a major shareholder by acquiring 5% of Hana Financial's equity last March. It is the second-largest shareholder in Hana Financial, after the National Pension Service. Capital Group currently holds 5.70% of JB Financial Group's equity.
Capital Group, established in 1931, is a U.S. asset management firm managing $2.6 trillion (approximately 3,640 trillion won) in assets. Capital Group is known for its collaboration among multiple fund managers in making investment decisions and adhering to a long-term investment principle. The continued increase in its equity in KB Financial and Hana Financial, even after their stock prices showed upward trends, suggests that Capital Group believes that domestic financial group stocks are still undervalued.
Analysis also suggests that the two financial groups' active stance on dividends has influenced this situation. KB Financial announced that starting next year, it will allocate capital exceeding the common equity Tier 1 (CET1) ratio of 13% for dividends and stock repurchase and cancellation. This year, KB Financial also canceled 820 billion won of its treasury stock. Hana Financial likewise presented a goal of achieving a 50% shareholder return rate by 2027.