Hana Financial chairman kicks off 2nd term with overwhelming shareholder support

Ham Young-joo to foster nonbanking business for diversification

By Lee Kyung-min

Hana Financial Group Chairman Ham Young-joo secured a second term with an overwhelming shareholder support rate of 81.2 percent, thanks to its largest shareholder, the National Pension Service (NPS), and most offshore investors, the group said Tuesday. His extended term will last through March 2028.

Shareholders recognized the group’s record performance under his leadership, largely quashing growing criticism from proxy voting advisories.

The term extension was widely expected, as indicated by nearly 44 percent of the over 281.6 million offshore voting shares cast during the early online voting commissioned by the Korea Securities Depository.

This, along with the state pension fund’s stake of 26.5 million shares — accounting for about 9.4 percent — helped the chair secure the yes votes by a comfortable margin.

The offshore investors’ collective move was a major shift from three years ago. In 2022, a majority of offshore investors opposed Ham's appointment.

Driving the support is the group’s net income of over 3.7 trillion won in 2024, up 9 percent from a year earlier.

The group’s share price also spiked to 62,600 won ($42.59), Tuesday, up around 40 percent from 43,000 won when his first term began in March 2023.

This will in turn raise the group’s dividend payout ratio. In 2023, the figure came to 28.6 percent, up from 27.5 percent in 2022.

Also promising is the recommendation committee of the group, which has provided full support for Ham’s term extension.

“Hana Financial was able to and will continue to succeed in achieving robust growth under Ham’s leadership,” the committee said in a letter to shareholders.

Strengthening the nonbank businesses will top Ham's to-do list, a renewed priority for sustainable growth and portfolio diversification.

Revenue from the group’s nonbanking subsidiaries is currently limited to only 16 percent of the total —far lower than the up to 40 percent generated by its four peers: Shinhan, KB Kookmin, NH NongHyup and Woori.

Hana is also seeking a merger between Hana Asset Management and Hana Alternative Asset Management.

The former, set up in 2007 and has since been known as Hana UBS Asset Management, has over 36 trillion won in assets under management (AUM), the 13th largest in the industry.

The joint entity was later fully integrated into a wholly owned subsidiary of Hana Financial Investment, after the financial investment arm of the group acquired a 51 percent stake from UBS in 2023.

Hana plans to elevate the asset management entity as the group’s key growth driver. The current 50 billion won in net income will be boosted, aided by Hana the Next, a target-date fund, a mix of several different types of stocks, bonds and other investments in a single solution to help investors prepare for retirement.

The fund invests in exchange-traded funds for maximum profit. This together with the alternative investment arm will bolster the group’s revenue profile.

The firm, specializing in real estate and infrastructure investments, has about 12 trillion won in AUM. Together, the two will create a new investment entity with around 50 trillion won in AUM, making it the 10th largest player in the industry.

Hana said its shareholder returns will be raised to 50 percent by 2027, aided by improved earnings per share and greater dividends.

In 2023, the group retired 150 billion won of stocks for cancellation, followed by 397 billion won last year.

The group will also fortify its financial soundness. Its common equity tier 1 ratio is expected to soar to a range of between 13 percent and 13.5 percent. The ratio, as measured by a financial firm's highest-quality capital relative to risk-weighted assets, is a gauge of its liquidity profile and ability to survive a challenging monetary event.