Shinhan Financial Group plans interim dividend payouts to defend stock price

2020.10.08 15:02:37 | 2020.10.08 16:40:48

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South Korea’s Shinhan Financial Group will hand out interim dividends and strengthen digital business to woo back foreign investors who have dumped their holdings upon its announcement of a 1.16 trillion won ($1 billion) worth rights offering last month.

Shinhan Financial Group said Wednesday that it held a workshop of board of directors with Chairman Cho Yong-byoung and CEOs of its entire affiliates on Tuesday to discuss ways to restore its stock price that has lost 4.4 percent since the recapitalization disclosure.

Offshore investors dumped 385.4 billion won worth shares over the past month, the largest foreign net sale in Korean stock.

The management agreed on the necessity for flexible shareholder return programs such as interim dividends to appease shareholders at the meeting.

The company decided to increase dividend payouts when the Covid-19 crisis settles down after the long meeting, according to a company official. It is expected to follow the suit of Hana Financial Group that paid interim dividends despite Covid-19 struggles.

On Thursday, shares of Shinhan Financial Group finished down 0.53 percent at 28,350 won.

By Moon Il-ho and Choi Mira

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